Risk perception and consumer willingness to pay for certified beef in Spain

Food scares have increased consumer food safety concern, particularly for beef. Traceability and food quality labels have been put in place to communicate to consumers the safety characteristics of the specially labelled beef in hopes of recovering confidence and consumption. As a consequence, production costs have increased, and thereby consumer prices as well. In this paper, we develop a conceptual model capable of analyzing the main factors influencing consumers’ willingness to pay for certified beef. A three-equation recursive model is jointly estimated which accounts for the main steps in the consumer decision process. Results indicate that income, level of beef consumption, the average price consumers pay for beef and the perception of beef safety are the main determinants of Spanish consumers’ willingness to pay for certified beef.     

Consumer willingness to pay for quality attributes of fresh seafood: A labeled latent class model

We applied a labeled choice experiment (LCE) to investigate consumer demand and choice behavior for fresh seafood in a retail market. The LCE was conducted for a large number of seafood alternatives (i.e., seafood species) labeled by the respective seafood name (e.g., cod, salmon, mussels). Consumer heterogeneity in preference was expressed by estimating a labeled latent class model with alternative-specific effects, which varies choice probability and model parameters over seafood alternatives and across classes. The willingness to pay (WTP) for extrinsic attributes (e.g., product form, production method, and country of origin), and the rank ordered-intrinsic value were estimated for each seafood alternative within classes and the entire market. The WTP estimate in our study is expected to be more accurate than those derived from studies based on single product alternatives because the LCE allows respondents to evaluate choice alternatives through both attribute judgment and alternative comparison. Exploring a variety of product alternatives is also meaningful to firms with multiple products (e.g., fresh seafood retailers) or firms with many direct competitors.     

Consumer preferences and willingness to pay for value-added chicken product attributes

A growing demand for convenient and ready-to-eat products has increased poultry processors' interest in developing consumer-oriented value-added chicken products. In this study, a conjoint analysis survey of 276 chicken consumers in Edmonton was conducted during the summer of 2009 to assess the importance of the chicken part, production method, processing method, storage method, the presence of added flavor, and cooking method on consumer preferences for different value-added chicken product attributes. Estimates of consumer willingness to pay (WTP) premium prices for different combinations of value-added chicken attributes were also determined. Participants'"ideal" chicken product was a refrigerated product made with free-range chicken breast, produced with no additives or preservatives and no added flavor, which could be oven heated or pan heated. Half of all participants on average were willing to pay 30% more for a value-added chicken product over the price of a conventional product. Overall, young consumers, individuals who shop at Farmers' Markets and those who prefer free-range or organic products were more likely to pay a premium for value-added chicken products. As expected, consumers' WTP was affected negatively by product price. Combined knowledge of consumer product attribute preferences and consumer WTP for value-added chicken products can help the poultry industry design innovative value-added chicken products. Practical Application: An optimum combination of product attributes desired by consumers for the development of a new value-added chicken product, as well as the WTP for this product, have been identified in this study. This information is relevant to the poultry industry to enhance consumer satisfaction of future value-added chicken products and provide the tools for future profit growth.     

Consumer willingness to pay for shelf life of high-temperature,short-time-pasteurized fluid milk: Implications for smart labeling and food waste reduction

Food waste in the United States was valued at $285 billion in 2019, representing 70% of all food surplus; dairy and eggs alone represented 15.90% of food surplus. Milk is the fifth most consumed beverage in the United States, and therefore its contribution to food waste has significant economic and environmental ramifications. Smart labels that provide precise spoilage information for fluid milk may help reduce food waste in fluid milk, but it is unclear if consumers will accept or pay for this novel technology. This paper examines consumer preferences for high temperature, short time pasteurized fluid milk shelf life and smart date labels and tests how information about the environmental impact of fluid milk food waste affects consumers' acceptance and willingness to pay. We used a choice-based conjoint study administered in an online survey, along with a between-subject experiment to measure preferences under different information treatments about the environmental impact of food waste. Our results suggest that consumers' valuations of extended shelf life and an ecolabel is positive; however, using the smart label creates disutility for consumers, thereby hindering acceptance of new labeling technology that may facilitate food waste reduction in the milk industry. These findings imply that retailers should find alternative means to enhance the communication of precise shelf life information and its role in reducing food waste.     

Impact of the information provided to consumers on their willingness to pay for Champagne: comparison with hedonic scores

This study was carried out in order to compare two mechanisms designed to reveal consumers' preferences: a Vickrey auction which measures willingness to pay, and a common hedonic test. Via these two methods, the objective was to assess the respective effects of sensory characteristics and external information on the overall evaluation of five brut non-vintage Champagnes. One hundred and twenty three consumers were randomly assigned to two groups and took part in one of the methods. Whichever the method, they evaluated the Champagnes in a blind condition, then on the basis of bottle presentation and, finally, after observing the bottle while tasting. Results revealed that the two methods performed equally in revealing the effect of external information on the overall evaluation of Champagnes. Participants are unable to discriminate Champagnes after blind tasting, while significant differences in preferences for the products appeared when labels were made known, and the preferences observed respected the hierarchy of the market. Nevertheless, some differences between the two methods were observed suggesting that these methods could be used differently according to the specific objectives of the study.     

Comparing methods for measuring consumer willingness to pay for a basic and an improved ready made soup product

Willingness to pay (WTP) for a basic chilled soup product and for an improved, self-heating version was measured by methods experimentally varied according to a 2 × 3 design, varying the basic measurement approach (contingent valuation, experimental auction, conjoint analysis) and the use of real vs. game money. Measurement protocols for each approach were adapted in order to allow uniform methods factors across the design. WTP was measured for 551 shoppers recruited in a shopping centre, using personal interviewing and closed questioning. Shoppers in the real money condition received an endowment at the beginning of the task. Drawing on constructs derived from research in consumer price information processing, subject’s reference price, price involvement, and price thought style were also measured. Results showed no differences between use of contingent valuation and experimental auction, and between the use of real vs. game money. Conjoint analysis led to lower WTP estimates for the product improvement than the other two methods Reference price and one dimensions of price involvement – value consciousness – were related to WTP estimates for the base product.     

Target groups for organic wine: The importance of segmentation analysis

In light of low and stagnating market shares of organic wine, there is an ongoing debate about growth potential for organic wine. A recent study revealed that even consumers of organic food did not necessarily purchase organic wine regularly. The aim of this contribution was to analyse the wine preferences of organic food consumers and identify promising new target groups for organic wine. We conducted choice experiments in Germany (N = 600) and analysed the data with mixed logit models and latent class models, revealing interesting differences between the results of the two approaches. While the mixed logit models suggested ‘organic’ was the most important wine attribute, the latent class models challenged this proposition. While three of four consumer segments had a strong preference for organic, only one segment in the red wine model (and no segment in the white wine model) gave organic highest priority. Just like non-organic consumers, many organic food consumers seem to use price or country of origin as the most important quality cue for wine. The comparison between the results of the choice experiments and the participants’ stated normal purchase behaviour suggested there is growth potential for organic wine. Apparently, consumers of organic food would buy more organic wine if their preferred type and variety of conventional wine would be available in organic quality at similar price levels.     

Mindfulness and willingness to try insects as food: The role of disgust

Mindfulness, commonly associated with Buddhism, refers to the state of being aware, taking note of what is going on within oneself and outside of the world. In the current research, we examine the possible impact of mindfulness on willingness to try insect foods. We present the results of three studies—one correlational and two experimental—illustrating that mindfulness increases disgust and lowers willingness to try eating insects. On the one hand, this counters existing literature that mindfulness reduces emotional reactivity. On the other hand, it is in-line with mindfulness making one more aware and accepting of present and incoming information, which would conceivably include context-relevant emotions such as disgust in the case of eating insects that Western cultures see as disgusting. Our findings support the latter possibility. We situate our work within the literature on the various impacts of mindfulness on food choice. We also discuss implications for food sustainability practitioners.     

Consumer willingness to pay for beef meat in a developing country: The effect of information regarding country of origin,price and animal handling prior to slaughter

Considering the importance that animal welfare has attained in developed countries, a personal interview of 770 regular meat buyers in the Bio-Bio and Araucanía regions of Chile was conducted to determine the importance of information regarding animal treatment prior to slaughter in the decision-making process when buying beef, to discover the willingness to pay more for this attribute and to distinguish different buyer segments. Using a conjoint analysis design, those surveyed were asked to put eight products in order according to their preference, given the following alternatives: domestic or imported beef, with or without information on animal treatment prior to slaughter and two price options. Origin and information regarding animal treatment were more important than price. Animal welfare is perceived as a desirable condition, but consumers are not willing to pay significantly more when buying meat in order to gain information about animal handling. Through a cluster analysis, four segments were distinguished in each region, with consumers who consider origin as the most important attribute predominating.