Agriculture Reference
In-Depth Information
the marginal effects revealed for this variable clearly suggest that higher frequency of
purchase is closely related with households' disposable incomes (and vice versa). The
corresponding quasi-elasticity for a consumer group that purchase such produce on a
regular basis (once a week or more) is considerably lower (0.39), and therefore the intensity
of the relation is smaller.
The model results with respect to the stated environmental concern reveal that respondents
not considering production of organic or integrated fruit and vegetable as environment
friendly (or they are indifferent to environmental aspects of production) are more likely to
be among non-buyers. It however has to be further noted that the impact of environmental
concerns on purchasing behaviour is significant, but not explicit. However, the highest
relation is found for the non-buyer group (0.08). Rather inconclusive results regarding
environmental concern might be further explained with low association between organic
and integrated production practices and implications on environment by the Slovenian
consumers.
If a respondent perceives organic and integrated fruit and vegetables being healthier than
conventional products the probability (and frequency) of actual purchase is significantly
higher. On the contrary, persons not considering quality products as healthier are more
likely to be among non-buyers (quasi elasticity 0.10).
According to the model results, price consciousness has no significant impact on purchase of
quality fruits and vegetables. Interestingly, non significant coefficient suggests that price of
higher quality products is not a decisive element of purchasing behaviour. Purchasers are
likely to continue buying such products notwithstanding higher prices. Surely, these results
should not be considered a basis for an ultimate conclusion about low consumer price
sensitivity for organic and integrated fruit and vegetables in Slovenia. Some additional and
more sophisticated measuring approaches should be employed to confirm these indications.
However, it is confirmed by the model results that consumers consider the visual
attractiveness (appeal) of fruits and vegetables when they make purchasing decision.
Consumers which believe that visual appealing of organic or integrated fruit and vegetables
is not satisfying (worst than conventional), are less likely to buy these categories of produce.
The highest quasi-elasticity is 0.02, which is again linked with decision not to purchase and
therefore, and for that group of consumers the impact of visual attractiveness on purchase
frequency is rather low.
Taste appears to significantly affect the consumer preferences to purchase fruit and
vegetables from organic or integrated production systems. Model results show that
consumers perceiving these categories of fruits and vegetables as having superior taste
comparing the conventional ones are more likely to be among buyers.
It can be further examined, however that the consumers do not relate quality of fruits and
vegetables with their micro-origin. The coefficient estimating this determinant is
insignificant and therefore based on this results potentials for “local supply” marketing
strategy, turned to be less appropriate.
Market for organic fruit and vegetable in Slovenia might still be considered as insufficiently
developed. Situation for integrated produce is slightly better; however awareness of
consumers is very low for this category. Therefore it has been expected, that availability of
such products at “my retailer” has significant role on the consumer purchasing behaviour.
Model results clearly confirm these expectations and favour strong emphasis on distribution
strategy.
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