IDEAS home Printed from https://ideas.repec.org/a/fan/ecaqec/vhtml10.3280-ecag2018-001002.html
   My bibliography  Save this article

Consumer preferences and willingness-to-pay for integrated production label on common beans

Author

Listed:
  • Aluisio Goulart Silva
  • Maurizio Canavari
  • Alcido Elenor Wander

Abstract

Integrated Production has been applied in Brazil since 1998/99 aiming to mitigate the negative environmental impact of intensive production areas, and to improve the quality of the beans produced. Economic and market analysis is fundamental in providing adequate and better understanding of the likely response of potential buyers regarding this kind of product, especially when a premium price is feasible. The objective of this study was to analyse consumer perception of beans with a hypothetical integrated production label and estimate consumer willingnessto-pay for labelled beans. Data was collected from a sample of 160 consumers living in Goi?nia, Brazil, using a questionnaire survey based on a discrete choice approach. The attributes (and levels) used in the choice experiment were label (IP labeled vs. conventional), price (3 levels), and brand (preferred vs. fictitious). Multinomial logit and mixed logit models were used to analyze data. The findings indicate that consumers are sensitive to the presence of the hypothetical label and are willing to pay more for IP certified beans. Thus, there could be an unmet demand for safe and sustainable food products because consumers apparently prefer the certified alternative, even when the brand is known and price is higher.

Suggested Citation

  • Aluisio Goulart Silva & Maurizio Canavari & Alcido Elenor Wander, 2018. "Consumer preferences and willingness-to-pay for integrated production label on common beans," Economia agro-alimentare, FrancoAngeli Editore, vol. 20(1), pages 11-28.
    • Handle: RePEc:fan:ecaqec:v:html10.3280/ecag2018-001002
    as

    Download full text from publisher

    File URL: http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=61642&Tipo=ArticoloPDF
    Download Restriction: Single articles can be downloaded buying download credits, for info: https://www.francoangeli.it/DownloadCredit
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gawron, Jana-Christina & Theuvsen, Ludwig, 2009. "Agrifood Certification Schemes in an Intercultural Context: Theoretical Reasoning and Empirical Findings," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58018, European Association of Agricultural Economists.
    2. Jayson L. Lusk, 2003. "Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 840-856.
    3. Caswell, Julie A., 1998. "How Labeling of Safety and Process Attributes Affects Markets for Food," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(2), pages 151-158, October.
    4. Sackett, Hillary M. & Shupp, Robert S. & Tonsor, Glynn T., 2012. "Discrete Choice Modeling of Consumer Preferences for Sustainably Produced Steak and Apples," 2012 AAEA/EAAE Food Environment Symposium 123517, Agricultural and Applied Economics Association.
    5. Daniel McFadden, 1986. "The Choice Theory Approach to Market Research," Marketing Science, INFORMS, vol. 5(4), pages 275-297.
    6. Carola Grebitus & Jerome Dumortier, 2016. "Effects of Values and Personality on Demand for Organic Produce," Agribusiness, John Wiley & Sons, Ltd., vol. 32(2), pages 189-202, April.
    7. Gabriele Canali, 2011. "Possibili effetti sui consumatori di un sistema di qualit? nazionale della produzione integrata," Economia agro-alimentare, FrancoAngeli Editore, vol. 13(3), pages 129-143.
    8. Ivana Radic & Maurizio Canavari, 2014. "Viennese consumers? preferences and willingness to pay for raspberries from Arilje, Serbia," Economia agro-alimentare, FrancoAngeli Editore, vol. 16(3), pages 27-42.
    9. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    10. Wongprawmas, Rungsaran & Canavari, Maurizio, 2017. "Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand," Food Policy, Elsevier, vol. 69(C), pages 25-34.
    11. Tonsor, Glynn T. & Shupp, Robert S., 2009. "Valuations of ‘Sustainably Produced’ Labels on Beef, Tomato, and Apple Products," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(3), pages 1-13, December.
    12. Govindasamy, Ramu & Italia, John & Adelaja, Adesoji, 2001. "Predicting Willingness-to-Pay a Premium for Integrated Pest Management Produce: A Logistic Approach," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(2), pages 151-159, October.
    13. Stopher,Peter, 2012. "Collecting, Managing, and Assessing Data Using Sample Surveys," Cambridge Books, Cambridge University Press, number 9780521681872.
    14. Kerr, Geoffrey N. & Sharp, Basil M.H., 2009. "Efficient design for willingness to pay in choice experiments: evidence from the field," 2009 Conference, August 27-28, 2009, Nelson, New Zealand 97156, New Zealand Agricultural and Resource Economics Society.
    15. Moser, Riccarda & Raffaelli, Roberta & Thilmany, Dawn D., 2011. "Consumer Preferences for Fruit and Vegetables with Credence-Based Attributes: A Review," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-22, May.
    16. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    17. McCluskey, Jill J. & Loureiro, Maria L., 2003. "Consumer Preferences And Willingness To Pay For Food Labeling: A Discussion Of Empirical Studies," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(3), pages 1-8, November.
    18. Stopher,Peter, 2012. "Collecting, Managing, and Assessing Data Using Sample Surveys," Cambridge Books, Cambridge University Press, number 9780521863117.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rombach, Meike & Widmar, Nicole Olynk & Byrd, Elizabeth & Bitsch, Vera, 2018. "Do all roses smell equally sweet? Willingness to pay for flower attributes in specialized retail settings by German consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 91-99.
    2. Jeff Luckstead & Rodolfo M. Nayga & Heather A. Snell, 2023. "US domestic workers' willingness to accept agricultural field jobs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1693-1715, September.
    3. Loureiro, Maria L. & Umberger, Wendy J., 2007. "A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability," Food Policy, Elsevier, vol. 32(4), pages 496-514, August.
    4. McKendree, Melissa G.S. & Olynk Widmar, Nicole & Ortega, David L. & Foster, Kenneth A., 2013. "Consumer Preferences for Verified Pork-Rearing Practices in the Production of Ham Products," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-21.
    5. Chad M. Baum & Robert Weigelt, 2019. "How Where I Shop Influences What I Buy: The Importance of the Retail Format in Sustainable Tomato Consumption," Economic Complexity and Evolution, in: Andreas Chai & Chad M. Baum (ed.), Demand, Complexity, and Long-Run Economic Evolution, pages 141-169, Springer.
    6. Eunae Son & Song Soo Lim, 2021. "Consumer Acceptance of Gene-Edited versus Genetically Modified Foods in Korea," IJERPH, MDPI, vol. 18(7), pages 1-17, April.
    7. Loureiro, Maria L. & Umberger, Wendy J., 2004. "A Choice Experiment Model For Beef Attributes: What Consumer Preferences Tell Us," 2004 Annual meeting, August 1-4, Denver, CO 19931, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Gianluigi Gallenti & Stefania Troiano & Francesco Marangon & Paolo Bogoni & Barbara Campisi & Marta Cosmina, 2019. "Environmentally sustainable versus aesthetic values motivating millennials’ preferences for wine purchasing: evidence from an experimental analysis in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-16, December.
    9. Sandrine Costa & Serge Garcia & Lisette Ibanez, 2007. "Taste and Quality Perception of Attributes in Product Differentiation: An Econometric Model with Latent Variables," Working Papers - Cahiers du LEF 2006-01, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
    10. Zhanguo Zhu & Qinyuan Shen & Zhifeng Gao, 2022. "Consumer choices in agricultural markets with multitier collective labels and private brands," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 905-922, October.
    11. Marco A. Palma & Alba J. Collart & Christopher J. Chammoun, 2015. "Information Asymmetry in Consumer Perceptions of Quality-Differentiated Food Products," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(3), pages 596-612, November.
    12. Wongprawmas, Rungsaran & Canavari, Maurizio, 2017. "Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand," Food Policy, Elsevier, vol. 69(C), pages 25-34.
    13. Tonsor, Glynn T. & Wolf, Christopher A., 2011. "On mandatory labeling of animal welfare attributes," Food Policy, Elsevier, vol. 36(3), pages 430-437, June.
    14. Oluwagbenga Akinwehinmi & Kolawole Ogundari & Taye Timothy Amos, 2022. "Consumers’ food control risk perception and preference for food safety certification in emerging food markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 690-708, September.
    15. Jeff Luckstead & Heather A. Snell & Lawton Lanier Nalley & Rodolfo M. Nayga & Joshua Sarpaning, 2022. "A multi‐country study on consumers' valuation for child‐labor‐free chocolate: Implications for child labor in cocoa production," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 1021-1048, June.
    16. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    17. Reynolds, Travis & Kolodinsky, Jane & Murray, Byron, 2012. "Consumer preferences and willingness to pay for compact fluorescent lighting: Policy implications for energy efficiency promotion in Saint Lucia," Energy Policy, Elsevier, vol. 41(C), pages 712-722.
    18. Jitender Singh, 2016. "Quality of Public Goods, Public Policy and Human Development: A State-wise Analysis," Indian Journal of Human Development, , vol. 10(2), pages 215-235, August.
    19. Illichmann, R. & Abdulai, A., 2014. "Analysis of Consumer Preferences and Wilingness-To-Pay for Organic Food Products in Germany," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49, March.
    20. Rodríguez, Elsa Mirta M. & Lacaze, María Victoria & Lupín, Beatriz, 2007. "Willingness to pay for organic food in Argentina: evidence from a consumer survey," Nülan. Deposited Documents 1300, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fan:ecaqec:v:html10.3280/ecag2018-001002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefania Rosato (email available below). General contact details of provider: http://www.francoangeli.it/riviste/sommario.aspx?IDRivista=214 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.