Differentiating Price Sensitivity from Willingness to Pay: Role of Pricing in Consumer Acceptance of Upcycled Foods

Author(s):  
Siddharth Bhatt ◽  
Jonathan Deutsch ◽  
Rajneesh Suri
2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Dominik J. Wettstein ◽  
Stefan Boes

Abstract Background Price negotiations for specialty pharmaceuticals take place in a complex market setting. The determination of the added value of new treatments and the related societal willingness to pay are of increasing importance in policy reform debates. From a behavioural economics perspective, potential cognitive biases and other-regarding concerns affecting outcomes of reimbursement negotiations are of interest. An experimental setting to investigate social preferences in reimbursement negotiations for novel, oncology pharmaceuticals was used. Of interest were differences in social preferences caused by incremental changes of the patient outcome. Methods An online experiment was conducted in two separate runs (n = 202, n = 404) on the Amazon Mechanical Turk (MTurk) platform. Populations were split into two (run one) and four (run two) equally sized treatment groups for hypothetical reimbursement decisions. Participants were randomly assigned to the role of a public price regulator for pharmaceuticals (buyer) or a representative of a pharmaceutical company (seller). In run two, role groups were further split into two different price magnitude framings (“real world” vs unconverted “real payoff” prices). Decisions had real monetary effects on other participants (in the role of premium payers or investors) and via charitable donations to a patient organisation (patient benefit). Results 56 (run one) and 59 (run two) percent of participants stated strictly monotone preferences for incremental patient benefit. The mean incremental cost-effectiveness ratio (ICER) against standard of care (SoC) was higher than the initial ICER of the SoC against no care. Regulators stated lower reservation prices in the “real world” prices group compared to their colleagues in the unconverted payoff group. No price group showed any reluctance to trade. Overall, regulators rated the relevance of the patient for their decision higher and the relevance of their own role lower compared to sellers. Conclusions The price magnitude of current oncology treatments affects stated preferences for incremental survival, and assigned responsibilities lead to different opinions on the relevance of affected stakeholders. The design is useful to further assess effects of reimbursement negotiations on societal outcomes like affordability (cost) or availability (access) of new pharmaceuticals and test behavioural policy interventions.


Insects ◽  
2021 ◽  
Vol 12 (5) ◽  
pp. 435
Author(s):  
Davide Menozzi ◽  
Giovanni Sogari ◽  
Cristina Mora ◽  
Marta Gariglio ◽  
Laura Gasco ◽  
...  

The inclusion of insects as a protein source in feed production is not only related to technical, economical, and normative restrictions but is also affected by consumer acceptance. In this study, we evaluated consumers’ attitudes, intention to purchase and eat, and willingness to pay for meat obtained from a farmed duck fed with insect-based meal or a live insect diet. We conducted a survey among a sample of 565 consumers to test the effects of information about the benefits of using insects as feed on consumers’ attitudes towards animal-based products fed with insects. Providing information on the sustainability and nutritional benefits of using insects as feed increased both attitude towards and intention to purchase and eat meat products made from animals fed with insects. In the treatment group, we found a significant reduction from 21.9 to 14.0% in those who wanted to be compensated for buying a duck fed with an insect-based meal and an increase in those willing to pay the same price—from 64.9 to 72.7%. The information treatment significantly increased the intention to eat such products, suggesting that increasing consumers’ knowledge might help in reducing the fears and misconceptions around the topic of using insects as a feed source.


Meat Science ◽  
2011 ◽  
Vol 87 (1) ◽  
pp. 81-87 ◽  
Author(s):  
Douglas Sorenson ◽  
Maeve Henchion ◽  
Begonya Marcos ◽  
Paddy Ward ◽  
Anne Maria Mullen ◽  
...  

2021 ◽  
Vol 6 (11) ◽  
pp. 306-314
Author(s):  
Norzalila Kasron ◽  
Musaalbakri Abdul Manan ◽  
Mohd Nur Hafiz Mat Azmin ◽  
Nor Azlina Saari ◽  
Malisah Abd Latip

Fermented beverages have become a powerful player in the global beverage sector because of the increased demand for health products and their nutritional benefits to societies. This study aimed to identify consumer acceptance and willingness to pay for fermented drinks developed by MARDI. It also will evaluate the market potential of products among industry players. In this study, the data was collected using structured questionnaire and face-to-face interviews focused on the population in Peninsular Malaysia. The population's selection by stratified random sampling technique and the major survey locations included mall and hypermarket. Exploratory factor analysis (EFA) was used to discover the underlying structure of observed variables. A total of 400 respondents had participated in the study. A field survey conducted showed that 54% of respondents knew about functional foods and 55% of these are aware of functional foods based on fruits were in the market. The survey found that 30% of respondents had taken fermented drinks before, while the rest had never known this drink. Age and income have a significant influence on consumers' willingness to pay fermented drinks at a reasonable price if this product is available in the Malaysian market. Government support is needed to encourage the cultivation of indigenous fruit in Malaysia. It can be done through the provision of seed subsidies and financial resources to farmers in expanding and increasing the supply of these raw materials for the production of value-added products.


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