Chinese consumer preferences for fresh produce: Interaction between food safety labels and brands

Abstract In this study, 938 consumers in China's Shandong Province were surveyed for their preferences for tomatoes in a real choice experiment varying in three product attributes: food safety label, brand, and price. Using a mixed logit model, results revealed that consumer willingness to pay for organic tomatoes was higher than that for tomatoes labeled as Green or Generally Regarded as Safe (GRS). With regard to brands, consumers prefer brands affiliated with proprietary enterprises over brands held by agricultural cooperatives. The interactions between organic label and brands as well as that between Green label and brands were significantly positive suggesting synergy between these labels and brands. Conversely, the interaction between the GRS label and brands was insignificant. The conclusions should not only aid Chinese policy makers in developing its food safety certification strategies but also provide references for producers and certification bodies for their business decision‐making.