Effect of information on consumer preferences and willingness-to-pay for sparkling mock wines

2019 ◽  
Vol 122 (8) ◽  
pp. 2621-2638
Author(s):  
Simona Naspetti ◽  
Francesca Alberti ◽  
Massimo Mozzon ◽  
Sara Zingaretti ◽  
Raffaele Zanoli
Keyword(s):  
Willingness To Pay ◽  
Choice Experiment ◽  
Product Information ◽  
Consumer Preferences ◽  
Sparkling Wine ◽  
Content Type ◽  
Clear Cut ◽  
Sweet Wines ◽  
Other Information

Purpose The purpose of this paper is to explore the role of information about alcohol content, organic labelling and packaging on consumer preferences and willingness-to-pay (WTP) of non-alcoholic sparkling mock wines. Design/methodology/approach In a two-step study, the consumer’s expectations and overall liking of two novel brands of mock wines were investigated by focus groups followed by a common hedonic test combined with a choice experiment aimed at measuring consumer WTP. A total of 240 consumers were assigned to two tasting groups of equal size: all were presented at least one brand of mock wine, while drinkers also tasted a familiar brand of low-alcohol sweet sparkling wine. A paper-and-pencil choice experiment followed the tasting sessions. Findings The results demonstrate that participants in blind or manipulated “informed” conditions are not able to discriminate among mock wines and wine, whereas significant differences in preferences for brands under investigation appeared when labels and other information were disclosed. In effect, drinkers and non-drinkers did not differ in hedonic scores of mock wines. While younger participants exhibited the highest scores in blind liking, the overall expected liking is significantly higher for non-drinkers and women if compared, respectively, to drinkers and men. WTP for mock wines is influenced by taste, glass bottle packaging and the organic label, while mock-wine colour is not relevant. Research limitations/implications Although limited in sample size and representativeness, this study has brought some new insights into the consumption of non-alcoholic mock wines. In this study, a significant influence of blind sensory liking on WTP is demonstrated. This result has theoretical implications: while the effect of product information on WTP is well established, the relationship between hedonic scores and WTP – while theoretically consistent – is not so clear-cut in the literature. Further research is needed to confirm/disconfirm these findings. Practical implications Sparkling no-alcohol mock wines, despite their sweetness, appear not different in taste to medium-to-low APV (7.5 per cent) sweet wines. Originality/value The paper suggests that marketing of mock (no-alcohol) wines needs careful branding to elicit significant hedonic effects, while interacting sensory (blind liking) scores with price information in choice models may help to represent taste heterogeneity in WTP estimates in a better way.

Consumers’ attitudes and willingness to pay for organic eggs

2019 ◽  
Vol 122 (2) ◽  
pp. 678-692 ◽  
Author(s):  
Osman Inanç Güney ◽  
Luca Giraldo
Keyword(s):  
Regression Analysis ◽  
Willingness To Pay ◽  
Choice Experiment ◽  
Consumer Preferences ◽  
Mixed Logit ◽  
Consumer Attitudes ◽  
Experiment Design ◽  
Cross Sectional ◽  
Content Type ◽  
Egg Consumption

Purpose The purpose of this paper is to understand consumer attitudes toward organic eggs by identifying their profiles and estimating the degree of their willingness to pay (WTP) for eggs with different attributes in order to evaluate the position of organic eggs. Design/methodology/approach Empirical data were collected from a face-to-face cross-sectional market survey, which involved a choice experiment design and a series of questions related to respondents’ attitudes and preferences in terms of organic egg consumption. A total of 552 consumers who are responsible for their household purchases were sampled, while the survey was performed in the major cities of seven regions of Turkey. The gathered data from the questions on consumer attitudes and preferences were analyzed using ordered probit, while the choice experiment data were analyzed through the use of conditional logit and mixed logit models. Findings Consumers perceive organic eggs to be healthy, nutritious and delicious food. In the study, we obtained three consumer groups (collectivist consumers, individualist consumers and reluctant consumers) with different characteristics in relation to organic egg consumption. When the motivations for organic egg consumption were analyzed, it was found that individual benefits have a greater impact than collectivist benefits on consumers’ choice to purchase organic eggs. According to the results of the regression analysis, consumers are willing to pay ₺0.76 more per egg for organic eggs compared to conventional eggs. Overall, consumers are reluctant to pay a premium in view of the functionality aspect of eggs. Research limitations/implications The results will help the actors within the egg industry to develop production and market-planning processes for differentiated egg markets according to consumer preferences and in terms of having the opportunity to select their ideal customer segments. Originality/value The research is the first study that analyses the motivations and the willingness of Turkish consumers to purchase organic eggs through using a choice experiment design and regression models. Original findings include the segmentation of consumers according to personal beliefs and norms. The research is also important in terms of comparing two regression model results in methodical terms. The similarity among the obtained results from the regression analysis increased the reliability of the study.

Product information and Chinese consumers’ willingness-to-pay for fair trade coffee

2014 ◽  
Vol 6 (2) ◽  
pp. 278-294 ◽  
Author(s):  
Shang-Ho Yang ◽  
Ping Qing ◽  
Wuyang Hu ◽  
Yun Liu
Keyword(s):  
Willingness To Pay ◽  
Fair Trade ◽  
Product Information ◽  
Consumer Preferences ◽  
Chinese Consumers ◽  
Survey Question ◽  
Payment Card ◽  
Content Type ◽  
Fair Trade Coffee ◽  
Willingness To Purchase

Purpose – The purpose of this paper is to investigate Chinese consumers’ willingness-to-pay (WTP) for fair trade coffee given different amount of product information. Although coffee is becoming more popular in China, the concept of fair trade is often found unfamiliar to most Chinese consumers. Design/methodology/approach – A total of 564 consumers were interviewed in Hubei, China. The key survey question asked consumers’ willingness to purchase a cup of fair trade coffee compared to a traditional cup of coffee. A modified payment card approach was used to elicit WTP. Before answering the purchase question, respondents were randomly assigned to one of three different information scenarios: basic definition, impact on sustainability and the environment, and information including both environmental and social implications. Findings – Results indicated that consumers were generally willing to pay additional amount for fair trade coffee. Information played an important role in determining what types of consumers were responsive to fair trade coffee. Furthermore, the amount of information provided and consumer WTP did not follow a linear relationship. Practical implications – Results obtained in this study are useful for coffee marketers to better target their promotion strategies. Originality/value – In contrast to China's fast growing coffee market, little is known about consumer preferences and far less on fair trade coffee. This study is the first of its kind to understand Chinese consumers’ preferences for coffee in general and for fair trade coffee in specific.

Drinking biodiversity: a choice experiment on Franciacorta sparkling wines

2020 ◽  
Vol 122 (8) ◽  
pp. 2531-2549 ◽  
Author(s):  
Giordano Ruggeri ◽  
Chiara Mazzocchi ◽  
Stefano Corsi
Keyword(s):  
Willingness To Pay ◽  
Choice Experiment ◽  
Consumer Preferences ◽  
Mixed Logit ◽  
Agricultural Practices ◽  
Environment Friendly ◽  
Specific Product ◽  
Content Type ◽  
Organic Certification ◽  
Consumption Frequency

PurposeConsumers' concerns about the environmental impacts of food production have been increasing over the last years, and several certification systems for environment-friendly food products have been created. This research investigates wine consumers' preferences for a certification that guarantees the use of agricultural practices that better protect the biodiversity in the vineyard during the production of grapes.Design/methodology/approachUsing a choice experiment, we investigate consumer preferences and willingness to pay for biodiversity-friendly wines on a sample of 334 wine consumers. The experiment was carried out by direct interviews at a wine-tasting event in an Italian winery located in the Franciacorta area, in northern Italy. A between-subject design and two different questionnaires were used, one presenting the Brut bottle and one the Satén bottle.FindingsEstimates from a mixed logit model reveal that consumers are generally willing to pay a higher price for biodiversity-friendly wines, but they have stronger preferences for organic certification and quality indications. When consumers perceive a specific product as having high quality, i.e. Satèn, they might be less willing to pay for further environment-friendly certifications. Moreover, preferences depend on sociodemographic and attitudinal variables such as gender, wine consumption frequency, wine education and knowledge degree of the labels.Originality/valueThis paper broadens the knowledge about consumer preferences and willingness to pay for biodiversity-friendly wines, focusing on a specific market segment of Italian sparkling wines.

scholarly journals Consumer Preferences and Willingness to Pay for Potting Mix with Biochar

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3432
Author(s):  
McKenzie Thomas ◽  
Kimberly L. Jensen ◽  
Dayton M. Lambert ◽  
Burton C. English ◽  
Christopher D. Clark ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Online Survey ◽  
Product Information ◽  
Consumer Preferences ◽  
Market Potential ◽  
Marginal Costs ◽  
Consumer Demographics ◽  
Market Shares ◽  
Potential Market ◽  
Dedicated Energy Crops

Biochar is a co-product of advanced biofuels production from feedstocks including food, agricultural, wood wastes, or dedicated energy crops. Markets for soil amendments using biochar are emerging, but little is known about consumer preferences and willingness to pay (WTP) for these products or the depth of the products’ market potential for this product. This research provides WTP estimates for potting mix amended with 25% biochar, conditioned on consumer demographics and attitudes about product information labeling. Data were collected with an online survey of 577 Tennessee home gardeners. WTP was elicited through a referendum contingent valuation. Consumer WTP for an 8.81 L bag of 25% biochar potting mix is $8.52; a premium of $3.53 over conventional potting mix. Demographics and attitudes toward biofuels and the environment influence WTP. Biochar amounts demanded are projected for the study area’s potential market. Optimal prices, profits, and market shares are estimated across different marginal costs of producing biochar potting mix.

Seeking attention: an eye tracking study of in-store merchandise displays

2015 ◽  
Vol 43 (6) ◽  
pp. 561-574 ◽  
Author(s):  
Patricia Huddleston ◽  
Bridget K. Behe ◽  
Stella Minahan ◽  
R. Thomas Fernandez
Keyword(s):  
Visual Attention ◽  
Eye Tracking ◽  
Purchase Intention ◽  
Product Information ◽  
Product Category ◽  
Practical Significance ◽  
Content Type ◽  
First Time ◽  
Tracking Technology

Purpose – The purpose of this paper is to elucidate the role that visual measures of attention to product and information and price display signage have on purchase intention. The authors assessed the effect of visual attention to the product, information or price sign on purchase intention, as measured by likelihood to buy. Design/methodology/approach – The authors used eye-tracking technology to collect data from Australian and US garden centre customers, who viewed eight plant displays in which the signs had been altered to show either price or supplemental information (16 images total). The authors compared the role of visual attention to price and information sign, and the role of visual attention to the product when either sign was present on likelihood to buy. Findings – Overall, providing product information on a sign without price elicited higher likelihood to buy than providing a sign with price. The authors found a positive relationship between visual attention to price on the display sign and likelihood to buy, but an inverse relationship between visual attention to information and likelihood to buy. Research limitations/implications – An understanding of the attention-capturing power of merchandise display elements, especially signs, has practical significance. The findings will assist retailers in creating more effective and efficient display signage content, for example, featuring the product information more prominently than the price. The study was conducted on a minimally packaged product, live plants, which may reduce the ability to generalize findings to other product types. Practical implications – The findings will assist retailers in creating more effective and efficient display signage content. The study used only one product category (plants) which may reduce the ability to generalize findings to other product types. Originality/value – The study is one of the first to use eye-tracking in a macro-level, holistic investigation of the attention-capturing value of display signage information and its relationship to likelihood to buy. Researchers, for the first time, now have the ability to empirically test the degree to which attention and decision-making are linked.

scholarly journals Consumer willingness to pay for fair-trade attributes of goat meat in Kenya: A choice experiment analysis

2020 ◽  
Vol 15 (4) ◽  
pp. 372-386
Author(s):  
David Jakinda Otieno ◽  
Keyword(s):  
Willingness To Pay ◽  
Fair Trade ◽  
Value Chain ◽  
Choice Experiment ◽  
Consumer Preferences ◽  
Random Parameter ◽  
Developed Countries ◽  
Support Provision ◽  
Goat Meat ◽  
Domestic Markets

Fair trade is an important ethical concern in the food value chains of developed countries. However, there is a dearth of empirical insights into consumer preferences for this critical aspect in the domestic markets of developing countries. The current study analysed consumer willingness to pay (WTP) for fair-trade attributes in the goat meat value chain in Nairobi, Kenya. Choice experiment data from 270 randomly sampled consumers was analysed using the random parameter logit (RPL) model. The results show that 56% of the consumers were aware of the fair-trade concept and 64% of them were willing to pay for fair-trade-compliant practices. Specifically, consumers were willing to pay a premium of 62% to prevent child labour, 45% to support provision of medical insurance for workers in the meat value chain, 40% for direct purchase from producers, 39% for fair-trade labelling and 30% to support disabled people as part of corporate social responsibility

What drives consumer demand for rice fragrance? Evidence from South and Southeast Asia

2020 ◽  
Vol 122 (11) ◽  
pp. 3473-3498 ◽  
Author(s):  
Subir Bairagi ◽  
Matty Demont ◽  
Marie Claire Custodio ◽  
Jhoanne Ynion
Keyword(s):  
Southeast Asia ◽  
Gender Equity ◽  
Consumer Preferences ◽  
Stated Preference ◽  
The Philippines ◽  
Choice Data ◽  
Content Type ◽  
South And Southeast Asia ◽  
Asian Consumers

PurposeThe purpose of this paper is to analyze geographic heterogeneity of consumer preferences for intrinsic quality attributes of rice in South and Southeast Asia and the drivers of demand for these attributes, with a particular focus on rice fragrance and the role of gender.Design/methodology/approachStated-preference surveys were conducted with 4,231 urban and rural consumers in 37 cities across seven countries (Bangladesh, India, Cambodia, Indonesia, the Philippines, Thailand, and Vietnam) during 2013–2014 and analyzed through a rank-ordered logistic regression with incomplete ranking choice data.FindingsPreferences for rice attributes are found to be significantly heterogeneous among consumers in South and Southeast Asia. Urban Thai consumers tend to prioritize appearance and cooking characteristics over taste and nutritional benefits, relative to all other surveyed consumers. In contrast with South Asian consumers, Southeast Asian consumers have largely adopted Thai preferences for rice texture and fragrance, a trend that was earlier coined “Jasminization.” We find that demand for rice fragrance is mainly driven by women, educated consumers, large families, families spending a lower share of their food expenditures on rice, and consumers in Southeast Asia (particularly the Philippines and Cambodia).Originality/valueLittle is known about geographic heterogeneity, drivers, and the role of gender in demand for rice fragrance. This paper fills these knowledge gaps. Our findings suggest that the more women are empowered in grocery decision-making, the more demand for aromatic rice is expected to rise. These insights can assist market-driven and gender-responsive rice breeding programs in simultaneously enhancing rice farmers' livelihoods and gender equity.

Can product-information disclosure increase Chinese consumer’s willingness to pay for GM foods? The case of Fad-3 GM lamb

2017 ◽  
Vol 9 (3) ◽  
pp. 415-437 ◽  
Author(s):  
Qihui Chen ◽  
Gaoshuai Liu ◽  
Yumei Liu
Keyword(s):  
Willingness To Pay ◽  
Information Disclosure ◽  
Product Information ◽  
Contingent Valuation Method ◽  
Food Product ◽  
Chinese Consumers ◽  
Content Type ◽  
Gm Food ◽  
Valuation Method ◽  
Gm Foods

Purpose The purpose of this paper is to examine Chinese consumers’ level of perception of genetically modified (GM) foods and the determinants of their willingness to pay (WTP) for Fad-3 GM lamb, a newly developed GM product. Design/methodology/approach Based on a randomized choice experiment involving 576 consumers in Beijing, the authors adopt a double-bounded contingent valuation method to estimate consumers’ WTP for Fad-3 GM lamb, as well as the causal impact of (randomized) product-information disclosure on it. Findings The econometric result indicates that the randomly disclosed product information describing details about Fad-3 GM lamb, the potential risks associated with the consumption of it, and the related governmental regulation policies raised consumers’ WTP by 6.2 yuan per Jin (or US$2/kilogram). Originality/value This paper provides new experimental evidence of the effect of product-information disclosure on consumers’ WTP for a newly developed GM food product.

Bank officers’ perceptions and uses of qualified audit reports

2014 ◽  
Vol 11 (3) ◽  
pp. 215-237 ◽  
Author(s):  
Nina Sormunen
Keyword(s):  
Financial Statements ◽  
Structured Interviews ◽  
Content Type ◽  
Factors Affecting ◽  
Going Concern ◽  
Other Information ◽  
Audit Reports ◽  
Going Concern Reports ◽  
Practical Implications

Purpose – The purpose of this study is to provide insights into the perceptions and uses of qualified audit reports in financial statements of small- and medium-sized enterprises (SMEs). As there is a long-standing debate on the usefulness of auditor’s going-concern reports, this study aims to provide insights into the factors that affect how banks perceive and use going-concern reports. Design/methodology/approach – Semi-structured interviews with bank officers were conducted. Findings – The study findings demonstrated that bank officers considered that the going-concern report provided information, although they did not regard the information as being particularly useful. The main factors affecting the usefulness of information are use of other information sources and bank officers’ perceptions of auditing. Other factors are also presented and discussed in the current research paper. Practical implications – Regulators have taken the action to improve the auditor’s reporting model, and the findings provided by this study are important because they provide a deeper understanding of the perceptions and uses of audit reports from smaller companies. The study also contributes knowledge about the role of audit reports in the context of SMEs finance. Originality/value – This is one of the first studies to use a qualitative approach to examine factors that affect the use of going-concern reports.

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.

Sign in / Sign up

Export Citation Format

Share Document