Recent surveys on consumer response and expectation vis a vis food fraud and its management in Europe and China. Prof Moira Dean
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1 Recent surveys on consumer response and expectation vis a vis food fraud and its management in Europe and China Prof Moira Dean 03/07/
2 The problem
3 The consumer It is not always possible to tell if a food product has been subject to fraud as it may taste and look similar. Consumers have to rely on the trust they have towards producers, retailers and regulators, to ensure that potential health and other impacts have been removed from the supply chain. Consumers trust in the institution or individual they purchase from must, in the main, be unconditional as consumers are fully reliant on a provider s reputation and a regulator s competence. Food scares, can have a detrimental effect on food sales with tremendously costly impacts on all players in the food chain from farmers to retailers.
4 Outline Results from 2 studies China & EU > UK Consumer perceptions and interest in management strategies (authenticity cues; traceability information) Context of the studies Results from the studies Comparisons between the studies Recommendations Next steps 03/07/
5 Definitions Food fraud - Intentional act committed for economic gain, where food stuffs are subjected to substitution, tampering, addition or mis-description Traceability is the ability to trace a batch or lot of a food product both downstream along the supply chain and upstream from the supply chain to the source 03/07/
6 The project has received funding from the European Union s Seventh Framework Programme for research, technological development and demonstration under grant agreement No
7 Consumer Awareness A case study of the Chinese Consumer
8 Geographical Location
9 EU Product Focus Infant Formula Milk: Implicated in the 2008 melamine scandal, consumer trust in domestically produced formula is reputedly low Olive Oil: EU is a leading producer of olive oil, companies have been identified to adulterate and pass off lower grade oil as Extra Virgin oil
10 Research Design Qualitative Study Expert interviews Focus Groups Rep-grid and laddering interviews Quantitative Study Consumer Perception Survey Choice experiments Industry recommendations
11 Consumer Perceptions Adulteration Counterfeiting Misdescription Information search Characterisation Health Control Emotion Outcomes Food Fraud Prevention strategies Heuristics Trusted source Face Perceived barriers to authentic food Practices Industry Government
12 Consumer strategies Information seeking Heuristics Trusted source Domestically situated practices Previous personal experience Price Through trusted retailers Actions taken by consumers at home to ensure the authenticity and safety of food Word of mouth Brands Online retailers Media reporting QR codes Friends and family Barcodes Country of origin Import stickers Personal travel Importing
13 Aims To investigate Chinese consumers attitudes to, and perceptions of authenticated food products To explore the effects of authenticity cues on the purchasing behaviour of Chinese consumers
14 Consumer Surveys Socio-demographic profile Total Sample Beijing Guangzhou Chengdu n = 850 n = 284 n = 283 n = 283 Gender % Male Female Age (classes) % Income % RMB RMB RMB RMB and above Purchasers % Formula Scotch whisky Olive oil Two or more purchases Intenders to purchase
15 Results Trust in institutions (Government, regulators etc) Perceived Risk of adulterated food Food Hazard Concern (FHC) 0.34*** Perceived benefit of demonstrating authenticity Attitude towards authenticated food products 0.33** Intention to purchase authentic food products Authenticity Cues (important cues to enable judgements about authenticity to be made)
16 Summary High level of Food Hazard Concern associated with a stronger perception of risk from adulterated food and drinks->, a stronger attitude & intention to purchase authenticated food and drink Weaker levels of trust in regulators & government associated with stronger attitude towards purchasing authenticated food/drinks Perceived benefits of authenticity of food/drink products had positive effect on attitude & intention to purchase authenticated food and drink products. Authenticity cues had a positive effect on people s attitudes towards purchasing authenticate food/drinks
17 Choice experiment
18 Example Geographical origin Option 1 Option 2 Option 3 Produced and packed in China Produced in Europe, packed in China Produced and packed in Europe Protected Designation of Origin (PDO) label No PDO label The Chinese national organic label No organic label No organic label Hologram sticker No hologram sticker Security packaging No security packaging QR (quick response) code No QR code Price 250 CNY / 900g 400 CNY / 900g 325 CNY / 900g Your choice: 03/07/
19 Summary PDO label had a stronger positive effect on the buying decision than Chinese organic label. Security packaging and quick response codes were more trusted than hologram stickers, but product dependent. Consumer are willingness to pay for safe and authentic food, although differences found between income segments & regions Information via labels on the product high importance for consumers 19
20 Analyses of Food Supply Chains for Risks and Resilience to Food Fraud/Crime Principal Investigator: Prof Christopher Elliott 03/07/
21 Objectives To investigate the impact of food fraud on consumer -> understanding, attitude & behaviour To test the efficacy of fraud prevention strategies to enhance consumer trust & buying intention Product Beef Methods Group interviews with the public & Survey with the public in the UK 03/07/
22 Sample Variable Category n % Male Gender Female Age Primary education Secondary education Education level Marital Status Tertiary education Married/living with a partner Single/widowed/divorced/sep arated /07/
23 Food/drink hazards concern 03/07/
24 Trusted sources 03/07/
25 QR code traceability for beef steak 03/07/
26 QR code traceability for minced beef 03/07/
27 Beliefs and attitudes Healthier Tastier More expensive = significant, p<.05 = non significant Of known origin.14 Safer Of more satisfying quality Authentic/not tampered with Attitudes Environmentally friendly.14 Higher animal welfare Covariances allowed between all independent variables R 2 =.46; N=666 Chi-square= 131; df=32; CFI=.98; RMSEA=.07
28 Intention to buy Habit origin Habit production Habit assurance = significant, p<.05 = non significant Purchase freq. Product type Attitudes Subjective norms Intention to buy Gender Age PBC Trust in product.15 Education Covariances allowed between all independent variables Extended model R 2 =.64; N=666 Chi-square=2312; df=981; CFI=.95; RMSEA=.05 Extended model has significantly better fit indicators
29 Willingness to pay Habit origin = significant, p<.05 = non significant Habit production Habit assurance Attitudes Product type Subjective norms Willingness to pay -.10 Age PBC Trust in product Pref. not thinking -.13 Rely on intuition Pref. for thinking Covariances allowed between all independent variables Extended model R 2 =.14; N=659 Chi-square=2120; df=889; CFI=.95; RMSEA=.05 Extended model has significantly better fit indicators
30 Purchaser types 03/07/
31 Frequency of purchase Group differences 3 Trust in the product Habit (food assurance schemes) Habit (production process) Habit (country of origin) Uninterested 115 (17.5%) Acceptors 225 (34.2%) Enthusiasts 318 (48.3%) 03/07/
32 Group differences General food hazards Attributes (Origin ) Attributes (Quality) Attributes (Sustainability) Beliefs towards buying traceable minced beef/beef steak Intention to buy traceable minced beef/beef steak Attitudes towards buying traceable minced beef/beef steak Uninterested 115 (17.5%) Acceptors 225 (34.2%) Enthusiasts 318 (48.3%) 03/07/
33 Group Difference 2 PBC Subjective norms Need for information (preference for thinking) Need for information (intuition) Need for information (preference for not thinking) Structural trust (Consumer organisations, Scientists and government bodies) Uninterested 115 (17.5%) Acceptors 225 (34.2%) Enthusiasts 318 (48.3%) 03/07/
34 Frequency of purchase Group differences 3 Trust in the product Habit (food assurance schemes) Habit (production process) Habit (country of origin) Uninterested 115 (17.5%) Acceptors 225 (34.2%) Enthusiasts 318 (48.3%) 03/07/
35 Enthusiasts Traceable minced beef/beef steak Positive beliefs Believe they have greater PBC Concerned about general food hazards Greater trust in traceable beef products Trust in the ability of consumer organisations, scientists and government bodies to provide information Willing to pay higher costs moderate! 03/07/
36 Uninterested Traceable minced beef/beef steak Lower positive beliefs Lower approval from sig others Habits -do not look for information about country of origin, processing or food assurance schemes Not willing to pay higher costs 03/07/
37 Conclusions Some sources trusted more than others Traceability information can enhance beliefs resulting in positive attitudes Positive attitudes + greater trust + supportive from family and friends -> to greater intention to buy Increase intention to buy does not always mean willing to pay Not all consumers are interested sub groups 03/07/
38 Concerns Benefits Intention to buy Authenticity Cues China Risks - Cues (types) - Trust in sources* Trust in product Attitudes Support of sig others - Traceability information UK Willingness to pay Yes (regions; segments) Some; moderate 03/07/
39 Recommendations Trust in products & trust in authority sources essential Authenticity cues & traceability information help to increase trust If trust is low and concerns high, authenticity cues alleviates concerns and increase positive attitudes Increase in positive attitude towards the product increase many positive attribute beliefs about the product There is high level of willingness to pay for authenticity cues/traceability information BUT moderate amount Consumer segments
40 Next steps H2020: EU-China-Safe - Delivering an Effective, Resilient and Sustainable EU-China Food Safety Partnership Chinese & EU regulator, industry & relevant stakeholder perspectives food fraud management interviews EU consumer views on Chinese products, regulations, food chain, trust etc Survey Risk mitigation tool kit development linked to other WPs Efficacy testing of tool with consumers in EU & China
41 Finally.... but it just gives me a wee bit of confidence that consumers are being listened to, what's happened in the past has happened, people will not forget about it for a long time, so everything is being done now to try and rebuild confidence, and that, for me, is quite big (FG5) Probably, you wouldn t even scan it, you would just trust it because it s on there. (FG7) 03/07/
42 Thank you! Professor Lynn Frewer (UNEW) Dr Helen Kendall (UNEW) Dr Sharron Kuznesof (UNEW) Prof Moira Dean & team (QUB) Dr Paul Naughton (Napier) Beth Clark (UNEW) Dr Robert Home (FiBL) Dr Hanna Stolz (FiBL) Acknowledgements: Dr Mei-Yen Chan (NUIS), Qiding Zhong (CNRIFFI) and Chuanhe Liu (CNRIFFI) Dr Nadja El Benni (FiBL)
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