Payment Card Method Research Articles

Estimating consumers’ willingness to pay for plant-based meat and cultured meat in China

Plant-based meat and cultured meat are two emerging alternatives to meat products as they have the potential to mitigate the adverse health and environmental impacts associated with meat consumption and production. Given plant-based meat is still in its infancy and cultured meat is not yet available in China, it is important to understand the economic implications of consumer’s preference for these meat alternatives. With an online consumer survey, we elicit consumer’s willingness to pay (WTP) for these two meat alternatives using a payment card method, and specifically examine the effects of six different types of information on consumer’s WTPs. Our main findings first indicate that positive/negative information has positive/negative effects on consumers’ WTP. With positive information, both nutritional and environmental information increase consumers’ WTPs. Moreover, specific information has a larger effect than general information, only for positive nutritional information. Lastly, knowledge about these meat alternatives, self-reported previous experiences with the meat alternative, education, income level, and the presence of children are positively associated with consumers’ WTPs, while age is negatively associated. These findings may facilitate designing effective consumer information campaigns, ultimately aiding in consumers’ choice of the meat alternatives.

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.

The social value of a SARS-CoV-2 vaccine: Willingness to pay estimates from four western countries.

SARS-CoV-2 vaccines give rise to positive externalities on population health, society and the economy in addition to protecting the health of vaccinated individuals. Hence, the social value of such a vaccine exceeds its market value. This paper estimates the willingness to pay (WTP) for a hypothetical SARS-CoV-2 vaccine (or shadow prices), in four countries, namely the United States (US), the United Kingdom, Spain and Italy during the first wave of the pandemic when COVID-19 vaccines were in development but not yet approved. WTP estimates are elicited using a payment card method to avoid "yea saying" biases, and we study the effect of protest responses, sample selection bias, as well as the influence of trust in government and risk exposure when estimating the WTP. Our estimates suggest evidence of an average value of a hypothetical vaccine of 100-200 US dollars once adjusted for purchasing power parity. Estimates are robust to a number of checks.

Expanding energy access in rural off-grid communities: a study on household adoption and affordability of solar home systems in Kwara State, Nigeria

This investigation scrutinizes the adoption dynamics and willingness to pay (WTP) for Solar Home Systems (SHS) within the context of rural off-grid communities in Kwara State, Nigeria. A comprehensive survey was administered to 400 households to explore their perspectives towards SHS and to ascertain their valuation of these systems. The results reveal a favourable disposition towards SHS, with a notable proportion of participants favouring personal ownership of SHS even in the event of future grid electricity availability in their localities. The consensus among respondents was that SHS provide sufficient energy to cater to their needs and could potentially act as an income source. The Payment Card (PC) method within the Contingent Valuation (CV) framework was utilized to determine WTP, eliciting precise values from the surveyed households. The derived average monthly WTP for SHS fluctuated between 72% and 75% of the current market rates, exposing an affordability challenge as the WTP falls short of the prevailing market prices. In light of fostering wider adoption, it is imperative for policymakers and SHS providers to consider market price reductions and the initiation of innovative pricing mechanisms that align with household financial capacities. Further research is encouraged on alternative financing strategies and potential subsidy programs to bridge the affordability gap and bolster SHS accessibility in off-grid rural areas. Understanding the household adoption dynamics and WTP for SHS is instrumental in driving sustainable energy transitions and enhancing the living standards of rural dwellers.

Contract farming, community effect, and farmer valuation of biofortified crop varieties in China: The case of high‐zinc wheat

AbstractBiofortification is a feasible and cost‐efficient approach to reduce human micronutrient deficiency, but few studies have investigated its economic value from the perspective of producers. We propose an actual output‐based payment card (AOPC) method to elicit producer valuation of biofortified high‐zinc wheat in North China Plain and assess the impacts of contract farming and community network on their valuation. Unlike financial payments, AOPC uses actual output as the payment vehicle. The results show that Chinese wheat producers' valuation of the biofortified variety is featured by a dispersed and bimodal distribution. We find that contract farming positively affects farmer valuation, highlighting the role of institutional arrangement in biofortified crop planting. We also document the existence of community effects, which leads to similar valuation among farmers better connected through the shared community network. Further analysis reveals that contract farming and community network effects on producer valuation are heterogeneous between elderly and younger producers and producers with and without young children. Our findings shed new light on producer valuation of biofortified crop planting in developing countries and provide implications for advancing the process of crop biofortification to reduce global micronutrient malnutrition.

Consumers’ willingness to pay for GLOBALG.A.P. certified chicken: Empirical evidence from a consumer survey in Bangladesh

Concern regarding chicken meat safety and quality has increased in recent years due to frequent exposure of food-safety-related incidents in Bangladesh. In order to boost consumer confidence, the government of Bangladesh has taken a number of policy measures to improve the safety and quality of fresh foods. Among them, the introduction of fresh food certification is regarded as a critical tool for mitigating threats to food safety. However, little is known about whether Bangladeshi consumers are willing to pay a price premium for certified fresh foods, or what factors influence their willingness to pay (WTP). We particularly investigated consumers' WTP for two types of GLOBALG.A.P. (good agricultural practices) certified chicken (broiler and Sonali chicken) by using contingent valuation method (CVM). A survey was conducted on 384 consumers of Dhaka. Payment card method was employed to elicit WTP. Our findings reveal that consumers are willing to pay a premium of 45.87 BDT/kg (36.69%) for GLOBALG.A.P. certified live broiler and 51.98 BDT/kg (25.99%) for GLOBALG.A.P. certified live Sonali chicken. Interval data regression model was used. The result shows that consumers’ age, education, monthly family income, chicken consumption per month and meat safety risk perception had a significant impact on their WTP for both types of chicken while taste was a significant factor only for broiler chicken. Nevertheless, gender, marital status and shopping responsibility had no significant impact on WTP. The findings on WTP for GLOBALG.A.P. certified chicken confirm that the government should introduce certification to meet increasing consumer demand for safe meat.

134 Estimating the capacity of horse owners to absorb the surplus of wild horses

In FY2019, the Bureau of Land Management (BLM) adopted or sold 8,548 wild horses and burros, but the remaining population still exceeded the appropriate management level by over 61,000 animals. In early 2019, BLM's acting head indicated that a key step in controlling the overpopulation of wild horses on federal lands is increasing private adoptions. Assuming that current or former horse owners represent the most feasible outlet, this paper explored the capacity of this population to absorb the surplus. We pursued this objective by utilizing social media to distribute a nationwide online survey of current and former horse owners. First, we asked whether respondents had adopted (or considered adopting) a wild horse before, whether they might consider it in the future, or whether they would never consider it. We then inquired about reasons for and barriers to adopting. All respondents except those in the last group were asked to report their willingness-to-pay (WTP) for wild horses with different levels of handling and training using a stated preference approach called the payment card method. With 2,247 complete responses, 2,041 respondents (90.8%) reported having adopted, considered adopting, or would consider adopting a wild horse in the future. The most commonly identified reason for having adopted previously was to provide a wild horse with a better life (n = 311, 63.7%), while the primary barrier to adopting was having appropriate facilities (n = 558, 52.2%). Interval regression analysis was utilized to estimate WTP for wild horses with 3 different levels of training: entirely unhandled, trained with basic ground manners, and started under saddle. Across the 3 models, preliminary results suggest that WTP for wild horses is consistently influenced by whether the respondent has adopted previously (+), years of experience with horses (+), age (-), and income (+) ( P < 0.05). Moreover, training before adoption positively influences WTP. For the average respondent, our results suggest that respondents are willing to pay an average of $282.03 more for a horse that has received training for basic ground manners and $539.21 more for a horse that has been started under saddle as compared with a completely unhandled horse. Within our sample, results indicate an overall positive perception of the private adoption of wild horses; if the main barriers to adoption can be overcome (lack of appropriate facilities and time/expertise to safely train an undomesticated horse), our results suggest general feasibility of the BLM's plan to solve, or at least significantly alleviate, the overpopulation of wild horses through private placement.

Perception and Willingness to Maintain Continuity of Care by Parents of Children with Asthma in Taiwan.

To investigate caregivers’ attitudes toward continuity of care (COC) and their willingness to maintain continuity for their children with asthma under a national health insurance (NHI) system without strict referral management. We sampled 825 individuals from six pediatric outpatient departments in different parts of Taiwan from 2017 to 2018. We used a contingent valuation with a payment card method. Post-stratification weighting adjustment and coarsened exact matching were utilized. Multiple logistic regression was used to compare the willingness to pay and spend extra time maintaining continuity by parents. More than 80% of caregivers in the asthma group believed having a primary pediatrician was important for children’s health. Only 27.5% and 15.8% of caregivers in the asthma and control groups, respectively, believed changing pediatricians would negatively affect therapeutic outcomes. Regression analysis showed that the predicted willingness to pay for the asthma and non-asthma groups were NT$508 (SD = 196) and NT$402 (SD = 172), respectively, and there was a significant positive dose–response relationship between household income and willingness to pay for maintaining health care provider continuity. Caregivers’ free choices among health care providers may reduce willingness to spend extra effort to maintain high COC. Caregivers should be educated on the importance of COC.

Patient preferences for different tooth replacement strategies for the edentulous mandible: A willingness-to-pay analysis.

Purpose The aim of this study was to evaluate patients' economic preferences for two different tooth replacement strategies for the edentulous mandible namely conventional complete dentures (CCDs) and implant overdentures supported by two implants (IODs), using a willingness-to-pay (WTP) analysis.Methods Twenty-six elderly patients who had been rehabilitated with either a mandibular CCD or IOD were invited to participate in this study. All participants were provided with the details of the two treatment protocols, including advantages, disadvantages, and treatment costs. The patients were then asked to indicate their maximum WTP values for each protocol using a payment card method for contingency evaluation.Results Fifteen patients with mandibular CCD (CCD-Group) and 12 patients with IOD (IOD-Group) participated in the study. Overall, the median and maximum WTP values recorded for IOD therapy were significantly higher than those for CCD therapy (p<0.05). Both treatment groups recorded maximum WTP values for CCD therapy, which exceeded the market cost (¥30,000 [US$280]), CCD-Group: ¥50,000 (interquartile range [IQR]: 40,000 - 65,000), and IOD-Group: ¥45,000 (IQR: 30,000-85,000)]. However, both groups registered a median and maximum WTP values for IOD therapy lower than the market cost (¥780,000 [US$7,300]), (CCD-Group: ¥500,000 [IQR: 300,000 - 750,000], IOD-Group: ¥700,000 [IQR: 500,000-800,000]).Conclusion The maximum WTP values recorded for IOD therapy were significantly higher than CCD therapy in both treatment groups. While patients were willing to pay more than the current market costs for CCDs, they were not willing to meet the market value for IODs.

The Social Value of a SARS-CoV-2 Vaccine: Willingness to Pay Estimates from Four Western Countries

SARS-CoV-2 vaccines give rise to positive externalities on population health, society and the economy in addition to protecting the health of vaccinated individuals. Hence, the social value of such a vaccine exceeds its market value. This paper estimates the willingness to pay (WTP) for a hypothetical SARS-CoV-2 vaccine in four countries, namely the United States (US), the United Kingdom (UK), Spain and Italy during the first wave of the COVID-19 pandemic when no specific vaccine had been approved nor subsidised. WTP estimates are elicited using a payment card method to avoid 'yea saying' biases, and we study the effect of protest responses, sample selection bias, as well as the influence of trust in government and risk exposure when estimating the WTP. Our estimates suggest evidence of an average value of a hypothetical vaccine of 100-200 US dollars once adjusted by purchasing power parity (PPP). Estimates are robust to a number of checks.

The use of multiple actual referenda in a new payment card methodology

We present the case for the adoption of a new payment card (PC) methodology, which we call multiple referenda payment card, in contingent valuation (CV) surveys. Our new multiple referenda payment card method uses actual referenda, which appeared on a recent ballot that preceded the survey’s distribution. The cost of these actual referenda to taxpayers is used as the range of cost bids in a usual payment card format for a new advisory environmental public good, the restoration of wetlands. The result is a more realistic framework for respondents to consider our advisory referendum. We compare our new multiple referenda payment card method to a dichotomous choice referenda and show that the new payment card method reduces hypothetical bias such as “yea-saying,” aids in selection of reasonable and realistic cost bids, as well as eliminates the “fat tails” problem.

Assessing the Amenity Value of Forest Ecosystem Services: Perspectives from the Use of Sustainable Green Spaces

Due to the fragility of forest ecosystems, developing forest recreational resources must consider sustainable ecological, economic, and social development, and reduce impacts from recreational activities. Diverse forests with different biodiversity could promote forest ecosystem services and resistance to the pressure of tourism development. Under such circumstance, it is important to ensure that the travel and tourism industry develops under the principle of sustainable management and assists ecosystem conservation. Forest ecosystem services (FES) have received increasing attention. Especially, the amenity value provided by FES is beneficial for enhancing human health, and has gained popularity. Huisun National Forest Park (HNFP) has the greatest natural forests in Taiwan, and tourists visit the HNFP for the well-preserved environment, abundance of green space, cleanliness, beautiful scenery, and quietness. This study assessed the amenity value of the Huisun National Forest Park (HNFP) by adopting the payment card method via face-to-face survey data of 223 respondents. The annual amenity value of the HNFP per person is NT$2884 in winter and NT$2905 in summer. The total annual amenity value of the HNFP is NT$473,978,430–474,755,774. The results showed that gender, age, education level, monthly income, place of residence, participation in environmental groups, frequency of visiting the HNFP, and stay period significantly influence willingness to pay (WTP). This study concludes that an ecologically sustainable forest with ecosystem services could provide multiple benefits to different stakeholders.

Willingness to pay in main cities of Zheijiang provice (China) for quality and safety in food market

Food safety related incidents have increased consumers’ concern about food safety and quality and led to a distrust in the Chinese food market. This paper investigates how sociodemographic variables affect willingness to pay (WTP) both for safer and higher quality food by identify a specific user profile. Data were collected through a consumer survey conducted in Hangzhou, Zhejiang Province, administrating 1000 questionnaires, 757 of which resulted valid. Data showed that level of education, income, being married and the place of purchase significantly influences the WTP while the ages does not affect it. WTP is elicited by using a payment card method, and its estimation is performed with interval data regression model. Results also indicates that “food quality” and “food safety” have the same impact level on the WTP, indicating certain confusion about their significance. Other study results and implication on informative and educative policies are discussed.

Willingness to Pay Pelayanan Konseling Apoteker di Apotek di Kecamatan Polokarto Tahun 2016

Counseling is one part of the clinical pharmacy service at the pharmacy that is the responsibility of the pharmacist to achieve therapeutic goal. Community needs for counseling have increased so that the active participation of pharmacists is needed through the provision of professional services. This research needs to be done to find out the amount of counseling services by pharmacists who are willing to be paid by patients with a WTP (Willingness to Pay) value parameter. In addition, the value of WTP can also describe the indirect benefits felt by the community towards counseling services by pharmacists at the pharmacy. This research is a descriptive observational research through a survey. The study was conducted at the pharmacy in the Polokarto sub-district of Sukoharjo regency in January – February 2016 with pharmacy visitor respondents who received counseling services by pharmacists. A total of 82 patients participated in this study. The amount of WTP is determined based on the average WTP value chosen by the patients with the payment card method. The result showed that the average WTP value of pharmacist counseling services at pharmacies in Sukoharjo regency was Rp. 15,892.

Willingness to Pay for Pesticide Free Fruits: Evidence from Pakistan

ABSTRACTThis paper analyzes factors influencing consumption decision of pesticide free fruits (PFF) and estimates the willingness to pay (WTP) price premium for PFF in Pakistan. A contingent valuation survey of 200 households was conducted using face to face interview and payment card method. Results suggested that 93.5% respondents were WTP higher prices for PFF. Remarkably, around 35% respondents were WTP 16–20% higher prices and 24% respondents were WTP 6–10% higher prices for PFF than the existed conventional price. In addition, our ordered logit regression suggests that demographic and socio-economic variables such as age, education, income, household’s size and perception about health benefits are significantly associated with higher WTP for PFF.

Alternative approaches to treat respondent uncertainty in contingent willingness to pay estimation

Purpose The purpose of this paper is to theoretically using two new models to analyze the effect of respondents’ uncertainty about their stated willingness to pay (WTP) on welfare estimates in the contingent valuation method (CVM) theoretically using two new models, and empirically to reveal consumers’ WTP to improve drinking water supply safety (WSS) in China. Design/methodology/approach In this paper, two alternative preference uncertainty treatment approaches are proposed to estimate consumers’ WTP theoretically and they are applied to China’s WSS improvement program from a payment card method, which depends on how consumers’ certainty level about their valuation is. Furthermore, four regression models are presented to investigate the determinants of consumers’ WTP. Findings Theoretically, the alternative approaches that proposed in this research can remove overestimation bias from traditional CVM method but with lower estimation efficiency. In addition, the empirical results of the uncertainty adjusted models show that the expected WTP to improve drinking WSS is from 0.55 to 0.56 Renminbi yuan/ton, which are lower than the estimates from the conventional standard CVM models. Consumers’ preferences for their concerns about WSS, attitudes toward WSS improvement programs, trusts in implement authorities and their knowledge of WSS have significant effects on the WTP for improving drinking WSS and on respondents’ uncertainty too. Originality/value Theoretically to the authors’ knowledge, it is the first attempt to compare alternative approaches to treat respondent uncertainty using numerical certainty scale combined with payment card format valuation questions in CVM. Empirically it is the first study at this large scale that investigates consumers’ WTP for improving drinking WSS incorporating with respondent uncertainty in China. In addition, to assess consumer preferences for improved drinking water safety and the sources of uncertainty, information on consumers’ attitudes toward WSS are considered at the first time.

Tooth replacement for partially dentate elders: A willingness-to-pay analysis

ObjectivesThe primary aim of this study was to investigate partially dentate elders’ willingness-to-pay (WTP) for two different tooth replacement strategies: Removable Partial Dentures (RPDs) and, functionally orientated treatment according to the principles of the Shortened Dental Arch (SDA). The secondary aim was to measure the same patient groups’ WTP for dental implant treatment. Methods55 patients who had completed a previous RCT comparing two tooth replacement strategies (RPDs (n=27) and SDA (n=28)) were recruited (Trial Registration no. ISRCTN26302774). Patients were asked to indicate their WTP for treatment to replace missing teeth in a number of hypothetical scenarios using the payment card method of contingency evaluation coupled to different costs. Data were collected on patients’ social class, income levels and other social circumstances. A Mann-Whitney U Test was used to compare differences in WTP between the two treatment groups. To investigate predictive factors for WTP, multiple linear regression analyses were conducted. ResultsThe median age for the patient sample was 72.0 years (IQR: 71–75 years). Patients who had been provided with RPDs indicated that their WTP for this treatment strategy was significantly higher (€550; IQR: 500–650) than those patients who had received SDA treatment (€500; IQR: 450–550) (p=0.003). However patients provided with RPDs indicated that their WTP for SDA treatment (€650; IQR: 600–650) was also significantly higher than those patients who had actually received functionally orientated treatment (€550; IQR: 500–600) (p<0.001). The results indicated that both current income levels and previous treatment allocation were significantly correlated to WTP for both the RPD and the SDA groups. Patients in both treatment groups exhibited little WTP for dental implant treatment with a median value recorded which was half the market value for this treatment (€1000; IQR: 500–1000). ConclusionsAmongst this patient cohort previous treatment experience had a strong influence on WTP as did current income levels. Both treatment groups indicated a very strong WTP for simpler, functionally orientated care using adhesive fixed prostheses (SDA) over conventional RPDs. Clinical significancePartially dentate older patients expressed a strong preference for functionally orientated tooth replacement as an alternative to conventional RPDs.

Servitization, digitization and supply chain interdependency

This study draws on literature at the intersection of servitization, digital business models and supply chain management. Work empirically explores how digital disruption has affected Business-to-Business (B2B) interdependencies. Dematerialization of physical products is transforming the way firms are positioned in the supply chain due to a reduction in production and transport costs and the different ways business engage with customers. Specifically, we propose that these new market conditions can empower downstream firms. We further propose that upstream firms can still capture additional value through digital service if their servitized offer includes difficult to imitate elements. The context of the analysis is the publishing industry. The Payment Card method employed is used to test UK and US consumer's perceptions of digital formats (eBooks) and assess their willingness to pay in relation to printed formats. The method undertaken enables us to elicit aggregated consumer demand for eBooks which in turn identifies optimal pricing strategies for the digital services. Analysis demonstrates that during digital servitization upstream firms should seek to deploy unique resources to ensure their strategic position in the supply chain is not diminished.

Wishing to finance a recycling program? Willingness-to-pay study for enhancing municipal solid waste recycling in urban settlements in Thailand

This study measured willingness to pay (WTP) for the addition of recycling services into existing municipal solid waste management in different types of settlements in Thailand. Questionnaire surveys were distributed in person to gather recycling-related socio-economic factors. The mean WTP was identified by the payment card method and analysed by interval regression. Analysis of results revealed that mean monthly WTPs increase, although not linearly, in the least urbanized areas (∼0.73 USD), the urbanized areas (∼1.96 USD), and the most urbanized areas (∼1.65 USD). Common factors that influenced WTP were (a) higher level education and (b) a habit of separating recyclables. However, other socio-economic and recycling behaviour factors affected willingness to pay in each settlement differently. The mean WTP from each study site is consistently higher than the current rate for waste disposal, which signifies that average respondents from all study sites favoured recycling.

Consumers’ WTP for certified traceable tea in China

Purpose – The purpose of this paper is to examine consumer attitudes toward and willingness to pay (WTP) for traceability of tea in China. Design/methodology/approach – The authors used the payment card method to elicit WTP for certified traceable tea and logistic regression model to analyze the factors that affected consumers’ WTP. Findings – The results revealed that most consumers in China were concerned over tea safety; however, their WTP for certified traceable tea was limited. Only income and the degree of concern over tea safety affected the consumer’s WTP for certified traceable tea greatly. When it came to consumers’ WTP a positive price premium, income level, education, and attitude toward traceability of tea significantly influenced the actual premium consumers were willing to pay. Practical implications – The Chinese government and tea producers should pay attention when implementing tea traceability system. First, raising the consumers’ income contributes to the premiums that consumers are willing to pay for certified traceable tea. Second, social groups, consumer organizations and tea producers should popularize knowledge of tea traceability. Third, given the low price premiums that consumers are willing to pay, the establishment of viable traceability of tea in China requires the producers and the government to bear some of the cost associated with the implementation of this system. Originality/value – In past studies on WTP for certified traceable food, the study is focussed on meat in developed countries, and the research has expanded range of study, by conducting a survey in China to determine consumers’ WTP for certified traceable tea, and by empirically examining the main factors that influence the willingness of consumers to pay a price premium for certified traceable tea, as well as the premium that these consumers are willing to pay.