Start Date

6-1-2011 4:00 PM

End Date

6-1-2011 4:45 PM

Track

1. Track 1 – Formal Paper Presentation

Subject Area

Consumer Behavior

Faculty Member

Lisa Kennon kennon@unt.edu

Abstract

With the growth globalization, an attribute that has gained recognition as a determinant in consumer purchasing is the food’s County-of-Origin. In 2002, congress first passed Country-of Origin Labeling (COOL) laws, but ran into much resistance from the food industry due to the cost that would be associated with complying with the law. It was estimated to cost the food industry $2.5 billion in the first year by the USDA. The overall objective of this research is to determine if country of origin has an effect on consumer purchasing habits when the attributes of price and appearance are applied.

Results showed when price is held constant; the appearance of the food is the biggest determinant in consumer choice. There was minimal effect due to country of origin. When the appearance was constant, the price of the food product was the most influential attribute. Country of origin had more of an effect on consumer choice in the situation. When neither price nor appearance where held constant, the combination of a good appearance with a cheap price was found to be the most appealing situation.

The most influential attribute is the appearance of the food, then the price of the food, and the lastly the country of origin. This study did however find that there was interaction between the attributes with the combination of appearance and price was the most influential. Findings showed a definite hierarchy in the three attributes identified for this study and that participants were able to identify the same hierarchy.

Keywords

Country of Origin, Price, Appearance, Choice, Produce, Law, Rank

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Jan 6th, 4:00 PM Jan 6th, 4:45 PM

Attributes Affecting Consumer Choice

With the growth globalization, an attribute that has gained recognition as a determinant in consumer purchasing is the food’s County-of-Origin. In 2002, congress first passed Country-of Origin Labeling (COOL) laws, but ran into much resistance from the food industry due to the cost that would be associated with complying with the law. It was estimated to cost the food industry $2.5 billion in the first year by the USDA. The overall objective of this research is to determine if country of origin has an effect on consumer purchasing habits when the attributes of price and appearance are applied.

Results showed when price is held constant; the appearance of the food is the biggest determinant in consumer choice. There was minimal effect due to country of origin. When the appearance was constant, the price of the food product was the most influential attribute. Country of origin had more of an effect on consumer choice in the situation. When neither price nor appearance where held constant, the combination of a good appearance with a cheap price was found to be the most appealing situation.

The most influential attribute is the appearance of the food, then the price of the food, and the lastly the country of origin. This study did however find that there was interaction between the attributes with the combination of appearance and price was the most influential. Findings showed a definite hierarchy in the three attributes identified for this study and that participants were able to identify the same hierarchy.