Understanding Heterogeneous Consumer Preferences in Chinese Milk Markets: A Latent Class Approach

Xiang Wu, Bin Hu and Jie Xiong
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Xiang Wu: HUST - Huazhong University of Science and Technology [Wuhan]
Bin Hu: HUST - Huazhong University of Science and Technology [Wuhan]
Jie Xiong: ESC [Rennes] - ESC Rennes School of Business

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Abstract: We examine heterogeneous consumer preferences in Chinese milk markets. Using a discrete choice experiment, we examine how the brand, quality certification, traceability label and price influence consumers' milk choices. We identify four consumer segments using a latent class model: price conscious (9.8%), balanced thinking (19.8%), health conscious (57.5%), and environment conscious (12.9%) consumers. These four segments have distinct preferences: price conscious consumers prefer green certification; balanced thinking consumers have the highest willingness to pay for traceability labels; health conscious consumers have strong brand awareness; and environment conscious consumers prefer organic certification and traceability labels and use price as a quality signal. Such diversity of consumer preference can be explained by four psychological factors: price consciousness, food safety concerns, health consciousness and environmental concerns.

Keywords: China; choice experiment; latent class model; milk consumption; psychological factors; Heterogeneous preference (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-agr, nep-dcm and nep-env
Note: View the original document on HAL open archive server: https://rennes-sb.hal.science/hal-02489646
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Citations: View citations in EconPapers (14)

Published in Journal of Agricultural Economics, 2020, 71 (1), pp.184-198. ⟨10.1111/1477-9552.12327⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02489646

DOI: 10.1111/1477-9552.12327

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