Following the global food scare this month from contaminated vegetables in Europe, New Zealand consumers are reminded yet again of the importance of country-of-origin. A recent study lead by AUT university confirms that the question 'where does this product come from?' is in fact high on our decision making process.
In the first study to look at the impact of country-of-origin (COO) perceptions on store brands (2011), Andrew Parsons, Helene Wilkinson (both from AUT University), and Paul Ballantines (University of Canterbury) found that even though store brands - for example the Signature Range, have historically been identified as less popular than the more highly marketed national brands - such as Vogels, consumers still prefer to buy locally sourced store brands over foreign-sourced national brands.
Understanding the country of origin matters to those who want to have a choice before they consume; but why, and what exactly are we considering when we compare which countries our food sources have come from?
By opting for a locally sourced food item, we feel we are supporting local manufacturers and helping to boost the local economy, says Parsons. If we have to buy an overseas product, we will often still choose a product from a country that is culturally similar to where we are buying it.
"Globalisation has resulted in the saturation of brands previously unknown, meaning we now have more and more global choice. This exposes the fact that production standards are not equal in all countries, and so people are seeking reassurance about where exactly their food actually comes from," Parsons says.
This is certainly the case with many international brands, where we expect highly familiar products to taste the same around the world. Quite often the taste differs from country to country, even though the brand is the same. This is because of a difference in the manufacturing process in different countries. A key example of this would be the addition of palm oil to chocolate in Australia versus the United Kingdom.
Such variation in the global standards of food production affects our perception of food quality and value for money. As Associate Professor of Retailing, Parsons says in these tough economic times, value for money is a priority for consumers, and the result has been a greater acceptance of store-own brands.
"It's become obvious that lower cost doesn't always mean lower quality.
"Quite often, if you compare the labels between a store brand and a national brand, you find that the store brand is actually better for you, as costs have been saved by omitting certain ingredients such as excessive salt," says Parsons.
"Store brands benefit from being locally sourced, and by displaying where the food has come from - such as 90 percent of ingredients sourced locally - manufacturers can profit by appealing more to consumer demand."
The full research by Parsons et al (2011), which offers an insight in to how management can take advantage of local sourcing and ownership or put in place marketing efforts to counter negative COO effects, will be available later this year.
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Do we really care where our food comes from?
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