Consumer Willingness To Pay Research Articles

Do consumers care about organic when consuming speciality bakery products or is it all about indulgence?

PurposeThis study explores the viability of incorporating more expensive organic wheat flour into speciality bakery products, which are of superior quality, thus justifying the higher cost. As consumers may be reluctant to purchase organic speciality baked goods due to unfavorable taste associations with organic foods, particularly those consumed as a treat or for pleasure, this study investigates the impact of providing taste assurances and origin information on consumer acceptance and WTP for organic speciality bakery products.Design/methodology/approachUsing data from an online survey of US consumers, random parameter logit models were estimated and willingness-to-pay (WTP) values were calculated.FindingsStudy results show that the use of more expensive organic flour is justified for speciality bakery products when favorable taste assurances are provided or for consumers who value organic foods. Freshness indictors were only important in the case of speciality breads, but not for other products. Finally, improving consumer awareness of organic labeling standards does not significantly impact their organic product preferences or taste perceptions.Practical implicationsThis analysis aims to identify the product information likely to increase the consumption of organic speciality bakery/pastry products and thus support the incorporation of organic wheat flour into these higher-value products.Originality/valueWhile previous choice experiment studies have extensively examined consumer preferences for organic products, few have evaluated the impact of providing taste and freshness indicators, particularly in the context of vice goods. This study examines the impact of providing taste and freshness indicators on consumer acceptance and WTP for various organic speciality bakery/pastry products in stated choice experiments, where consumers to not have the option to taste the product. Specifically, we examine if taste and freshness assurances reduce potential negative organic product taste biases.

Willingness to Pay for Blueberries: Sensory Attributes, Fruit Quality Traits, and Consumers’ Characteristics

Understanding consumers’ preferences for fruit quality attributes is key to informing breeding efforts, meeting consumer preferences, and promoting increased market demand. The objective of this study was to assess the effect of fruit quality traits and hedonic sensory evaluation on consumers’ willingness to pay (WTP) for a selection of fresh northern and southern highbush blueberry cultivars. The WTP was elicited by using a double-bounded contingent valuation conducted in conjunction with a consumer sensory test. Two types of models were estimated using either sensory evaluations (i.e., consumer preference and consumer intensity) or instrumental measurement data (i.e., measures of soluble solids, titratable acidity, sugars, acids, and firmness) as explanatory variables to model WTP. Results using sensory evaluations indicated that flavor liking, flavor intensity, and sweetness intensity are key factors that influence consumers’ acceptance and WTP for blueberries. A regression analysis using instrumental measurements indicated that measures related to sweetness and acidity traits are important factors that determine WTP. Higher WTP was associated with higher total sugar content across different levels of total organic acid. The WTP increases with organic acid content, because this is needed for enhanced flavor; however, WTP declines at high concentrations of organic acid. Except for extreme values of firmness, the WTP increased as measures of fruit firmness increased, indicating a consumer preference for firmer blueberries. Overall, the results provided new insights into the relationships between consumer preference and WTP and fruit quality benchmarks to select for improved quality.

Who wants to use it most? Exploring public willingness to pay for district heating in hotly debated southern Chinese cities

The feasibility of district heating in Southern China has been hotly debated, with people's willingness to adopt (WTA) and willingness to pay (WTP) becoming critical issues. Based on unique survey data on 2908 residents in South China, this paper measures consumers' WTA and WTP for district heating and uses the logit model and interval regression model to analyze the influence of potential critical factors. The results show that: (1) People in the south who haven't adopted district heating have strong WTAs. However, residents exhibit obvious heterogeneity in their WTP. The mean WTP stands at 4.19 yuan per square meter per month, falling below the prevailing tariff imposed by local condominiums equipped with it. (2) Acceptability of initial installation cost contributes to public's WTA and WTP significantly. For each additional level of increase in affordability, unit WTP rises by 0.469 RMB. (3) WTA and WTP is also considerably higher for households with elderly member. This paper concludes that heating modes in northern cities may not be suitable for the south. District heating might be first promoted in areas with higher WTP, such as neighborhoods with better affordability and households with the aged. While step-by-step implementation can be considered in other areas.

The Effects of Brand-self Connection on the Willingness to Pay a Price Premium: A New Look at the Consumerbrand Relationship in the Chinese Luxury Market

Exploring brand-self connection as a tool for driving profitability is gaining traction among scholars and industry professionals. This study introduces and validates a conceptual model aimed at discerning the influence of brand-self connection on luxury consumers willingness to pay (WTP) a price premium. Based on survey data from 270 Chinese luxury consumers and analysis via SPSS 27.0, the results reveal that brand-self connection not only directly augments consumers WTP a price premium but also exerts an indirect influence through the mediating roles of brand experience and brand loyalty. Interestingly, though brand-related social media engagement emerges as a moderating factor in this relationship, its impact remains marginal within the luxury market context. Together, these findings illuminate the complex nuances of luxury consumer behavior, enriching brand management, consumer-brand relationships, and pricing strategy. Practitioners can harness these insights for strategic decision-making in the luxury market arena.

Are Consumers Equally Willing to Pay More for Brands That Aim for Sustainability, Positive Societal Contribution, and Inclusivity as for Brands That Are Perceived as Exclusive? Generational, Gender, and Country Differences

This study explores consumer preferences for brands that emphasize sustainability and inclusivity, and for brands perceived as exclusive and trendy. Consumer data obtained via a large-scale survey involving 24,798 participants across 20 countries and one special administrative region (SAR) are used to understand how willingness to pay (WTP) for these brand types varies globally, accounting for demographic factors like generation, gender, and country. A substantial body of literature highlights growing consumer interest in brands that stand for sustainability and inclusivity, challenging traditional notions that luxury and exclusivity primarily drive brand value. Despite persistent skepticism among some business executives about consumers’ actual versus claimed willingness to spend more for sustainable and inclusive brands, academics and commercial researchers increasingly signal a shift in purchasing behavior that is influenced by socio-ecological factors. This research aims to provide empirical data on consumer WTP across different demographics and countries/regions, thereby contributing to academic discussions and offering insights for managerial decision making. The study frames its investigation around four research questions, to explore how consumers’ WTP for exclusive and inclusive brands varies across generations, genders, and countries/regions. It employs a robust methodological approach, using confirmatory factor analysis (CFA) and structural equation modeling (SEM) to analyze the data. This ensures that the constructs of brand inclusiveness and exclusivity are comparable across diverse cultural contexts. Significant gender, generational, and country/region differences are observed. When comparing generations, the findings indicate that GenZ consumers have a higher WTP for sustainable/inclusive brands (compared to older, GenX, and Baby Boomer generations). Similar patterns are found when considering WTP for exclusive, on-trend brands. In terms of gender, women are observed to have a higher WTP for sustainable/inclusive brands, but a lower WTP for exclusive, on-trend brands compared to men. Finally, compared to consumers originating from certain European countries, we find that consumers living in certain Asian countries/regions have a significantly higher WTP for inclusive and sustainable brands, as well as for exclusive/on-trend brands. The study underscores the complexities of consumer behavior in the global market, highlighting the coexistence of traditional preferences for exclusive, trendy brands and preferences for brands that embrace sustainability and inclusivity.

Consumer willingness to pay for improved drinking water in District Buner

AbstractThis study investigates households' willingness to pay (WTP) for better water systems, clean water availability, and water quality in Gadaizi tehsil, District Buner, Pakistan. This research aims to shed light on various aspects of water quality, health impacts, and socioeconomic factors influencing households' ability to pay for superior water services. This research also looks into waterborne infection and water purification methods residents utilize to mitigate the risk of water pollution. Utilizing a mixed‐method approach with a structured questionnaire, data from 62 households were collected. SPSS was used for data analysis. Findings reveal awareness of water contamination issues, primarily attributed to marble industries. Most households use untreated water, boiling, chemicals, or candle filters. Water purification methods are influenced by media exposure and higher income. Common waterborne diseases, such as typhoid and diarrhea, are treated in private hospitals. Consumer WTP for better water systems depends on income, education, and media exposure, in which income has a statistically significant positive effect on WTP for improved water services. Although 76% of households do not use any water purification method. 84% of households are willing to adopt a private sector‐provided system. Importantly, this study highlights the necessity for public health initiatives and a thorough understanding of socioeconomic issues to guide political choices for better water delivery. These insights can inform policies that prioritize public health and ensure better access to clean water for all.

Consumers’ purchase propensity for pasta tracked with blockchain technology and labelled with sustainable credence attributes

IntroductionPasta is a key product in Italy’s agri-food industry, consumed due to its ease of preparation, nutritional richness, and cultural importance. Evolving consumer awareness has prompted adaptations in the pasta market, to address concerns about social, environmental, quality, and food safety issues. This study examines Italian consumers’ willingness to pay (WTP) for pasta in local markets, analysing their behaviours and preferences.MethodsFor this purpose, we used a discrete choice experiment (DCE) technique combined with a latent variable model. We also collected 397 valid online questionnaires.Results and DiscussionThe results reveal an interest utility among all respondents to pay a price premium of €1.16, €0.82, €0.62, €0.41, and €0.36 for 500 g of pasta, for the use of blockchain/QR code (BC) technology on the label, providing data on credence attributes such as safety, environmental and social sustainability as well as business innovative practices, respectively. As such, this research has private and public implications. On one hand, this research may bridge the scarcity in studies regarding consumer preferences and WTP for BC in the pasta value chain, preventing agricultural frauds, ensuring the sustainability and quality of agri-food products like pasta, and protecting and educating consumers through clear and transparent information. On the other hand, this research may incentivise pasta businesses to meet social and environmental consumers’ demands while simultaneously enhancing their financial performance.

Influence of COVID-19 on Consumer Preference for Turfgrass Attributes in the Southern United States

This study estimates the influence of the coronavirus disease 2019 (COVID-19) pandemic on consumer preferences for turfgrass attributes by analyzing data from two surveys conducted in Jan 2019 and Apr 2021. First, the study estimated a mixed logit model to account for individual heterogeneity in preferences. Subsequently, estimates of the willingness to pay (WTP) were compared between periods before and after the pandemic. To show the impact of consumers’ risk attitudes with respect to climate change on their preference for turfgrass attributes, we re-estimated the model according to the risk attitude groups (i.e., risk-seeking vs. risk-averse). Finally, to examine how consumers’ demographic characteristics and risk attitudes are related to their WTP for improved turfgrass attributes, we estimated a random-effect panel data model for each attribute. Our results showed that, overall, consumers’ WTP increased during the COVID-19 pandemic. We also found that the WTP of risk-averse consumers were mostly higher than those of risk-seeking consumers during both time periods. Furthermore, the increase in the WTP observed among the risk-averse group was greater than the increase of the WTP of the risk-seeking group. Our findings imply that the demand for drought-tolerant and stress-resistant turfgrasses would increase with possible future climate changes and infectious disease outbreaks.

Purchasing habits, age effects and Chinese consumers' willingness to pay for chilled pork: Evidence from a random Nth‐price auction experiment

AbstractAs concerns over African swine fever (ASF) in China continue, measures have been taken to regulate the inter‐provincial transport of live hogs, yet entrenched non‐chilled fresh pork consumption habits make it challenging to expand the chilled pork in the market. To address this issue, our study employed multiple rounds of random Nth‐price auction experiments to measure participants' quality perceptions of, and willingness to pay (WTP) for chilled pork under different packaging, storage temperature and duration labels. By comparing the results with physicochemical lab testing outcomes, we confirmed the existence of a quality perception bias among the participants. Notably, consumers who regularly consume chilled meat demonstrated a higher average WTP, while consumers born in the 1980s exhibited significantly higher bids. Furthermore, access to emerging purchase channels positively influences consumer WTP for chilled meat, particularly through branded product purchasing experiences. Consequently, it is recommended that the public sector takes steps to balance the distribution of pork production capacity and supports the development of cold chain transportation technology to meet the growing demand for high‐quality chilled pork, especially from younger consumers.

Understanding Consumer Attitudes Towards Sustainable Business Models—A Qualitative Study with Finnish Consumers

Sustainable business models have been presented in the literature as a way to gain stepwise improvements in environmental impact compared to just selling a product, and many companies have started experimenting with them. However, these models are not yet scaled up across sectors. One of the barriers is understanding how consumers perceive sustainable business models and how much they would be ready to pay products and services from sustainable offerings. To this extent, our study investigated the following research questions: How do consumers perceive the sustainability attributes of novel sustainable business models? How does this affect consumer willingness to pay (WTP) for the offering provided? This study uses a qualitative research approach, conducting online discussions among 44 Finnish consumers. Finland is in focus as it has a top ranking in sustainability country indexes. Through the study, it was found that consumers pay attention to sustainability of the products and services they consume. They are willing to use available information and assess this to make sustainable purchasing decisions. However, they lack trustworthy information and sometimes it is too time-consuming to find the data. When making purchasing decisions, consumers perceive certain positive environmental and social impacts. However, the environmental and social impact of the studied business models did not turn into consumer WTP especially when considering expensive products, or business models with a social impact only. Still, in general, over half of the participants are willing to pay more about responsible produced products.

Can Marketing Increase Willingness to Pay for Welfare-Enhanced Chicken Meat? Evidence from Experimental Auctions.

Consumer concern for animal welfare is currently not fully reflected in the market share of welfare-enhanced meat. A possible solution is developing marketing strategies that emphasize personally relevant benefits such as taste and curiosity, instead of having a sole focus on sustainability-related benefits, since existing research indicates that the former are more appealing to most consumers. This study tests strategies positioning welfare-enhanced meat as personally relevant in a real-life experiment and how consumer attitudes towards eating meat influence reactions to the positioning strategies. The study conducts experimental auctions with 101 Dutch university students, manipulating the positioning strategy and a certified animal welfare label and measuring participants' willingness to pay (WTP) for a lunch meal with chicken meat. Results indicate that all manipulations significantly increase consumer WTP, with higher WTP for certified labels than for the positioning strategy, and the highest WTP for the combination of both elements (without providing evidence for an interaction effect). This implies that companies should combine positioning strategies that emphasize personally relevant benefits with certified labels. Since the effectiveness of such strategies may be limited for consumers with conflicting feelings towards meat, some care should be taken when designing awareness campaigns about the effects of meat consumption.

Investigating trends in consumer preferences and willingness to pay for lamb and goat meat: A case study from Florida

AbstractConsidering the growing demand for healthy and environmentally conscious food products in the United States, lamb and goat meat have proved to be beneficial alternatives to other red meats. This study investigates consumer trends and preferences for lamb and goat meat in Florida and sheds light on regional preferences for these products, providing groundwork for further studies. An online survey was conducted using 924 primary shoppers in Florida. Respondents were asked questions regarding demographic characteristics, behavioral qualities, and attributes associated with meat‐buying consumers. A contingent valuation method was used to derive willingness‐to‐pay (WTP) estimates by having participants report the maximum price they would pay for one pound of shoulder cut from lamb or goat. This study focuses on WTP for lamb/goat meat and uses Tobit regression analyses to test relationships between WTP and the consumer attributes described. Various regression specifications were estimated in the analyses to examine the robustness of significant correlations. Results surrounding the consumer WTP were similar for lamb and goat meat, showing that: (1) adventurousness when tasting food is positively correlated with WTP, (2) younger generations (Millennials and Gen Z) tend to have a higher WTP than older generations (Baby Boomers and the Silent Generation), (3) having tasted/liked lamb/goat meat previously both seem to positively influence WTP, (4) importance of access to culturally significant food products is positively correlated with WTP for lamb meat only, and (5) identifying as Hispanic had a negative correlation with WTP for goat meat only.

How consequential is policy consequentiality? Evidence from online discrete choice experiment with ornamental plants

Stated preference surveys often employ policy consequentiality scripts to examine respondents’ concern for the policy in question and their belief in the impact of their responses on the provision of the respective good. In this study, we used an online choice experiment to investigate how perceptions of policy consequentiality influence individual preferences regarding ornamental plants cultivated with or without neonicotinoid insecticides. The role of policy consequentiality was examined between the control and treatment group and by levels of ex-post perceived consequentiality groups. Our findings indicate limited support for the notion that ex-ante consequentiality treatment mitigates hypothetical bias and choices to opt out. However, participants exhibiting higher levels of ex-post consequentiality perceptions displayed a reduced likelihood of opting out compared to those with lower levels. Furthermore, we found a sharp distinction in plant choice outcomes and elicited willingness-to-pay (WTP) between those who believed their responses were consequential and those who did not, in line with the predictions of the knife-edge effects. In contrast, participants attributing some degree of consequentiality to the survey results exhibited comparable behavior. These results suggested that the effects of policy consequentiality on consumer choices and WTP can be mixed in choice experiments involving private goods.

Tasting and consumer demand for wine: do peers and experts matter?

AbstractExpert and peer reviews and popularity are freely available both on the Internet and in printed materials for a variety of food products. Using two experimental studies with non-hypothetical tastings and auctions, we explore the impact of peer tasting popularity, actual peer ratings, and expert ratings on demand for wines consumers can or have tasted. We find that higher own wine ratings are associated with higher willingness to pay (WTP). Morevoer, higher peer and expert rating scores increase consumer WTP for wine even after controlling for the impact of consumers’ own ratings. Observed peer popularity also increases WTP for preferred wines.

Assessing consumers' preferences for beef and lamb meat linked to wildfire prevention services

Meat from silvopastoral systems, due to its provision of numerous ecosystem services such as wildfire risk reduction in Mediterranean forests, can address societal growing demands for meat produced with lower environmental impacts. Differentiation of meat from these systems may contribute to their economic sustainability and hence to reverse their decline in the Mediterranean. This study investigated consumer preferences and willingness-to-pay (WTP) for beef and lamb meat from silvopastoral systems associated to the provision of wildfire prevention service and explored two alternative ways of labelling this service. Through a choice experiment survey considering type of pasture, length of grazing period, production distance and price, we gathered data from 1209 meat consumers in two Spanish cities. We considered forest grazing with a target purpose as a level in the type of pasture attribute and it was presented either as grazing to prevent wildfires or grazing to reduce biomass in two alternative versions of the valuation survey. The random parameter logit model revealed the highest preferences and WTP towards nearby production distances, followed by targeted grazing and forest grazing, while the length of grazing period was less relevant. No significant differences in consumers WTP were found between conveying targeted grazing either as fire prevention or biomass reduction. Our findings also suggest that consumers' preferences varied with location, attitudes towards local food and environmental role of grazing and consumption habits. Knowledge gathered in our work contributes to understand consumers perceptions on the beneficial environmental impacts of meat production.

Are consumers no longer willing to pay more for local foods? A field experiment

AbstractGovernment programs promoting locally produced foods have risen dramatically. But are these programs actually convincing consumers to pay more for locally produced food? Studies to date, which have mostly relied on hypothetical stated preference surveys, suggest that consumers will pay premiums for various local foods and that the premiums vary with the product and presence of any geographic identity. This study reports results from a large field experiment involving 1,050 adult consumers to reveal consumers’ willingness to pay (WTP) premiums for “locally produced” foods – mushrooms and oysters. Despite strong statistical power, this study reveals no positive effect of the locally produced label on consumer WTP. These null results are contrary to most of the existing literature on this topic. The finding that consumers are not willing to pay more for local foods has important implications for state and federal agencies that promote labeling campaigns that seek to increase demand and generate premiums for locally produced foods.

Estimating Chinese consumer's willingness to pay for aquatic food following Japan's discharge of radioactive wastewater

The Japanese government approved to discharge the radioactive wastewater stored on the Fukushima Nuclear Power Plant into the ocean in April 2021. Given the geographical proximity between China and Japan, and the importance of aquatic foods in Chinese diet, we examine Chinese consumer's valuation of aquatic foods following Japan's plan to discharge the radioactive wastewater. With an online survey, we adopt a payment card approach to elicit consumer's willingness to pay (WTP) for two aquatic food products, each from four sources that are at different levels of being associated with radioactive wastewater. Also, given the controversy surrounding the discharge, we specify two information treatments to examine the effect of information on consumer's WTP. Our main results are both information treatments positively affect consumer's WTP for aquatic foods from freshwater and seawater aquaculture. Moreover, positive information decreases consumer's WTP for aquatic foods caught in the East China Sea, and negative information also has negative yet insignificant effect. Lastly, in general, information negatively affects WTP for aquatic foods caught on high seas. These results highlight the importance of effective public communication regarding Japan's discharge of radioactive wastewater, and it may also be used to predict changes in China's aquatic food markets.

Price or quality? Consumers' preferences and willingness to pay (WTP) for online food delivery services in the COVID-19 era

PurposeThis article investigates the impact of the COVID-19 pandemic on the consumer preference for the attributes of online food delivery (OFD) services in India. It also shows how the order size influences the consumer's willingness to pay (WTP) for the attributes of OFD services.Design/methodology/approachThis work incorporates a conjoint analysis-based approach to determine the consumer preference for the attributes of OFDs such as price, delivery time, restaurant rating and packing quality during the COVID-19 pandemic. The fractional factorial design is applied for the data collection. The relative importance of the attributes and the part-worth utility of the attributes' levels have been determined. Further, the utility associated with the attributes' levels is used to find the consumer's WTP for different attributes.FindingsThe COVID-19 pandemic has changed consumer preference from price to food and packing quality in India. When the order is small, consumers exhibit a higher preference to the delivery time than packing quality. In contrast, consumers show a higher preference to packing quality than delivery time with the increase in order size. The consumer's WTP attains the highest level in case of food quality, followed by convenience and packing quality. The WTP for the attributes rises with the increase in order size.Practical implicationsThe insights highlight the need for the online food delivery industry to redesign the business framework in the post-pandemic era. The hygiene and safety measures maintained by the consumers during the pandemic have significantly changed their purchasing behaviour, raising their preference for service quality (food and packing quality) of the OFD services apart from price.Originality/valueThis work determines the consumers' utility for each attribute level of OFDs, along with their relative importance. Moreover, this study contributes to the existing literature by exhibiting the impact of the COVID-19 pandemic on the consumer preference and order size on consumer's WTP for the attributes.

How information affects consumers' attitudes toward and willingness to pay for cultured meat: evidence from Chinese urban consumers

PurposeThe purpose of this paper is to assess the impact of providing information on Chinese consumers' attitudes toward and willingness to pay (WTP) for cultured meat, and to further focus on the heterogeneous effect of prior awareness.Design/methodology/approachThe data were collected by interviewing 1,004 consumers through a face-to-face survey conducted in 2019. Repeated measures ANOVA, ordinary least squares and maximum likelihood estimation were employed for data analysis.FindingsWhether consumers have heard of cultured meat before is not an important determinant for their attitude, but whether they know it well is. Consumers' attitudes and WTP all improved after the provision of information, but knowledgeable consumers' attitudes were less influenced by information than those without prior knowledge. Unlike attitude, prior awareness does not affect the effect of information on WTP.Originality/valueDespite extensive studies on the impact of information on the acceptance of cultured meat, few have analyzed the heterogeneous effect of prior awareness. In the research on prior awareness of cultured meat, firstly, no consistent conclusions about the effect of prior awareness on attitude; secondly, previous studies only considered heterogeneous effects of prior awareness on attitude toward cultured meat, while ignored WTP. This paper provides new insights in these areas. Further, this paper provides the first evidence on the heterogeneous impact of prior awareness in developing countries; most previous research has focused on consumers in developed countries.

Perception and demand for healthy snacks/beverages among US consumers vary by product, health benefit, and color.

Concerns about the numerous health problems associated with unhealthy snacks prompted recommendations to steer individuals toward healthier eating habits. One such recommendation advises limiting unhealthy snacks and replacing them with more fruits and vegetables with significant health benefits. This study investigates US consumers' perceptions and preferences for healthy (vegetable-based) snacks/beverages. An online survey was designed to estimate consumer perception and willingness-to-pay (WTP) for vegetable-based crackers, spreads, and beverages. A sampling company sent the survey to its national consumer panels in 2020, resulting in a sample of 402 US consumers. Eligible participants were adults, primary grocery shoppers who consumed crackers, spreads, and beverages. Consumer WTP for healthy snacks/beverages, the dependent variable, was elicited using a payment card method. Independent variables include personality traits (Innovativeness and Extraversion) and the important factors affecting healthy snack purchases, health consciousness, and demographic variables. Results show that consumers' preferences for healthy snacking vary by product, even when the products have similar health benefits. Significant positive associations exist between WTP for healthy snacks/beverages and personality traits, health consciousness, and some demographics. This study provides critical insights to policymakers and informs marketing campaigns to promote healthy snacking in the US more effectively.