Source: UNIVERSITY OF FLORIDA submitted to
EVALUATING CONSUMER DEMAND FOR FLORIDA AGRICULTURAL PRODUCTS: PSYCHOLOGY, CULTURE AND ATTITUDES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0216536
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2008
Project End Date
Oct 1, 2013
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Project Director
House, LI, AN.
Recipient Organization
UNIVERSITY OF FLORIDA
G022 MCCARTY HALL
GAINESVILLE,FL 32611
Performing Department
Food and Resource Economics
Non Technical Summary
Many factors impact a person's food choice, from income level to location of residence, from health knowledge to cultural background, and the list goes on (Cosper and Wakefield, 1975). Understanding more about the factors that influence consumers= subjective perceptions about food consumption will allow agribusinesses and agricultural producers to respond more effectively to consumer concerns. Changing tastes and preferences of consumers, coupled with changes in the way food is produced and processed (i.e. biotechnology and irradiation) create a dynamic, ever changing environment. Evaluating the characteristics of consumer attitudes and preferences will help producers and agribusinesses, as well as policy makers, respond to changes in the market. Issues such as the impact of culture on food consumption can not be understated, yet it is rarely considered in agricultural economics and agribusiness literature. Additionally, an understanding of the affect of health and nutrition issues on consumer demand is of utmost importance to food processors and producers. Food safety and nutrition is a concern for consumers, food processors, and food system regulators because of the impact of the health of the population and multiple health risks from food contaminants. The impact of obesity on health and insurance and medical costs has been well documented, as has the trend to increasing rates of overweight and obesity in both children and adults. Information will be collected through a variety of methods, including, but not limited to surveys, focus groups, and experimental auctions. Data will be analyzed using econometrics to generate a better understanding of consumer demand for food products.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6046299301040%
6076299301040%
6026299301010%
7036010301010%
Goals / Objectives
The proposed research is designed to improve our understanding of the effects of culture, consumer psychology, and consumer attitudes and preferences on Florida agriculture through the analysis of consumer attitudes, preferences, networks, and culture. This information will be used to: 1) analyze consumer attitudes towards characteristics of Florida agricultural products; 2) examine potential for growth of Florida agriculture due to changes in tastes and preferences; 3) examine the affect of health and nutrition perceptions and knowledge on Florida agriculture; 4) examine the impact of social networks on demand for agricultural products; 5) develop an understanding of consumers for marketing and management purposes; and 6) to evaluate the impacts of potential and existing government food and nutrition policy. Expected outputs include journal articles and extension publications that will be useful to the academic profession and to producers and agribusinesses.
Project Methods
The primary purpose of this work is to gather information needed to understand the dynamic nature of consumer attitudes and preferences. These objectives will likely involve consumer focus groups, surveys, and experimental auctions for data collection. Information collected from consumers, as well as other information that may be collected from producers will be used to address many questions, such as: what drives consumers to make their purchase decisions; what affect does publicity on food issues (i.e. obesity and biotechnology) have on consumption; how do consumers select new food products; and what effect producers and agribusinesses can have on consumer attitudes. Information will be collected through a variety of methods. Contingent valuation surveys are often used to collect information on willingness to pay for products. The specific configuration of surveys will often be developed through exploratory research based focus groups (Dillman; Mitchell and Carson). Focus groups are a reasonably efficient qualitative market research technique in which a group of eight to ten participants of common demographics, attitude or purchase pattern, are led through a discussion of a particular topic within a specified period of time (usually one to two hours) by a skilled moderator. The moderator will be guided by a formal, written moderator guide, which outlines the general path of the discussion. Experimental methods can also be used to determine the value consumers place on these types of products. Experimental methods have advantages over typical survey methods (Fox et al.) when attempting to elicit willingness to pay measures. With experimental methods, as opposed to survey techniques, the incentive structure is designed such that participants will reveal their true valuation of a good (Shogren et al., 1994b). Depending on the data collected, an appropriate econometric modeling technique will be applied to analyze the data and draw conclusions from the research. Often, a Cragg double-hurdle model is used in these types of analyses as this model can address a two-part decision (Haines et al.). Most consumer surveys and experimental auctions will involve questions that examine why a consumer will choose whether or not to purchase a good, as well as if they do purchase the good, what affects the quantity they choose to consume. Because of this dual-level decision, a model such as the Cragg double-hurdle is often the appropriate method for analyzing consumer data. Other data requires use of limited dependant models such as the tobit or probit.

Progress 10/01/08 to 10/01/13

Outputs
Target Audience: The target audience for this project included Florida agriculture producers and processors, specifically the citrus, blueberry, and seafood industries. In addition, academic audiences in agricultural economics and related fields are included. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Graduate students and post-doctoral associates have been involved in all stages of this research. How have the results been disseminated to communities of interest? Presentations have been given both at professional meetings and meetings with producers, other agency members, and interested parties. Publications have been placed in academic journals. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? The research examining consumer perceptions of genetically modified foods has had a significant impact in a number of arenas. Consumer perceptions of varying types of genetically modified foods have important implications for public policy and marketing of agricultural commodities. The research on consumer opinions of seafood is important because it provides information to the growing seafood industry on how to target specific market segments, as well as identify other market segments for future research. Research focusing on children's consumption of seafood resulted in the preparation of a brochure distributed targeting parents and providing information and recipes to increase seafood consumption. The research on consumer perceptions of citrus is being used by citrus breeders to improve their understanding of what attributes will lead to increased consumer acceptance of their products. Additional research has investigated the impacts of proposed label changes on beverage consumption. Research has also been conducted on the impact of certain news events on citrus consumption. Research on data collection methods will be used by other researchers in the field to improve upon estimations of consumer willingness to pay for product attributes.

Publications


    Progress 10/01/11 to 09/30/12

    Outputs
    OUTPUTS: The research under this project has focused on improving understanding of the effects of consumer tastes and preferences on Florida agriculture through consumer attitudes and consumer perceptions. The majority of the research has focused on consumer attitudes on fruits, vegetables, and seafood. In the area of consumer attitudes towards seafood, the majority of work was focused on collecting and analyzing data related to children's consumption of seafood. In the area of consumer attitudes towards fruits and vegetables, recent research has focused on consumer attribute preference for citrus fruits and blueberries. Additional research has focused on the mechanisms to gather data on consumer perceptions. PARTICIPANTS: The team of researchers involved in the research on citrus attibutes has included horticultural scientists from the University of Florida's Citrus Research and Education Center, the USDA's ARS, and the Florida Department of Citrus, as well as other researchers (faculty, post-doctoral associates, and graduate students) from the Food and Resource Economics Department at the University of Florida. The team on seafood has included faculty, post-doctoral associates, and a graduate student from the Food and Resource Economics Department at the University of Florida, and staff from the Florida Department of Agriculture and Consumer Services. Research on auction and conjoint analysis data collection methods has included faculty from Food and Resource Economics at the University of Florida as well as faculty from multiple other institutions. TARGET AUDIENCES: The target audience is Florida citrus, blueberry, and seafood producers and processors, as well as academic in agricultural economics. PROJECT MODIFICATIONS: Not relevant to this project.

    Impacts
    The research on consumer opinions of seafood is important because it provides information to the growing seafood industry on how to target specific market segments, as well as identify other market segments for future research. Research focusing on children's consumption of seafood resulted in the preparation of a brochure distributed targeting parents and providing information and recipes to increase seafood consumption. The research on consumer perceptions of citrus is being used by citrus breeders to improve their understanding of what attributes will lead to increased consumer acceptance of their products. Additional research has investigated the impacts of proposed label changes on beverage consumption. Research has also been conducted on the impact of certain news events on citrus consumption. Research on data collection methods will be used by other researchers in the field to improve upon estimations of consumer willingness to pay for product attributes.

    Publications

    • Kim, H. and L. House. "The Impact of Cosmetic Defects on Japanese Consumers Preference for Fresh Grapefruit." Journal of International Food and Agribusiness Marketing, 24(2012):201-212.
    • Kim, H., L. House, and Z. Gao. "Theoretical and Perceptual Market Values for Fresh Squeezed Orange Juice." International Journal of Marketing Studies, 4(2012):45-55.
    • Bi, X., L. House, Z. Gao, and F. Gmitter. "Sensory Evaluation and Experimental Auctions: Measuring Willingness to Pay for Specific Sensory Attributes," American Journal of Agricultural Economics, 94(2012):562-568.
    • *Moseley, K., L. House, and F. Roka. "Adoption of Mechanical Harvesting for Sweet Orange Trees in Florida: Addressing Grower Concerns on Long-Term Impacts." International Food and Agribusiness Management Review, 15(2012):83-98.


    Progress 10/01/10 to 09/30/11

    Outputs
    OUTPUTS: The research under this project has focused on improving understanding of the effects of consumer tastes and preferences on Florida agriculture through consumer attitudes and consumer perceptions. The majority of the research has focused on consumer attitudes on fruits, vegetables, and seafood. In the area of consumer attitudes towards seafood, the majority of work was focused on collecting and analyzing data related to children's consumption of seafood. In the area of consumer attitudes towards fruits and vegetables, recent research has focused on consumer attribute preference for citrus fruits and blueberries. Additional research has focused on the mechanisms to gather data on consumer perceptions. PARTICIPANTS: The team of researchers involved in the research on citrus attibutes has included horticultural scientists from the University of Florida's Citrus Research and Education Center, the USDA's ARS, and the Florida Department of Citrus, as well as other researchers (faculty, post-doctoral associates, and graduate students) from the Food and Resource Economics Department at the University of Florida. The team on seafood has included faculty, post-doctoral associates, and a graduate student from the Food and Resource Economics Department at the University of Florida, and staff from the Florida Department of Agriculture and Consumer Services. Research on auction and conjoint analysis data collection methods has included faculty from Food and Resource Economics at the University of Florida as well as faculty from multiple other institutions. TARGET AUDIENCES: The target audience is Florida citrus, blueberry, and seafood producers and processors. PROJECT MODIFICATIONS: Not relevant to this project.

    Impacts
    The research on consumer opinions of seafood is important because it provides information to the growing seafood industry on how to target specific market segments, as well as identify other market segments for future research. The research on consumer perceptions of citrus is being used by citrus breeders to improve their understanding of what attributes will lead to increased consumer acceptance of their products. Research on data collection methods will be used by other researchers in the field to improve upon estimations of consumer willingness to pay for product attributes.

    Publications

    • House, L., Gao, Z., T. Spreen, F. Gmitter, M. Valim, A. Plotto, E. Baldwin. "Consumer Preference for Mandarins: Implications of a Sensory Analysis," Agribusiness: An International Journal, 27(2011):450-464.
    • Gao, Z., L. House, F. Gmitter, M. Valim, A. Plotto, E. Baldwin. "Consumer Preferences for Fresh Citrus: Impacts of Demographic and Behavioral Characteristics," International Food and Agribusiness Management Review, 14(2011):23-40.


    Progress 10/01/09 to 09/30/10

    Outputs
    OUTPUTS: The research under this project has focused on improving understanding of the effects of consumer tastes and preferences on Florida agriculture through consumer attitudes and consumer perceptions. The majority of the research has focused on consumer attitudes on fruits, vegetables, and seafood. In the area of consumer attitudes towards seafood, the majority of work was a team of researchers that have published extension documents and reports for industry. In the area of consumer attitudes towards fruits and vegetables, recent research has focused on consumer attribute preference for citrus fruits and blueberries. Additional research has focused on the mechanisms to gather data on consumer perceptions. PARTICIPANTS: The team of researchers involved in the research on citrus attibutes has included horticultural scientists from the University of Florida's Citrus Research and Education Center, the USDA's ARS, and the Florida Department of Citrus, as well as other researchers (faculty, post-doctoral associates, and graduate students) from the Food and Resource Economics Department at the University of Florida. The team on seafood has included faculty from the Food and Resource Economics Department at the University of Florida, a graduate student who completed a thesis on this topic, and staff from the Florida Department of Agriculture and Consumer Services. Research on auction and conjoint analysis data collection methods has included faculty from Food and Resource Economics at the University of Florida as well as faculty from multiple international institutions. TARGET AUDIENCES: The target audience is Florida citrus, blueberry, and seafood producers and processors. PROJECT MODIFICATIONS: Not relevant to this project.

    Impacts
    The research on consumer opinions of seafood is important because it provides information to the growing seafood industry on how to target specific market segments, as well as identify other market segments for future research. The research on consumer perceptions of citrus is being used by citrus breeders to improve their understanding of what attributes will lead to increased consumer acceptance of their products. Research on data collection methods will be used by other researchers in the field to improve upon estimations of consumer willingness to pay for product attributes.

    Publications

    • Gao, Z., L. House, and X. Yu. "Using Choice Experiments to Estimate Consumer Valuation: the Role of Experimental Design and Attribute Information Load," Agricultural Economics,41(2010):555-565.
    • Trejo-Pech, C., C. Lopez-Reyna, L. House, and W. Messina. "Appellation of Origin Status and Economic Development: A Case Study of the Mezcal Industry," International Food and Agribusiness Management Review, 13(2010):117-136.


    Progress 10/01/08 to 09/30/09

    Outputs
    OUTPUTS: The research under this project has focused on improving understanding of the effects of consumer tastes and preferences on Florida agriculture through consumer attitudes and consumer perceptions. The majority of the research has focused on consumer attitudes on fruits and vegetables, seafood, and genetically modified foods. In the area of consumer attitudes towards genetically modified foods, the majority of this research involved a team of researchers that have a number of articles published in leading journals related to this subject. In the area of consumer attitudes towards seafood, the majority of work was again a team of researchers that have published extension documents and reports for industry. In the area of consumer attitudes towards fruits and vegetables, recent research has focused on consumer attribute preference for citrus fruits. PARTICIPANTS: The team of researchers involved in the research on citrus attibutes has included horticultural scientists from the University of Florida's Citrus Research and Education Center, the USDA's ARS, and the Florida Department of Citrus, as well as other researchers from the Food and Resource Economics Department at the University of Florida. The team on seafood has included faculty from the Food and Resource Economics Department at the University of Florida, a graduate student who completed a thesis on this topic, and staff from the Florida Department of Agriculture and Consumer Services, Seafood Marketing Division. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

    Impacts
    The research examining consumer perceptions of genetically modified foods has had a significant impact in a number of arenas. Consumer perceptions of varying types of genetically modified foods have important implications for public policy and marketing of agricultural commodities. The research on consumer opinions of seafood is important because it provides information to the growing seafood industry on how to target specific market segments. The research on consumer perceptions of citrus is being used by citrus breeders to improve their understanding of what attributes will lead to increased consumer acceptance of their products.

    Publications

    • Trejo-Pech, C., R. Weldon, L. House, and M. Gunderson, "The Accrual Anomaly in the Food Supply Chain," Agribusiness: An International Journal, 25(2009):520-533.
    • Yee, W., B. Traill, J. Lusk, S. Jaeger, L. House, M. Moore, B. Morrow, and C. Valli. "Determinants of Consumers Willingness to Accept GM Foods," Int. J. of Biotechnology, 10(2008):240-259.
    • Trejo-Pech, C., R. Weldon, and L. House, "Earnings, Accruals, Cash Flows, and EBITDA for Agribusiness Firms," Agricultural Finance Review, 68(2008): 301-319.