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Revealed preference approach for analysing consumer preferences: a choice experiment with a real-life setting

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Listed:
  • Cavallo, Carla
  • Del Giudice, Teresa
  • Cicia, Gianni
  • Di Monaco, Rossella
  • Caracciolo, Francesco

Abstract

Recent years have witnessed increasing food product differentiation, also involving those products that can be termed mature. One example is pasta, a well-integrated product in the daily consumption habits of Italians. In this case, product differentiation has increasingly focused on extrinsic attributes. In our study we analysed the WTP of consumers for the attributes that define pasta. We used a choice model experiment to elicit consumer preferences on the basis of actual and not hypothetical choices as usually occurs. Analysis of the results generated three main considerations: first, real choices led to WTPs consistent with the market price of the products; secondly, brand and label emerged as the most important attributes in the choice; finally, a considerable share of consumers is willing to pay a premium price for what are perceived as quality attributes. This suggests that further market opportunities exist for pasta products.

Suggested Citation

  • Cavallo, Carla & Del Giudice, Teresa & Cicia, Gianni & Di Monaco, Rossella & Caracciolo, Francesco, 2014. "Revealed preference approach for analysing consumer preferences: a choice experiment with a real-life setting," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2014(2).
    • Handle: RePEc:ags:eiapai:329127
    DOI: 10.22004/ag.econ.329127
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    References listed on IDEAS

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