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Willingness-To-Pay for Functional Dairy Products and the Influence of Starting Point Bias: Empirical Evidence for Germany

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  • Bechtold, Kai-Brit
  • Abdulai, Awudu

Abstract

This study employs stated preference data from a choice experiment to address two issues related to consumer demand for functional dairy products: (1) Consumers’ preferences for functional dairy product attributes in Germany, and (2) are willingness-to-pay estimates obtained in the choice experiment affected by starting point bias? Based on a random parameter logit model, our results indicate that dairy products enriched with omega-3 fatty acids and bearing a health claim that is aimed at healthy blood vessels and healthy metabolism are highly valued. Furthermore, results reveal that willingness-to-pay is indeed susceptible to starting point bias. In a two-split sample approach, we find that varying the price levels displayed in the first choice set significantly affects respondents’ willingness-to-pay for functional dairy products.

Suggested Citation

  • Bechtold, Kai-Brit & Abdulai, Awudu, 2012. "Willingness-To-Pay for Functional Dairy Products and the Influence of Starting Point Bias: Empirical Evidence for Germany," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124776, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:124776
    DOI: 10.22004/ag.econ.124776
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    References listed on IDEAS

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    Cited by:

    1. Meyerhoff, Jürgen & Glenk, Klaus, 2015. "Learning how to choose—effects of instructional choice sets in discrete choice experiments," Resource and Energy Economics, Elsevier, vol. 41(C), pages 122-142.

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    Keywords

    Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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