Understanding product differentiation failures in agri-food markets: The role of product knowledge and brand credence in olive oil markets

Melania Salazar Ordonez (Corresponding Author), Macario Rodriguez Entrena, Elena R. Cabrera, Jörg Henseler

Research output: Contribution to journalArticleAcademicpeer-review

10 Citations (Scopus)
5 Downloads (Pure)

Abstract

This paper tries to shed light on a key question for different foodstuffs: why are product differentiation strategies far from successful in some agri-food markets? Undoubtedly, understanding consumer behaviour in situations where product differentiation failures occur is essential to resolving this issue. To that end, we built a theoretical model to analyse the roles played by both consumer information and inferences made from informational stimuli, given their potential relevance to the differentiation process. We thus examined consumer knowledge structures and brand credence related to attitudes toward a particular foodstuff and a product alternative, as well as the actual consumption of the foodstuff. The theoretical model was tested by an empirical application, using variance-based structural equation modelling (SEM) with the partial least squares (PLS) algorithm. Results showed that attitudes to both products explained the relative consumption of the foodstuff under study. In addition, product knowledge influenced consumers’ attitude towards the foodstuff and its consumption, but not the attitude towards the product alternative. On the contrary, the higher the brand equity of the product alternative, the better the attitude towards it. In addition, this factor was shown to have an impact on the attitude towards and consumption of the foodstuff. Therefore, those variables are key to explaining consumer behaviour in such agri-food markets, where increasing consumers’ knowledge and creating consumer-based brand equity seem to be appropriate strategies to improve the differentiation process.

Original languageEnglish
Article numberFQAP3474
Pages (from-to)146-155
Number of pages10
JournalFood quality and preference
Volume68
DOIs
Publication statusPublished - Sep 2018

Fingerprint

olive oil
markets
Food
consumer behavior
consumer information
Theoretical Models
consumer attitudes
least squares
Least-Squares Analysis
Olive Oil
Consumer Behavior

Keywords

  • UT-Hybrid-D

Cite this

@article{61f728a2b6f8410ea17c74278e512990,
title = "Understanding product differentiation failures in agri-food markets: The role of product knowledge and brand credence in olive oil markets",
abstract = "This paper tries to shed light on a key question for different foodstuffs: why are product differentiation strategies far from successful in some agri-food markets? Undoubtedly, understanding consumer behaviour in situations where product differentiation failures occur is essential to resolving this issue. To that end, we built a theoretical model to analyse the roles played by both consumer information and inferences made from informational stimuli, given their potential relevance to the differentiation process. We thus examined consumer knowledge structures and brand credence related to attitudes toward a particular foodstuff and a product alternative, as well as the actual consumption of the foodstuff. The theoretical model was tested by an empirical application, using variance-based structural equation modelling (SEM) with the partial least squares (PLS) algorithm. Results showed that attitudes to both products explained the relative consumption of the foodstuff under study. In addition, product knowledge influenced consumers’ attitude towards the foodstuff and its consumption, but not the attitude towards the product alternative. On the contrary, the higher the brand equity of the product alternative, the better the attitude towards it. In addition, this factor was shown to have an impact on the attitude towards and consumption of the foodstuff. Therefore, those variables are key to explaining consumer behaviour in such agri-food markets, where increasing consumers’ knowledge and creating consumer-based brand equity seem to be appropriate strategies to improve the differentiation process.",
keywords = "UT-Hybrid-D",
author = "{Salazar Ordonez}, Melania and {Rodriguez Entrena}, Macario and Cabrera, {Elena R.} and J{\"o}rg Henseler",
note = "Elsevier deal",
year = "2018",
month = "9",
doi = "10.1016/j.foodqual.2018.02.010",
language = "English",
volume = "68",
pages = "146--155",
journal = "Food quality and preference",
issn = "0950-3293",
publisher = "Elsevier",

}

Understanding product differentiation failures in agri-food markets : The role of product knowledge and brand credence in olive oil markets. / Salazar Ordonez, Melania (Corresponding Author); Rodriguez Entrena, Macario; Cabrera, Elena R.; Henseler, Jörg .

In: Food quality and preference, Vol. 68, FQAP3474, 09.2018, p. 146-155.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

T1 - Understanding product differentiation failures in agri-food markets

T2 - The role of product knowledge and brand credence in olive oil markets

AU - Salazar Ordonez, Melania

AU - Rodriguez Entrena, Macario

AU - Cabrera, Elena R.

AU - Henseler, Jörg

N1 - Elsevier deal

PY - 2018/9

Y1 - 2018/9

N2 - This paper tries to shed light on a key question for different foodstuffs: why are product differentiation strategies far from successful in some agri-food markets? Undoubtedly, understanding consumer behaviour in situations where product differentiation failures occur is essential to resolving this issue. To that end, we built a theoretical model to analyse the roles played by both consumer information and inferences made from informational stimuli, given their potential relevance to the differentiation process. We thus examined consumer knowledge structures and brand credence related to attitudes toward a particular foodstuff and a product alternative, as well as the actual consumption of the foodstuff. The theoretical model was tested by an empirical application, using variance-based structural equation modelling (SEM) with the partial least squares (PLS) algorithm. Results showed that attitudes to both products explained the relative consumption of the foodstuff under study. In addition, product knowledge influenced consumers’ attitude towards the foodstuff and its consumption, but not the attitude towards the product alternative. On the contrary, the higher the brand equity of the product alternative, the better the attitude towards it. In addition, this factor was shown to have an impact on the attitude towards and consumption of the foodstuff. Therefore, those variables are key to explaining consumer behaviour in such agri-food markets, where increasing consumers’ knowledge and creating consumer-based brand equity seem to be appropriate strategies to improve the differentiation process.

AB - This paper tries to shed light on a key question for different foodstuffs: why are product differentiation strategies far from successful in some agri-food markets? Undoubtedly, understanding consumer behaviour in situations where product differentiation failures occur is essential to resolving this issue. To that end, we built a theoretical model to analyse the roles played by both consumer information and inferences made from informational stimuli, given their potential relevance to the differentiation process. We thus examined consumer knowledge structures and brand credence related to attitudes toward a particular foodstuff and a product alternative, as well as the actual consumption of the foodstuff. The theoretical model was tested by an empirical application, using variance-based structural equation modelling (SEM) with the partial least squares (PLS) algorithm. Results showed that attitudes to both products explained the relative consumption of the foodstuff under study. In addition, product knowledge influenced consumers’ attitude towards the foodstuff and its consumption, but not the attitude towards the product alternative. On the contrary, the higher the brand equity of the product alternative, the better the attitude towards it. In addition, this factor was shown to have an impact on the attitude towards and consumption of the foodstuff. Therefore, those variables are key to explaining consumer behaviour in such agri-food markets, where increasing consumers’ knowledge and creating consumer-based brand equity seem to be appropriate strategies to improve the differentiation process.

KW - UT-Hybrid-D

U2 - 10.1016/j.foodqual.2018.02.010

DO - 10.1016/j.foodqual.2018.02.010

M3 - Article

VL - 68

SP - 146

EP - 155

JO - Food quality and preference

JF - Food quality and preference

SN - 0950-3293

M1 - FQAP3474

ER -