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Understanding Heterogeneous Consumer Preferences in Chinese Milk Markets: A Latent Class Approach
Journal of Agricultural Economics ( IF 3.4 ) Pub Date : 2019-04-05 , DOI: 10.1111/1477-9552.12327 Xiang Wu , Bin Hu , Jie Xiong
Journal of Agricultural Economics ( IF 3.4 ) Pub Date : 2019-04-05 , DOI: 10.1111/1477-9552.12327 Xiang Wu , Bin Hu , Jie Xiong
We examine heterogeneous consumer preferences in Chinese milk markets. Using a discrete choice experiment, we examine how the brand, quality certification, traceability label and price influence consumers' milk choices. We identify four consumer segments using a latent class model: price conscious (9.8%), balanced thinking (19.8%), health conscious (57.5%), and environment conscious (12.9%) consumers. These four segments have distinct preferences: price conscious consumers prefer green certification; balanced thinking consumers have the highest willingness to pay for traceability labels; health conscious consumers have strong brand awareness; and environment conscious consumers prefer organic certification and traceability labels and use price as a quality signal. Such diversity of consumer preference can be explained by four psychological factors: price consciousness, food safety concerns, health consciousness and environmental concerns.
更新日期：2019-04-05
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