Abstract

In this work, the Contingent Valuation Method(CVM) was applied to analyze factors that affect chinese consumers’ Willingness-to-Pay(WTP) for premium citron beverages (Oligo). The target areas for this study are Shanghai and Jangchun with a high preference for imported premium products. As function for WTP estimation, a log linear logit model was applied and compared the estimation results of the single bound dichotomous choice(SBDC) model and the double bound dichotomous choice(DBDC) model to confirm consistency of the DBDC response. In addition, we further analyzed the response results of open-ended questions and compared them with the WTP estimation data to find conclusive results. First, the values of the SBDC model(central data), DBDC model or open response were 46 yuan, 49 yuan(including those who refused payment), or 50 yuan, respectively. The estimation results showed that the central value of the DBDC model was higher than that of the SBDC model, indicating no WTP estimation of the DBDC model and similar value of pen response results. However, the Changchun area showed some differences from WTP estimates, with 26 yuan, 36 yuan, or 52 yuan from SBDC model, DBDC model, or open response. Second, it is necessary to develop a specific packaging design for young(30s) women as a market segmentation strategy for Korean premium yuza product(Oligo) in the Chinese consumer market. Regionally, Shanghai area needs to be positioned as a high-quality brand image, and Jangchun area requires a strategy to expand purchasing opportunity with a lower product price due to high purchasing rate of Korean beverages.

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