“Competitiveness characteristics of agri-food products – what does the consumer choose? (Case of Georgia)”

Nowadays, the top-10 products exported from Georgia are dominated by agri-food products; thus, it is important to increase the competitiveness of locally produced products based on relevant characteristics. The world is changing rapidly, and iden- tifying consumer preferences in such conditions can be vital for an entrepreneur. The purpose of this study is to identify the main characteristics that determine the com- petitiveness of the agri-food product for Georgian consumers. For this purpose, 1,200 adult individuals from different regions of Georgia who have a stable monthly income were surveyed. The survey was conducted by sending a questionnaire through online channels. The results were processed using data analysis, quantitative research meth- ods. Both simple and complex statistical analysis methods were used: descriptive, fre-quency, consumer table analysis, analysis of group differences, graphical analysis. As predicted for the majority, 74% of respondents to be exact, quality took the first place. The price comes only in second, and it is chosen by 21% of consumers. With increasing age and income, the importance of quality increases. It was found out that service and packaging are not crucial for consumers in the process of selecting agri-food products. In addition, it should be noted that 42% of respondents are more or less impacted by advertising for agri-food products. Thus, producers need to devote a large portion of their resources to quality improvement, while the state should create a favorable environment for this.


INTRODUCTION
Georgia is an import dependent country. According to 2020 data, the volume of imports of agri-food products is 3.7 times and more higher than the volume of agri-food product exports (National Statistics Office of Georgia (Geostat), 2020). Georgia's export structure has remained unchanged over the years. Wine, mineral water and nuts are the main export products from local production. The competitiveness of the product in both local and international markets depends on many factors, and the analysis of each is the subject of independent research.
While competitiveness of the highly developed countries is based on technological advantage, the economy of developing countries is based on the resource advantage. So, product competitiveness is one of the main foundations for the development for each sector of the country and, consequently, of the economy as a whole. Each field has its role and contributes to the development of the country, which is related to the efficient and rational use of resources in the field. For a product to

LITERATURE REVIEW
Competitiveness is a dynamically evolving, complex, and multifaceted economic category that is interpreted in many sources in different ways. Depending on the research perspective, competitiveness is also understood at different levels (macro-national, regional level; meso-economic sector and industries level; micro-firms/ farms, products level), till now there is still confusion about the meaning of the word competitiveness and how to measure it (Dung, Hoang, & Dieu, 2020; Dung, Thuy, Dieu, & Thuy, 2020). At the same time, some researchers think that attempts to create one common definition of competitiveness are doomed to failure (Siudek & Zawojska, 2014).
What does product competitiveness mean and what determines product competitiveness? In the attempt to find answers to these questions, this study has analyzed the opinions of different scientists. Product competitiveness is mostly seen in terms of customer value. The higher the product characteristics and the lower the product price, the higher is the competitiveness (Kharaishvili, 2020). Also, product competitiveness is largely determined by the quality of the product itself or its charac- teristics and not by external factors (Huang et al., 2019). In other words, "quality is currently an important factor determining competitive advantages of products in the market, the strategic line for increasing its competitiveness is arrangement of efficient system for quality and safety assurance" (Rastorgouev, 2020). However, a recent study in Georgia shows that first of all the price and then the product quality affect consumer demand in Georgia (Todua, 2012).
Georgian researchers agree that it is very important to develop marketing measures and strategies in accordance with international standards and national traditions, in order to increase the competitiveness of the export product. Regarding this issue, multiple papers can be found by Georgian economist Nugzar Todua. In one of his articles, he focuses on the importance of product packaging and in this regard, ways to increase product competitiveness from the perspective of consumers (Todua, 2018).
Thus, it is important to know what affects the competitiveness of the product. Hambrick (2017) and Miller (2017) suggested five dimensions of competitiveness, where innovation is central. In addition to innovation, other important factors that affect product competitiveness include price, cost and brand. Some researchers think that a brand is a key factor in the development of enterprise competitiveness (Desmichel & Kocher, 2020). Facing strong market competition, advantages in price and cost are significant factors for maintaining a leading position in the competitive battle (Liu et al., 2021) 1 . However, there might be other factors determining the competitiveness of a product, such as product attractiveness to consumers; the degree of satisfaction of different and sometimes conflicting requirements; the priority of existing requirements, depending on the type of product and its customers and the dynamic nature of competitiveness.
Information about competitiveness is important for enterprises as it helps them to determine their product position in the marketplace (Liu et al., 2021). 2 Information on competitiveness allows 1 Researchers cited the work of Hunold et al. (2020). 2 Researchers cited the work of Chen and Miller (2015). 3 Researchers cited the work of Huang, He and Chen (2019). enterprises to analyze shortcomings of their products in some of the important areas and improve the level of competitiveness by developing an appropriate competitive strategy aimed at achieving higher market share and increasing profits (Liu et al., 2021). 3 It is impossible to determine the competitiveness of product using any one parameter as it is the result of the interaction of many factors, and each of them is unique in a particular situation. Competitiveness can only be achieved in case all factors and parameters are effectively combined (Gagnidze, 2012). There is no universal and fully satisfactory explanation of competitiveness. The truth is in each of them to some extent, since the competitiveness is presented as a multifaceted concept, this work has come up with a wide range of definitions.

AIMS AND METHODOLOGY
This study aimed to investigate the determinants of competitiveness for agri-food products based on quantitative research, using the example of Georgia, as well as to establish certain patterns that exist for different segments of consumers.
The purpose of the quantitative research was to identify the characteristics that are important for consumers when purchasing the product, and as a result, to determine which characteristic makes the agri-food product more competitive.
According to the methodology of the National Statistics Office of Georgia, based on the standards of the International Labor Organization, an employee is defined as a person aged 15 and over, who worked for at least one hour during the study period (7 days before the survey) to receive remuneration or profit, or was temporarily out of work due to the vacation, illness, technical, economic or other similar reasons (National Statistics Office of Georgia (Geostat), 2020 The questions were mainly about to identify the factors that have a major impact on consumer decision-making when purchasing products, as well as how advertising of agri-food products influences consumer decision-making. At the same time, consumers have assessed the competitiveness of Georgian agri-food products at the national market. The questionnaire included 13 questions: 12 closed and 1 open questions. The type of questions asked is structured. Multivariate, alternative, and scale-based questions are suggested. In particular, nominal and measurement scales are used. Questions 1-3 are identifiable, and 4-13 are classifiers. The number of respondents is representative. The results are processed by the method of statistical analysis, graphing. Summarized data are used to draw conclusions and make recommendations, reliability level -99%, sampling error -1%.

RESULTS
The customer survey was conducted from December 9 to 17, 2021. It would be interesting to discuss the answers in terms of both age and income. However, firstly, the aggregate results of 1200 respondents will be discussed to see the things consumers pay primary attention to, when purchasing agri-food products.
When asked which factors encouraged them to choose one of the two similar products, for the majority of the respondents (73.5%) quality was most important compared to price (21%). The results are presented in Figure 1. It should be noted that the question did not focus on the type of product.
In the following question, when the type of the product was specified and it was indicated that the question referred to agri-food products, and the number of possible answers was also increased, price moved from the second to the third place with 600 votes while quality maintains first position with 800 votes (see Figure 2). In this question, respondents were asked to choose maximum of three answers, as a result of which, the distribution exceeds 100%. Figure 2 illustrates that the main factors that impact consumers' choice when purchasing agrifood products are quality, personal experience, price, taste characteristics, safety and utility. The following factors are less important to them: recommendations from others, brand, packaging, service, certificates and design.
As in the previous question, consumers could choose maximum three answers out of the given options, in the next question, the survey asked respondents to rate specific factors/characteristics of agri-food products on a scale of 1 to 5 (where 1 is the lowest and 5 is the highest) by their importance. These results also allow mak-ing very important conclusions. The results are given in Table 1 and are arranged in descending order. Table 1 clearly illustrates that quality firmly maintains its position with 5,183 scores (average score 4.3 closest to 5), followed by safety with 5,016 scores (average score 4.2), taste characteristics -4,949 scores (average score 4.1), personal experience -4 868 score (average score 4.1), utility -4 851 score (average score 4.0), and the price moved from the third to the sixth position with 4 321 scores (average score 3.6). Here, again, lower positions with a score below 3.5 are held by factors such as service, brand, and recommendations from others, certificates, packing and design. It is also interesting to note that actually having various certificates substantiates having the relevant or high quality.
The purpose of this survey was to assess the factors determining the competitiveness of the products from consumers' point of view, as well as the competitiveness of Georgian agri-food products in the national market. 70.6% of the respondents believe that Georgian agri-food products are characterized by moderate competitiveness (see Figure 3). This is supported by the answer to the following question, Which referred to their choice when buying agri-food products. In particular, the question asked which product, local or imported was dominant in their consumer basket in general, when buying agri-food products. The answers were distributed as follows: In 39% of cases the Source: Constructed by the authors based on the data of the survey.    Figure 3 shows that only 10.7% of consumers consider that Georgian agri-food products have high competitiveness.
This study tried to investigate whether advertising of agri-food products influenced consumers. Given that, the respondents were asked to rate the degree of influence with scores: 1 -low, 5 -high (see Figure 4).
Thus, as Figure 4 reveals that advertising has more or less influence (neutral importance) on consumers' choices and, on average, it is assessed with 3.1 points/scores. This can be one of the hints for manufacturers that they should not put much effort into advertising and put product quality first. Another hint for producers might be the answer to the question referring where consumers mainly buy agri-food products. The results have revealed that local district shops are ranked 1 st with 27.8%, which are followed by grocery markets (20.5%), supermarkets and similar shopping places are ranked 3 rd and Carrefour takes fourth position (18.5%). Therefore, agrifood producers should focus on the trade objects, taking into consideration the first three positions in the ranking (taking the location of the entrepreneurs into consideration).
The next step in the analysis of the survey was to exclude the answers of the 170 respondents who were not the main decision makers from the results and to discuss the answers in terms of age. Table 2 shows some very interesting relationships/ correlations. The older the respondent, the higher the share of quality as the most important fac-  tor when choosing a product, and the lower the share of price, that is, it is not a determining factor in making a choice. In general, the tendency that quality is a major factor in purchasing is observed for all age groups. However, the share of price is the highest (almost 26%) for the 18-24 age group. This is probably determined by the fact that the average monthly salary of 45% of the given age group is only 0-500 GEL. Table 3 shows that personal experience, quality and price (price holds only the third position in this list) are the main factors when purchasing agri-food products in the age categories of 18-24 years old, 25-34 years old, and 35-54 years old. The results point to changes in the age groups of 55-64 years old and 65 years old and over when price is no longer the main determinant and in one case it is replaced by taste characteristics and in another one by utility.     Table 3. Results to the question: Which of the following factors determines your choice when purchasing agri-food products? Choose maximum three answers. Seen in terms of age Source: Constructed by the authors based on the data of the survey.  Table 4 shows that quality is ranked 1 st for all age groups, while 2 nd and 3 rd positions are alternately taken by safety, utility, taste characteristics and, of course, personal experience. Certificate and brand emerge and take third place only for the age-group of 65 years old and over. It should be noted here that the first and second positions for this category were shared equally by many factors due to a small sample (only 12 respondents in total in this category).

18-24 years old 25-34 years old 35-54 years old 55-64 years old 65 years old and over
Returning to the question posed at the beginning of this study, it is now possible to discuss answers in terms of revenue.
In this case, too, 170 people who did not make the main decision, when buying agri-food products, are excluded. Table 5 shows a very interesting relationship. When selecting a product, the higher the individual's income, the higher the share of quality in responses, while the price decreases, and in other words, when the income is solid, price is not a crucial factor when selecting an agri-food product. However, the general trend that quality is a ma-jor factor in purchasing is evident for all income groups. Considering the price, it has the highest share (almost 33%) for individuals with a monthly income of 0 to 500 GEL, and the lowest -about 8% -for individuals with an income of GEL 2001 and over. Consequently, almost 85% of people in the same category pay special attention to quality. Table 6 shows that the main factors in the monthly income category of 0-500 GEL, 501-1000 GEL, 1001-1500 GEL, 1501-2000 GEL, when buying agri-food products are: quality, personal experience and price (again, the price takes only the third position in this list). And already changes can be seen in the category of "monthly income of GEL 2001 and over", when price is no longer the main determining factor, and it is replaced by taste characteristics. Interestingly, the product brand received the highest response in the given revenue category, at around 17%. However, the results indicate that the more a person's income is, the greater is the importance of the brand in his choice.
According to Table 7, quality takes the first place for all income groups, while the second and third Table 4. Results to the question: Please, rate the following factors according to their importance in choosing agri-food products with scores (1 -the lowest, 5 -the highest). Seen in terms of age (average score) Source: Constructed by the authors based on the data of the survey.  places are alternately shared by safety and taste characteristics. However, in some income categories, features such as personal experience and utility are added. Packaging received the lowest average rating in terms of monthly income from 0 to 500 GEL, design received the lowest average rating in terms of monthly income from 501 to 1000 GEL, the lowest average rating in terms of monthly income from 1001 to 1500 GEL received certificates and design. Design received the lowest average rating in terms of monthly income from 1501 to 2000 GEL, design received the lowest average rating in terms of monthly income of GEL 2001 and above, as well as design and packaging. Consequently, it is worthwhile noting that in the case of agri-food products, the design has less influence on the consumer's choice, which is understandable, followed by packaging and finally certifications.

18-24years old 25-34years old 35-54years old 55-64years old 65 years old and over
Unlike previous studies in Georgia, in which the main factors influencing consumer decision were firstly the price and then the quality, today the world is battling the COVID-19 pandemic, and at the same time the demand for organic products is growing, so, the status quo has changed. Based on the above discussion, there is evidence to suggest that quality, along with other factors such as safety, taste characteristics and personal experience are the main determinants of competitiveness. Manufacturers need to accept this new situation and focus their efforts on improving the quality and utility of their products. It is important for agri-food producers to understand how to win the hearts of consumers, both locally and internationally. Personal experience is also one of the main crucial factors when purchasing a product. It can be said that Georgian consumers are quite  As a rule, agro-food products do not require special packaging, but in order to be sold and easily transferred to the trade network, it is packaged in different containers. This is especially common for exported products. Thus, packaging may not be the main determinant for the consumer to purchase, however, it does not lose its importance for the manufacturers.
The supportive environment is necessary to increase the competitiveness of agri-food products in Georgia. For example, increasing the availability of new technologies, developing and popularizing them, training new specialists in the field of agri-food product expertise and quality control. The state can act as a mediator in this regard, assisting entrepreneurs in implementing the necessary resources or projects. The state must correctly prioritize and accordingly allocate resources for the development of product sectors with potentially high competitiveness.
It is true that there are public and private laboratories in Georgia, which are an integral part of the countrys' food safety system, but their number is small and unevenly distributed throughout the country. So, to respond to the current challenges, the government should promote establishment and expansion of quality centers in line with international standards.

CONCLUSION
The aim of the study was to identify the key factors that correctly determine the competitiveness of agri-food products seen by consumers in different areas, for example, age and income. Research has shown that in general, quality is the main factor for choosing one of two similar products. Similarly, consumers' choice in purchasing agri-food products is largely determined by its quality and subsequent personal experience. So, the Georgian consumer is in the transition stage of the 2nd and 3rd levels of competitiveness Pyramid. According to this study, the last positions are held by design and packaging. Interestingly, advertising on agri-food products has more or less impact on consumers.
The analysis of customer responses categorized by age groups revealed an interesting result. In particular, as the age of a buyer increases, quality plays a major role in the decision to purchase an agrifood product. Consequently, price dependence decreases. In the age categories of 55-64 years old and 65 years old and over, the price is replaced by taste characteristics and utility. When the answers were grouped based on average monthly income, similar results were received, with the increase in income, quality becomes the main factor to purchase the product. Price becomes relatively crucial for low-income respondents.
Consumers evaluate Georgian agro-food products as having average competitiveness. Thus, it is important for manufacturers to focus on improving the quality of their products. However, competitiveness cannot be achieved at the product level unless certain preconditions are created at the state level to ensure it.
The conducted research will give an opportunity to the interested persons to introduce the peculiarities of product competitiveness in the agro-food market of Georgia and help them to determine the right production strategy. Thus, the study contains few limitations that need to addressed in future research. The limitations are as follows: the sample size was limited to 1,200 respondents. In the future, a larger number of consumers may be included in the study. The online survey method was the only method used, which should be further combined with field and experimental investigations.