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Effects of Label Information on Consumer Willingness-to-Pay for Food Attributes

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  • Zhifeng Gao
  • Ted C. Schroeder

Abstract

Choice experiments (CEs) are often used to elicit consumer willingness-to-pay (WTP) for food attributes. A concern about these approaches is that food attributes provided to respondents are assumed independent of attributes not provided. We use surveys containing a series of CEs to investigate effects of adding beef steak attributes. WTP for important attributes in the CEs decrease when the number of attributes increases from three to four, while WTP increases when the number of attributes increases from four to five. Changes in WTP for attributes depend on their relationships with newly added attributes and the number of attributes presented. Copyright 2007, Oxford University Press.

Suggested Citation

  • Zhifeng Gao & Ted C. Schroeder, 2007. "Effects of Label Information on Consumer Willingness-to-Pay for Food Attributes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 795-809.
    • Handle: RePEc:oup:ajagec:v:91:y:2007:i:3:p:795-809
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2009.01259.x
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    Cited by:

    1. Wolf, Christopher A. & Tonsor, Glynn T. & Olynk, Nicole J., 2011. "Understanding U.S. Consumer Demand for Milk Production Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-17.
    2. 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.
    3. BAGLIONE, Stephen L. & TUCCI, Louis A. & STANTON, John L., 2019. "Organic Food: Identifying Actionable Segments," Holistic Marketing Management Journal, Holistic Marketing Management, vol. 9(1), pages 10-27, March.
    4. McKendree, Melissa G.S. & Ortega, David L. & Widmar, Nicole Olynk & Wang, H. Holly, 2013. "Consumer Perceptions of Seafood Industries in the Wake of the Deepwater Horizon Oil Spill and Fukushima Daiichi Nuclear Disaster," Staff Paper Series 155582, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Vanessa von Schlippenbach & Isabel Teichmann, 2012. "The Strategic Use of Private Quality Standards in Food Supply Chains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1189-1201.
    6. Lim, Kar Ho & Hu, Wuyang & Maynard, Leigh J. & Goddard, Ellen W., 2012. "Stated Preference and Perception Analysis for Traceable and BSE-tested Beef: An Application of Mixed Error-Component Logit Model," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124784, Agricultural and Applied Economics Association.
    7. Owusu, Victor & Owusu Anifori, Michael, 2013. "Consumer Willingness to Pay a Premium for Organic Fruit and Vegetable in Ghana," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(1), pages 1-20, February.
    8. Cash, Sean B. & Slade, Peter & Cranfield, John, 2013. "The Chicken Wears No Skin: Ordering Effects in Elicitation of Willingness to Pay for Multiple Credence Attributes in Ethical and Novel Food Products," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150364, Agricultural and Applied Economics Association.
    9. Scozzafava, Gabriele & Casini, Leonardo & Marinelli, Nicola, 2012. "Modern Distribution vs. Specialised Shop: a Study on beef consumer behaviour," 2012 XX Convegno Annuale SIEA, Siracusa, Italy 130448, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA).
    10. Tonsor, Glynn T., 2010. "Consumer Food Safety Perceptions: Do they Differ across Products, Species, and Specific Risks?," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61044, Agricultural and Applied Economics Association.
    11. Hussein, Mohamud & Fraser, Iain & Costanigro, Marco, 2016. "Hedonic Analysis of Origin of Meat In The United Kingdom," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236353, Agricultural Economics Society.
    12. repec:ags:jrapmc:122305 is not listed on IDEAS
    13. Kelvin Balcombe & Iain Fraser, 2009. "A General Treatment of Non-Response Data From Choice Experiments Using Logit Models," Studies in Economics 0916, School of Economics, University of Kent.
    14. Taylor, Mykel R. & Tonsor, Glynn T., 2013. "Revealed Demand for Country-of-Origin Labeling of Meat in the United States," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-13, August.
    15. Owusu, Victor, 2012. "Assessing Consumer Willingness to Pay a Premium for Organic Food Product: Evidence from Ghana," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123394, International Association of Agricultural Economists.
    16. Gao, Zhifeng & Yu, Xiaohua & House, Lisa, 2009. "Using Choice Experiment to Estimate Consumer Valuation: the Role of Experiment Design and Attribute Information Loads," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49406, Agricultural and Applied Economics Association.
    17. Peterson, Hikaru Hanawa & Burbidge, Linda D., 2012. "Japanese Consumers’ Valuation of U.S. Beef and Pork Products after the Beef Trade Ban," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-19, April.
    18. Brooks, Kathleen R. & Ellison, Brenna, 2014. "Which Livestock Production Methods Matter Most to Consumers?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 173517, Agricultural and Applied Economics Association.
    19. Li, Minghao & Wang, Qingbin & Kolodinsky, Jane M., 2012. "Estimating the Optimal Premium Rates for Credential Food Attributes: A Case Study in the Northeast United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-13.

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