Do the prices of a preventive animal health product affect dairy farmers’ willingness to pay and product use? Evidence from an experimental study

2021 ◽  
Author(s):  
A G Cariappa ◽  
Balwant Chandel ◽  
R Sendhil ◽  
Anil Dixit ◽  
Gopal Sankhala ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Animal Health ◽  
High Price ◽  
Price Sensitivity ◽  
Health Product ◽  
Screening Effect ◽  
Product Usage ◽  
Product Use ◽  
Health Products ◽  
Implementation Costs

Abstract Should we distribute preventive animal health products for free or charge a positive price? The decision depends on the price sensitivity of the product and the effect prices have on product use. We explore this idea through a field experiment in which we randomize the price a farmer faces for an animal health product. We find that the demand for the product is highly sensitive to prices; willingness to pay (WTP) decreased from 44% at ₹ 100 to 18% at ₹ 500. Further, among farmers who were willing to pay, the product usage rate was 71% and usage did not increase in prices (lack of screening effect). Furthermore, we find that farmers whose animals were sick in the baseline had a higher WTP. These findings support the human capital model relating to demand for human health products. We argue that individuals behave in a similar way when the decisions concern their own health or the health of an animal they rear for commercial purposes. A highly subsidized distribution of the product is recommended due to high price sensitivity, lack of screening effect, equitable distribution among poor and lesser implementation costs found in this study.

scholarly journals Can Higher Prices Stimulate Product Use? Evidence from a Field Experiment in Zambia

2010 ◽  
Vol 100 (5) ◽  
pp. 2383-2413 ◽  
Author(s):  
Nava Ashraf ◽  
James Berry ◽  
Jesse M Shapiro
Keyword(s):  
Field Experiment ◽  
Water Purification ◽  
Developing World ◽  
Sunk Cost ◽  
Screening Effect ◽  
Product Use ◽  
Sunk Cost Effect ◽  
Health Products ◽  
Cost Effect

The controversy over how much to charge for health products in the developing world rests, in part, on whether higher prices can increase use, either by targeting distribution to high-use households (a screening effect), or by stimulating use psychologically through a sunk-cost effect. We develop a methodology for separating these two effects. We implement the methodology in a field experiment in Zambia using door-to-door marketing of a home water purification solution. We find evidence of economically important screening effects. By contrast, we find no consistent evidence of sunk-cost effects. (JEL C93, D12, I11, M31, O12)

Wine consumers’ reaction to prices, organic production and origins at the point of sale: an analysis of household panel data

2018 ◽  
Vol 35 (3) ◽  
pp. 261-273
Author(s):  
Isabel Schäufele ◽  
Ulrich Hamm
Keyword(s):  
Stated Preference ◽  
Organic Production ◽  
High Price ◽  
Price Sensitivity ◽  
Price Setting ◽  
Data Set ◽  
Major Barrier ◽  
Quality Signal ◽  
Organic Label ◽  
Organic Wine

AbstractPrice premiums are considered as major purchase barriers for organic products and therefore may prevent organic market growth. For wine, however, prices take a double and conflicting effect: they also serve as quality signal for consumers. Therefore, it is of high relevance to examine if price is a major barrier for organic wine as well.Even though many studies already examined price behavior for organic wine through surveys and experiments, it is still to be clarified how consumers’ react to price changes in a real market context. So far, no study analyzed consumer preferences for organic labeled wine in daily shopping situations. Through the analysis of the GfK household panel—a high-frequency data set of extensive population coverage—implications for price setting and price promotions in different market segments can be given.In contrast to previous studies, consumers’ overall price sensitivity was found to be low for organic wine and consumers’ preferred organic over conventional wine. The effect of price as quality cue or purchase barrier and the effect of an organic label on consumers’ behavior varied between price categories. Organic wine was valued highest in the low-price category, whereas no price premium for the organic label was examined in the high-price segment. Price sensitivity was extremely high for organic wine in the low-price segment, while price functioned as quality signal in the premium segment for organic and conventional wine similarly.This study verified previous stated preference studies on organic wine through the analysis of actual purchase data. Moreover, new insights for price setting in different price categories were generated through the examination of a large amount of disaggregated data on single consumer purchases.

scholarly journals Effect of Emotion, Expectation, and Privacy on Purchase Intention in WeChat Health Product Consumption: The Mediating Role of Trust

2019 ◽  
Vol 16 (20) ◽  
pp. 3861 ◽  
Author(s):  
Ming-Yan Wang ◽  
Peng-Zhu Zhang ◽  
Cheng-Yang Zhou ◽  
Neng-Ye Lai
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Emotional Experience ◽  
Consumer Products ◽  
Equation Modeling ◽  
Health Product ◽  
Product Consumption ◽  
Health Products ◽  
Expectancy Confirmation ◽  
Expectation Confirmation

With the aging of the population and the upgrading of the consumption structure of national health demand in China, it has become a new trend for the public to actively seek health products and services on social networks. Based on the theory of reasoned behavior and the theory of expectancy confirmation, this study aims to analyze the cognitive factors and their effects on WeChat users’ purchase intention in the process of health product consumption. Considering that safety is a key feature of health products that distinguishes them from other consumer products, the “satisfaction” concept in the expectancy confirmation model is replaced by “trust” in this study. Two hundred and two (202) valid samples were collected by a questionnaire survey to analyze their intentions to buy health products on WeChat. Theoretical models and corresponding research hypotheses were verified by structural equation modeling. The research results show that emotional price and emotional experience are positively correlated with trust and purchase intention. There is an obvious negative correlation between privacy invasion and trust. Expectation confirmation is positively associated with trust. Moreover, the intermediary test shows that trust has completely mediated between emotional price and purchase intention, and trust also has a full intermediary effect on expectation confirmation and purchase intention.

Industry Watch

2003 ◽  
Vol 07 (22) ◽  
pp. 1391-1406
Keyword(s):  
Drug Discovery ◽  
Animal Health ◽  
Biotech Company ◽  
Discovery Research ◽  
Fda Approval ◽  
Drug Discovery Research ◽  
Medical Facilities ◽  
Us Government ◽  
Health Products ◽  
Us Fda

Alliance between AGT Biosciences and Starpharma. First Australian Biotech Company to List on HKSE. Breakthrough in Transdermal Drug Discovery Technology. Acrux Licenses MDTS Technology to Eli Lilly got Animal Health Products. Biota Secures SARS Testing Agreement with US Government Research Agencies. SysArris in Bio Partnering Europe 2003. Shantha Bio to Launch Streptokinase by Year-end. Lupin Receives US FDA Approval to Launch Ceftriaxone. MerLion Pharma Collaborates with Schering-Plough in Drug Discovery Research. Quest Pharmaceutical Sets up Taiwanese Subsidiary. BenQ to Invest in Nanjing's Medical Facilities.

scholarly journals From East and West: A Shifting Cultural Landscape of Natural Health Products. 11th Annual Conference presented by Natural Health Product Research Society of Canada, in conjunction with the Canadian Institute of Chinese Medicinal Research

2014 ◽  
Vol 17 (4) ◽  
pp. 117
Author(s):  
Beverley Berekoff
Keyword(s):  
Cultural Landscape ◽  
Research Society ◽  
Annual Conference ◽  
Natural Health Products ◽  
Health Product ◽  
Natural Health Product ◽  
Natural Health ◽  
Canadian Institute ◽  
Health Products ◽  
Product Research Society

Proceedings of 2014 conference presented by Natural Health Product Research Society of Canada, in conjunction with the Canadian Institute of Chinese Medicinal Research.  May 13 – 16, 2014, Kelowna, BC, Canada

scholarly journals Assessing Consumer Preferences for Country-of-Origin Labeling

2005 ◽  
Vol 37 (1) ◽  
pp. 49-63 ◽  
Author(s):  
Maria L. Loureiro ◽  
Wendy J. Umberger
Keyword(s):  
United States ◽  
Willingness To Pay ◽  
Consumer Preferences ◽  
Country Of Origin ◽  
Early Summer ◽  
Consumer Survey ◽  
Safety Issues ◽  
Country Of Origin Labeling ◽  
Implementation Costs ◽  
Selection Of

In this paper, we assess consumer willingness to pay for a mandatory country-of-origin labeling (COOL) program applied to beef ribeye steaks, chicken breasts, and pork chops, all labeled as “Certified U.S.” products. A consumer survey was mailed in spring and early summer 2003 to households in the continental United States. Results indicate that consumers are in general very concerned about food safety issues, viewing U.S. meat as the safest among the selection of countries considered. Nevertheless, consumer willingness to pay for Certified U.S. products is relatively small, although above the expected implementation costs associated with a mandatory labeling program. This finding coincides with the fact that only 36% of the sample favored consumers paying directly for the costs related to a mandatory COOL program.

Do Pharmacists Buy Bayer? Informed Shoppers and the Brand Premium *

2015 ◽  
Vol 130 (4) ◽  
pp. 1669-1726 ◽  
Author(s):  
Bart J. Bronnenberg ◽  
Jean-Pierre Dubé ◽  
Matthew Gentzkow ◽  
Jesse M. Shapiro
Keyword(s):  
Willingness To Pay ◽  
Similar Case ◽  
National Brands ◽  
Average Consumer ◽  
Product Categories ◽  
Percentage Points ◽  
Homogeneous Product ◽  
Health Products ◽  
Food And Drink

Abstract We estimate the effect of information and expertise on consumers’ willingness to pay for national brands in physically homogeneous product categories. In a detailed case study of headache remedies, we find that more informed or expert consumers are less likely to pay extra to buy national brands, with pharmacists choosing them over store brands only 9 percent of the time, compared to 26 percent of the time for the average consumer. In a similar case study of pantry staples such as salt and sugar, we show that chefs devote 12 percentage points less of their purchases to national brands than demographically similar nonchefs. We extend our analysis to cover 50 retail health categories and 241 food and drink categories. The results suggest that misinformation and related consumer mistakes explain a sizable share of the brand premium for health products, and a much smaller share for most food and drink products. We tie our estimates together using a stylized model of demand and pricing.

Sign in / Sign up

Export Citation Format

Share Document