Agriculture Reference
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high-end
C
E
F
G
H
value-oriented
supermarkets
B
A
D
Fig. 3. Example Households with Specific Format Loyalty Tendency Combination
Loyalty
milk
Eggs
value-
super-
high-
2005-06
2007-08
2005-06
2007-08
oriented markets
end β1
β2
β1
β2
β1
β2
β1
β2
A
1
0
0
-2.86
-40.50
-1.27
-4.18
-4.54
-5.97
3.99
-32.24
B
0
1
0
-1.89
-7.88
-2.21
-3.39
-3.77
4.87
-2.87
11.65
C
0
0
1
9.32
105.64
-4.80
76.35
-7.36
43.85
-4.87
16.63
D
0.5
0.5
0
-2.37
-24.19
-1.74
-3.78
-4.15
-0.55
0.56
-10.30
E
0.5
0
0.5
3.23
32.57
-3.04
36.09
-5.95
18.94
-0.44
-7.81
F
0
0.5
0.5
3.72
48.88
-3.51
36.48
-5.56
24.36
-3.87
14.14
G
0.33
0.33
0.33
1.53
19.09
-2.76
22.93
-5.22
14.25
-1.25
-1.32
H1 0.18 0.81 0.01 -1.90 -12.12 -3.96 3.48
H2 0.22 0.77 0.01 -2.03 -2.67 -1.37 1.96
Table 8. Differences in Fixed Tendency and Price Sensitivity among Example Households
Returning to table 7, we find that the households who prefer “discounts” or with larger
basket sizes tended to purchase more conventional milk and eggs. Unsurprisingly, we find
higher likelihoods for households that purchase other organic foods and with higher
incomes to purchase organic milk and eggs. We did not find a clear indication for the impact
of days between trips on organic choice. Households that traveled further to shop for food
tended to favor the purchase of conventional eggs.
The coefficients of the remaining demographic variables show mixed results in general.
Those consumers with a college degree tended to purchase fewer organic milk and eggs
except in the first period for eggs. The consumers' marital status shows no statistical impact
as being a differentiating factor in their consumption choice of organics. We however find
that organic eggs are more attractive to small households. In addition, families with
preschool children are more likely to buy organics, while families with school-age children
and the elderly households are more likely to choose conventional over organic milk or
eggs. This is an interesting finding as it seems to suggest that the younger generation
(parents) are more likely to consume organics, which is consistent with findings in many
studies and marketing efforts focusing on organic infant foods and foods to attract the
younger generation.
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