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Eurasian Business Review

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01.12.2016 | Original Paper

Consumer’s comparison between local and imported organic products: a hedonic analysis of the Japanese table wine market

verfasst von: Vincent Hoang, Takao Iida, Shigeru Matsumoto, Natsuki Watanabe, Clevo Wilson

Erschienen in: Eurasian Business Review | Ausgabe 3/2016

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Abstract

Although hundreds of thousands of organic products are traded on a daily basis, it is less known how imported organic products are evaluated by consumers in an importing country. The paper analyzes Japanese wine point of sale (POS) data to examine whether consumers differentiate between local and imported organic products. The results of our hedonic analyses show that the premium for imported organic red (white) wines is about 42.996 % (8.872 %) while that for domestic red (white) organic wines is about 6.440 % (1.214 %), implying that Japanese consumers pay higher premiums for imported organic agricultural products than for those produced in Japan.

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For instance, in 2013, the United States exported organic products consisting mostly of fresh fruits and vegetables to over 80 countries and imported organic products, including coffee, bananas, and olive oil, from nearly 100 countries (Greene 2014).

The increasing competition from foreign wines and the evolution of consumer behavior towards an increasing appreciation of quality implies the implementation of origin-oriented strategies (Malorgio et al. 2008).

Considering the impact of the Great East Japan Earthquake, we removed the data for 2011.

Assume that 1 US Dollar = 120 yen.

Although the definition of organic agriculture is provided by IFOAM (2008), the conditions for organic certification vary across countries. In this paper, we define any wine advertised as an organic wine in the supermarket as an organic wine.

Furthermore, white wines are compete with traditional Japanese alcohol beverage such as sake (rice wine) and syochu (distilled alcohol from sweet potato and grains).

Even though about 75 per cent of grapes or concentrated grape juice used to make Japanese wine are imported, such wine is considered to be domestically produced (SoShiok 2014).

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Titel: Consumer’s comparison between local and imported organic products: a hedonic analysis of the Japanese table wine market
verfasst von: Vincent Hoang
Takao Iida
Shigeru Matsumoto
Natsuki Watanabe
Clevo Wilson
Publikationsdatum: 01.12.2016
Verlag: Springer International Publishing
Erschienen in: Eurasian Business Review / Ausgabe 3/2016
Print ISSN: 1309-4297
Elektronische ISSN: 2147-4281
DOI: https://doi.org/10.1007/s40821-016-0047-3

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