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Description
I compare the effect of anonymous social network ratings (Yelp.com) and peer group recommendations on restaurant demand. I conduct a two-stage choice experiment in which restaurant visits in the first stage are informed by online social network reviews from Yelp.com, and visits in the second stage by peer network reviews. I find that anonymous reviewers have a stronger effect on restaurant preference than peers. I also compare the power of negative reviews with that of positive reviews. I found that negative reviews are more powerful compared to the positive reviews on restaurant preference. More generally, I find that in an environment of high attribute uncertainty, information gained from anonymous experts through social media is likely to be more influential than information obtained from peers.
ContributorsTiwari, Ashutosh (Author) / Richards, Timothy J. (Thesis advisor) / Qiu, Yueming (Committee member) / Grebitus, Carola (Committee member) / Arizona State University (Publisher)
Created2013
Description
Food safety incidents have constantly hit society and threatened human health. Hundreds of millions of people become sick after eating contaminated food every year. As the problem continues to emerge, consumers must take action to avoid purchasing risky food products. As one of the solutions, food traceability systems have been developed rapidly in many countries in recent years. More food products can now be provided with traceability information to assist consumers in making purchase decisions. To design services for grocery shoppers to access food information from food traceability systems possibly through modern technologies, this transdisciplinary user research study investigated shopper insights into food traceability information on produce provided at grocery stores, with a fusion of ideas from the disciplines of design and consumer behaviors. Through literature reviews, an online survey study, and an online interview study, this research revealed a series of shopper insights concerning (1) shoppers’ knowledge about food traceability information, (2) shoppers’ behaviors and motivations for using traceability information on produce, (3) shoppers’ perceptions towards providing traceability information on produce to them at grocery stores, (4) shoppers’ perceived important traceability information on produce, (5) shoppers’ behavior intentions of using specific ways to access traceability information on produce, and (6) shoppers’ thresholds to pay for traceability information on produce. Based on the results, this study identified design opportunities for the features, components, and mediums of the service design of future food traceability systems.
ContributorsWang, Anne (Author) / Takamura, John (Thesis advisor) / Fehler, Michelle (Committee member) / Grebitus, Carola (Committee member) / Arizona State University (Publisher)
Created2022
Description
Demand for specialty coffee worldwide is increasing, yet producers primarily located in developing countries struggle to cover their production costs and sustain their livelihood. Coffee producers are globally seeking higher profits by adapting their conventional production practices to be more socially and environmentally responsible. This dissertation aims to analyze the U.S. import demand for coffee and investigate consumer preferences and willingness to pay for coffee labels representing sustainability efforts. Chapter one introduces the coffee industry and the three chapters of this research. In the second chapter, I analyze the influence of consumers' values and the warm glow effect of giving on their willingness to pay for sustainable coffee using a non-hypothetical auction mechanism. I use an information treatment to test the effect of information on consumers' willingness to pay. Providing information increases the premium consumers are willing to pay for sustainable coffee. Regarding values, consumers that like coffee and experience the warm glow of giving are willing to pay a premium for coffee with a sustainability label. Using a hypothetical online choice experiment, in the third chapter, I investigate coffee consumers' preferences and willingness to pay for Fair Trade, Direct Trade, Rainforest Alliance and USDA Organic coffee. I find that consumers value sustainability labels that aim to solve social issues more than those whose primary goal is to solve environmental problems. I find that when two labels are together on a coffee bag, there is no effect on consumers’ utility. However, there is a positive effect on consumers' willingness to pay for coffee labeled simultaneously for Fair Trade and Organic, and simultaneously for Direct Trade and Organic. In the fourth chapter, I estimate coffee price elasticities between major coffee exporters to the U.S. and calculate pass-through import cost using a system-wide differential demand system. I compare imports of arabica and robusta green coffee and estimate the degree to which they complement each other or substitute one another. I find that arabica and robusta from Brazil, Colombia, and Mexico are substitutes but some exceptions show a complementary relationship. The inclusion of the exchange rate into the demand system has a significant effect on U.S. coffee demand. I find an incomplete pass-through cost of the exchange rate to U.S. import prices.
Chapter six concludes by summarizing the results of this dissertation and discussing the future challenges for the coffee industry.
ContributorsFuller, Katherine (Author) / Grebitus, Carola (Thesis advisor) / Schmitz, Troy (Committee member) / Hughner, Renee (Committee member) / Arizona State University (Publisher)
Created2022
Description
This study explored the consumer response and behavioral patterns in relation to sustainability marketing on food packaging. Following a global trend towards sustainability, there has been a recent explosion in the amount of sustainability labels consumers can find on product packaging, though it is not necessarily an indicator of growth of sustainable products in terms of market share. Many marketing factors, such as, price or quality, can influence dietary decisions individuals are making for their households. In the same way, labels that advertise qualities, including ethical production or minimal environmental impact may persuade consumers to buy a product, regardless of whether or not certifications are accurate. The question arises whether individuals are more likely to buy a product that has a sustainability label. More specifically, does this still hold, even if they do not know what that label actually represents? During this study, a variety of household shoppers were surveyed to gather data on consumer awareness, intentions, and overall attitudes towards the credibility and importance of these labels.
ContributorsRichardson, Rylee (Author) / Grebitus, Carola (Thesis director) / Villacis Aviega, Alexis (Committee member) / Hughner, Renee (Committee member) / Barrett, The Honors College (Contributor) / School of Sustainability (Contributor)
Created2023-05
Description
Consumers can purchase local food through intermediated marketing channels, such as grocery stores, or through direct-to-consumer marketing channels, for instance, farmers markets. While the number of farms that utilize direct-to-consumer outlets keeps increasing, the direct-to-consumer sales remain lower than intermediated sales. If consumers prefer to purchase local food through intermediated channels, then policies designed to support direct channels may be misguided. Using a variety of experiments, this dissertation investigates consumer preferences for local food and their demand differentiated by marketing channel. In the first essay, I examine the existing literature on consumer preferences for local food by applying meta-regression analysis to a set of eligible research papers. My analysis provides evidence of statistically significant willingness to pay for local food products. Moreover, I find that a methodological approach and study-specific characteristics have a significant influence on the reported estimates for local attribute. By separating the demand for local from the demand for a particular channel, the second essay attempts to disentangle consumers’ preferences for marketing channels and the local-attribute in their food purchases. Using an online choice experiment, I find that consumers are willing to pay a premium for local food. However, they are not willing to pay premiums for local food that is sold at farmers markets relative to supermarkets. Therefore, in the third essay I seek to explain the rise in intermediated local by investigating local food shopping behavior. I develop a model of channel-selection in a nested context and apply it to the primary data gathered through an online food diary. I find that, while some consumers enjoy shopping at farmers markets to meet their objectives, such as socialization with farmers, the majority of consumers buy local food from supermarkets because they offer convenient settings where a variety of products can be bought as one basket. My overall results suggest that, if the goal is to increase the sales of local food, regardless of the channel, then existing supply-chain relationships in the local food channel appear to be performing well.
ContributorsPrintezis, Iryna (Author) / Richards, Timothy J. (Thesis advisor) / Grebitus, Carola (Committee member) / Schmitz, Troy (Committee member) / Arizona State University (Publisher)
Created2018
Description
Designing a hazard intelligence platform enables public agencies to organize diversity and manage complexity in collaborative partnerships. To maintain the integrity of the platform while preserving the prosocial ethos, understanding the dynamics of “non-regulatory supplements” to central governance is crucial. In conceptualization, social responsiveness is shaped by communicative actions, in which coordination is attained through negotiated agreements by way of the evaluation of validity claims. The dynamic processes involve information processing and knowledge sharing. The access and the use of collaborative intelligence can be examined by notions of traceability and intelligence cohort. Empirical evidence indicates that social traceability is statistical significant and positively associated with the improvement of collaborative performance. Moreover, social traceability positively contributes to the efficacy of technical traceability, but not vice versa. Furthermore, technical traceability significantly contributes to both moderate and high performance improvement; while social traceability is only significant for moderate performance improvement. Therefore, the social effect is limited and contingent. The results further suggest strategic considerations. Social significance: social traceability is the fundamental consideration to high cohort performance. Cocktail therapy: high cohort performance involves an integrative strategy with high social traceability and high technical traceability. Servant leadership: public agencies should exercise limited authority and perform a supporting role in the provision of appropriate technical traceability, while actively promoting social traceability in the system.
ContributorsWang, Chao-shih (Author) / Van Fleet, David (Thesis advisor) / Grebitus, Carola (Committee member) / Wilson, Jeffrey (Committee member) / Shultz, Clifford (Committee member) / Arizona State University (Publisher)
Created2015
Description
Private label growth in emerging markets has not kept pace with the growth in private labels elsewhere. For instance, in Europe and North America, private labels now constitute an average of 35% of total retail market share, compared to emerging markets, where market shares vary between 1% and 8 %. This dissertation examines the possibility that differences in private-label performance between developed and emerging economies is not driven by one mechanism, but arises from a variety of sources, both structural, and behavioral. Specifically, I focus on manufacturers’ market power, retailers’ private label portfolio strategies, and consumers’ perceptions of private labels. In most emerging economies, national brand manufacturers tend to be the sole producers of private labels. As a result, manufacturers have inherent market power and can deter retailers from pursuing aggressive private label strategies, which results in low private label market shares. Moreover, some retailers in emerging economies now carry their private labels as part of a multi-tiered portfolio. However, a small price-gap between the quality tiers results in high intraportfolio competition leading to cannibalization and lower private label market shares. Last, private label market shares in emerging economies may be smaller than in developed economies because low-income households prefer higher priced national brands. This counterintuitive phenomenon is driven by two interrelated factors. First, social influence implies that low-income households are upward-comparing, they contrast themselves with high-income households whom they believe are better-off. Because higher-income households purchase national brands, upward-comparisons lead to a preference for national brands. Second, low income households are unknowledgeable about private label advancements hence they prefer national brands.
ContributorsPasirayi, Simbarashe (Author) / Richards, Timothy J. (Thesis advisor) / Morales, Andrea (Committee member) / Grebitus, Carola (Committee member) / Arizona State University (Publisher)
Created2016
Description
It is well understood that innovation drives productivity growth in agriculture. Innovation, however, is a process that involves activities distributed throughout the supply chain. In this dissertation I investigate three topics that are at the core of the distribution and diffusion of innovation: optimal licensing of university-based inventions, new variety adoption among farmers, and consumers’ choice of new products within a social network environment.
University researchers assume an important role in innovation, particularly as a result of the Bayh-Dole Act, which allowed universities to license inventions funded by federal research dollars, to private industry. Aligning the incentives to innovate at the university level with the incentives to adopt downstream, I show that non-exclusive licensing is preferred under both fixed fee and royalty licensing. Finding support for non-exclusive licensing is important as it provides evidence that the concept underlying the Bayh-Dole Act has economic merit, namely that the goals of university-based researchers are consistent with those of society, and taxpayers, in general.
After licensing, new products enter the diffusion process. Using a case study of small holders in Mozambique, I observe substantial geographic clustering of new-variety adoption decisions. Controlling for the other potential factors, I find that information diffusion through space is largely responsible for variation in adoption. As predicted by a social learning model, spatial effects are not based on geographic distance, but rather on neighbor-relationships that follow from information exchange. My findings are consistent with others who find information to be the primary barrier to adoption, and means that adoption can be accelerated by improving information exchange among farmers.
Ultimately, innovation is only useful when adopted by end consumers. Consumers’ choices of new products are determined by many factors such as personal preferences, the attributes of the products, and more importantly, peer recommendations. My experimental data shows that peers are indeed important, but “weak ties” or information from friends-of-friends is more important than close friends. Further, others regarded as experts in the subject matter exert the strongest influence on peer choices.
University researchers assume an important role in innovation, particularly as a result of the Bayh-Dole Act, which allowed universities to license inventions funded by federal research dollars, to private industry. Aligning the incentives to innovate at the university level with the incentives to adopt downstream, I show that non-exclusive licensing is preferred under both fixed fee and royalty licensing. Finding support for non-exclusive licensing is important as it provides evidence that the concept underlying the Bayh-Dole Act has economic merit, namely that the goals of university-based researchers are consistent with those of society, and taxpayers, in general.
After licensing, new products enter the diffusion process. Using a case study of small holders in Mozambique, I observe substantial geographic clustering of new-variety adoption decisions. Controlling for the other potential factors, I find that information diffusion through space is largely responsible for variation in adoption. As predicted by a social learning model, spatial effects are not based on geographic distance, but rather on neighbor-relationships that follow from information exchange. My findings are consistent with others who find information to be the primary barrier to adoption, and means that adoption can be accelerated by improving information exchange among farmers.
Ultimately, innovation is only useful when adopted by end consumers. Consumers’ choices of new products are determined by many factors such as personal preferences, the attributes of the products, and more importantly, peer recommendations. My experimental data shows that peers are indeed important, but “weak ties” or information from friends-of-friends is more important than close friends. Further, others regarded as experts in the subject matter exert the strongest influence on peer choices.
ContributorsFang, Di (Author) / Richards, Timothy J. (Thesis advisor) / Bolton, Ruth N (Committee member) / Grebitus, Carola (Committee member) / Manfredo, Mark (Committee member) / Arizona State University (Publisher)
Created2015
Description
It is well understood that decisions made under uncertainty differ from those made without risk in important and significant ways. Yet, there is very little research into how uncertainty manifests itself in the most ubiquitous of decision-making environments: Consumers' day-to-day decisions over where to shop, and what to buy for their daily grocery needs. Facing a choice between stores that either offer relatively stable "everyday low prices" (EDLP) or variable prices that reflect aggressive promotion strategies (HILO), consumers have to choose stores under price-uncertainty. I find that consumers' attitudes toward risk are critically important in determining store-choice, and that heterogeneity in risk attitudes explains the co-existence of EDLP and HILO stores - an equilibrium that was previously explained in somewhat unsatisfying ways. After choosing a store, consumers face another source of risk. While knowing the quality or taste of established brands, consumers have very little information about new products. Consequently, consumers tend to choose smaller package sizes for new products, which limits their exposure to the risk that the product does not meet their prior expectations. While the observation that consumers purchase small amounts of new products is not new, I show how this practice is fully consistent with optimal purchase decision-making by utility-maximizing consumers. I then use this insight to explain how manufacturers of consumer packaged goods (CPGs) respond to higher production costs. Because consumers base their purchase decisions in part on package size, manufacturers can use package size as a competitive tool in order to raise margins in the face of higher production costs. While others have argued that manufacturers reduce package sizes as a means of raising unit-prices (prices per unit of volume) in a hidden way, I show that the more important effect is a competitive one: Changes in package size can soften price competition, so manufacturers need not rely on fooling consumers in order to pass-through cost increases through changes in package size. The broader implications of consumer behavior under risk are dramatic. First, risk perceptions affect consumers' store choice and product choice patterns in ways that can be exploited by both retailers and manufacturers. Second, strategic considerations prevent manufacturers from manipulating package size in ways that seem designed to trick consumers. Third, many services are also offered as packages, and also involve uncertainty, so the effects identified here are likely to be pervasive throughout the consumer economy.
ContributorsYonezawa, Koichi (Author) / Richards, Timothy J. (Thesis advisor) / Grebitus, Carola (Committee member) / Park, Sungho (Committee member) / Arizona State University (Publisher)
Created2014
Description
Private labels command a growing share of food retailers' shelf space. In this dissertation, I explain this phenomenon as resulting from "umbrella branding," or the ability of a single brand to reach across categories. Conceptually, I define umbrella branding as a behavioral attribute that describes a shopper's tendency to ascribe a performance bond to a brand, or to associate certain performance characteristics to a private label brand, across multiple categories. In the second chapter, I describe the performance bond theory in detail, and then test this theory using scanner data in the chapter that follows. Because secondary data has limitations for testing behavioral theories, however, I test the performance bond theory of umbrella branding using a laboratory experiment in the fourth chapter. In this chapter, I find that households tend to transfer their perception of private label performance across categories, or that a manifestation of umbrella branding behavior can indeed explain private labels' success. In the fifth chapter, I extend this theory to compare umbrella branding in international markets, and find that performance transference takes its roots in consumers' cultural backgrounds. Taken together, my results suggest that umbrella branding is an important behavioral mechanism, and one that can be further exploited by retailers across any consumer good category with strong credence attributes.
ContributorsTheron, Sophie (Author) / Richards, Timothy J. (Thesis advisor) / Grebitus, Carola (Committee member) / Hughner, Renee (Committee member) / Arizona State University (Publisher)
Created2014