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Does taste beat food safety? Evidence from the “Pera Rocha” case in Portugal

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Author Info
Combris, Pierre
Pinto, Alexandra Seabra
Fragata, Antonio
Giraud-Heraud, Eric

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Abstract

Until recently, fresh fruits such as pears were provided to markets as generic products. However, these products are now differentiated by cultivars, origins and appearances, as well as by companies’ production and processing methods. Therefore, we observe a lot of denominations of origin, retailers’ and private labels in order to signal the differentiation to the consumers, who are often willing to pay large price premiums for products with specific attributes. Indeed the value consumers put on fruits depends on the degree of product-information that are available to them and this information derives mainly from tasting and from the label of the products. In this paper, we used an experimental auction to investigate how quality attributes information affects consumers’ willingness to pay for different types of pears, particularly choosing the Portuguese "Rocha" pear variety. The BDM auction mechanism was combined with sensory analyses in order to develop an integrated approach to evaluate product attributes. The main results show that information on the products’ characteristics related to food safety instantly influences consumers’ willingness to pay. However, it appears that sensory intrinsic attributes related to taste finally beats the guarantee of food safety in driving the buying behaviour.

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Publisher Info
Paper provided by European Association of Agricultural Economists in its series 105th Seminar, March 8-10, 2007, Bologna, Italy with number 7879.

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Date of creation: 2007
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Handle: RePEc:ags:eaa105:7879

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Related research
Keywords: Experimental auction; Willingness to pay; Quality signals; Food safety; Fruits.; Food Consumption/Nutrition/Food Safety;

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References listed on IDEAS
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  1. Roosen, Jutta & Fox, John A. & Hennessy, David A. & Schreiber, Alan, 1998. "Consumers' Valuation Of Insecticide Use Restrictions: An Application To Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December. [Downloadable!]
  2. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law & Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
  3. Noussair, Charles & Robin, Stephane & Ruffieux, Bernard, 2004. "Revealing consumers' willingness-to-pay: A comparison of the BDM mechanism and the Vickrey auction," Journal of Economic Psychology, Elsevier, vol. 25(6), pages 725-741, December. [Downloadable!] (restricted)
  4. Shogren, Jason & Fox, John & Hayes, Dermot & Roosen, Jutta, 2002. "Observed Choices For Food Safety in Retail, Survey and Auction Markets," Staff General Research Papers 5024, Iowa State University, Department of Economics.
  5. Fox, John & Hayes, Dermot & Shogren, Jay, 2002. "Consumer Preferences for Food Irradiation: How Favorable and Unfavorable Descriptions Affect Preferences for Irradiated Pork in Experimental Auctions," Staff General Research Papers 5207, Iowa State University, Department of Economics.
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  6. repec:cup:cbooks:9780521855167 is not listed on IDEAS
  7. Anne Rozan & Anne Stenger & Marc Willinger, 2004. "Willingness-to-pay for food safety: an experimental investigation of quality certification on bidding behaviour," Framed Field Experiments 0065, The Field Experiments Website.
  8. Klaus G. Grunert, 2005. "Food quality and safety: consumer perception and demand," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 369-391, September.
  9. Jill E. Hobbs & Kim Sanderson & Morteza Haghiri, 2006. "Evaluating Willingness-to-Pay for Bison Attributes: An Experimental Auction Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(2), pages 269-287, 06. [Downloadable!] (restricted)
  10. Pascale Bazoche & Eric Giraud-Héraud & Louis-Georges Soler, 2005. "Premium Private Labels, Supply Contracts, Market Segmentation, and Spot Prices," Journal of Agricultural & Food Industrial Organization, Berkeley Electronic Press, vol. 3(1). [Downloadable!]
  11. Frode Alfnes & Kyrre Rickertsen, 2003. "European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(2), pages 396-405, 05. [Downloadable!] (restricted)
  12. Hayes, Dermot J. & Shogren, Jason F. & Shin, Seung Youll & Kliebenstein, James B., 1995. "Valuing Food Safety in Experimental Auction Markets," Staff General Research Papers 835, Iowa State University, Department of Economics.
  13. Shogren, Jason F., 1993. "Experimental Markets And Environmental Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(2), October. [Downloadable!]
  14. Fox, John A. & Shogren, Jason F. & Hayes, Dermot J. & Kliebenstein, James B., 1995. "Experimental Auctions To Measure Willingness To Pay For Food Safety," Valuing Food Safety and Nutrition (1995), Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance, number 25986. [Downloadable!]
  15. J.L. Lusk & J.A. Fox & T.C. Schroeder & J. Mintert & M. Koohmaraie, 2001. "In-Store Valuation of Steak Tenderness," Framed Field Experiments 0058, The Field Experiments Website.
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