Choosing Brands: Fresh Produce versus Other Products
AbstractAssuming that brands contribute to quality risk reduction, prestige, and design, we derive and test hypothesis on the willingness to pay (WTP) for brands across different product categories (electronics, clothing, packaged food, and fresh produce). Using the random effect tobit model on the stated point value of WTP and the ordered probit model on the stated range of WTP, we find that WTP for brands of fresh produce is least among the four product categories controlling for relevant demographic variations. Simulations show that fresh produce has a higher optimal price premium for brands but with a much smaller market share. Copyright 2008, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 90 (2008)
Issue (Month): 2 ()
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- Jin, Yanhong H. & Zilberman, David & Heiman, Amir, 2005. "Choosing Brands: Fresh Produce versus other Products," 2005 Annual meeting, July 24-27, Providence, RI 19192, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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