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Open Access
Article
Publication date: 10 September 2024

Nhat Bach Ho, Dut Van Vo and Chris Rowley

The study estimates the willingness to pay for organic oranges and identifies its influencing factors among consumers in the Mekong Delta, Vietnam.

Abstract

Purpose

The study estimates the willingness to pay for organic oranges and identifies its influencing factors among consumers in the Mekong Delta, Vietnam.

Design/methodology/approach

The study used survey data from 413 households in the Mekong Delta from March 2022 to July 2022. The choice experiment (CE) and contingent valuation method (CVM) were employed to analyze consumers’ willingness to pay (WTP). STATA 17 software was used to analyze research data in the logit model and mixed logit model.

Findings

The research results from the CVM approach show that a number of demographic characteristics have a direct impact on WTP, such as education, educational attainment, family size, the presence of children and the elderly in the household, food safety and environmental awareness. The CE model shows product attributes that influence consumers’ WTP, such as country of origin, traceability, quality grade, organic certification, ecolabel and organic content. Both approaches show that price is the main barrier to organic orange consumption.

Research limitations/implications

The study surveyed four large cities in four provinces representing the Mekong Delta region.

Practical implications

Our study helps administrators have a deeper insight into consumer preferences and behavior, specifically the factors that affect consumers' WTP, an important indicator of demand for the success of manufacturers and marketers in developing as well as improving marketing strategies. Knowledge of a product’s WTP on behalf of (potential) customers plays an important role in many areas of marketing management, such as pricing decisions or new product development.

Social implications

Furthermore, this understanding will inform policymakers about the future of agricultural markets in Vietnam and help them better prepare for the making of sustainable agricultural policies. Develop organic agriculture to both protect human health, protect the living environment and protect the soil from degradation, ensuring sustainable agricultural production. This is also one of the measures to help people stay away from diseases to limit the social burden.

Originality/value

The study confirms that both CVM and CE models can be used to estimate WTP. However, CVM fits the overall WTP estimate, while CE is more appropriate when estimating WTP for individual scenarios through combining attributes with different levels.

Details

Journal of Trade Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2815-5793

Keywords

Article
Publication date: 22 March 2024

Jianfeng Guo, Xiaohan Yang, Sihang Yao, Fu Gu and Xuemei Zhang

The purpose of this paper is to examine the influences of positive-framed and negative-framed green advertising on pro-environmental WTP. This study also explores the impacts of…

Abstract

Purpose

The purpose of this paper is to examine the influences of positive-framed and negative-framed green advertising on pro-environmental WTP. This study also explores the impacts of regulatory focus, environmental concern and pleasant level on green advertising effectiveness.

Design/methodology/approach

Data are collected from a within-participant between-group online experiment in China. The generalized estimating equation (GEE) is employed to investigate the impact of green advertising on WTP. Grouped regression and mediation analyses are conducted to explore the influences of regulatory focus, environmental concern and pleasure on advertising efficacy.

Findings

The experimental outcomes indicate that green advertising significantly increases participants’ pro-environmental WTP, and negative-framed advertising is more effective than its positive-framed counterpart. Prevention focus heightens receptivity to green advertising, and the relation of environmental concern to advertising effectiveness is inverted U-shaped. Pleasure mediates the effect of green advertising on the WTP, and this mediating role is influenced by emotional intensity when advertising is negatively framed.

Originality/value

Evidence suggests that green advertising may propel pro-environmental WTP by raising environmental awareness, but such a relationship remains severely understudied. As such, this study pioneers in exploring the impact of different-framed green advertising on pro-environmental WTP, extending the concept of green advertising to environmental management. By considering the influences of regulatory focus, environmental concern and pleasure, this study raises practical implications for designing green advertisements, such as increasing the usage of visual elements.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 6
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 16 February 2024

Ganesh Thapa, Yam Kanta Gaihre and Dyutiman Choudhary

The purpose of the study is to estimate the willingness to pay (WTP) for major chemical fertilizers and revisit the fertilizer subsidy policy in Nepal.

Abstract

Purpose

The purpose of the study is to estimate the willingness to pay (WTP) for major chemical fertilizers and revisit the fertilizer subsidy policy in Nepal.

Design/methodology/approach

We surveyed 619 households from six districts and assessed farmers’ WTP for urea, diammonium phosphate (DAP) and muriate of potash (MOP) during the fertilizer crisis. Our study elicited the WTP for fertilizers when fertilizers were not available on the market. A modified payment card approach was used to elicit farmers’ WTP.

Findings

The study found that farmers who buy fertilizer from agrodealers, buy from gray markets, have bank accounts, are willing to take a risk, have strong or medium economic conditions and incur higher travel costs have a higher WTP for fertilizers. Farmers in sampled areas, on average, are willing to pay 31 percent more for urea, 13 percent more for DAP and 19 percent more for MOP than the government recommended fertilizer price.

Research limitations/implications

The design of the payment card and the estimation techniques used to fit the valuation function are likely to influence WTP.

Originality/value

Overall, literature on households’ WTP for fertilizers in developing countries is scarce. Our study contributes to the knowledge of WTP for fertilizers.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 8 January 2024

Owais Khan and Andreas Hinterhuber

The role of procurement managers is crucial for diffusing sustainability throughout the supply chain. Whether or not they are willing to pay for sustainability is an important and…

2945

Abstract

Purpose

The role of procurement managers is crucial for diffusing sustainability throughout the supply chain. Whether or not they are willing to pay for sustainability is an important and not yet fully understood question. The authors examine antecedents and consequences of their willingness to pay (WTP) for sustainability.

Design/methodology/approach

The authors develop a multi-level framework to examine the WTP for sustainability in a B2B context. The authors test this multi-level framework with 372 procurement managers from multiple sectors and countries using partial least squares structural equation modeling.

Findings

The authors find that individual values of procurement managers and institutional pressures directly, while ethical organizational culture indirectly influence WTP for sustainability. Functional and cognitive competencies of procurement managers improve the sustainability of procurement, but not WTP for sustainability. Importantly, WTP for sustainability directly influences the performance of the procurement function which in turn is positively associated with increased organizational performance.

Originality/value

The study, examining the interplay between individual, organizational and contextual factors, provides empirical evidence on the pivotal role of procurement managers in diffusing sustainability throughout the supply chain. The findings of the study, on the one hand, contribute to the literature on operations management and sustainability, and on the other hand, guide policy and managerial actions.

Details

International Journal of Operations & Production Management, vol. 44 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 13 November 2023

Jiehong Zhou, Fei Han, Xiaoyu Han and Zhen Yan

The paper proposes a research method to verify the perception bias of consumers on the freshness preservation effects of vacuum packaging (VP) and modified atmosphere packaging…

Abstract

Purpose

The paper proposes a research method to verify the perception bias of consumers on the freshness preservation effects of vacuum packaging (VP) and modified atmosphere packaging (MAP) chilled pork packages, the influence of “sensory experience” on correcting consumers' perception bias of packaging performance and willingness-to-pay (WTP) enhancement channels.

Design/methodology/approach

Using data from 458 and 188 participants who completed the contingent valuation method (CVM) and auction experiment, respectively, the study aimed to uncover consumers' packing quality perception bias and WTP, and investigated the societal factors that contribute to variations in WTP.

Findings

The CVM experiment revealed that although consumers' high perception bias rate toward MAP to maintain freshness, as compared to lab test results, came along with low WTP premium to cost rate with sensory experience in the auction experiment, the proportion of consumers with quality perception bias decreased from 49.85% to 34.46%, while the WTP premium to cost rate for MAP increased largely by 36.7%. Perceptive embedding has a positive effect on chilled pork packaging WTP, while normative embedding decreases WTP.

Originality/value

The findings emphasize the need of public policies to promote positive consumption attitudes, while whittling the negative consumption norms, to increase the WTP for packaged child pork and promote the chilled pork market formation.

Details

British Food Journal, vol. 126 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

Open Access
Article
Publication date: 13 October 2023

Juan Oliva, Luz María Peña Longobardo, Leticia García-Mochón, José María Abellán-Perpìñan and María del Mar García-Calvente

This paper aims to study the value of informal care (IC) time from the perspective of caregivers using two alternative contingent valuation tools – willingness to pay (WTP) and…

Abstract

Purpose

This paper aims to study the value of informal care (IC) time from the perspective of caregivers using two alternative contingent valuation tools – willingness to pay (WTP) and willingness to accept (WTA) – and to identify the variables that affect the stated values.

Design/methodology/approach

The authors used data from a multi-centre study of 610 adult caregivers conducted in two Spanish regions in 2013. The existence of “protest zeros” and “economic zeros” because of the severe budgetary constraints of the households was also considered. Two-part multivariate models were used to analyse the main factors that explained the declared values of WTA and WTP.

Findings

The average WTP and WTA were €3.12 and €5.98 per hour of care, respectively (€3.2 and €6.3 when estimated values for “protest zeros” and “economic zeros” were considered). Some explanatory variables of WTA and WTP are coincident (place of residence and intensity of care time), whereas other variables only help to explain WTP values (household and negative coping with caregiving) or WTA values (age and burden of care). Some nuances are also identified when comparing the results obtained without protest and economic zeros with the estimated values of these special zeros.

Originality/value

Studies analysing the determinants of WTP and WTA in IC settings are very scarce. This paper seeks to provide information to fill this gap. The results indicate that the variables that explain the value of IC from one perspective may differ from the variables that explain it from an alternative perspective. Given the relevance of contextual factors, studies on the topic should be expanded, and care should be taken with the extrapolation of results across countries and settings.

Details

Applied Economic Analysis, vol. 31 no. 93
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 5 May 2023

Veronica Marozzo, Alessandra Costa, Antonio Crupi and Tindara Abbate

This study aims to examine the most influential drivers, both product-specific and consumer-specific, affecting Asian consumers' willingness to pay (WTP) for organic olive oil.

2151

Abstract

Purpose

This study aims to examine the most influential drivers, both product-specific and consumer-specific, affecting Asian consumers' willingness to pay (WTP) for organic olive oil.

Design/methodology/approach

To individuate the most influential drivers of WTP for organic products and to assess their effect, in terms of configurational paths and consumer profiles, this study sequentially employs explorative factor analysis approach and a fuzzy-set qualitative comparative analysis method. The survey is carried out in different areas of Asia (e.g. Pakistan, Vietnam and China).

Findings

The results suggest that Asian consumers' WTP for organic products is described by consumer-specific drivers (gender, occupation and household size) as well as product-specific drivers (product authenticity and sustainability, consumer ethnocentrism and food fraud risk perception).

Originality/value

The findings of the study permit the identification of different drivers that move consumers' WTP for organic olive oil. The study contributes to setting the ground for companies to propose and implement efficacious marketing strategies for organic olive oil in importing countries, such as Asia.

Details

European Journal of Innovation Management, vol. 26 no. 7
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 3 July 2023

Tevfik Demirciftci, Amanda Belarmino and Carola Raab

The purpose of this study is to discover what attributes of casino buffet restaurants are the most important for customers’ willingness to pay (WTP).

1196

Abstract

Purpose

The purpose of this study is to discover what attributes of casino buffet restaurants are the most important for customers’ willingness to pay (WTP).

Design/methodology/approach

Choice-based conjoint analysis was used in this study to test seven attributes: food, price/value, real price, service, atmosphere, the number of reviews and user-generated star ratings. Sawtooth Software was used to do the conjoint analysis, and a series of significance t-tests were run to determine the significance of each attribute on WTP with Statistical Package for the Social Sciences (SPSS).

Findings

Based on a survey of 483 respondents who had visited a buffet at a casino within the last two years, this study found that food is ranked as the most significant attribute of a casino buffet restaurant, followed by real price and service quality.

Originality/value

Theoretically, this work is the first to the authors’ knowledge to apply the antecedents of behavioral intention to willingness-to-pay for niche restaurants. Practically, the results of this study will help casino buffet operators as they re-open after COVID-19. Future studies could collect data in the post-pandemic environment and examine WTP at casino buffets in different geographic locations.

Details

International Hospitality Review, vol. 38 no. 2
Type: Research Article
ISSN: 2516-8142

Keywords

Article
Publication date: 8 February 2023

Mansi Gupta

Art-infusion has become a common practice among brands across the globe. This is because marketers leverage the uniqueness and prestige of arts to earn superior profits. Hence…

Abstract

Purpose

Art-infusion has become a common practice among brands across the globe. This is because marketers leverage the uniqueness and prestige of arts to earn superior profits. Hence, this research aims to understand and measure consumers' willingness to pay (WTP) for art-infused products.

Design/methodology/approach

A questionnaire was designed based on conjoint analysis and was responded to by 470 respondents from India. The estimation of preference functions in conjoint analysis was intended to use orthogonal arrays to measure WTP.

Findings

The study reveals consumers' utility and WTP for different art-infused products. The results indicated that consumers have the highest WTP for products that have artwork dominated by the visual elements of colour, shapes and space.

Practical implications

The paper presents valuable findings for marketers to develop their product design and earn superior profits.

Originality/value

This is the first study in the domain of the art infusion phenomenon that measures WTP for non-luxury art-infused products. Also, this is the first study to measure WTP for different kinds of art forms.

Details

South Asian Journal of Business Studies, vol. 13 no. 3
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 7 November 2022

Bangyi Li, Juan Tang, Zhi Liu and Bengang Gong

The purpose of this paper is to investigate remanufacturing operational strategies considering uncertain quality of end-of-life (EOL) products and differential consumers’…

Abstract

Purpose

The purpose of this paper is to investigate remanufacturing operational strategies considering uncertain quality of end-of-life (EOL) products and differential consumers’ willingness-to-pay (WTP) for new products and provide suggestions on the remanufacturing mode selection for the original equipment manufacturer (OEM).

Design/methodology/approach

This study considers three remanufacturing modes, i.e. in-house, outsourcing and authorization modes. By establishing and comparing decision models of three modes from the perspectives of profit, consumer surplus and environment, the optimal remanufacturing mode is discussed.

Findings

The results suggest that if the OEM’s remanufacturing capability is high, the in-house mode brings to the highest environmental performance, OEM’s profit and consumer surplus. Otherwise, the outsourcing mode (authorization) is the best benefit to environment (consumers if the unit production cost of new products is not too high). As for the preference of two decision-makers to outsourcing and authorization modes, if the difference of consumers’ WTP for new products is low, the OEM prefers the outsourcing mode; otherwise, the OEM prefers the authorization mode. The preference of the third-party remanufacturer (TPR) to remanufacturing mode is affected by consumers’ WTP for remanufactured products, WTP difference for new products and remanufacturing quality level standard.

Practical implications

These results can provide operational insights into how to select remanufacturing mode when the quality of EOL products is uncertain and consumers’ WTP for new products is different under three remanufacturing modes.

Originality/value

This paper is among the first to investigate the joint effects of EOL products’ uncertain quality and differential consumers’ WTP for new products on the operational strategies and performance under different remanufacturing modes.

Details

Kybernetes, vol. 53 no. 1
Type: Research Article
ISSN: 0368-492X

Keywords

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