Japanese willingness to pay for agricultural products with the 'U.S.A.' label: A choice-based conjoint analysis for pork

More than forty U.S. export markets require the use of country-of-origin labeling (COOL). The image associated with the U.S.A. label will have an increasingly important impact on how U.S. agricultural products compete in export markets. The United States sends more agricultural products to Japan than any other overseas destination. As a major market for U.S. agriculture exports, Japan requires mandatory COOL for all fresh foods and ingredients of selected processed foods. Country-of-origin information plays an important role when consumers shop at a grocery store, as they may use the origin information to evaluate the product. Previous studies indicated that country-of-origin indeed affected consumers' preferences and purchase decisions. Moreover, the United States faces fierce competition in the Japanese market from other major exporters, such as Denmark and Canada. By identifying the determinants that affect Japanese consumers' preferences and WTP values for pork from different sources, this study used the Japanese market to better understand the effectiveness of the "U.S.A." label and provide guidelines for U.S. agricultural producers and exporters to develop marketing strategies towards the targeted markets.;A choice-based conjoint analysis mail survey was conducted to assess Japanese consumers' willingness to pay for pork from three different sources: Japan, the United States, and Denmark. Eligible participants were residents in three cities in Japan. Particular questions about attitudes towards country-of-origin information, foreign produce, beliefs about food safety levels, and the nation's self sufficiency of food were provided to the subjects. Questions about the demographics of the participants were also asked in the survey. Six sets of similar questions were presented to the participating consumers to assess their WTP for pork from different origins.;A conditional logit model was conducted to analyze the choice data. The results of this study indicated that Japanese consumers preferred domestic pork products in general. In particular, both female and male consumers were willing to pay more for Japanese pork, while males would pay a higher amount for pork with the "U.S.A." label than females. In addition, subjects with children in high school or younger in the household were willing to pay more for domestic pork. The results of the survey showed that Japanese consumers were concerned about the applications of agricultural production techniques in U.S., such as hormones, pesticides, and antibiotics. Not as hypothesized, older people did not show any preference for domestic pork. Moreover, income did not affect the preference for domestic pork. In terms of the effect of the confirmed BSE cases in the United States, the subjects whose opinions of safety of U.S. pork/poultry worsened were willing to pay less than those people whose opinions did not change or improved. In the end, how much time people spent in the U.S. did not influence Japanese preferences for domestic pork.