Understanding Heterogeneous Consumer Preferences in Chinese Milk Markets: A Latent Class Approach

Xiang Wu (1) , Bin Hu (1) , Jie Xiong (2)

1 HUST - Huazhong University of Science and Technology [Wuhan]
2 ESC [Rennes] - ESC Rennes School of Business

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.

Mots clés: China; choice experiment; latent class model; milk consumption; psychological factors; Heterogeneous preference

Domaines: Agriculture, économie et politique; Gestion et management

Xiang Wu, Bin Hu, Jie Xiong. Understanding Heterogeneous Consumer Preferences in Chinese Milk Markets: A Latent Class Approach. Journal of Agricultural Economics, 2020, 71 (1), pp.184-198. ⟨10.1111/1477-9552.12327⟩. ⟨hal-02489646⟩