Search results

1 – 10 of 34
Article
Publication date: 2 November 2015

Mo Chen, Shijiu Yin, Yingjun Xu and Zhiwei Wang

– The purpose of this paper is to determine consumers’ willingness to pay (WTP) for tomatoes carrying different organic labels.

1194

Abstract

Purpose

The purpose of this paper is to determine consumers’ willingness to pay (WTP) for tomatoes carrying different organic labels.

Design/methodology/approach

The data were collected from 878 randomly selected consumers in Shandong Province, China, using the Becker-DeGroot-Marschak auction experiment. The authors used the multivariate probit (MVP) model to analyze the factors influencing consumer preferences.

Findings

Results indicated that consumers’ WTP for tomatoes carrying the European Union (EU) organic label was significantly higher than those carrying the Chinese organic label. However, no significant difference was found between consumers’ WTP for tomatoes carrying the EU organic label and that for tomatoes carrying both Chinese and EU labels. The results of the MVP model analysis demonstrated that the consumers with different individual characteristics had heterogeneous preferences for organic labels. Food safety consciousness and organic knowledge both had positive effects on consumers’ WTP, meanwhile, environmental awareness had no prominent effect on consumer preferences.

Originality/value

This research is of academic value and of value to policy makers and suppliers. To satisfy diverse market requirements, governments, and manufacturers should consider consumer preferences for different certification labels in strategy development.

Details

British Food Journal, vol. 117 no. 11
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 5 September 2016

Joseph Birundu Mogendi, Hans De Steur, Anselimo Makokha and Xavier Gellynck

Despite the large body of research on consumers’ willingness-to-pay for new food, few studies have tried to integrate new technology-based systems and improve their validity. The…

Abstract

Purpose

Despite the large body of research on consumers’ willingness-to-pay for new food, few studies have tried to integrate new technology-based systems and improve their validity. The purpose of this paper is to analyse the integration of short messaging service (SMS) in experimental auctions.

Design/methodology/approach

Based on a case study on iodine biofortified food with 180 household decision makers in Africa, a standard Becker-Degroot-Marschak procedure was compared with the novel SMS-based procedure through five information/auction rounds. Thereby, a standard protocol commonly employed in validation of medical diagnostic tests was adopted, assessing the sensitivity, specificity, precision, negative predictive values, likelihood ratios and post-test probability.

Findings

The SMS-based elicitation exhibited high levels of sensitivity (89-95 per cent), specificity (63-73 per cent), precision (40-60 per cent), NPV (92-98 per cent), LR+(2.6-3.3) and LR−(0.08-0.2) for all the auction rounds. The post-test plot indicates that the novel procedure is particularly consistent in ascertaining positive and negative valuations for a new food product.

Originality/value

Even though SMS-based bidding is shown to be an accurate, but also convenient and attractive bidding procedure, which is in line with novel ways of purchasing food, further validation is inevitable to determine its reliability in different contexts and its most effective use.

Details

British Food Journal, vol. 118 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

Open Access
Article
Publication date: 10 December 2020

Luigi Galletto, Francesco Caracciolo, Vasco Boatto, Luigino Barisan, Deborah Franceschi and Marica Lillo

Consumer likeability and willingness to pay (WTP) for two Italian sparkling wines, (Conegliano Valdobbiadene Prosecco DOCG and Prosecco DOC) are evaluated through a…

Abstract

Purpose

Consumer likeability and willingness to pay (WTP) for two Italian sparkling wines, (Conegliano Valdobbiadene Prosecco DOCG and Prosecco DOC) are evaluated through a non-hypothetical Becker-DeGroot-Marschak (BDM) auction during a wine-tasting experiment. The purpose of this paper is to estimate individual WTP and relate it to likeability for both wines, with and without supplying additional information on their features.

Design/methodology/approach

Data were collected in May–June 2019 from a sample of 99 consumers in Northern Italy. A non-hypothetical BDM auction in a wine-tasting experiment was implemented.

Findings

The results show that the additional information plays a significant role in widening the WTP gap between the two geographical indications (GIs), while the blind tasting narrows this gap. The “superiority” of the Conegliano Valdobbiadene Prosecco DOCG is confirmed but relies more on its better reputation than its better taste.

Research limitations/implications

The authors are aware of two main limitations in the study. The first is the territorial composition of the consumer sample. The second is the selection of the Prosecco bottles used in the experiment. The results are considered pioneering and need to be verified by additional experiments with different consumer and bottle samples.

Practical implications

Promotional suggestions for the Tutelary Consortia of the two GIs stem from the results. The Prosecco DOC should primarily stress its likeability, while the Conegliano Valdobbiadene Prosecco DOCG should primarily emphasise the reasons for its “superiority”.

Originality/value

To the best of the authors' knowledge, no previous study has related likeability and WTP for similar GI wines produced in contiguous areas. Moreover, the current research has applied a non-hypothetical BDM auction in a wine-tasting experiment.

Details

British Food Journal, vol. 123 no. 4
Type: Research Article
ISSN: 0007-070X

Keywords

Book part
Publication date: 3 June 2008

Glenn W. Harrison and E. Elisabet Rutström

We review the experimental evidence on risk aversion in controlled laboratory settings. We review the strengths and weaknesses of alternative elicitation procedures, the strengths…

Abstract

We review the experimental evidence on risk aversion in controlled laboratory settings. We review the strengths and weaknesses of alternative elicitation procedures, the strengths and weaknesses of alternative estimation procedures, and finally the effect of controlling for risk attitudes on inferences in experiments.

Details

Risk Aversion in Experiments
Type: Book
ISBN: 978-1-84950-547-5

Book part
Publication date: 21 July 2005

Richard Engelbrecht-Wiggans and Elena Katok

We present results of several experiments that deal with endogenous entry in auctions and auction valuation. One observation that is constant across all the experiments we report…

Abstract

We present results of several experiments that deal with endogenous entry in auctions and auction valuation. One observation that is constant across all the experiments we report is that laboratory subjects have a difficult time evaluating potential gains from auctions. Even after they are given some experience with particular auctions, the uncertainty inherent in the auctions (the probability of winning as well as the potential gains from winning) makes it difficult for subjects to compare different auction mechanisms. This highlights the need for new experimental procedures to be used for testing theories that involve endogenous auction entry in the laboratory.

Details

Experimental and Behavorial Economics
Type: Book
ISBN: 978-0-76231-194-1

Article
Publication date: 3 October 2016

Riccardo Vecchio, Alessia Lombardi, Luigi Cembalo, Francesco Caracciolo, Gianni Cicia, Felicia Masucci and Antonio Di Francia

Consumer interest and willingness to pay (WTP) for omega-3 enriched water buffalo mozzarella cheese are evaluated through an in-store experimental auction. The purpose of this…

Abstract

Purpose

Consumer interest and willingness to pay (WTP) for omega-3 enriched water buffalo mozzarella cheese are evaluated through an in-store experimental auction. The purpose of this paper is to estimate individual WTP for enriched mozzarella cheese and related it to self-efficacy beliefs and outcome expectations of omega-3 consumption, following regulatory focus theory.

Design/methodology/approach

Data were collected in May-June 2015 from a sample of 150 consumers in Southern Italy. A structural equation modelling procedure was implemented.

Findings

The results show a significant role is played by prevention outcome expectations on consumer behaviour. While promotion outcome expectation constructs proved non-significant, self-identity correlates with prevention outcome expectations.

Research limitations/implications

There are several limitations that the authors are aware of regarding this study. First of all, since the authors rely on self-reported measures, optimistic bias might have affected participants’ responses (Weinstein, 1980). Second, results may be influenced by the choice of the specific information provided to consumers for the analysis; different claims and different information framings should be tested (LeBoeuf and Shafir, 2003).

Practical implications

Implications stemming from the results encourage the promotion of omega-3 enriched mozzarella cheese based on stimulating outcome expectations, bearing in mind that individual motivations should be enhanced by self-identity beliefs.

Originality/value

Although the combined role of self-efficacy and outcome expectations on personal intention to adopt healthy behaviour has already been demonstrated (Keller, 2006; Tudoran et al., 2012), to the best of the knowledge no previous study relates individual behaviour to an intention measured as a WTP for an actual product. In addition, current study has applied a non-hypothetical BDM (from Becker et al., 1964) auction in-store experiment.

Details

British Food Journal, vol. 118 no. 10
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 22 September 2020

Yan Zhang, Shaosheng Jin, Yu Yvette Zhang and Xiaohua Yu

The purpose of this study is to decompose the effects of country-of-origin labeling (COOL) into multiple dimensions—macrolevel image, related to the country image, and microlevel…

Abstract

Purpose

The purpose of this study is to decompose the effects of country-of-origin labeling (COOL) into multiple dimensions—macrolevel image, related to the country image, and microlevel image, related to dairy industry/product attributes—and investigate how each dimension affects Chinese consumers' evaluation of imported milk.

Design/methodology/approach

This study adopted the Becker–DeGroot–Marschak (BDM) auction mechanism to elicit consumers' willingness to pay (WTP) for milk from different countries (New Zealand, Australia, Germany, France and China). The experiment was conducted with 348 shoppers at supermarkets in three major cities of China (Hangzhou, Wuhan and Shijiazhuang). The study subject was ultrahigh-temperature processing (UHT) milk (200 mL Tetra Pak aseptic brick package).

Findings

The results show that Chinese consumers are willing to pay a premium for UHT milk from New Zealand, Australia, Germany and France compared to domestic milk, and the premiums are 59.4, 58.9, 57.9, and 52.9% respectively. Both microlevel and macrolevel images exert a substantial influence on consumers' WTP, and the microlevel image has a greater impact on consumers' evaluation of milk than the macrolevel image. Particularly, the macropolitical, microtechnology/quality and microdesign/package dimensions have a positive influence on WTP for milk.

Originality/value

This study contributes to the existing literature in introducing the country-of-origin image (COI) construct with different dimensions to get in-depth knowledge about the country-of-origin (COO) effect in food or agricultural economics.

Details

China Agricultural Economic Review, vol. 13 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 20 January 2012

Faical Akaichi, José M. Gil and Rodolfo M. Nayga

The purpose of this paper is to analyze the market potential of a locally produced and high quality food product (i.e. white bean “Mongeta Ganxet” (MG)) from Catalonia, Spain…

1260

Abstract

Purpose

The purpose of this paper is to analyze the market potential of a locally produced and high quality food product (i.e. white bean “Mongeta Ganxet” (MG)) from Catalonia, Spain. Consumers' willingness to pay (WTP) for the product is elicited using a non‐hypothetical economic experiment and then the sensitivity of WTP values is analyzed with regard to additional information provided to participants that includes reference prices, leaflets and tasting. Finally, a sample‐selection model is estimated to assess the factors that significantly affect consumers' WTP for the product.

Design/methodology/approach

To elicit the willingness to pay a premium for the local food product, 90 subjects were invited to participate in a random nth price experimental auction. Before auctioning the product, participants were asked to complete a questionnaire about consumer attitudes and purchase habits.

Findings

Only 7 percent of participants are willing to pay a price higher than the minimum price from which the MG product may be purchased directly from a producer or the local producing market. Also, it was found that providing reference prices of substitute products (both conventional and alternative high quality white beans) positively affects WTP for the MG. Interestingly, however, provision of information on organoleptic, nutritional and cooking characteristics of the MG and product tasting do not significantly influence WTP. Finally, the level of consumption, the degree of knowledge about the product and the participants' previous experience increase the purchasing intention for the MG.

Originality/value

In contrast to traditional market research studies that use hypothetical methods, the authors use non‐hypothetical elicitation mechanism to elicit consumers' valuation for an important local food product in Catalonia, Spain. Since actual products and cash were used in the experiments, the authors provided the respondents with an incentive to reveal their true preferences and valuation for the product of interest. The authors also tested the effect of provision of certain types of information on WTP and analyzed the factors that significantly influence consumers' WTP for the product.

Article
Publication date: 5 September 2016

Marin Cagalj, Rainer Haas and Ulrich B. Morawetz

Claims about environmental impact, health effects and taste of food products are restricted in the EU. The purpose of this paper is to quantify how much such claims would change…

Abstract

Purpose

Claims about environmental impact, health effects and taste of food products are restricted in the EU. The purpose of this paper is to quantify how much such claims would change the willingness to pay (WTP) for organic products in Croatia.

Design/methodology/approach

For estimating the WTP under different claims the authors used an experimental auction. Participants (258) bid for real food products (organic and conventional tomatoes and apples) and are endowed with cash at a location where they usually go shopping.

Findings

For the sample the authors find that consumers are willing to pay on average a premium of 42 percent for organic apples and 59 percent for organic tomatoes. On top of that, WTP increases between 16-20 percent for environmental claims and 12 percent for health claims. Taste-related claims are not significant.

Practical implications

Sellers and producers of organic food can benefit from adding claims to organic labels. To protect consumers from manipulation, regulators are well advised to be cautions when allowing claims about credence attributes of food.

Originality/value

The authors quantify the influence of claims about organic products on the WTP by using experimental auctions which are particularly suitable to investigate effects which cannot be observed on the market.

Details

British Food Journal, vol. 118 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

Open Access
Article
Publication date: 30 June 2022

Le Bo and Xiaoli Yang

Consumers' willingness to pay premium (WTPP) for two different types of agricultural brand labels (enterprise and regional), are evaluated through a non-hypothetical Random n

1692

Abstract

Purpose

Consumers' willingness to pay premium (WTPP) for two different types of agricultural brand labels (enterprise and regional), are evaluated through a non-hypothetical Random n-price auction experiment during the online purchase of fresh agricultural products. The purpose of this paper is to evaluate the two WTPP, compare their differences, and explore their sustainability.

Design/methodology/approach

Data were collected in July–August 2020 from a sample of 310 consumers in Liaoning Province, China. A nonhypothetical random n-price auction experiment was implemented in a simulated online shopping environment.

Findings

The results show that WTPP exists, and WTPP level of regional brand labels is higher than that of enterprise brand labels. Consumers' WTPP is sustainable. Consumers with low WTPP for enterprise brand labels and consumers with high WTPP for regional brand labels have stronger willingness to repurchase.

Practical implications

The results have direct practical implications for developing brand agriculture and encouraging “brand consumption”. The results can provide theoretical reference for policymakers, enlightenment for the development and effective dissemination of agricultural brand labels and important information to e-retailers on how to sale agricultural products with agricultural brand labels.

Originality/value

To the best of the authors' knowledge, no previous study has related WTPP and its sustainability for agricultural brand labels in China. We try to fill a gap in literature on consumers' WTPP for agricultural brand labels. And the authors explore the sustainability of WTPP by analyzing the impact of WTPP on repurchase intention and recommendation intention respectively.

Details

British Food Journal, vol. 124 no. 13
Type: Research Article
ISSN: 0007-070X

Keywords

1 – 10 of 34