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.

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.

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.

Exploring Differences in Preference Heterogeneity Representation and Their Influence in Product Family Design

2011 ◽  
Author(s):  
Eric Sullivan ◽  
Scott Ferguson ◽  
Joseph Donndelinger
Keyword(s):  
Logit Model ◽  
Latent Class ◽  
Latent Class Model ◽  
Mixed Logit ◽  
Multinomial Logit Model ◽  
Hierarchical Bayes ◽  
Product Line ◽  
Combinatorial Design ◽  
Preference Heterogeneity ◽  
Target Market

When using conjoint studies for market-based design, two model types can be fit to represent the heterogeneity present in a target market, discrete or continuous. In this paper, data from a choice-based conjoint study with 2275 respondents is analyzed for a 19-attribute combinatorial design problem with over 1 billion possible product configurations. Customer preferences are inferred from the choice task data using both representations of heterogeneity. The hierarchical Bayes mixed logit model exemplifies the continuous representation of heterogeneity, while the latent class multinomial logit model corresponds to the discrete representation. Product line solutions are generated by each of these model forms and are then explored to determine why differences are observed in both product solutions and market share estimates. These results reveal some potential limitations of the Latent Class model in the masking of preference heterogeneity. Finally, the ramifications of these results on the market-based design process are discussed.

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 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.

scholarly journals Understanding Tourists’ Willingness-to-Pay for Rural Landscape Improvement and Preference Heterogeneity

2019 ◽  
Vol 11 (24) ◽  
pp. 7001 ◽  
Author(s):  
Li Cong ◽  
Yujun Zhang ◽  
Ching-Hui (Joan) Su ◽  
Ming-Hsiang Chen ◽  
Jinnan Wang
Keyword(s):  
Willingness To Pay ◽  
Rural Areas ◽  
Mixed Logit ◽  
Rural Landscape ◽  
Rural Tourism ◽  
Preference Heterogeneity ◽  
Landscape Elements ◽  
Mixed Logit Models ◽  
Experiment Method ◽  
Compensating Surplus

With the vigorous development of urbanization and rural tourism, the landscape of villages and towns has undergone tremendous changes under the influence of policies and industries. In order to avoid irreversible changes in the local heritage landscape and promote local sustainable development, it is necessary to strengthen the attention and research on the rural recreation landscape. This research examines the value of rural landscape recreation by applying the choice experiment method (CEM) to a suburban area in Sichuan, China. Mixed logit models were adopted in examining tourists’ willingness-to-pay (WTP) for rural landscape improvement and preference heterogeneity. An assessment of the rural landscape’s recreational value was made using the compensating surplus calculation method. Results reported are of four important landscape elements: ecological environment, rural life and associated productive landscape, rural housing, and service landscape, ranked by tourists from high-to-low. A major finding of the research is that an increase in rural tourism is dependent upon improvements to landscape elements. The results of this research can provide policymakers with valuable information necessary to develop a successful plan to attract and increase tourism in rural areas of China.

scholarly journals Domestic airport passenger access mode choice decisions in a multi-airport region of South Africa

2014 ◽  
Vol 8 (1) ◽  
Author(s):  
Stephen Carstens
Keyword(s):  
South Africa ◽  
Willingness To Pay ◽  
Latent Class ◽  
Mode Choice ◽  
Latent Class Model ◽  
Preference Heterogeneity ◽  
Access Time ◽  
Class Model ◽  
Access Cost ◽  
Access Mode

The ground access mode used by air passengers to an airport has a vital impact on infrastructural and environmental decisions. An important aspect of a passenger’s mode choice is the sensitivity to factors such as access time and access cost. The objective of this research was to analyse air passenger’s sensitivity to access mode choice attributes, that is,access time, access cost, parking time and parking cost at two airports in Johannesburg, South Africa. A stated choice experiment was used to obtain the information and a latent class model was estimated. In general, discrete choice experiments are designed to reveal respondent(preference) heterogeneity and the latent class model allows for this heterogeneity to be modelled discretely. The estimated results indicated that three latent classes provided the best fit with preference heterogeneity evident from the set of parameter estimates. The access mode used was found to be the only significant covariate in the class assignment model. The respondents’ willingness to pay for a reduction in access time was estimated and it indicated that respondents had the highest access time willingness-to-pay value for the taxi as access mode. In addition, it was estimated that passengers being dropped off at the airport had a higher access time willingness-to-pay than passengers that used their own vehicles to the airport. The research results confirmed the presence of respondent heterogeneity (according to access mode) which resulted in different access time willingness-to-pay values.

scholarly journals SELECTION OF BREEDING STOCK BY U.S. MEAT GOAT PRODUCERS

2017 ◽  
Vol 49 (3) ◽  
pp. 416-437 ◽  
Author(s):  
NARAYAN NYAUPANE ◽  
JEFFREY GILLESPIE ◽  
KENNETH MCMILLIN ◽  
ROBERT HARRISON ◽  
ISAAC SITIENEI
Keyword(s):  
Latent Class ◽  
Mixed Logit ◽  
Nationwide Survey ◽  
Latent Class Models ◽  
Discrete Choice Experiments ◽  
Preference Heterogeneity ◽  
Breeding Stock ◽  
Meat Goat ◽  
Class Models ◽  
Selection Of

AbstractUsing nationwide survey data, we investigate U.S. meat goat producer preferences and willingness to pay for meat goat breeding stock attributes. Discrete choice experiments were employed, and mixed logit and latent class models were used for analysis. Results showed that producers preferred animals that were highly masculine/feminine, had good structure and soundness, and were of the Boer breed, whereas they preferred fewer animals that were older, of Kiko and Spanish breeds, and priced higher. Significant preference heterogeneity was found among the respondents. Larger-scale producers had greater preference for high masculinity/femininity, good structure and soundness, and Boer bucks.

scholarly journals Accounting for Attribute Non-Attendance and Common-Metric Aggregation in the Choice of Seat Belt Use, a Latent Class Model with Preference Heterogeneity

Algorithms ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 84 ◽  
Author(s):  
Mahdi Rezapour ◽  
Khaled Ksaibati
Keyword(s):  
Goodness Of Fit ◽  
Latent Class ◽  
Latent Class Model ◽  
Seat Belt ◽  
Mixed Logit ◽  
Continuous Distribution ◽  
Preference Heterogeneity ◽  
Class Model ◽  
Seat Belt Use ◽  
The Right

A choice to use a seat belt is largely dependent on the psychology of the vehicles’ occupants, and thus those decisions are expected to be characterized by preference heterogeneity. Despite the importance of seat belt use on the safety of the roadways, the majority of existing studies ignored the heterogeneity in the data and used a very standard statistical or descriptive method to identify the factors of using a seatbelt. Application of the right statistical method is of crucial importance to unlock the underlying factors of the choice being made by vehicles’ occupants. Thus, this study was conducted to identify the contributory factors to the front-seat passengers’ choice of seat belt usage, while accounting for the choice preference heterogeneity. The latent class model has been offered to replace the mixed logit model by replacing a continuous distribution with a discrete one. However, one of the shortcomings of the latent class model is that the homogeneity is assumed across a same class. A further extension is to relax the assumption of homogeneity by allowing some parameters to vary across the same group. The model could still be extended to overlay some attributes by considering attributes non-attendance (ANA), and aggregation of common-metric attributes (ACMA). Thus, this study was conducted to make a comparison across goodness of fit of the discussed models. Beside a comparison based on goodness of fit, the share of individuals in each class was used to see how it changes based on various model specifications. In summary, the results indicated that adding another layer to account for the heterogeneity within the same class of the latent class (LC) model, and accounting for ANA and ACMA would improve the model fit. It has been discussed in the content of the manuscript that accounting for ANA, ACMA and an extra layer of heterogeneity does not just improve the model goodness of fit, but largely impacts the share of class allocation of the models.

Preferences Toward COVID-19 Diagnostic Testing Features: Results From a National Cross-Sectional Survey

2021 ◽  
pp. 089011712110340
Author(s):  
Bhagyashree Katare ◽  
Shuoli Zhao ◽  
Joel Cuffey ◽  
Maria I. Marshall ◽  
Corinne Valdivia
Keyword(s):  
Logit Model ◽  
Nasal Swab ◽  
Latent Class ◽  
Diagnostic Testing ◽  
Mixed Logit ◽  
Monetary Incentive ◽  
Monetary Incentives ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Nationally Representative

Purpose: Describe preferences toward COVID-19 testing features (method, location, hypothetical monetary incentive) and simulate the effect of monetary incentives on willingness to test. Design: Online cross-sectional survey administered in July 2020. Subjects: 1,505 nationally representative U.S. respondents. Measures: Choice of preferred COVID-19 testing options in discrete choice experiment. Options differed by method (nasal-swab, saliva), location (hospital/clinic, drive-through, at-home), and monetary incentive ($0, $10, $20). Analysis: Latent class conditional logit model to classify preferences, mixed logit model to simulate incentive effectiveness. Results: Preferences were categorized into 4 groups: 34% (n = 517) considered testing comfort (saliva versus nasal swab) most important, 27% (n = 408) were willing to trade comfort for monetary incentives, 19% (n = 287) would only test at convenient locations, 20% (n = 293) avoided testing altogether. Relative to no monetary incentives, incentives of $100 increased the percent of testing avoiders (16%) and convenience seekers (70%) that were willing to test. Conclusion: Preferences toward different COVID-19 testing features vary, highlighting the need to match testing features with individuals to monitor the spread of COVID-19.

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