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The objective of this study is to enhance understanding on how a firm can generate value for its customers using a competitive advantage strategy by accumulating credible attributes to its products. There are certain product attributes that customers can only perceive. In the case of agricultural food products, the customers’ consciousness for safe, natural and organic products has enriched the perceived value of the product. To explore the relationship between the credence attributes and attitude of the customers for the agricultural food, a survey questionnaire has been administered to consumers of agricultural food products in the different regions of Punjab, Pakistan. The data analysis has been conducted using the Statistical Package for Social Sciences (SPSS) to investigate the desired relationship in that particular region of the country. It can be concluded that the trust of customer is now very much depending on the presence of credence attribute that customer cannot describe but evaluate during the purchase of food items.

Traditional foods are facing new market challenges tied to current trends in food habits and their determinants, such as the decline of domestic food preparation, the increased demand for convenience foods, the increasing importance of industrial food production, and the evolution of regulations on food safety. In this context our study aims at improving the knowledge of consumer segments in traditional foods market in order to develop better marketing strategies. The preferences for different credence attributes are investigated applying a latent class choice model to the extra-virgin olive oil market in Italy. Results show the existence of a marked heterogeneity of preferences, which determines the presence of both vertical and horizontal differentiation of the product. [ABSTRACT FROM AUTHOR]

Organic foods fall into the category of credence goods because an array of attributes makes it difficult for consumers to evaluate the quality of organic foods. By focusing on two credence attributes of organic foods (food safety and eco-friendliness), the current study investigates how these attributes influence consumers’ perceptions of quality and value, which in turn increase purchase intentions. The study further examines whether the proposed relationships differ by expenditure share of organic foods. We used a two-step approach of Structural Equation Modeling (SEM) to analyze data obtained from 725 consumer panel members who were primary grocery shoppers and had purchased organic foods. The results give insights on the role of two credence attributes in developing quality and value perceptions of organic foods. We also find dynamics underlying the role of the credence attributes depending on consumers’ expenditure share of organic foods. The findings of this study not only contribute to the organic food literature but also help industry, government, and consumer associations to fully understand consumer perceptions of credence attributes of organic foods and thus to enhance consumers’ responses to organic foods. [ABSTRACT FROM AUTHOR]

During the last few decades consumer demand for local foods has increased around the world, particularly in the USA and Europe. Such consumer trend also contributes to redefine a new alternative geography of food; in which local foods are perceived to be of better quality and safer. Moreover, consumers frame local food quality not only in terms of general attributes, such as taste and price, but also in terms of more subjective attributes closely linked to social and environmental aspects of products. These attributes are recognised by consumers as a range of socially constructed food quality criteria, which play an important role in the creation of information about quality and consumer decision-making. In this study, to better understand the choice of consumers with respect to food sourced locally, it was decided to analyse, as illustrative case product, the consumption of honey. More in depth, the aim of this study is to identify the quality characteristics that most influence the purchase of locally produced honey, or to identify those that may affect transactions in the local market for honey, guiding the choices of consumers. [ABSTRACT FROM AUTHOR]

A nonhypothetical second-price Vickrey auction was conducted to elicit consumer preferences and willingness-to-pay (WTP) for vegetable attributes, including production technique, origin, taste and health benefits. Using a latent class analysis (LCA) we segmented participants based on health-driven motivations, WTP estimates and socio-economic characteristics. Two latent classes were found and characterized as: ‘Health Conscious’ and ‘Health Redeemers’. In particular, the ‘Health Conscious’ consumers presented healthy lifestyle habits, expressed price premiums for domestic and local-specialty food products after a blind tasting treatment, but they did not have price premiums for health benefits of the products. On the contrary, the ‘Health Redeemers’ presented unhealthy lifestyles but they were willing to pay more for healthy food products, perhaps in an attempt to make up for their unhealthy habits. [ABSTRACT FROM AUTHOR]

In the past two decades, due to the series of crises within the agro-food system, such as BSE, dioxin, and foot and mouth disease, consumer demand for sustainable production has considerably grown in European society. Consumers seem to frame food quality in terms of social and environmental aspects of productions, which may be recognized through a certification labelling or through a system of food quality criteria that give rise to conventions of quality. The aim of our study was to understand how food quality and labelling are assessed by rural population in Southern Italy. Local beef production with sustainable voluntary certification was the focus of our empirical strategy. Our decision to survey local beef production arises from our need to measure the effect of credence/conventions quality attributes and labelling in rural communities. Through this study we try to understand which quality attributes or quality conventions influence consumer decision-making to purchase local beef. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to detect what experience and credence quality attributes contribute to the consumer decision to consume cactus pear fruit. The authors therefore try to measure the effect of each quality attribute on consumer choice. Design/methodology/approach – As a theoretical basis, two principal quality attributes emphasised in the literature on consumer behaviour were analysed and adjusted to the specific fruit features. The empirical strategy was carried out by administering a telephone questionnaire survey of 270 interviewees who consume cactus pears in Italy. The questionnaire, consisting of 14 items expressed on a metric scale (five-point Likert scale), was used to rate the importance of cactus pear fruit quality attributes. An ordered logit model was employed for data analysis. Findings – The results show that consumption of cactus pear fruit is mainly based on credence and experience attributes, which have different effects on the consumer decision to consume cactus pear fruit. Among experience quality attributes, the colour red, a low quantity of seeds, and being peeled are the attributes with major effects, following by credence attributes such as environmental sustainability, healthiness, and Italian origin. Research limitations/implications – The research was based on a particular fruit, and further comparative research is clearly needed. In fact, further advancement in cactus pear research would require that the validity of the empirical findings and their degree of generalisation be examined in other geographical areas. Practical implications – The results of this study could help to identify some factors on which business could intervene to create a more effective consumer-based approach. Originality/value – This study contributes to a better definition of cactus pear fruit quality for consumers with the aim of developing marketing strategies to increase farm business. To the best of the knowledge, no study has ever measured the effects of cactus pear fruit quality attributes on consumer choice. [ABSTRACT FROM AUTHOR]

This article introduces the special section on consumers and trust. It discusses how the concept of trust has been treated in the literature and identifies concepts of institutional trust and generalized trust that permeate much of the trust literature. An introduction to the five papers in the special section is provided and common themes across the papers are identified. The papers in the special section provide new empirical insights into the drivers and outcomes of consumer trust in food, with applications to environmental attributes, nanotechnology and functional food, as well as a focus on the relationship between firm-level initiatives (cause-related marketing, branding) and consumer trust. A common policy theme throughout the papers, across different study contexts and in different countries, is that institutional trust remains important and is a shared responsibility across public and private sector actors. [ABSTRACT FROM AUTHOR]

Food decisions occur very frequently and are influenced by a variety of individual as well as contextual factors. Physical product attributes, including for example, caloric density, water content and sweetness are important drivers of food choice and preferences. However, food products are usually not evaluated solely based on their nutritional content. In addition, most products are packaged and carry abstract attributes, such as quality claims, and brand names. Critically, these product attributes, not products attributes also influence food consumption, reported consumption enjoyment, and product demand. A variety of these marketing actions were shown to alter consumption experiences of otherwise identical products, inducing a so-called marketing placebo effect (MPE). Here, we review studies providing insights into the various behavioral and neural processes underlying the response to these contextual marketing cues. An extensive amount of studies has shown impressive, sometimes peculiar and also disquieting effects of branding, logos, labels and prices on behavioral measures. We will illustrate the plethora of affected behaviors, ranging from increased taste pleasantness ratings for higher-priced wines to enhanced cognitive performance after drinking a higher-priced energy drink, compared to the identical lower-priced counterparts. Credence attributes, such as organic or social sustainability labels, have been gaining relevance in many industrialized countries, and influence product demand and consumption experience. We will therefore introduce studies that systematically investigated the effects of credence claims, elucidate possible mechanisms, and emphasize the negative consequences when misusing such claims. As children are an important and vulnerable target group for marketing actions, we will also specifically present studies conducted in children. These studies highlight the influence of marketing actions on children's taste perception, product demand, and effort to obtain a certain product. We will shortly introduce the neurobiology of food choices, and present suggested processes underlying MPEs. Converging evidence confirms that MPEs are not a mere result of demand effects, but that they influence the neural responses to products down to a primary somatosensory level. We will show that marketing claims are very effective in influencing expectations and subsequent consumption experience. Therefore, we suggest that public policy interventions may build upon MPE research, and we will provide evidence for this supposition. Throughout this review, we present insights from a variety of different disciplines, including marketing, psychology, neuroscience and nutrition science. Albeit far from exhaustive, this non-systematic review aims at providing a joint perspective from various fields, highlighting that future research endeavor is certainly auspicious. [ABSTRACT FROM AUTHOR]

Purpose -- Although locally sourced and produced foods are a growing trend in food marketing, they are not yet clearly understood nor consistently defined. There is no lack of definitions currently offered, however, based on expanding, evolving, and sometimes conflicting, dimensions. The purpose of this paper is to investigate various emerging definitional elements of local foods to determine which elements may be as important to food shoppers today as the prevailing food miles definition. Design/methodology/approach -- A shopper survey is fielded and repeated measures ANOVA conducted to measure the relative importance of various definitional elements, assess where shoppers expect to acquire local foods, the price premium they are willing to pay, and differences that may exist across customer groups. Findings -- The study finds that consumers do consider other definitional elements as important as distance in their definition of local foods and they expect to find them in secondary outlets beyond farmers markets and the produce department. Consumers are willing to pay a price premium and there are differences across light, medium, and heavy users. Practical implications -- This study provides researchers with an expanded and clearer definition of local foods for future research and practitioners with guidance on what shoppers expect and value today and how to better source, merchandise, and promote local foods. Originality/value -- By combining definitional elements from across industry, government, and academia and analyzing them together, this study offers a more comprehensive definition of local foods and consumer expectations. [ABSTRACT FROM AUTHOR]

Nowadays, consumers are increasingly sensitive to the conditions under which the food they purchase and consume is produced, cultivated and processed. Furthermore, consumers also incorporate environmental impacts, animal welfare concerns and other process attributes into food purchase decisions. More specifically, increased interest in production practices and technologies used in food production has been seen, specifically concerning irradiation, use of antibiotics, hormones, special feeders, synthetic fertilizers, herbicide and pesticide use. In the past years, perhaps one of the most controversial technologies employed in the food production is the use of genetic modification of food. These concerns are even bigger regarding practices or technologies and materials used in the produced food,, specifically for infants or young children, making labeling and marketing of products for such special- interest segments of the population an area of continued controversy. As a result, growing segments of world consumers seek improved quality, healthiness and variety in the food they are consuming. Accordingly, the demand of agro-food products possessing these characteristics is rapidly increasing, and the food marketing sector is responding to an increased level of interest to the consumer demand for products with an increasingly wide array of attributes. The needs of differentiation include factors related to experiential eating quality as well as credence attributes related to environmental and other social outcomes. But consumers often do not have enough information when buying goods with attributes that are aligned with the above mentioned issues, and it is often difficult for them to check the honesty of these claims. It seems that it is necessary to adapt marketing practices, since consumers demand the food to have certain credence attributes, and often, are willing to pay more for such food. In global agri-food markets, products marked as "organic", "eco- friendly", "safe", "natural", "locally grown", "place-of-origin", "animal welfare" and "kosher" are just a few examples of "credence attributes" food. Consumer preferences, concerns, fears, politics and beliefs seem increasingly to govern new food marketing opportunities based on the nature of food production systems. This paper attempts to advance knowledge in credence attributes for agricultural and food product, as well as to address the need of developing appropriate marketing approach in order to meet the increasing market interests in these products. [ABSTRACT FROM AUTHOR]

This paper uses quality theory to identify opportunities for the meat sector that are consistent with trends in meat consumption. Meat consumption has increased and is likely to continue into the future. Growth is largely driven by white meats, with poultry in particular of increasing importance globally. The influence of factors such as income and price is likely decline over time so that other factors, such as quality, will become more important. Quality is complex and consumers' quality expectations may not align with experienced quality due to misconception of certain intrinsic cues. Establishing relevant and effective cues, based on extrinsic and credence attributes, could offer advantage on the marketplace. The use of extrinsic cues can help convey quality characteristics for eating quality, but also for more abstract attributes that reflect individual consumer concerns e.g. health/nutrition, and collective concerns, e.g. sustainability. However, attributes are not of equal value to all consumers. Thus consumer segmentation and production differentiation is needed. [ABSTRACT FROM AUTHOR]

Consumers' food choices are influenced by a wide variety of credence attributes, but the food industry faces problems assessing whether the price premiums that consumers are willing to pay for these attributes will be sufficient to offset higher production costs. In this context, consumers' willingness to pay ( WTP) for safer, cleaner and animal friendlier beef was investigated through a choice experiment. The relative importance of WTP for these attributes shows that consumers place the highest values on food safety, followed by animal welfare and finally environmental protection. WTP for different combinations of the three attributes cannot be obtained by independent valuation and summation due to the presence of significant substitution relationships. However, some suggestions for the relationships between these attributes can be proposed through an after-survey analytical solution. The bias involved in separately valuing closely related attributes can potentially jeopardise the success of a differentiation strategy. [ABSTRACT FROM AUTHOR]

The retail market for seafood is dynamic with substantial competition both amongst retailers and between private labels and national brands. New product attributes are added in attempts to differentiate products and to attract consumers. Credence attributes, in particular those related to eco-labels and fishing method, have become more common. But little is known about how these and other credence attributes are valued in the retail market. In addition, little is known about price differences between private labels. To estimate the value of these attributes, weekly in-store observations of selected frozen whitefish products were conducted in seven UK retail chains in the city of Glasgow. An estimated hedonic model shows a substantial price premium for fishing method (line-caught), a premium for both home ( Scottish) and non-home country of origin ( Icelandic) and a premium for the Marine Stewardship Council eco-label. An uncertified eco-label owned by a large seafood manufacturer leads to reduced price. The study also reveals substantial price differences between private labels for whitefish. The results contribute new insights regarding opportunities for differentiation by credence attributes which may lead to more sustainable and effective resource use along the value chain for frozen whitefish. [ABSTRACT FROM AUTHOR]

We review herein the relevance of credence and sensory attributes for cheese liking as a basis for subsequent discussion on attributes related to traditional dairy products such as place of origin, process characteristics, etc. Several studies suggest that place of origin may have a positive impact on consumer evaluation. In addition, protected designation of origin labels generally affects consumers' purchasing decisions, with a premium price paid for traditional products. Some of the main dimensions of traditional food products are: familiarity of the product, processing through traditional recipes, sensory properties and origins. However, different dimensions can be relevant for consumers of different countries. Southern European regions frequently tend to associate the concept of traditional with broad concepts such as heritage, culture or history; whereas central and northern European regions tend to focus mainly on practical issues such as convenience, health or appropriateness. Sensitivity to traditional cheese attributes may also vary according to different groups of consumers with older, more educated and wealthier subjects showing higher willingness to pay and acceptance levels. Given that sensory properties play a central role in product differentiation, we can conclude that information about credence attributes, if reliable, positively perceived and directed to sensitive groups of consumers, is able to affect consumer liking and willingness to pay for traditional cheese. Thus, it provides a further potential tool for product differentiation to small-scale traditional farms, where husbandry is often based on extensive rearing systems and production costs tend to be higher. [ABSTRACT FROM AUTHOR]

An audit consists of two main components: (1) the assessment of risk, and (2) the planning and execution of audit procedures. Both activities require a great deal of professional judgment. In this sense, the auditor is an expert who is best positioned to assess the risk and to conduct the audit in accordance with professional auditing standards. We use a simple decision-making framework to illustrate an auditor's possible strategies when an auditee cannot directly determine the effort level required to conduct an audit appropriately. We discuss and compare three economic perspectives for the audit: search goods, experience goods, and credence goods. Based on the economic theory of credence goods, we predict that a seller has incentives to act strategically when buyers are faced with considerable uncertainties relating to a service they purchase. Specifically, we argue that an auditor might have incentives to (1) under-audit, (2) over-audit, or (3) overcharge. These strategic actions have important implications for audit quality, efficiency, and regulation. We also discuss the professional and institutional arrangements that serve to limit the strategic behavior of auditors. Finally, we discuss previous empirical and behavioral audit evidence in the context of the credence aspects of an audit. [ABSTRACT FROM AUTHOR]

The article presents a study comparing meat quality based on producer-defined production systems differentiated by intangible credence attributes with Commodity beef to ascertain meat quality and evaluate consumer acceptability. It highlights the differences in quality between credence based production system and commodity beef. Materials, methods, and statistical analysis for the study are provided.

Extensive research exists on who does or might purchase organic food products, however little research has addressed either who values organic production methods when deciding what to eat, and correspondingly, who does not purchase organics regularly. This paper reports that values about organic farming often do not translate into corresponding stated preferences about organic food consumption behavior. The paradox is examined within the context of the consumers' sociodemographic characteristics as well as through opinions and preferences related to food in their lives. Results show that consumer claims of buying organics and placing importance on organic production systems when deciding what to eat are highly correlated (.472 at 1% significance level; p<. 001). Organic consumers, however, comprise only slightly more than one quarter (27%) of the highly enthusiastic proponents of organic production methods. Our results corroborate existing research that well-educated persons and those who are primary household shoppers purchase organics most frequently. Additionally, women and those who are older, have higher incomes, and are more liberal, as well as respondents who claim food production knowledge also tend to buy organic food regularly. Regression and factor analysis show that those who value organic production systems when deciding what to eat may be ranked in the following order: the religiously observant, older and female respondents, persons of color, and those who claim food production knowledge. Results show that many of these organic system proponents are under-represented as buyers, in particular: the religiously observant, those for whom food plays an integral role in their lives, the less educated, and lower income and older respondents. More attention should be directed to people who value organic production systems yet do not purchase organics. This will enhance understanding of the transaction barriers that impede consumer participation in the organic market. How this population values organic production systems also has implications for the development of public policy related to sustainable and organic agriculture. [ABSTRACT FROM AUTHOR]

We attempt to quantify and qualify the preferences of consumers for beef with a number of environmental and food quality attributes. Our goal is to evaluate the viability of a proposed food co-operative based in the Wood River watershed of southern Saskatchewan, Canada. The food co-operative was designed to provide a price premium to producers who adopted alternative management practices. In addition, the study evaluated the acceptance of a proposed food co-operative by consumer that had environmental interests as compared to the general population. Conjoint analysis was used to determine the trade-off and relative value of beef with the following production and purchasing characteristics: (a) use of hormones, antibiotics and vaccination in production; (b) method of obtaining the beef including monthly or yearly purchase contracts or a local market; (c) price relative to beef purchased from the local grocery store; and (d) impact on the river ecosystem. Consumers from environmental groups had stronger environmental and food quality preferences than individuals from the general population. However, consumers from both groups expressed a willingness to pay higher prices for food that had these attributes. It was uncertain whether the magnitude of the premium, in combination with a desire not to enter a long-term purchasing commitment, would be large enough to encourage farmers to adopt the alternative management. [ABSTRACT FROM AUTHOR]

Abstract: The Quality Guidance Model was extended beyond sensory properties to include credence motivations like healthiness, environmental friendliness, naturalness, and safety. This Extended Quality Guidance Model was built and tested to explain consumer preferences from consumer perceptions, expert sensory judgments, and metabolite features of tomatoes. The different type of features (sensory, technical, and consumer perceptions) made it possible to explore the actionability of the features in predicting consumer preferences both in-store and upon consumption. [Copyright &y& Elsevier]

An array of concerns about animal health, potential bio-terrorism, food safety, international trade, consumer demand for credence attributes, and improving supply chain management are igniting unprecedented change in the international meat and livestock market. One noteworthy development is accelerated advancement of national individual animal identification programs. This study reviews how these systems work and what motivates animal traceback system implementation. A case study approach is used to overview an extensive system currently being used and developed in Australia. Based upon the Australian experience, we present recommendations for pending U.S. animal identification systems. [ABSTRACT FROM PUBLISHER]

Abstract: Conventional wisdom holds that process is irrelevant to the demand function for a good if it cannot be observed in the final good''s characteristics. Organizations promoting trade even promulgate regulations requiring that process information be thrown out as tariffs or barriers to trade. It is argued here that even if end products are physically identical, process is a relevant dimension of goods that can have a major impact on the demand function, particularly process elements related to the ethical dimensions of production. Implications of process attributes of goods and their information implications are explored, particularly regarding animal products and the environment. It is concluded that institutional barriers currently provide consumers with insufficient process information. For markets to function optimally, additional information should be provided to consumers. [Copyright &y& Elsevier]

The objective of this study is to enhance understanding on how a firm can generate value for its customers using a competitive advantage strategy by accumulating credible attributes to its products. There are certain product attributes that customers can only perceive. In the case of agricultural food products, the customers' consciousness for safe, natural and organic products has enriched the perceived value of the product. To explore the relationship between the credence attributes and attitude of the customers for the agricultural food, a survey questionnaire has been administered to consumers of agricultural food products in the different regions of Punjab, Pakistan. The data analysis has been conducted using the Statistical Package for Social Sciences (SPSS) to investigate the desired relationship in that particular region of the country. It can be concluded that the trust of customer is now very much depending on the presence of credence attribute that customer cannot describe but evaluate during the purchase of food items [ABSTRACT FROM AUTHOR]