Chinese consumers' willingness-to-pay for nutrition claims on processed meat products, using functional sausages as a food medium. Issue 2 (1st April 2021)

• Record Type: Journal Article
• Authors: Hong, Xinyi; Li, Chenguang; Bai, Junfei; Gao, Zhifeng; Wang, Liming
• Is Part Of: China agricultural economic review. Volume 13:Issue 2(2021)
• Page Start: 495
• Page End: 518
• Publication Date: 2021-04-01
• Subjects: Chinese market -- Choice-based conjoint experiment -- Functional processed meat products -- Willingness-to-pay; Agriculture -- Economic aspects -- China -- Periodicals; Rural development -- China -- Periodicals; Agriculture and state -- China -- Periodicals; 338.10951
• DOI: 10.1108/CAER-06-2020-0160
• Languages: English
• ISSNs: 1756-137X

Abstract

Abstract : Purpose: Following the standard practice of using nutrition claims to denote food functionality, this study empirically explores Chinese consumers' willingness-to-pay for functional processed meat products by using three nutrition claims (namely "increased calcium, " "containing omega-3", and "reduced salt") made on pork sausages. It also aims to outline the typical characteristics of Chinese consumer segments based on preferences. Design/methodology/approach: A choice-based choice experiment is utilized to investigate Chinese consumers' valuation on attributes of interest regarding functional sausage products. First-hand data was collected in the two cities of Xi'an and Beijing. Findings: There are market potentials for domestic and/or imported functional processed meat products among Chinese consumers. Nutrition claims made on pork sausages are appealing to Chinese consumers, and therefore, monetarily rewarded by them. Being imported from a more developed country of origin could both positively and negatively impact consumers' WTP for nutrition claims made on pork sausages. Furthermore, specific functional modification strategies should be taken into account when addressing different segments of the Chinese market. In addition, regional impacts between Xi'an and Beijing are implied in terms of consumers' valuation for functional pork sausages. Research limitations/implications: Limitations in the current study are mainly two folds. First, the WTP estimation magnitudes are subject to a hypothetical bias by using a stated preference approach. Second, this study only focuses on pork sausages to explore consumers' perceptions and selects three nutrition claims among many other relevant options. Practical implications: Implications are provided for meat marketers and for Chinese official food policymakers, such that promoting meat products with a nutrition claim is an attractive marketing strategy for foreign food manufacturers in China, and more reformulated meat products with better nutritional compositions should be allowed in the Chinese market. Originality/value: To the best of the author's knowledge, this research is the first to fill in the literature blank on investigating the consumers' valuation for functional meat in the emerging market of China. Because when taking Chinese consumers as a target market and evaluating their perceptions of food quality-related labeling and certifications, the existing literature is mainly limited to topics of product safety, organic/green products, and geographical origins. However, nutrition claims, as marketable credence attributes that associate closely to the main characteristics of the functional food products, have been explored to a much lesser extent among Chinese consumers.