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People willing to pay more for coffee that’s ethical and eco-friendly, meta-analysis finds

Overall, ecolabelling worked as intended: people were willing to pay for socially responsible coffee.

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Photo by Nathan Dumlao from Unsplash.com

Lesson for coffee biz…

Beyond how much cream and sugar to add to their morning brew, coffee lovers also face more serious decisions: one of those is whether or not to buy ecolabelled coffee, which advertises itself as more ethical and environmentally friendly. But whether customers are willing to pay the extra price for these perks remains an unanswered question.

In a study publishes in the journal Heliyon, researchers combined data from 22 studies to conclude that in general, people are willing to pay $1.36 more for a pound of coffee that’s produced in an eco-friendly way and are especially partial to coffee that’s labelled “Organic.”

“We hear in the media or sometimes read in the newspaper that there is an increasing number of ecolabelling logos in the market, and that these logos are sometimes related or even look alike. This may reduce consumers’ trust and willingness to pay over time,” says first author Nizam Abdu, a Ph.D. candidate and research assistant at the University of Tasmania in Australia. “However, our results show that coffee consumers in some selected countries are still willing to pay a positive and significant premium for ecolabelling.”

As many people’s go-to beverage, coffee’s enormous social, cultural, and economic influence makes it an ideal candidate for ecolabelling, a system that identifies and certifies certain products with ethical and environmental benefits. Common coffee ecolabels include Organic, Country of Origin Labelling (COOL), and Fairtrade (a certification that workers are given fair wages and safe working conditions) and aim to help consumers make informed choices on food safety, health, and environmental impact. However, it’s possible that having too many ecolabel options will instead confuse buyers, causing them to avoid buying ecolabelled coffee.

Many previous studies have tried to quantify the public’s opinion on different types of coffee ecolabelling. But the studies have varied dramatically in their estimates of how much consumers are willing to pay: some found that people are willing to pay more, while others suggest that people actually are less willing to pay for ecolabelling. As a result, it’s been challenging to present a standardized conclusion on the overall effectiveness of ecolabels.

Abdu and his co-author set out to address this gap. They combined data from 22 studies over the past fifteen years, forming an overall dataset of 97 observations across Europe, North America, Africa, and Asia. With their meta-analysis, they wanted to understand what factors give rise to the large range of price estimates and determine once and for all whether consumers are willing to pay more for coffee ecolabelling.

The researchers found that the variation in previous studies came down to a few factors: the region or country under study, surveying methods, types of ecolabels, and publication bias, the tendency for only studies with the desired outcome to be published. For example, there was a noticeable effect on the studies’ results when survey participants made yes/no choices about which coffee they’d buy versus when they were given trade-offs and budget constraints.

After taking these things into account, however, they found that overall, ecolabelling worked as intended: people were willing to pay for socially responsible coffee.

“In general, consumers are happy to pay a premium price of $1.36 for a pound of ecolabelled coffee. In particular, we clearly see that Organic is the most crucial coffee attribute,” says Abdu. The specific ecolabels of Fairtrade, COOL, and Organic all had values significantly larger than zero, but Organic ecolabelling had the highest value of the three – people were willing to pay an additional $1.14 per pound of coffee for just the Organic ecolabel.

That said, consumer attitudes still varied depending on factors like location. For instance, compared to other regions, people were less willing to pay more for ecolabelled coffee in North America, which may suggest that preference for such a labelling system varies across the regions. The researchers were also surprised to find that while people did care where their coffee came from, they didn’t necessarily prefer coffee that was produced near them. “I was expecting consumers would prefer locally produced coffee,” he says.

The authors say, however, that their finding still suggests a clear preference among consumers for certain types of ecolabelling. Abdu says, “Our findings are a good indicator that the policy of coffee ecolabelling is working in the global coffee market.”

BizNews

Women more likely to choose wine with feminine labels

The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

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To appeal to the majority of consumers, winemakers may want to pay as much attention to what’s on the bottle as what’s in it.

A three-part experimental study led by Washington State University researchers found that women were more inclined to purchase wine that had labels with feminine gender cues. The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

With women representing 59% of U.S. wine consumers, the male-dominated field of winemaking might want to pay attention to the perceptions of this understudied group, said Ruiying Cai, lead author of the paper in the International Journal of Hospitality Management.  

“When you look at the market segments, women are actually purchasing a lot of wine. They are a large group,” said Cai, an assistant professor with WSU’s Carson College of Business. “We found that feminine cues speak to women consumers. They have more favorable attitudes toward the label and the wine itself. They were also expecting their overall sensory experience to be better, and they were more likely to purchase the wine.”

Gender cues often rely on stereotypes, and in initial tests for this research, a group of 90 women rated wine labels as more masculine when they featured rugged animals like wolves and stags as well as portraits of men. They designated labels as feminine that had cute animals, flowers and female portraits. Labels with castles and bunches of grapes were seen as neutral.

In two online experiments, a total of 324 women were shown fictitious wines with labels designed with these gendered cues. The participants showed higher intention to buy wines with a feminine label, such as a woman holding flowers, as opposed to a wine with a masculine label, such as a bulldog in a spiked collar. When asked about the expected sensory experience, they rated their liking of every sensory aspect higher, including the color, taste, aroma and aftertaste.

The participant’s level of wine expertise moderated their taste expectations but surprisingly, not their purchase intentions.

“Whether they were knowledgeable or less knowledgeable about wine, when they saw those feminine cues, they had a higher intention to buy the wine. The gender cue influence was so strong, it trumped the effect of that knowledge,” said co-author Christina Chi, a professor at WSU’s Carson College of Business.

A third experiment with another set of 138 women involved a taste test—also with a surprising finding. Researchers gave bottles of the same red wine with one of the gendered labels. More women who tasted the feminine-labeled wine ranked it higher in fruit flavors such as red current and blueberry than those who tasted the same wine with a masculine-cued label—and despite the fact those flavors were not dominant components in that particular wine. Women connected more mineral flavors with the masculine-labelled wine.

However, the participants who tasted the feminine-labelled wine reported liking it less than the women who tasted the masculine-labelled wines. The authors said this could be a result of the incongruence between the expected flavor influenced by the feminine label and the actual taste of the wine sample, which had a medium body, tannin and alcohol level.

Few studies have focused on the perceptions of women wine consumers in a field where 82% of the winemakers are men. That lack of perspective is very apparent on wine aisles, said Chi, noting that many vintners seem to favor masculine imagery like stallions, bulls and roosters–and one brand even features a prisoner in a jail cell.

“When designing the labels, winemakers should involve more women in the process, and it’s highly advisable to pilot test the labels among consumers for gender cues,” she said.

In addition to Cai and Chi, co-authors on this study include recent WSU graduate Demi Deng now at Auburn University and Robert Harrington of WSU.

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Strategies

Tips that businesses should consider during the holiday shopping season

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

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As the holiday shopping season approaches, small businesses are gearing up for one of the busiest times of the year, from Black Friday to Small Business Saturday and beyond. 

SCORE, America’s largest network of volunteer, expert business mentors, offers entrepreneurs practical advice to make the most of the season.

Plan for the Holiday Rush

Reflect on last year’s performance. Did you meet your sales goals? Use your previous data to forecast sales, set promotional strategies and manage staffing needs to provide for outstanding customer care.

“It’s about more than just sales; it’s a powerful opportunity to connect with your community, attract new customers and reinforce relationships with loyal ones,” explains SCORE mentor Lizz Smoak.

If you plan on extending store hours during the holidays, communicate these updates with your team early so you are prepared to handle increased sales traffic. Ensure that employees are aware of the holiday schedule and have submitted any time-off requests to avoid last-minute scheduling conflicts. 

Create an Experience for Customers

“Engagement is key when customer traffic spikes during the holiday season,” notes SCORE mentor Christy Jones. “Consider offering curated gift guides or exclusive bundles to simplify decision-making for your customers, especially as you compete against large retailers like Amazon.” Plan a special event or connect with other local businesses to promote shopping small.

Stand Out from the Crowd

Consider how you can make your store or service the preferred choice. “Small business owners should contact their existing customers and highlight their unique level of service,” advises SCORE mentor John Doyle.

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

Be E-Commerce Friendly

As you roll out holiday promotions, make sure that your digital doorstep is ready, too. Confirm your hours, location and contact info are updated on your website, Google Business Profile and other local listings. Many customers will be shopping on their phones so be sure your website is optimized for mobile use and that your most popular products are easy to find. A smooth checkout process is vital for keeping customers happy and encouraging repeat purchases.

“Small Business Saturday offers a prime opportunity for small businesses to step into the spotlight,” said SCORE CEO Bridget Weston. “With a strategic approach, small businesses can leverage this season and see big returns.”

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BizNews

License to chill? Bond shows ‘regressive nostalgia’ can freeze a brand’s future

“In order to minimize the negative impact of regressive nostalgia, it is important that the brand does not pander to the nostalgia displayed by a minority of super-consumers. Brand stewards must not be swayed by these loud voices and become exclusionary.”  

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Super-spy James Bond is a prime example of ‘regressive nostalgia’ highlighting how certain consumer groups cling to idealised past versions of brands and resist attempts to move with the times, a new study reveals. 

Researchers examined the James Bond movie franchise – a cultural icon for over 70 years – and discovered that some ‘super-consumers’ react negatively to modern portrayals of the fictional British secret agent that reflect contemporary societal values.  

Whilst loyal to the brand, these consumers prefer traditional, more exclusionary, versions of Bond which most closely follow author Ian Fleming’s original 1950s and 1960s vision – characterised as an arrogant, misogynistic, and racist Imperial British male. 

Publishing their findings in International Journal of Research in Marketing, consumer behavior experts from the University of Birmingham and ESCP Business School, London note that regressive nostalgia is characterized by a preference for racial and cultural purity and heroic masculinity. The phenomenon harbors exclusionary and aggressive tendencies that pose significant threats to brands. 

The researchers have, therefore, produced a toolkit to help marketeers shield their brand’s contemporary positioning from the negative connotations associated with this form of nostalgia – allowing brands to evolve without alienating their core consumer base. 

Finola Kerrigan, Professor of Marketing at the University of Birmingham, commented: “The James Bond franchise is a perfect example of how ‘regressive nostalgia’ manifests. Whilst the brand has successfully adapted to changing times, a small but disproportionally vocal part of its fanbase is anchored in the past, highlighting the need for careful brand management. 

“These ‘super-consumers’ cling to Ian Fleming’s characterisation of Bond and the period during which the novels were written to justify their nostalgia. They actively resist attempts to modernise the franchise, dismissing as ‘woke nonsense’ recent movies such as ‘No Time to Die.” 

Chloe Preece, Professor of Marketing, ESCP Business School, London notes that these Super-consumers view Bond as a heroic, white, male icon providing a ‘safe space’ for those feeling threatened by contemporary discussion about creating a more inclusive society. The character’s ‘man-of-action’ persona allows this group of mostly male consumers to identify with the spy’s ‘heroic masculinity’ based on his ability to sleep with the ‘Bond girls’. 

While the study focuses on the Bond franchise, the researchers identify parallels with other groups’ appropriation of brand resources and associating them with anti-social causes. 

“Brands use nostalgia to connect with consumers – delighting and enchanting their customer base whilst connecting them to others – but this makes nostalgia potentially dangerous in drawing consumers to the past, when it creates a sense of loss combining a cherished past and a despised present,” said independent scholar Dr Daragh O’Reilly. 

“In order to minimize the negative impact of regressive nostalgia, it is important that the brand does not pander to the nostalgia displayed by a minority of super-consumers. Brand stewards must not be swayed by these loud voices and become exclusionary.”  

The researchers note that marketeers should be alert to the risk posed by regressive nostalgia and have devised toolkit comprising of a series of questions to help brand managers assess the level of threat.

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