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Factors Affecting Consumer Choice and Willingness to Pay for Milk Attributes

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  • Bernard, Daria J.
  • Mathios, Alan D.

Abstract

This study used weekly scanner data to determine within the milk market the factors that affect consumer choice of non-rBST and organic products and the implications for the development of niche markets. This was accomplished by first understanding what product attributes affected demand for milk and then determining how much consumers were willing to pay for these attributes. The former was done within the multinomial logit framework while the latter used the hedonic price model to infer WTP. Results showed the price effect for rBST-free was the largest while the price effect for organic was the smallest and that consumers were willing to pay more for both rBST-free and organic milk compared to conventionally produced milk.

Suggested Citation

  • Bernard, Daria J. & Mathios, Alan D., 2005. "Factors Affecting Consumer Choice and Willingness to Pay for Milk Attributes," 2005 Annual meeting, July 24-27, Providence, RI 19366, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19366
    DOI: 10.22004/ag.econ.19366
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    Cited by:

    1. Mbabazi, Esther Gloria, 2016. "Cost Effectiveness Of And Willingness To Pay For Vaccination Of Village Free-Range Poultry Against Newcastle Disease In Iganga District," Research Theses 265577, Collaborative Masters Program in Agricultural and Applied Economics.
    2. Kecinski, Maik & Messer, Kent D. & Peo, Audrey J., 2018. "When Cleaning Too Much Pollution Can Be a Bad Thing: A Field Experiment of Consumer Demand for Oysters," Ecological Economics, Elsevier, vol. 146(C), pages 686-695.
    3. Pedro A. Alviola & Oral Capps, 2010. "Household demand analysis of organic and conventional fluid milk in the United States based on the 2004 Nielsen Homescan panel," Agribusiness, John Wiley & Sons, Ltd., vol. 26(3), pages 369-388.
    4. Mbabazi, Esther Gloria, 2016. "Cost Effectiveness Of And Willingness To Pay For Vaccination Of Village Free-Range Poultry Against Newcastle Disease In Iganga District," Research Theses 276434, Collaborative Masters Program in Agricultural and Applied Economics.
    5. Jura Liaukonyte & Nadia A. Streletskaya & Harry M. Kaiser, 2015. "The Long-Term Impact of Positive and Negative Information on Food Demand," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 539-562, December.

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