scholarly journals The Willingness to Pay in the Food Sector. Testing the Hypothesis of Consumer Preferences for Some Made in Italy Products

2020 ◽  
Vol 12 (15) ◽  
pp. 6275 ◽  
Author(s):  
Lucio Cappelli ◽  
Fabrizio D’Ascenzo ◽  
Maria Felice Arezzo ◽  
Roberto Ruggieri ◽  
Irina Gorelova

Previous publications have shown that Italian consumers are willing to pay a premium price for certain categories of Made in Italy products. The premium price has proven to be higher in the food sector. This study provides an extensive literature review on the topic and aims to test a hypothesis regarding consumer preferences towards some Made in Italy food products of mass consumption (olive oil, meat and fish), with specific reference to the value systems that influence the purchase. This paper studies the correlation between the potential willingness to pay a premium price for the mentioned products and the characteristics of consumers’ sample. The results obtained confirm the willingness to pay for Made in Italy products and correlate the willingness to pay a premium price with the level of education of the respondents to the questionnaire. Thus, these findings show that consumers with a higher educational level tend to make more sustainable food choices and by doing so lean toward a sustainable lifestyle.

2019 ◽  
Vol 14 (1) ◽  
pp. 31-47 ◽  
Author(s):  
Lucio Cappelli ◽  
Fabrizio D’ascenzo ◽  
Roberto Ruggieri ◽  
Francesca Rossetti ◽  
Alessandra Scalingi

Abstract The paper is part of a broader research project studying consumer’s attitude towards “Made in Italy” products through empirical investigation. The research questions addressed are: 1) Does recognition in terms of the qualitative characterization of “Made in Italy” products exist? And if so, 2) are people willing to pay, in quantitative terms, a premium price for such products? From a theoretical standpoint, the research seeks to fill a gap in the literature, since studies combining the “made in” characteristic with measured “willingness to pay” are neither conventional nor numerous. The specific purpose of this contribution is to analyze the relationship between the purchase of “Made in Italy” products, recognition of the quality and willingness to pay a premium price on the part of Italian consumers, reporting the results of an empirical research. The survey involved a total of 315 Italian consumers while three commodity sectors were analysed: food, fashion and mechanical automation. The results confirm that there is a propensity to purchase “Made in Italy” products which does not seem to be a matter of irrational consumer behaviour. “Made in Italy” is confirmed as a conceptual category consolidated in the minds of consumers, since there is clear recognition of these products in terms of qualitative characterization. These and other results of the research (which need to be confirmed and extended with further empirical investigations) should prove relevant both to the literature and as indications for public policies and the strategies of companies operating in the sectors examined. For the literature this research can be useful because there is no complete overview of quantitative data on the premium price. It can also serve for public policies because quantification of the premium price can influence the choices and strategies of companies. This study shows a significant willingness to pay a premium price for the three sectors analyzed, although the premium price is not homogeneous: while the measures range mostly between 10 and 30%, higher values appear for products in the food sector.


2018 ◽  
Vol 64 (No. 12) ◽  
pp. 554-565 ◽  
Author(s):  
Lucio CECCHINI ◽  
Biancamaria TORQUATI ◽  
Massimo CHIORRI

In the last few decades, the interest of consumers towards sustainable agri-food products has been growing. This trend reflects changes in the consumption patterns, which have been deeply influenced by the increased sensitivity concerning social and environmental issues. In this sense, several studies, with different methodological approaches, have investigated consumers’ willingness to pay and its determinants for products with different sustainability labels. To systematise the obtained results, this paper offers a review of the studies that used experimental economics in studying consumer preferences for sustainable food and agricultural products. The 41 studies included in the review were selected on the basis of the pre-identified criterion according to the systematic review approach. Albeit discordant, the results show that a large share of consumers is willing to pay a premium price for products with eco-friendly and organic certifications. Animal welfare, ‘local’ production, or social certification appear to have a lower influence on consumer choice of purchasing. Additional information is able to modify consumer expectations and consequentially their willingness to pay, depending on the individual’s responsibility and awareness.


PLoS ONE ◽  
2021 ◽  
Vol 16 (12) ◽  
pp. e0260488
Author(s):  
Beshir M. Ali ◽  
Frederic Ang ◽  
H. J. van der Fels-Klerx

Analysis of consumer preferences and willingness-to-pay (WTP) for sustainable foods produced using new agri-food technologies is required to enhance the uptake of innovations that accelerate the transition towards sustainable food systems. Consumers’ willingness to buy new food products, with no or limited consumption experience, mainly depends on their food choice motivational orientations (promotion- vs prevention-orientation). The objective of this study was to elicit consumers’ WTP for foods that are produced with microbial applications during the plant production phase with the aim to reduce the use of synthetic chemicals in crop farming, as well as to understand the associations of food choice motives, personal and socio-demographic factors with the WTP. We used contingent valuation to elicit consumers’ WTP for three food products (wheat bread, consumer potatoes and tomato sauce) through online surveys. Data were collected from 291 consumers, primarily from Italy, Germany and the Netherlands. Descriptive statistics, latent variable modelling and logistic regression were used to analysis data. Results show that more than two-third of the respondents are willing to pay premiums of at least 0.11 euro per kg of food products for reductions in synthetic chemical use by at least 50% due to microbial applications. The amount of WTP increases with the level of reductions in synthetic chemical use. The majority of the respondents are promotion-oriented consumers in relation to their food involvement, and are more likely to pay premiums for the sustainably produced food products. Environmentally concerned consumers are also more likely to pay premiums, whereas health concerned consumers are not. This study contributes to understanding of consumers’ attitude and perceived health risks towards foods obtained using microbial applications, and the heterogeneity of their preferences. Results provide insights for identifying potential buyers of foods produced using microbial applications, and to set prices according to the levels of consumers’ WTP.


Author(s):  
Arcadio Cerda ◽  
Leidy García ◽  
Angela Viscay ◽  
Beatriz López

Global production of organic products has grown significantly due to increased environmental awareness and healthier lifestyles. However, vegetable growers often lack relevant information about people’s preferences and willingness to pay (WTP) for such products. This difficulty is even more pronounced in developing countries, as Chile, mainly due to the low demand increase for organic products. This research aims to analyze preferences and WTP for Chilean organic lettuce. To obtain the WTP, the contingent valuation (CV) method and conjoint analysis (CA) was applied. The data were obtained from a cross-sectional survey using a representative sample of 416 subjects from the Maule region, Chile, stratified by income level. The results showed that subjects were willing to pay a premium of 26.72 % and 52.83 % for an organic head of lettuce compared to conventionally grown products, according to CA and CV methods, respectively. These results show a strong preference for organic products. Furthermore, the CA method indicated that the organic variety of Lactuca sativa L. var. crispa L., at its lowest observed price, was the consumer’s product of choice. Finally, the main reasons to consume this type of product are, firstly, its higher quality, followed by its taste or smell, and finally, it has better nutritional contents. Therefore, lettuce growers can use the estimated premium price as a reference when making decisions about production and pricing.


2021 ◽  
Vol 58 (1) ◽  
pp. 1302-1309
Author(s):  
Rahayu Relawati, Bambang Yudi Ariadi, Harpowo

Chicken eggs enriched with antioxidants are produced to provide functional foods that are healthier to consume, with a premium price. The study was intended to analyze customers’ assessment, buying behavior, and willingness to pay the antioxidant (AO) chicken eggs. The study was conducted in Malang Regency, the closest location to the UMM Farm Business Unit. Primary data were obtained from interviews with customers of the AO and conventional eggs. The data were analyzed with a quantitative descriptive design and the t-test. The results suggested that customers assessed the AO chicken eggs had better nutritional content than the conventional one and produced a better impact on health. Customers’ behavior indicated that the purchase of the AO eggs was still lower than conventional eggs, although customers' tasting attitude on the AO egg portrayed a higher preference. Customers were willing to pay more expensive to the AO eggs. The price of AO eggs without any label was 7% higher than the conventional counterpart during the time of the study. If the AO eggs are labeled, they will take a premium price of 21% more than conventional eggs. The results recommended the producers to do packaging and labeling to the AO eggs to expand the market. Moreover, the UMM Farm needs to consider various packaging designs based on consumer preferences and determine the market penetration of the AO eggs.


Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3432
Author(s):  
McKenzie Thomas ◽  
Kimberly L. Jensen ◽  
Dayton M. Lambert ◽  
Burton C. English ◽  
Christopher D. Clark ◽  
...  

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.


Author(s):  
Chiara M. Posadinu ◽  
Monica Rodriguez ◽  
Fabio Madau ◽  
Giovanna Attene

Abstract The valorization of plant genetic resources and their direct use in local markets can make a significant contribution to the preservation of agrobiodiversity, while also contributing to the sustainability of rural communities. Indeed, plant genetic resources are a precious source of genes, and they represent an important crop heritage for the quality and sensory characteristics that are required by both farmers and consumers. However, an efficient strategy of agrobiodiversity conservation is strictly connected to product marketability and to consumer preferences. In the present study, choice experiments that involved 920 consumers were carried out to determine their willingness to pay for ancient local tomato varieties (landraces) rather than commercial varieties based on their preferences, and to determine how much they valued these products. The results obtained indicate that consumers are willing to pay premium prices for ancient local tomato varieties (an additional €0.90 kg−1), thus demonstrating their increasing attention to sustainable food and the willingness to contribute to agrobiodiversity conservation and enhancement. These results provide the basis for planning strategies and programs to support the cultivation of these landraces and the development of regional and national markets to acknowledge their characteristics, which will considerably increase the effectiveness and efficiency of conservation strategies.


2018 ◽  
Vol 49 (2) ◽  
pp. 81-91 ◽  
Author(s):  
Rita Papa ◽  
Giuseppe Manetto ◽  
Emanuele Cerruto ◽  
Sabina Failla

In the last decades, political policies and collective consciousness focused on the importance of sustainable food and environmentally friendly approaches in agriculture. Distribution of beneficial organisms is a very important factor in integrated pest management, and mechanical release could improve application uniformity as well as reduce costs and working time. Several mechanisation experiences have been carried out through the years, however none of them has still found a massive application in common agricultural practices. This review paper analyses all the efforts made in this direction, by evaluating main strengths and weakness points of manually brought, tractor mounted, or aerial mechanical devices. In this way development opportunities can be identified, in a field that could achieve a substantial role in food production and agricultural activities while respecting the environment and human health.


Author(s):  
Ximing Chen ◽  
Jie Shang ◽  
Muhammad Zada ◽  
Shagufta Zada ◽  
Xueqiang Ji ◽  
...  

The application of traceability technology is an important way to solve food safety problems. Different traceability technologies bring different effects to consumers. Existing studies have not explored consumers’ preferences in regards to product traceability technology applications, and they have not analyzed their willingness to pay. Therefore, this study focused on organic rice, an ecological agricultural product. The study was based on a survey from Jiangxi Province, China. It used a selective experiment method in order to analyze consumer preferences and the willingness to pay for ecological agricultural product traceability technology. The results show that consumer preferences are as follows: blockchain technology application attributes, traditional traceability-technology-application attributes, high credit-supervision attributes, and international-certification attributes. In terms of willingness to pay, consumers have the highest willingness to pay for the application of blockchain technology, which they are willing to pay CNY 21.902 more per kg for this attribute. At the same time, consumers are also willing to make additional payments for traditional traceability-technology-application attributes, high credit-supervision attributes, and international-certification attributes. Their willingness to pay is CNY 20.426, CNY 17.115 yuan, and CNY 11.049, respectively.


2020 ◽  
pp. 1-3
Author(s):  
Victor F Stukach ◽  

Given the extraordinary nature of the current situation related to the need to overcome the consequences of the pandemic, governments are taking measures to support both the population and the economies of their countries as a whole. Targeted measures are being taken in Russia. Solving problems in the food sector involves moving in different directions. One of them is related to direct support of the population in the form of food distribution. Another direction involves the implementation of complex measures. In particular, the implementation of structural reforms that cover all areas of production, economy, and social sphere. In relation to the Russian economy, this is a problem of high political and social significance: providing food to socially vulnerable categories of the population, and preventing poverty in the agricultural sector. Goal: as part of the implementation of measures to overcome the consequences of the pandemic, to gain new theoretical knowledge on creating a sustainable food supply system, to consider the interaction of all participants in the process of ensuring the food chain from the field(farm) to the counter within the framework of the industrial concept.


Sign in / Sign up

Export Citation Format

Share Document