Millennial university students’ valuation of traditional wine: Evidence from an experimental auction

This paper analyzes whether the perception of traditional wine brings value to millennials. Based on survey data and experimental auctions (165 participants), this study identifies the main factors affecting this consumer groups’ willingness to pay for traditional wine through a Tobit model methodology. The results suggest that millennials are willing to pay a higher price depending on demographic factors such as monthly disposable income, on wine involvement variables such as consumption frequency, and on nourishing and health aspects and product availability at points of sale, both of which are wine purchase decision criteria. The investigation has significant marketing and policy implications.

Measuring consumer acceptance of instant fortified millet products using affective tests and auctions in Dakar, Senegal

Small-scale affordable extruders create new opportunities for small enterprise food processors to manufacture nutritionally enhanced products. Still, consumer interest in these products needs to be assessed first. Affective tests with 296 consumers in Dakar, Senegal, evaluated five pearl millet flours: (a) conventional, compared to four instant-porridge flour products; (b) sifted; (c) wholegrain; (d) sifted with premix; (e) wholegrain with micronutrient premix and food-to-food fortified (FtFF). Willingness-to-pay (WTP) was elicited through experimental auctions under two treatments: firstly without information, then with information. Consumers liked FtFF (taste, aroma, appearance) but were indifferent to instant. They did not appreciate wholegrain flour (appearance) or premix (appearance, aroma and taste). Without information, consumers showed no differences in WTP. With information, consumers paid premiums for FtFF (27-30%) (both treatments), and premix (17%), instant (9%), and wholegrain (-10%) (one treatment). Costs of instant, wholegrain and premix products were lower than consumers’ WTP, indicating potential profits, but not those of FtFF. There is a market for instant cereals in Senegal. Consumers require product information in order to compromise on some attributes to benefit from instant, fortified and wholegrain pearl millet products. Manufacture would be cost-effective, but FtFF costs need to be reduced.

Consumers' assessment of labelled and packaged fresh potato: Evidence from Experimental Auctions

Worldwide, the potato is the third more important crop, coming after wheat and rice. In Argentina, it is the horticultural product with the highest consumption in fresh state, but Argentine consumers know little to nothing about potatoes attributes.The objective of this research is to identify the attributes that influence the assessment that consumers make of a potato with differentiated quality. Due to this, a Vickrey Second Price Experimental Auction took place in April 2017. The experiment involved 155 participants, who were students and employees of the School of Economic and Social Sciences of the National University of Mar del Plata. A Multiple Correspondence Analysis was applied based on the data of the bids and the survey carried out at the Auction.The main results showed that the participants, after receiving information about the culinary aptitude of the differentiated potato and its production method – its lower content of agrochemicals –, were willing to pay a higher price for the product. Additionally, participants opted for a higher price of potato when it was presented in a labelled package. Likewise, an identify group of participants were shown to be willing to pay more for this differentiated food.

Do consumers really recognise a distinct quality hierarchy amongst PDO sparkling wines? The answer from experimental auctions

PurposeConsumer likeability and willingness to pay (WTP) for two Italian sparkling wines, (Conegliano Valdobbiadene Prosecco DOCG and Prosecco DOC) are evaluated through a non-hypothetical Becker-DeGroot-Marschak (BDM) auction during a wine-tasting experiment. The purpose of this paper is to estimate individual WTP and relate it to likeability for both wines, with and without supplying additional information on their features.Design/methodology/approachData were collected in May–June 2019 from a sample of 99 consumers in Northern Italy. A non-hypothetical BDM auction in a wine-tasting experiment was implemented.FindingsThe results show that the additional information plays a significant role in widening the WTP gap between the two geographical indications (GIs), while the blind tasting narrows this gap. The “superiority” of the Conegliano Valdobbiadene Prosecco DOCG is confirmed but relies more on its better reputation than its better taste.Research limitations/implicationsThe authors are aware of two main limitations in the study. The first is the territorial composition of the consumer sample. The second is the selection of the Prosecco bottles used in the experiment. The results are considered pioneering and need to be verified by additional experiments with different consumer and bottle samples.Practical implicationsPromotional suggestions for the Tutelary Consortia of the two GIs stem from the results. The Prosecco DOC should primarily stress its likeability, while the Conegliano Valdobbiadene Prosecco DOCG should primarily emphasise the reasons for its “superiority”.Originality/valueTo the best of the authors' knowledge, no previous study has related likeability and WTP for similar GI wines produced in contiguous areas. Moreover, the current research has applied a non-hypothetical BDM auction in a wine-tasting experiment.