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There is a range around reference prices, the so-called latitude of price acceptance, where consumers seem insensitive to changes into prices, with these ranges being wider for buyers of private brands. This paper analyses objective price gap between two product alternatives as a main driver of consumer behaviour. Therefore, the authors shed light on whether the price gap conditions consumer-switching behaviour and at what point the price gap triggers a switching pattern.

Shopping data on two product alternatives of olive oil were obtained from a household scanner panel of Spanish consumers (607 households) with weekly price tracking, and multilevel regression models were performed.

The results suggest that the price gap has a fundamental effect on the consumers' choice. In this case, up to 1 euro/litre the demand seems almost inelastic; beyond that price gap, the demand for the finer product plummets.

This study focussed on olive oil products. The research needs to be extended other food products.

The authors contribute to the literature by documenting how the price context measured in terms of a price gap is a relevant stimulus in consumer choices, with a focus on the change in price sensitivity between product alternatives when competing brands are not involved but private brands are.

Starting from a territorial development project in Western Honduras (Copán and Ocotepeque), farmers aimed to increase and add value to agricultural production by producing and commercializing granulated brown sugar (panela). The Western Honduras sugar market was studied, from the supply and demand side, in order to particularly understand consumer preference which is considered a key to increase smallholder farmers’ income in rural areas.

The research included a qualitative study by means of six visits for observation and data compilation to stores, four face-to-face open semi-structured interviews with store owners and a focus group with local producers to acquire a global picture of the main regional sugar market characteristics from the supply side. Moreover a quantitative analysis applying a Choice Experiment to study consumer preferences was performed acquiring higher knowledge from the demand side.

First, it was found that Honduras sugar market could be experiencing monopolistic practices and white sugar to 9 lempiras per pound was the most popular product according to the qualitative study. Second, for consumers who knew dulce de panela, granulated brown sugar was preferred over refined white sugar. Consumers who had a high level of education, came from rural areas, considered brown sugar to be healthier and read nutritional information were more prone to consume granulated brown sugar. On the other hand, the estimated selling price was around 16 lempiras/pound, but consumers were willing to pay at the most 11.59 lempiras/pound. Nevertheless, market share simulation showed a market niche to comercialize granulated brown sugar – panela.

This research is of academics, farmers and policy makers value. There are no studies analyzing consumer behavior regarding granulated brown sugar in Honduras. The results provide information about the previous steps which need to be given for smallholders in order to commercialize this novelty product; and it stressed the necessity of highlighting health claims on panela which would involve political actions.