Trust orientations in the organic food market: a ...€¦ · CHANNELS OF DISTRIBUTION ! From niche...

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Trust orientations in the organic food market: a complementary approach based on distributors, certification organizations and consumers’ perspectives L. Hamzaoui (Telfer School of Management, University of Ottawa) L. Sirieix (Montpellier SupAgro, Chaire Unesco en Alimentations du Monde) M. Zahaf (Telfer School of Management, University of Ottawa) Funded by the Social Sciences and Humanities Research Council (SSRHC) Government of Canada Unitwin network seminar Madison, Sept 2015 Copyright 2015 Hamzaoui & Sirieix

Transcript of Trust orientations in the organic food market: a ...€¦ · CHANNELS OF DISTRIBUTION ! From niche...

Page 1: Trust orientations in the organic food market: a ...€¦ · CHANNELS OF DISTRIBUTION ! From niche markets to mainstream markets ! Two main trends of consumption: ! regular OF consumers

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Trust orientations in the organic food market: a complementary approach based on distributors,

certification organizations and consumers’ perspectives

L. Hamzaoui (Telfer School of Management, University of Ottawa) L. Sirieix (Montpellier SupAgro, Chaire Unesco en Alimentations du Monde)

M. Zahaf (Telfer School of Management, University of Ottawa)

Funded by the Social Sciences and Humanities Research Council (SSRHC) Government of Canada

Unitwin network seminar Madison, Sept 2015

Copyright 2015 Hamzaoui & Sirieix

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Introduction

S  Growing demand for OF products, often attributed as a response to food-scares (in 2013, US $80 billions)

S  Organic retailing has moved from a niche market position to a mainstream position

S  Role of trust in consumers’ perceived food risks has been relaunched as a direct consequence of rising concerns related to risks associated to food

S  Consumers looking for risk reduction indicators

S  Perceived quality influenced by consumer experiences and more importantly by the trust consumers have toward the quality indicators and their sources

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Research Objectives

S  Identify and analyze factors from the demand and supply sides that determine trust/mistrust in organic food (OF) products,

S  Determine the relationship between OF distribution channels and institutional strategies, and consumers’ trust orientations and variations.

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The organic market

CHANNELS OF DISTRIBUTION S  From niche markets to mainstream markets

S  Two main trends of consumption: S  regular OF consumers using standard

distribution channels S  hardcore consumers adopting alternative

channels (box delivery, farmers’ market, specialty stores, and small grocery stores).

TRUST DIMENSIONS S  Two sets of trust defined as:

S  (i) trust oriented toward several quality indicators,

S  (ii) trust oriented toward individuals.

S  Trust can be oriented toward the brand, the certification label type of distribution channel, product’ s country of origin, the partners….

CONSUMERS’ MOTIVATIONS S  Egocentric values (health, taste, freshness)

rather than environmental and animal welfare

S  In Canada: health, environment, support of local farmers

S  In France: health and environment, taste and tradition

CERTIFICATION AND LABELING S  For consumers: certification (traceability or

quality label) is considered as an important source of information for quality and safety

S  Need for the consumer to be able to trust the product and any organism certifying this product.

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Methodology

S  Study 1: Qualitative study – OF distribution

S  Study 2: Qualitative study – Organic certification organizations

S  Study 3: Quantitative study – Consumers’ Trust orientations

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Studies 1 and 2: Conceptual Framework

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The organic food market

S  Trends: Increasing diversification of products and distribution channels.

S  Distribution: differences between Canada and France in the distribution structure: store networks, online channels, hard discount.

S  Certification: In Canada, several certifying bodies, labels are not yet well established; and increasing popularity of local food among producers.

S  Some producers discussed what they call “industrial organic”, “conventional organic”, and “local organic”.

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Trust issues and distribution strategies

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Distribution strategies

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Study 3: Consumers

S  Survey: questions related to S  (i) organic food consumption in general (consumption frequency,

preferred point of purchase, trusted point of purchase, certification, labels and brands, origin of the product, choice criteria, level of expertise, OF knowledge, satisfaction),

S  (ii) a series of questions on trust orientations and levels in the certification body, the origin of the products (food mileage), brands (trademarks), type of store, and point of purchase, and

S  (iii) consumers’ perceptions, involvement with OF products, and social consciousness

S  (iiii) identification questions.

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Study 3: Consumers

S  Trust dimensions influence on attitude and intention to buy

S  Extended Theory of Planned Behaviour Model: Values, Positive moral norms, Self Identity and Past experience

S  Store choice model

S  Consumers typology

S  Canada / France comparisons (as well as intra country comparisons, cities)

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Future research

S  Practical

S  Certification / labels

S  “Knowing the producer”

S  Competition? S  Natural products S  Locally grown products

S  Conceptual

S  Trust dimensions

S  Store choice drivers

S  Theory of planned behaviour

S  Food products vs. other organic products

S  External drivers (distributors) of sustainable consumption

S  Perspectives’ comparisons

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