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Masterthesis concept presentation

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Florentina Beck

on 9 January 2014

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Transcript of Masterthesis concept presentation

Brand alliances: the relevance of fairtrade and organic labels
Research Design
Hypotheses
Measurement items
Literature Review
How do fairtrade and organic labels influence customers' willingness to pay a price premium and perceived value of a food product?
Research Question:
H2: An organic (non-organic) label on the food product leads to a higher (lower) a) customers' willingness to pay a price premium, b) perceived value of quality, c) perceived emotional value and d) perceived social value.
organic
non-organic
fairtrade
non-fairtrade
2x2 experimental design
Research Model
Hypothesis 1
Fairtrade products incorporate different ethical values, e.g. fair pricing or charitable donation (De Ferran and Grunert 2007)
influence on customers' willingness to pay a price premium (e.g. Mueller Loose and Remaud 2013)
influence on perceived value of the food product:
quality (De Ferran and Grunert 2007)
emotional (Poelman et al. 2008)
social (Ozcaglac-Toulouse et al. 2006)
Hypothesis 2
Hypothesis 3
H3: A combination of a fairtrade (non-fairtrade) and an organic (non-organic) label leads to a higher (lower) a) customers' willingness to pay a price premium, b) perceived value of quality, c) perceived emotional value and d) perceived social value than either only a fairtrade or only a organic label on the food product.
Organic label as a quality signal (e.g. Hjelmar 2011)
influence on willingness to pay a price premium (e.g. Mueller Loose and Remaud 2013)
influence on perceived value of the food product:
quality (Hjelmar 2011)
emotional (Poelman et al. 2008)
social (Van Doorn and Verhoef 2011)
Each label guarantees different attributes (Fernandez-Barcala and Gonzalez-Diaz 2006): organic and fairtrade complement each other
influence on willingness to pay a price premium (Fernandez-Barcala and Gonzalez-Diaz 2006)
influence on perceived value of the food product:
quality (Hjelmar 2011, De Ferran and Grunert 2007)
emotional (Poelman et al. 2008)
social (Van Doorn and Verhoef 2011, Ozcaglac-Toulouse et al. 2006)
"Finally, the greater the specialization and the higher the number of quality signals the higher the added value for the consumer." (Fernandez-Barcala and Gonzalez-Diaz 2006, p.43)
Hypothesis 4
Hypothesis 7
H7: Customers' health consciousness moderates the relationship between the label of a food product (organic vs. non-organic) and customers' willingness to pay a price premium, perceived value of quality, perceived emotional value and perceived social value.

High health consciousness increases (decreases) the positive relationship between an organic (non-organic) label and a) customers' willingness to pay a price premium, b) perceived value of quality, c) perceived emotional value and d) perceived social value.
References
Results Pretest
"[...]
brand alliances
involve the short or long-term association or combination of two or more individual brands, products, and/or other distinctive proprietary assets. These brands or products can be represented physically [...]or symbolically [...]by the association of brand names, logos, or other proprietary assets of the brand." (Simonin and Ruth 1998, p.30-31)
Fairtrade and organic
Perception of taste, WTP (Tagbata and Sirieux 2008)
Judgement, liking (Poelman et al. 2008)
Preference (Loureiro and Lotade 2008)
Taste preference (Grankvist et al. 2007)
Preference, WTP (Mueller Loose and Remaud 2013)
Purchase motives (e.g. De Ferran and Grunert 2007, White 2012)
Characteristics and sociodemographics of buyers (De Pelsmacker et al. 2005)
Taste preference (Grankvist et al. 2007)
Preference, WTP (Mueller Loose and Remaud 2013)
Purchase motives (e.g. Bauert et al. 2012, Hjelmar 2011)
Characteristics ( e.g. Michaelidou and Hassan 2008, Schifferstein and Ophuis 1998)
Purchase intention, WTP (e.g. Bauer et al. 2012, Janssen and Hamm 2012)
Purchase Intention, WTP (Auger et al 2010, Auger et al. 2008, De Pelsmacker et al. 2005)
Perceived value
Perceived functional value of quality/performance
Perceived functional value of price/value for money
Perceived emotional value
Perceived social value
(Sweeney and Soutar 2001)
Food products (Wang 2010, Aybeniz Akdeniz 2012)
Buyers' inner motives/values relate to ethics: social (Webster 1975) and environmental (De Ferran and Grunert 2007)
increase influence on willingness to pay a price premium (De Pelsmacker et al. 2005)
increase influence on perceived value of the food product:
quality (De Ferran and Grunert 2007)
emotional (De Ferran and Grunert 2007)
social (Ozcaglac-Toulouse et al. 2006)
Organic food chosen and bought due to their healthiness (e.g. Bauer et al. 2012, Van Doorn and Verhoef 2011)
increase influence on willingness to pay a price premium (e.g. Linder et al. 2010, Schifferstein and Ophuis 1998)
increase influence on perceived value of the food product (Linder et al. 2010):
quality
emotional
social
Consistency over products (coffee/tea)
Sample description
Demographics
Manipulation Checks
Credibility
Method: independent samples t-test
organic
non-organic
fairtrade
non-fairtrade
Sample size:
N=123 (31, 31, 31, 30)
Gender:
44.7 % male
55.3 % female
Age:
M=28.62 yrs
Minimum: 18 yrs
Maximum: 63 yrs
Expertise
Trustworthiness
Reliability: Conbach's Alpha 0.921
Validity: 71.77 % (AVE) loading on one factor
(factor loadings of items > 0.7)
(6 items)
(3 items)
(3 items)
Hypothesis 6
Reliability: Cronbach's Alpha 0.882
Reliability: Cronbach's Alpha 0.873
Validity: 81.01 % (AVE) loading on one factor
(factor loadings of items > 0.7)
Validity: 80.24 % (AVE) loading on one factor
(factor loadings of items > 0.7)
H5: Consumers' trust in the credibility of labels moderates the relationship between the label of a food product (organic vs. non-organic) and customers' willingness to pay a price premium, perceived value of quality, perceived emotional value and perceived social value.

A high customers' trust in the credibility of labels increases (decreases) the positive relationship between an organic (non-organic) label and a) customers' willingness to pay a price premium, b) perceived value of quality, c) perceived emotional value and d) perceived social value.
No significant differences between coffee & tea
No significant differences between coffee & tea
No significant differences between coffee & tea
No significant differences between coffee & tea
organic
non-organic
fairtrade
non-fairtrade
Method: independent samples t-test
organic
non-organic
fairtrade
non-fairtrade
H4: Consumers' trust in the credibility of labels moderates the relationship between the label of a food product (fairtrade vs. non-fairtrade) and customers' willingness to pay a price premium, perceived value of quality, perceived emotional value and perceived social value.

A high customers' trust in the credibility of labels increases (decreases) the positive relationship between a fairtrade (non-fairtrade) label and a) customers' willingness to pay a price premium, b) perceived value of quality, c) perceived emotional value and d) perceived social value.
H6: Customers' ethical concerns moderate the relationship between the label of a food product (fairtrade vs. non-fairtrade) and customers' willingness to pay a price premium, perceived value of quality, perceived emotional value and perceived social value.

High ethical concerns of customers increases (decreases) the positive relationship between a fairtrade (non-fairtrade) label and a) customers' willingness to pay a price premium, b) perceived value of quality, c) perceived emotional value and d) perceived social value.
H1: A fairtrade (non-fairtrade) label on the food product leads to a higher (lower) a) customers' willingness to pay a price premium, b) perceived value of quality, c) perceived emotional value and d) perceived social value.
Trustful and expert independent organization's claim are perceived as more credible (Lunardo and Saintives 2013, Moussa and Touzani 2008)
increase influence on willingness to pay a price premium (Fotopoulus and Krystallis 2001)
increase influence on perceived value of the food product (Erdem and Swait 2004):
quality
emotional
social
(Bühl 2012)

No significant differences (p< 0.05) between coffee & tea
Significant differences (p<0.001)
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