The effects of extrinsic cues on online sales of fresh produce: a focus on geographical indications

Fresh produce has rich sensory attributes, and consumers generally prefer examining physically these sensory attributes prior to purchase. The nature of e-commerce, however, limits consumers' ability to examine products' sensory attributes while buying online Customers receive very limited intrinsic cues of fresh produce (such as color) when buying online and thus use only extrinsic cues to assess the quality of fresh produce. This study investigates the effects of extrinsic cues on online shopping for fresh produce, with a particular focus on the effect of geographical indication (GI), which often assumes the role of brand names among producers of fresh groceries. We used data from an online South Korean marketplace for fresh produce to conduct a linear regression analysis. The results show that products linked to GIs sold more and were ordered more frequently; other control variables had somewhat significant effects. The volume of online product reviews was found to have a significant positive effect on the amount of orders and sales, but the product rating itself did not have an effect. The price had a negative effect on the amount of orders, while the number of certifications (e.g. "organic agriculture") had a significant positive effect on the number of orders.