Dairy Products Market Segmentation: The Effects of Country of Origin on Price Premium and Purchase Intention

Abstract

This study examines the impact of country of origin and other marketing factors on perceived price premium and purchase intention of dairy products. Applying factor analysis and 2-step cluster analysis, the article finds that there are 4 segments in the Thailand dairy market. The respondents in each segment perceive quality of products from 6 countries (or regions) differently. Three segments that consider country of origin have their evaluation of price premium and purchase intention of products from each country higher than the remaining segment. The applications to market strategy of international food companies and agribusiness industries are discussed.

KEYWORDS:

• agricultural product
• country of origin
• market segmentation
• price premium
• purchase intentions

Acknowledgments

The research was supported by Chulalongkorn University Centenary Academic Development Project.

Notes

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Additional information

Notes on contributors

Sawika Unahanandh

Sawika Unahanandh is associate professor of Marketing and head of the Department of Marketing at the Faculty of Commerce and Accountancy, Chulalongkorn University, Thailand. Her research, consultancy, and teaching expertise are focused on marketing planning and controlling, customer relationship marketing, corporate social responsibility, and industrial marketing.

Nuttapol Assarut

Nuttapol Assarut is assistant professor of Marketing and secretary of the Master of Science program in Marketing, at the Faculty of Commerce and Accountancy, Chulalongkorn University, Thailand. He teaches Marketing Research and Pricing Strategy. His main research interests lie in crosscultural marketing, country of origin, brand personality, green marketing, and marketing for innovations.