Product Labeling, Consumer Willingness to Pay, and the Supply Chain

2012 ◽  
pp. 165-174 ◽  
Author(s):  
Robert L. Hicks
Keyword(s):  
Supply Chain ◽  
Willingness To Pay ◽  
Product Labeling

scholarly journals Multi period pricing for managing local fruit supply chain

2018 ◽  
Vol 154 ◽  
pp. 01049
Author(s):  
Erwin Widodo ◽  
Rahaditya Dimas Prihadianto ◽  
Dody Hartanto
Keyword(s):  
Mathematical Model ◽  
Supply Chain ◽  
Willingness To Pay ◽  
Dynamic Pricing ◽  
Healthy Lifestyle ◽  
Fresh Fruit ◽  
Quality Food ◽  
Demand Rate ◽  
Forward Buying ◽  
Normal Price

Recently fresh fruit sector is grown not only due to increasing of demand that spirited by healthy lifestyle but also requirement of quality food should be eaten daily. Its complexity make many research considered fruit in certain supply chain, called as Fruit Supply Chain (FSC). In FSC, customers tend to purchase products with a longer remaining lifetime and avoid the ones which give aging signal. Customer willingness to pay decreases once the product start to be deteriorated, which may cause slower demand for aging fruits. Consequently, retailers should enable discounted price for aging fruits products to retain or improve demand rate. Main purpose of this research is explaining how to maximize supply chain profit by applying dynamic pricing. A set of mathematical model is optimized on this research. It addresses dynamic pricing for FSC players to achieve better profitability. The result proves that dynamic pricing is urgent to be done which is signaled by increment of FSC Profit. FSC players can separate selling period into three periods, which are forward buying period, normal price period, and markdown price period as implementation of this scheme.

scholarly journals Willingness to Pay for Halal Transportation Cost: The Moderating Effect of Knowledge on the Theory of Planned Behavior

2019 ◽  
Vol 8 (6S3) ◽  
pp. 479-488 ◽  
Keyword(s):  
Supply Chain ◽  
Theory Of Planned Behavior ◽  
Willingness To Pay ◽  
Planned Behavior ◽  
Behavioral Control ◽  
Transportation Cost ◽  
Subjective Norm ◽  
Moderating Effect ◽  
Perceived Behavioral Control ◽  
The Relationship

Halal transportation services is one of the crucial components of producing Halal products. Since Halal is unique and involves elaborate regulations and executions, therefore it requires huge investment. Like any other supply chain, the transportation cost will be transferred to the end users, normally the customers, thus increasing the price of final products. It is notably common to find studies done on Muslim customers and their preference on Halal products, however, studies on Muslims preferences towards Halal transportation could still be considered as novel. By adopting the Theory of Planned Behavior and religiosity; and by taking into account the moderating effect of knowledge, this study aims to identify the factors that lead to the customers’ willingness to pay for the Halal transportation cost. Using a purposive sampling method, the data was collected among Muslim consumers in a prominent shopping complex in Malaysia and was analyzed using Smart Partial Least Squares (PLS). Based on the finding, it is shown that the attitude and perceived behavioral control gave a positive relationship with the willingness to pay for Halal transportation. Meanwhile, subjective norm and religiosity were on the opposite as there were both hold an insignificant effect towards the willingness to pay for the Halal transportation. Knowledge has moderated the relationship between attitude and willingness to pay for Halal transportation, but not for the relationship between subjective norm and perceived behavioral control. It is expected that this study could provide a better understanding of Muslim consumers’ behavior on purchasing for Halal transportation, as well as other Halal supply chain activities.

scholarly journals Point-of-Sale Specific Willingness to Pay for Quality-Differentiated Beef

2018 ◽  
Vol 10 (7) ◽  
pp. 2560 ◽  
Author(s):  
Kar Lim ◽  
Michael Vassalos ◽  
Michael Reed
Keyword(s):  
Supply Chain ◽  
Willingness To Pay ◽  
Food Supply ◽  
Choice Experiment ◽  
Farmers Markets ◽  
Food Supply Chain ◽  
Point Of Sale ◽  
Clear Cut ◽  
Brick And Mortar ◽  
Online Stores

Despite the growing interest of producers and consumers toward grass-fed, local, and organic beef, the supply chain for these products to reach consumers is not always clear-cut. Among the available options are direct-to-consumers and the conventional food supply chain. Although consumers may pay a premium for beef differentiated by quality attributes, the willingness to pay (WTP) difference across point-of-sales is unclear. In this study, we contrast the WTPs for conventional, grass-fed, local, and organic beef by brick-and-mortar supermarkets (B&Ms), farmers’ markets, and via online stores. We conduct a choice experiment with a nationwide online sample of American consumers. The findings indicate that compared to B&Ms, more consumers are reluctant to purchase beef from farmers’ markets and online outlets. Moreover, the WTP for quality-differentiated attributes varies significantly by the point-of-sales. For most consumers, the downside of online or farmers’ markets outweighs the upside of the quality-differentiated attributes sold in those venues.

Supply chain transparency and willingness-to-pay for refurbished products

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yanji Duan ◽  
John A. Aloysius
Keyword(s):  
Supply Chain ◽  
Willingness To Pay ◽  
Information Provision ◽  
Environmental Benefits ◽  
Sustainable Supply Chain ◽  
Consumer Evaluations ◽  
Content Type ◽  
Quality Perceptions ◽  
Types Of Information ◽  
Subject Experiment

Purpose Researchers in supply chain transparency have called to expand the boundaries by disclosing various types of information to multiple stakeholders. The purpose of this paper is to explore the effect of transparency about supply chain sustainability on consumers as critical stakeholders and investigate the effectiveness of message characteristics. Design/methodology/approach This study utilizes two scenario-based experiments grounded in a refurbished goods context: Study 1, which employs a 2×2 between-subject experiment investigates the effects of product type and sustainable information provision on consumers evaluations, and Study 2, which employs a 2×1 between-subject experiment examines the effects of sustainable information direction on consumer evaluations. A total of 348 participants were recruited from the Amazon M-Turk platform across the two experiments. Data are analyzed with regression analysis using the PROCESS macro in SPSS and the Johnson–Neyman technique. Findings Contrary to prior research that assumes that refurbished products are associated with lower quality, quality perceptions are moderated by individuals’ environmental involvement (EI) and the information presented by the firm. More importantly, consumer evaluations are influenced by specific characteristics of sustainable supply chain messages: high EI individuals have higher willingness-to-pay a premium (WTPP) when the message is consistent with original beliefs (pro-attitudinal). In contrast to prior theory, there was no difference in the WTPP of consumers with high EI and low EI for counter-attitudinal messages. Practical implications The study shows that what to say, how to say it and to whom, are critical for firms who seek to nudge consumers to support their sustainable practices. Originality/value The value of communicating information on sustainability has been well established. However, little is known about such association when the information provided trades off environmental benefits and product quality. This research addresses the gap in a refurbished product context. The research studies the effect of sustainable supply chain transparency and message characteristics on stakeholders’ evaluations.

scholarly journals Sustainable Traceability in the Food Supply Chain: The Impact of Consumer Willingness to Pay

2017 ◽  
Vol 9 (6) ◽  
pp. 999 ◽  
Author(s):  
Shengnan Sun ◽  
Xinping Wang ◽  
Yan Zhang
Keyword(s):  
Supply Chain ◽  
Willingness To Pay ◽  
Food Supply ◽  
Food Supply Chain ◽  
The Impact

Security capability and logistics service provider selection: an adaptive choice study

2019 ◽  
Vol 49 (4) ◽  
pp. 330-355 ◽  
Author(s):  
Zachary Williams ◽  
Michael S. Garver ◽  
Robert Glenn Richey Jr
Keyword(s):  
Supply Chain ◽  
Willingness To Pay ◽  
Service Provider ◽  
Selection Process ◽  
Chain Management ◽  
Content Type ◽  
Logistics Service ◽  
Logistics Service Provider ◽  
Adaptive Choice ◽  
Security Capability

Purpose The influence of security practices is increasingly common in the supply chain management and logistics literature. However, an under-researched area exists within the logistics service provider (LSP) selection process. The purpose of this paper is to introduce a security capability into the LSP selection process. Specifically, this research seeks to understand partner willingness to compensate and collaborate with service providers that possess a security capability. Design/methodology/approach Adaptive choice modeling is adopted to assess the influence of a security capability in the LSP selection process. This study represents the first use of this method in supply chain management and logistics research. Cluster analysis is also performed to uncover specific buyer segments along with traditional regression-based significance testing and counting analysis. Findings The findings indicate that security can have an important influence on the LSP selection process. In particular, the findings note a willingness to pay for a security capability in LSP selection. Applying segmentation techniques to the findings, three LSP buying segments are determined, each placing different importance and value on LSP capabilities. Practical implications This research notes an ongoing provider deficiency in security offerings. Partner firms sometimes maintain a cost focus, but others show a willingness to pay higher prices for access to partners with a security capability. Key practitioner findings include the need to include security with other traditional selection variables. The study walks the researcher and manager through the development of segments based on LSP capabilities. Originality/value This manuscript investigates logistic service provider selection. The authors detail an advanced form of conjoint analysis, adaptive conjoint modeling, for first time consideration. Additionally, this is the first study to integrate security into the LSP selection process. This is also the first study to identify a willingness to pay for a security capability.

scholarly journals Beef animal welfare, attitudes and Willingness to Pay: A regional comparison across the Pyrenees

2015 ◽  
Vol 13 (3) ◽  
pp. e0105 ◽  
Author(s):  
Pierre Sans ◽  
Ana I. Sanjuán-López
Keyword(s):  
Supply Chain ◽  
Willingness To Pay ◽  
Animal Welfare ◽  
Market Price ◽  
Consumer Attitudes ◽  
Demographic Characteristics ◽  
Regional Comparison ◽  
Beef Meat ◽  
Contingent Valuation Survey ◽  
Welfare Attitudes

<p class="StyleTexteSJAR">Attitudes towards beef animal welfare (AW) and Willingness to Pay (WTP) for AW certification are investigated among consumers in two Spanish and two French regions located on both sides of the Pyrenees (n=1213). Attitudes were measured through a scale of 11 animal practices, on which, consumers report their degree of concern and trust on the supply chain compliance. Attitudes significantly differed across regions, especially with respect to those AW practices carried out by farmers, while trust lies behind concerns. Three segments based on individual consumer attitudes are defined by opposing those consumers who are more concerned and who trust more on the compliance with AW standards (n=264, 22%) to those less concerned and who are more uncertain about stakeholders´ compliance with AW rules (n=356, 29%). Consumer location, gender, age and education significantly differed across attitudinal clusters. Results from a contingent valuation survey show that WTP for certified animal friendly beef ranged between 20.6% and 22.6% over the average market price of standard beef, in Spain and France, respectively. Both, consumers’ socio-demographic characteristics and habits regarding beef meat purchasing and attitudes towards farmers influenced this WTP (the more consumers trust in farmers’ involvement in animal welfare, the highest is their WTP), while a negative overall attitude significantly reduced WTP.</p>

scholarly journals Willingness to Pay for Hexanal Technology among Banana Farmers in Meru County, Kenya

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Jane N. Kahwai ◽  
John I. Mburu ◽  
Martin O. Oulu ◽  
Margaret J. Hutchinson
Keyword(s):  
Supply Chain ◽  
Willingness To Pay ◽  
Scaling Up ◽  
Primary Data ◽  
Economic Empowerment ◽  
Rural Poor ◽  
Tropical Fruits ◽  
Factors Influencing ◽  
Naturally Occurring ◽  
Key Policy

From the perspective of food categories, fresh produce are the leading sources of food loss and waste globally. Their highly perishable nature shortens their shelf-lives leading to high postharvest losses if not properly handled. Currently, these losses are estimated at sixty-six percent based on total weight. Reduction of these losses will ensure constant supply of food along the supply chain as well as economic empowerment of the rural poor. Hexanal which is a naturally occurring compound has been developed as an intervention to prolong shelf-life of delicate tropical fruits such as bananas while also maintaining their quality. However, empirical evidence is still required on the usefulness of hexanal to farmers. It is envisaged that such evidence would inform scaling up of the technology in Kenya. This study assessed willingness to pay for hexanal and the factors influencing WTP amounts among banana farmers in Meru County, Kenya. Primary data was collected from 130 respondents who were grouped into aware and not aware of Hexanal. Results indicate that farmers who are aware of hexanal had a higher mean WTP Ksh 466.47 (US $4.66) compared to those not aware Ksh 331.86 (US $3.32). Factors such as age and income influenced the WTP amounts between subsamples. The major key policy implication of the study is the importance of stakeholders investing in the dissemination of information on hexanal among farmers to enhance uptake.

The Effect of Product Labeling Policies in Supply Chain under Asymmetric Information

2016 ◽  
Vol 6 (2) ◽  
pp. 51-80
Author(s):  
Manoj Kumar
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Mutual Recognition ◽  
Information Environment ◽  
Production Costs ◽  
Supply Chain Collaboration ◽  
Product Labeling ◽  
Different Types ◽  
Product Utility

Measuring and analyzing product labeling policies in supply chain processes is a largely unexplored topic. This paper analyzes the reasons why suppliers may pursue different product labeling policies in asymmetric information and how this affects buyers' product utility in the context of supply chain collaboration. In an asymmetric information environment, where suppliers know the quality of the goods they are selling and buyers are not able to distinguish between them, the quality buyers select to protect by a label depends on buyer's preferences for and production costs of different qualities. Suppliers with different distributions of tastes and/or different production functions will thus decide to label differently. When they collaborate, product utility effects will be different on the buyer as a whole and on different types of buyers within each buyer depending on whether buyers select to mutually recognize each other's labeling policy or to harmonize their policies. In particular, it will be the case that a buyer with weak preferences for high quality will oppose the introduction of an international, harmonized label as it is better off under a regime of mutual recognition. When suppliers only differ in their costs of producing quality instead, none of the suppliers or buyers will lose from a move towards supply chain collaboration under an international, harmonized label.

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