CONCLUSION
Using the contingent valuation method, we identified the brand equity factors that affected the price premiums for private label vegetables grown with reduced use of synthetic pesticides and chemical fertilizers. The payment card survey showed that 57.1% of the respondents reported a positive WTP for private label vegetables, and most were willing to pay a premium of less than 15%. It also indicated that when the respondents did not perceive any difference in quality between private label and ordinary vegetables, and/or preferred cheaper vegetables, they tended to express a zero WTP. An ordered probit model was applied to analyze the relationship between the WTP a premium and brand equity dimensions for private label vegetables. We found that liking, regret, and trust in brand loyalty and safety and health image associations were important brand equity factors that increasedWTP a premium. In contrast, the results showed that an image of deliciousness in brand associations contributed to a decrease in WTP a premium. The primary reasons for this were that most respondents did not have an image of delicious private label vegetables and people who preferred cheaper vegetables were concerned about the price increase in such vegetables. Furthermore, elderly and high-income shoppers with small households were targeted for private label vegetable sales. These findings should help when grocery retailers decide on marketing strategies for premium private labels for environmentally friendly vegetables. Notifying shoppers more clearly about the key product attribute of reduced use of synthetic pesticides and chemical fertilizers, which is a source of health and safety characteristics, is particularly important to generate brand equity for these private label vegetables. However, most respondents were not aware of the key product attribute because notices displayed in the fresh produce section were very small. They only learned this information from the questionnaire. For the key product attribute to become widely known to shoppers, there is a need not only to use sufficiently large posters in the fresh produce section but also to provide additional sources of information such as billboard, TV, radio, and newspaper advertisements. When grocery retailers develop premium private labels for organic vegetables, the brand equity of consumers who are interested in health and safety may be enhanced. However, the current production of organic vegetables in Japan is extremely small. Thus, for the time being, private labels for vegetables grown with reduced amounts of synthetic pesticides and chemical fertilizers will remain one of the primary products in the fresh produce sections of Japanese general merchandise stores.
