Abstract
Among foods with credence attributes, food with “natural” components have received in the last years particular attention by consumers. This study applies the BDM incentive compatible mechanism to explore young (18–35 years old) consumers’ interest and willingness to pay for chewing gums having the natural attribute. Our analysis shows that over 68% of consumers are interested in the natural attribute and are willing to pay a price premium. We also find that consumers’ higher age and interest in the environment have significant impacts on consumers’ preferences for the natural attribute.
Highlights
Drivers of food choices have been investigated by different authors, revealing that credence attributes play an important role in consumers’ purchase decisions (Vermeir and Verbeke 2008; Bolling Johansen et al 2010; Dentoni et al 2014; Moor et al 2014; Cembalo et al 2016; D'Amico et al 2016)
Credence attributes are a category of attributes related to a wide range of intangible elements that cannot be verified by consumers, even after consumption (Torjusen et al 2001; Grunert et al 2004; Moser et al 2011)
Among the large set of credence attributes, food healthiness and environmental concern are getting a significant attention in the economic literature due to their relevant power to influence consumers’ food choices (Steptoe et al 1995; Roininen et al 1999)
Summary
Drivers of food choices have been investigated by different authors, revealing that credence attributes play an important role in consumers’ purchase decisions (Vermeir and Verbeke 2008; Bolling Johansen et al 2010; Dentoni et al 2014; Moor et al 2014; Cembalo et al 2016; D'Amico et al 2016). Credence attributes are a category of attributes related to a wide range of intangible elements that cannot be verified by consumers, even after consumption (e.g., environmental safety, food healthiness, product origin, producing condition, social advantages) (Torjusen et al 2001; Grunert et al 2004; Moser et al 2011). Among the large set of credence attributes, food healthiness and environmental concern are getting a significant attention in the economic literature due to their relevant power to influence consumers’ food choices (Steptoe et al 1995; Roininen et al 1999). Perceived risks related to additives and other synthetic substances in food have received considerable interest in recent years (Evans et al 2010) because consumers’ perception of food healthiness is influenced by the mode of processing raw materials and use of additives and synthetic substances (Bech-Larsen and Grunert 2003; Chen 2009)
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