scholarly journals Clean Label Trade-Offs: A Case Study of Plain Yogurt

2021 ◽  
Vol 8 ◽  
Author(s):  
Sara Maruyama ◽  
Juyun Lim ◽  
Nadia A. Streletskaya
Keyword(s):  
Willingness To Pay ◽  
Consumer Choice ◽  
Food Industry ◽  
Latent Class ◽  
Corn Starch ◽  
Consumer Preferences ◽  
Negative Impact ◽  
Mixed Logit ◽  
Logit Analysis ◽  
Trade Offs

Consumer demand for clean label has risen in recent years. However, clean label foods with simple and minimalistic ingredient lists are often expensive to produce and/or may possess less desirable sensory qualities. Accordingly, understanding consumer preferences regarding the clean label trend would be of great interest to the food industry. Here we investigate how ingredient lists and associated sensory quality descriptions may influence consumer preferences using a hypothetical choice experiment. In particular, we test the impacts of four common stabilizers (carrageenan, corn starch, milk protein concentrate, and pectin) and textural characteristics on preferences and willingness to pay for plain yogurt. A total of 250 yogurt consumers participated in the study. The results of a mixed logit analysis suggest that clean labeling significantly increases the likelihood of consumer choice, while poor texture reduces consumer choice. More importantly, the negative impact of poor texture seems to be less significant for clean label yogurts compared to that for yogurts with longer ingredient lists. Among all stabilizers, corn starch in particular has a significant negative impact on consumer choice. The estimated average consumer willingness to pay for clean labels is between $2.54 and $3.53 for 32 oz yogurt formulations. Furthermore, clean labels minimize the negative impact of textural defects with consumers willing to pay an estimated premium of $1.61 for the family size yogurt with a simple ingredient list. Results of latent class modeling reveal two classes of consumers with similar patterns of demand who prefer clean labels and, on average, would rather purchase a yogurt with a textural defect than opt out of purchasing a yogurt entirely. Implications for the food industry are discussed.

Attribute Non-Attendance and Consumer Preferences for Online Food Products in Germany

2020 ◽  
Vol 69 (1) ◽  
pp. 31-48
Author(s):  
P. Christoph Richartz ◽  
Lukas Kornher ◽  
Awudu Abdulai
Keyword(s):  
Latent Class ◽  
Consumer Preferences ◽  
Mixed Logit ◽  
Meat Products ◽  
Food Product ◽  
Latent Class Models ◽  
Preference Heterogeneity ◽  
Significant Heterogeneity ◽  
Processing Strategies ◽  
Class Models

In this article, we apply a choice experiment meth-od to examine consumers’ preferences for online food product attributes, using survey data for German consumers for meat products. We use both mixed logit and latent class models to analyze preference heterogeneity and sources of heterogeneity, as well as endogenous attribute attendance models to account for consumers’ attribute processing strategies. The empirical results reveal significant heterogeneity in preferences for online meat attributes among consumers. We also find that consumers’ willingness to pay estimates are highly influenced by their attribute processing strategies.

scholarly journals Quantitative Analysis of Consumer Preferences of Windows Set in South Korea: The Role of Energy Efficiency Levels

Energies ◽  
2019 ◽  
Vol 12 (9) ◽  
pp. 1816 ◽  
Author(s):  
Kwan Byum Maeng ◽  
Jiyeon Jung ◽  
Yoonmo Koo
Keyword(s):  
Energy Efficiency ◽  
Energy Consumption ◽  
South Korea ◽  
Willingness To Pay ◽  
Energy Savings ◽  
Consumer Preferences ◽  
Mixed Logit ◽  
The Government ◽  
The Cost

The building sector is considered to be important for Korean energy issues as it accounts for approximately 20% of Korea’s final energy consumption. As one of Korea’s passive strategies in its emission reduction plan is reducing energy consumption through improvements in energy efficiency because the energy loss mostly occurs from window sets, this study aims to examine the preferences and role of the energy efficiency level of window sets in South Korea. Given that the lifespan of a building exceeds 20 years, a building’s energy efficiency significantly impacts accumulated energy savings. However, window sets affect not only energy efficiency, but also the interior appearance of the building; therefore, it is important to understand consumer preferences and to examine their effect on building energy reduction accordingly. Using a mixed logit model, this study analyzes window set preferences and energy savings. As a result, this study determines that consumers consider the energy efficiency level to be the second most important factor in determining window preference, following the cost of the window. In addition, this study found that the marginal willingness to pay for efficiency level 2 window sets compared to level 3 window sets is USD 1256. For level 1 window sets, this figure increases to USD 3140. Further, a scenario analysis is conducted to analyze the government incentive program’s effectiveness in encouraging consumers to purchasing higher energy efficiency more efficient products, and thus in promoting the eco-friendly consumption of in households. Taking into consideration of households’ willingness to pay and cost saving amount for using energy efficient window sets, the optimal value of government incentives of is found to be approximately USD 700 is found to be optimal.

Smallholder preferences and willingness-to-pay measures for microcredit

2018 ◽  
Vol 10 (3) ◽  
pp. 462-481 ◽  
Author(s):  
Zhao Ding ◽  
Awudu Abdulai
Keyword(s):  
Willingness To Pay ◽  
Interest Rates ◽  
Latent Class ◽  
Smallholder Farmers ◽  
Mixed Logit ◽  
Latent Class Models ◽  
Preference Heterogeneity ◽  
Content Type ◽  
Lower Interest Rate ◽  
Class Models

Purpose The purpose of this paper is to examine smallholders’ preferences and willingness to pay for microcredit products with varying attribute combinations, in order to contribute to the debate on the optimal design of rural microcredit. Design/methodology/approach Data used in this study are based on a discrete choice experiment from 552 randomly selected respondents. Mixed logit and latent class models are estimated to examine the choice probability and sources of preference heterogeneity. Endogenous attribute attendance models are applied to account for attribute non-attendance (ANA) phenomenon, focusing on separate non-attendance probability as well as joint non-attendance probability. Findings The results demonstrate that preference heterogeneity and ANA exist in the smallholder farmers’ microcredit choices. Averagely, smallholder farmers prefer longer credit period, smaller credit size, lower transaction costs and lower interest rate. Guarantor collateral method and installment repayment positively affect their preferences as well. Moreover, respondents are found to be willing to pay more for the attributes they consider important. The microcredit providers are able to attract new customers under the current interest rates, if the combination of attributes is appropriately adjusted. Originality/value This study contributes to the debate by assessing the preference trade-off of different microcredit attributes more comprehensively than in previous analyses, by taking preference heterogeneity and ANA into account.

scholarly journals Is Biodiversity a Relevant Attribute for Assessing Natural Parks? Evidence from Cornalvo Natural Park in Spain

Forests ◽  
2020 ◽  
Vol 11 (4) ◽  
pp. 410 ◽  
Author(s):  
Eva Crespo-Cebada ◽  
Carlos Díaz-Caro ◽  
Rafael Robina-Ramírez ◽  
M. Isabel Sánchez-Hernández
Keyword(s):  
Willingness To Pay ◽  
Latent Class ◽  
Economic Valuation ◽  
Mixed Logit ◽  
Preference Heterogeneity ◽  
Natural Park ◽  
Natural Parks ◽  
High Preference ◽  
Relevant Attribute ◽  
Visitor Preferences

The economic valuation of goods that do not have a market, like services offered by natural parks, provide a lot of information for the purpose of policy making on the conservation and protection of the natural environment, as well as for establishing park use strategies for potential park visitors. In this respect, this paper aims to analyse visitor preferences for Cornalvo Natural Park, which has been classed, since 1992, as a Site of Community Importance. To do this, we conducted an analysis adopting the choice experiment methodology to determine visitor preferences for a set of attributes. Additionally, we included a visitor preference heterogeneity analysis based on a mixed logit model in order to calculate individual willingness to pay with respect to a set of previously specified attributes. Finally, we also implemented the latent class methodology to define groups of individuals with similar characteristics. The information was gathered from visitor surveys conducted during 2019. The main results show that tourists had a high preference and willingness to pay for higher biodiversity levels and lower numbers of visitors, whereas the other attributes were less relevant. Additionally, we detected some degree of heterogeneity in willingness to pay by sex, age and income. Finally, Latent class analysis identified two visitor classes, determined primarily by age and income.

Fijian food shopping behaviour: implications for policy makers and smallholder farmers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Craig Johns ◽  
Wendy J. Umberger ◽  
Pamela Lyon ◽  
Rio Maligalig
Keyword(s):  
Food Industry ◽  
Latent Class ◽  
Consumer Preferences ◽  
Smallholder Farmers ◽  
Small Island ◽  
Food Retailing ◽  
Content Type ◽  
Food Shopping ◽  
Shopping Behaviour ◽  
Traditional Market

PurposeThe study aims to identify different consumer groups to better understand changes in urban Fijian food shopping behaviour and the implications for the local food industry.Design/methodology/approachThe authors used a Latent class (LC) cluster analysis of survey data from 1,000 urban Fijian households to identify unique consumer segments based on household food shopping behaviour.FindingsFive distinct urban household clusters were identified based on food shopping behaviour. The cluster with the highest income level spent significantly lower amounts on fresh fruit and vegetables (FFV) at the main traditional market, preferring to buy their FFV from modern supermarket outlets. Considering the vast majority of local smallholder farmers rely on traditional market channels to sell their produce, the growth and dominance of Fijian supermarkets are of some concern.Research limitations/implicationsFuture research should consider repeating these types of detailed consumer surveys to better understand the implications of changes in shopping behaviour over time, and the role that key stakeholders can play in ensuring smallholder farmers is not excluded from the market.Social implicationsSmallholder-driven agriculture accounts for a significant share of Fiji's gross domestic product (GDP), so understanding how the retail food industry is transforming and how this is affecting smallholder farmers is critical to Fiji's social structure.Originality/valueResearch on food retailing and the role of the consumer is rare in small island developing states (SIDS), such as Fiji. Fiji has a somewhat unique set of circumstances. In the absence of significant foreign investment in food retailing, key factors such as urbanisation and rising urban income mean consumer preferences are important drivers of changes in shopping behaviour. The study provides insights into Fiji's changing food industry with implications for other SIDS, while contributing to the global literature in this field.

Explaining Multidimensional Poverty: A Household-Level Analysis

2018 ◽  
Vol 17 (3) ◽  
pp. 183-210 ◽  
Author(s):  
Carlos C. Bautista
Keyword(s):  
Negative Impact ◽  
Mixed Logit ◽  
Substantial Reduction ◽  
Multidimensional Poverty ◽  
The Philippines ◽  
Policy Implications ◽  
Income Poverty ◽  
Logit Analysis ◽  
Household Level ◽  
Multidimensional Poverty Index

A multidimensional poverty index is constructed for the Philippines using the Alkire-Foster methodology and data from a 2011 annual poverty indicators survey. This is disaggregated into urban and rural population groups, as well as by dimension and administrative region. At the province level, the study finds a positive relation between poverty incidence and intensity, but the highest intensity levels are experienced in areas where incidence is not that high relative to other areas. Provinces with high incomes generally have low poverty indices and the relationship appears to be nonlinear. An examination of household poverty using mixed logit analysis shows that poverty risk rises with household size. A substantial reduction of the risk is observed for households with heads who were able to matriculate high school. The household head's health status has a negative impact on the household's risk of being poor. These are contrasted with the results using the income poverty definition. Policy implications are drawn from the calculations and the econometric results.

scholarly journals Gender dynamics in Consumer preferences and willingness to pay for edible mushrooms in Ghana

2021 ◽  
Vol 14 (1-2) ◽  
Author(s):  
Rebecca Owusu ◽  
Florence Sefakor Dekagbey
Keyword(s):  
Willingness To Pay ◽  
Consumer Preferences ◽  
Mixed Logit ◽  
Edible Mushrooms ◽  
Preference Heterogeneity ◽  
Women Consumers ◽  
Jel Codes ◽  
Men And Women ◽  
Law Of Demand ◽  
Straw Mushroom

This study uses choice experiment to investigate men and women consumers’ preferences and willingness to pay for edible mushrooms in Ghana. We used a mixed logit model to examine preference heterogeneity. The econometric modelling revealed that men consumers have a negative utility for oyster mushrooms compared to straw mushrooms. They also have preference for cheap and locally cultivated mushrooms compared to expensive and imported mushrooms. However, women consumers have preferences for the shiitake mushroom variety compared to the straw mushroom variety. They also prefer cheap mushrooms irrespective of their location and such mushrooms must be frozen and not fresh. The findings highlight variation between men and women in preferences for mushroom variety, however, both have preferences for low prices, suggesting that both genders are economically rational and obey the law of demand. JEL codes: B21, D12

scholarly journals Assessing consumer preferences and willingness to pay for organic tomatoes in Albania: a conjoint choice experiment study

2017 ◽  
Vol 15 (3) ◽  
pp. e0114 ◽  
Author(s):  
Engjell Skreli ◽  
Drini Imami ◽  
Catherine Chan-Halbrendt ◽  
Maurizio Canavari ◽  
Edvin Zhllima ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Choice Experiment ◽  
Latent Class ◽  
Consumer Preferences ◽  
Organic Food ◽  
Product Attributes ◽  
Agriculture Sector ◽  
Production Type ◽  
Conjoint Choice ◽  
Conjoint Choice Experiment

Albania has potential for developing the organic agriculture sector; however, it is a new industry and constraints abound including lack of consumer preferences information for organic food. Knowledge on consumer preferences and behaviour toward organic (bio) products is crucial for market development benefiting potential entrepreneurs and government policies. They need to know the preference for preferred product attributes and willingness to pay. Tomato, which is the most important vegetable in terms of consumption and production in Albania, is the subject of this study. A conjoint choice experiment with the most important product attributes: production type (bio vs. conventional), production system (open field vs. greenhouse), origin and price were used to design the choice surveys. Four distinct classes have been identified as significant using latent class analysis. The classes are summarized as: bio-ready consumers, price sensitive consumers, variety seeking consumers and quality seeking consumers. Origin played a small influence on preference. Education and income did show some influence on preference for organic tomatoes. Although the organic food market in Albania is in its infancy stage, organic tomatoes are clearly preferred and many consumers are willing to pay a premium price.

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.

scholarly journals Are Consumers Willing to Pay a Premium for Pure Rice Noodles? A Study of Discrete Choice Experiments in Taiwan

2020 ◽  
Vol 12 (15) ◽  
pp. 6144
Author(s):  
Yu-Hui Chen ◽  
Kai-Han Qiu ◽  
Kang Ernest Liu ◽  
Chun-Yuan Chiang
Keyword(s):  
Willingness To Pay ◽  
Marketing Strategy ◽  
Discrete Choice ◽  
Metropolitan Area ◽  
Latent Class ◽  
Corn Starch ◽  
Latent Class Model ◽  
Choice Experiments ◽  
Discrete Choice Experiments ◽  
Class Model

Most consumers in Taiwan have never eaten pure rice noodles (PRNs) and some may mistakenly treat corn starch-based rice noodles as PRNs. This study examines consumers’ willingness to pay (WTP) for PRNs using discrete choice (DC) experiments with a blind tasting test to understand consumers’ ability to identify PRNs with varying rice content on the basis of their appearance and taste. Collecting data from the Taipei metropolitan area, our DC experimental results of both pre- and post-experiment conditions show that Taiwanese consumers do prefer PRNs and their WTP for PRNs was strengthened. A latent class model highlights that attribute preferences tend to differ by group and thus rice content ratios should be properly labeled so that consumers can make a better choice according to their preferences. Our WTP estimates also imply that offering tasting trials to consumers is an effective marketing strategy to encourage potential purchases of PRNs for the rice noodle industry.

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