IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v31y2015i2p243-258.html
   My bibliography  Save this article

Consumer Willingness to Pay for Catechin‐enriched Yogurt: Evidence from a Stated Choice Experiment

Author

Listed:
  • Daniele Moro
  • Mario Veneziani
  • Paolo Sckokai
  • Elena Castellari

Abstract

ABSTRACT In recent years, food manufacturers have been devoting a large portion of their R&D budgets to the development of functional foods. Although functional foods exhibit a significant level of information asymmetry, consumers appear to be increasingly appreciative, recognizing their role in preventing or reducing health risks and/or improving other physiological functions. This paper quantifies the willingness to pay of a representative sample of 600 Italian consumers for a hypothetical yogurt using a web‐based stated choice experiment. The willingness to pay for two functional attributes (probiotics and catechin enrichment) was measured using the panel data version of a Random Parameters Logit model. The results show that respondents are willing to pay a premium for a catechin‐enriched yogurt (0.38 €/jar), which is well above their willingness to pay for the probiotic attribute (0.21 €/jar). Averaging the individual values across sample sub‐groups indicates that the willingness to pay for catechin enrichment may be related to age, income, health status, lifestyle and education. [EconLit citation: C25, C93, D12]

Suggested Citation

  • Daniele Moro & Mario Veneziani & Paolo Sckokai & Elena Castellari, 2015. "Consumer Willingness to Pay for Catechin‐enriched Yogurt: Evidence from a Stated Choice Experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 243-258, April.
    • Handle: RePEc:wly:agribz:v:31:y:2015:i:2:p:243-258
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/agr.21401
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kwamena K. Quagrainie & James Unterschultz & Michele Veeman, 1998. "Effects of Product Origin and Selected Demographics on Consumer Choice of Red Meats," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 46(2), pages 201-219, July.
    2. Michael Burton & Dan Rigby & Trevor Young, 2001. "Consumer attitudes to genetically modified organisms in food in the UK," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(4), pages 479-498, December.
    3. Ulrich Enneking, 2004. "Willingness-to-pay for safety improvements in the German meat sector: the case of the Q&S label," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(2), pages 205-223, June.
    4. Dan Rigby & Michael Burton, 2005. "Preference heterogeneity and GM food in the UK," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(2), pages 269-288, June.
    5. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    6. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    7. Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003. "Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 16-29.
    8. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    9. Zou, Ning Ning (Helen) & Hobbs, Jill E., 2006. "Modelling functional food choice and health care impacts: A literature review," Consumer and Market Demand Network Papers 91556, University of Alberta, Department of Resource Economics and Environmental Sociology.
    10. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, September.
    11. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    12. Frode Alfnes, 2004. "Stated preferences for imported and hormone-treated beef: application of a mixed logit model," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(1), pages 19-37, March.
    13. Bruno Larue & Gale E. West & Carole Gendron & Rémy Lambert, 2004. "Consumer response to functional foods produced by conventional, organic, or genetic manipulation," Agribusiness, John Wiley & Sons, Ltd., vol. 20(2), pages 155-166.
    14. Nick Hanley & Douglas MacMillan & Robert E. Wright & Craig Bullock & Ian Simpson & Dave Parsisson & Bob Crabtree, 1998. "Contingent Valuation Versus Choice Experiments: Estimating the Benefits of Environmentally Sensitive Areas in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(1), pages 1-15, March.
    15. Riccardo Scarpa & Mara Thiene & Kenneth Train, 2008. "Utility in Willingness to Pay Space: A Tool to Address Confounding Random Scale Effects in Destination Choice to the Alps," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 994-1010.
    16. Stavroula Malla & Jill E. Hobbs & Orsolya Perger, 2007. "Valuing the Health Benefits of a Novel Functional Food," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(1), pages 115-136, March.
    17. Alfnes, Frode & Guttormsen, Atle G. & Steine, Gro & Kolstad, Kari, 2006. "Ajae Appendix: Consumers’ Willingness To Pay For The Color Of Salmon: A Choice Experiment With Real Economic Incentives," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(4), pages 1-8, November.
    18. James, Sallie & Burton, Michael P., 2003. "Consumer preferences for GM food and other attributes of the food system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 1-18.
    19. Wuyang Hu & Marvin T. Batte & Timothy Woods & Stan Ernst, 2012. "Consumer preferences for local production and other value-added label claims for a processed food product," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(3), pages 489-510, July.
    20. Jain, Dipak C & Vilcassim, Naufel J & Chintagunta, Pradeep K, 1994. "A Random-Coefficients Logit Brand-Choice Model Applied to Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(3), pages 317-328, July.
    21. Nadhem Mtimet & Luis Miguel Albisu, 2006. "Spanish wine consumer behavior: A choice experiment approach," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 343-362.
    22. Scarpa, R. & Thiene, M. & Train, K., 2008. "Appendix to Utility in WTP space: a tool to address confounding random scale effects in destination choice to the Alps," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 90(4), pages 1-9, January.
    23. 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.
    24. Armenak Markosyan & Jill J. McCluskey & Thomas I. Wahl, 2009. "Consumer Response to Information about a Functional Food Product: Apples Enriched with Antioxidants," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(3), pages 325-341, September.
    25. Gale E. West & Carole Gendron & Bruno Larue & Rémy Lambert, 2002. "Consumers’ Valuation of Functional Properties of Foods: Results from a Canada-wide Survey," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 50(4), pages 541-558, December.
    26. Alessandro Bonanno, 2013. "Functional foods as differentiated products: the Italian yogurt market," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(1), pages 45-71, February.
    27. Andrew Daly & Stephane Hess & Kenneth Train, 2012. "Assuring finite moments for willingness to pay in random coefficient models," Transportation, Springer, vol. 39(1), pages 19-31, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bo Chen & Wuyang Hu & Qingjie Zhou, 2020. "Effects of local and national advertising across brands: the case of yogurt in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1260-1281, October.
    2. Deborah Bentivoglio & Adele Finco & Giorgia Bucci & Giacomo Staffolani, 2020. "Is There a Promising Market for the A2 Milk? Analysis of Italian Consumer Preferences," Sustainability, MDPI, vol. 12(17), pages 1-16, August.
    3. Mathew T. Baker & Peng Lu & Jean A. Parrella & Holli R. Leggette, 2022. "Consumer Acceptance toward Functional Foods: A Scoping Review," IJERPH, MDPI, vol. 19(3), pages 1-40, January.
    4. Dolgopolova, Irina & Teuber, Ramona, 2016. "Consumers’ Willingness-to-pay for Health-enhancing Attributes in Food Products: A Meta-analysis," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235390, Agricultural and Applied Economics Association.
    5. Gianni Betti & Daniela Evangelista & Francesca Gagliardi & Emanuele Giordano & Angelo Riccaboni, 2024. "Towards Integrating Information Systems of Statistical Indicators on Traceability, Quality and Safety of Italian Agrifood Systems for Citizens, Institutions and Policy-Makers," Sustainability, MDPI, vol. 16(15), pages 1-26, July.
    6. Dell’Unto, Davide & Meccariello, Giulia & Cortignani, Raffaele, 2023. "Healthy food consumption in the Covid-19 era: Empirical evidence from Italian consumers choices on functional products," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 25(1), April.
    7. Claudia Symmank, 2019. "Extrinsic and intrinsic food product attributes in consumer and sensory research: literature review and quantification of the findings," Management Review Quarterly, Springer, vol. 69(1), pages 39-74, February.

    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. Sckokai, Paolo & Veneziani, Mario & Moro, Daniele & Castellari, Elena, 2014. "Consumer willingness to pay for food safety: the case of mycotoxins in milk," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(1), pages 1-19, April.
    2. Veneziani, Mario & Sckokai, Paolo & Moro, Daniele, 2012. "Consumers’ willingness to pay for a functional food," 2012 First Congress, June 4-5, 2012, Trento, Italy 124101, Italian Association of Agricultural and Applied Economics (AIEAA).
    3. Wang, Shuxian & Wu, Linhai & Zhu, Dian & Wang, Hongsha & Xu, Lingling, 2014. "Chinese consumers’ preferences and willingness to pay for traceable food attributes: The case of pork," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 165639, Agricultural and Applied Economics Association.
    4. Wu, Linhai & Wang, Shuxian & Zhu, Dian & Hu, Wuyang & Wang, Hongsha, 2015. "Chinese consumers’ preferences and willingness to pay for traceable food quality and safety attributes: The case of pork," China Economic Review, Elsevier, vol. 35(C), pages 121-136.
    5. 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.
    6. 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.
    7. Doherty, Edel & Campbell, Danny, 2011. "Demand for improved food safety and quality: a cross-regional comparison," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108791, Agricultural Economics Society.
    8. Alfnes, Frode & Steine, Gro, 2005. "None-of-These Bias in Stated Choice Experiments," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24761, European Association of Agricultural Economists.
    9. Glynn T. Tonsor & Ted C. Schroeder & Joost M. E. Pennings & James Mintert, 2009. "Consumer Valuations of Beef Steak Food Safety Enhancement in Canada, Japan, Mexico, and the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(3), pages 395-416, September.
    10. Benoit Chèze & Charles Collet & Anthony Paris, 2021. "Estimating discrete choice experiments : theoretical fundamentals," CIRED Working Papers hal-03262187, HAL.
    11. Ozge Dinc‐Cavlak & Ozlem Ozdemir, 2021. "Comparing the willingness to pay through three elicitation mechanisms: An experimental evidence for organic egg product," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 782-803, October.
    12. 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.
    13. 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.
    14. Umberger, Wendy J. & Calkins, Chris R., 2008. "Korean Consumers’ Preferences and Willingness to Pay for Domestic versus U.S. and Australian Beef with Alternative Attributes," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6172, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Dissanayake,Sahan T. M. & Beyene,Abebe Damte & Bluffstone,Randall & Gebreegziabher, Zenebe & Martinsson,Peter & Mekonnen,Alemu & Toman,Michael A. & Vieider,Ferdinand M., 2015. "Preferences for REDD+ contract attributes in low-income countries : a choice experiment in Ethiopia," Policy Research Working Paper Series 7296, The World Bank.
    16. Landmann, D. & Feil, J.-H. & Lagerkvist, C.J. & Otter, V., 2018. "Designing capacity development activities of small-scale farmers in developing countries based on discrete choice experiments," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277738, International Association of Agricultural Economists.
    17. Gillespie Rob & Kragt Marit E., 2012. "Accounting for Nonmarket Impacts in a Benefit-Cost Analysis of Underground Coal Mining in New South Wales, Australia," Journal of Benefit-Cost Analysis, De Gruyter, vol. 3(2), pages 1-29, May.
    18. Helen Scarborough & Jeff Bennett, 2012. "Cost–Benefit Analysis and Distributional Preferences," Books, Edward Elgar Publishing, number 14376.
    19. Bart Vermeulen & Peter Goos & Riccardo Scarpa & Martina Vandebroek, 2011. "Bayesian Conjoint Choice Designs for Measuring Willingness to Pay," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(1), pages 129-149, January.
    20. Giacomo Pallante & Adam Drucker, 2014. "Niche Markets for Agrobiodiversity Conservation: Preference and Scale Heterogeneity Effects on Nepalese Consumers’ WTP for Finger Millet Products," SEEDS Working Papers 1414, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised May 2014.

    More about this item

    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:wly:agribz:v:31:y:2015:i:2:p:243-258. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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.