Preferences and willingness to pay for organic pears among high-income people in the Metropolitan Region of Santiago, Chile

Abstract

The aim of this study is to determine the preferences and willingness to pay for organic pears among high-income people in the Metropolitan area of Santiago de Chile. To do this, the methods of conjoint analysis and contingent valuation were used. The study population was the Santiago Metropolitan Region in Chile. For the conjoint analysis, four attributes of pears were studied (variety, price, body, and production). For contingent valuation, subjects received a description of the organic production process vs. the conventional process and were then asked about their willingness to pay more per kilogram for pears produced organically. Both methodologies revealed a positive willingness to pay for pears. The estimated utility of each attribute level indicates that the Packham variety of pears, which are produced organically with a juicy body and lower price, are the characteristic attributes consumers preferred most. The relative importance of the attributes was as follows, in descending order: price (55.8%), external characteristics (20.6%), production type (13.5%), and body (10.1%). The mean willingness to pay was CLP 233 (USD 0.50) when using contingent valuation, whereas the marginal willingness to pay was CLP 31.6 when using conjoint analysis. El presente estudio tiene como objetivo determinar las preferencias y la disposicion a pagar por peras organicas. Para ello se utilizo el metodo de analisis conjunto y valoracion contingente. La poblacion de estudio fue la region Metropolitana de Santiago de Chile, donde se encuestaron 504 individuos. Para el analisis conjunto se utilizaron cuatro atributos (variedad, precio, cuerpo y produccion) de la pera, y para la valoracion contingente se describio la situacion de produccion organica versus convencional donde se preguntaba la disposicion a pagar adicional por kilo de peras. Como resultado de ambas metodologias utilizadas se obtuvo una disposicion a pagar positiva por peras producidas organicamente. La estimacion de las utilidades de cada atributo indica que las caracteristicas como variedad Pakhma’s, metodo produccion organica, cuerpo jugoso y precio mas bajo, son los que tienen mayor preferencia por parte de los consumidores. La importancia relativa de los atributos son, por orden de importancia, precio (55,8%), variedad (20,6%), tipo de produccion (13,5%) y cuerpo (10,1%). La disposicion a pagar media alcanza a 233 pesos usando valoracion contingente mientras que la marginal alcanza 31,6 pesos chilenos, usando analisis conjunto.