Consumer Willingness to Pay for Swiss Chicken Meat: An In-store Survey to Link Stated and Revealed Buying Behaviour
AbstractIn a global economy food origin is gaining increasing attention as determining purchase criterion in food consumption. Consequently, for many consumers a product’s country-of-origin (COO) is an important cue in evaluating both domestic and foreign products. A double-bounded dichotomous choice approach in an in-store setting was used to assess consumers’ preference and willingness-to-pay (WTP) for the product attribute “Swiss origin” relative to “European origin” for chicken meat. Data collection took place in the poultry section of six grocery stores in Francophone Switzerland. Sample selection was based on the consumer’s purchase decision, that is only actual chicken buyers were questioned. During the survey product data of participants’ actual purchase were recorded. Thus, both hypothetical stated and revealed consumer behaviour data were collected. Based on 450 records we highlight four different consumer segments, notably “Loyal Swiss”, “Low Price Swiss Zappers”, “Price Orientated”, and „The Gourmets”. At an equal price, 90% of the entire sample prefers Swiss chicken meat. To elicit mean WTP for “Swiss origin” we used logit analysis. The results indicate that mean WTP differs significantly between the highlighted consumer segments. “Loyal Swiss” – medium to high priced Swiss chicken meat consumers – are willing to pay a premium of about 7.40 Euros per kilo chicken breast of Swiss origin. This premium corresponds with actual price differences of at most 7.50 €/kg for Swiss chicken breast relative to European found in the researched grocery stores. “Low Price Swiss Zappers” are willing to pay a premium of 2.10 €/kg chicken breast of Swiss origin. In contrast, the “Price Orientated” and „The Gourmets” are not willing to pay any premium for Swiss origin. This corresponds with their revealed purchase behaviour as they bought imported European chicken. Considering mean WTP for the entire sample of 3.00 €/kg for Swiss origin, we conclude that this is not a good predictor for specific consumer segments. It over-, or underestimates mean WTP of the highlighted consumer segments. Using both stated and revealed consumer behaviour data, we are able to calculate consumer group specific mean WTP which leads to more appropriate results for agribusiness and marketing purposes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44155.
Date of creation: 2008
Date of revision:
contingent valuation method; country-of-origin; willingness-to-pay; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
- NEP-DCM-2008-11-25 (Discrete Choice Models)
- NEP-MKT-2008-11-25 (Marketing)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frode Alfnes, 2004. "Stated preferences for imported and hormone-treated beef: application of a mixed logit model," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(1), pages 19-37, March.
- Ehmke, Mariah D. & Lusk, Jayson L. & Tyner, Wallace E., 2006. "The Relative Importance of Preferences for Country-of-Origin in China, France, Niger and the United States," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25408, International Association of Agricultural Economists.
- Richard Hofler & John List, 2004.
"Valuation on the frontier: Calibrating actual and hypothetical statements of value,"
Framed Field Experiments
00159, The Field Experiments Website.
- Richard A. Hofler & John A. List, 2004. "Valuation on the Frontier: Calibrating Actual and Hypothetical Statements of Value," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 213-221.
- Roosen, Jutta & Lusk, Jayson L. & Fox, John A., 2001.
"Consumer Demand For And Attitudes Toward Alternative Beef Labeling Strategies In France, Germany, And The Uk,"
2001 Annual meeting, August 5-8, Chicago, IL
20643, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Jutta Roosen & Jayson L. Lusk & John A. Fox, 2003. "Consumer demand for and attitudes toward alternative beef labeling strategies in France, Germany, and the UK," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 77-90.
- Mabiso, Athur & Sterns, James A. & House, Lisa & Wysocki, Allen F., 2005. "Estimating Consumers' Willingness-To-Pay for Country-Of-Origin Labels in Fresh Apples and Tomatoes: A Double-Hurdle Probit Analysis of American Data Using Factor Scores," 2005 Annual meeting, July 24-27, Providence, RI 19418, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Jayson Lusk & John Fox & T Schroeder & J Mintert & M Koohmaraie, 2001.
"In-store valuation of steak tenderness,"
Framed Field Experiments
00186, The Field Experiments Website.
- Fox, John A. & Shogren, J. & Hayes, Dermot J. & Kliebenstein, James, 2003.
"Cvm-X: Calibrating Contingent Values with Experimental Auction Markets,"
Staff General Research Papers
11935, Iowa State University, Department of Economics.
- John A. Fox & Jason F. Shogren & Dermot J. Hayes & James B. Kliebenstein, 1998. "CVM-X: Calibrating Contingent Values with Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 455-465.
- Fox, John A. & Shogren, Jason F. & Hayes, Dermot J. & Kliebenstein, James, 1998. "Cvm-X: Calibrating Contingent Values with Experimental Auction Markets," Staff General Research Papers 1311, Iowa State University, Department of Economics.
- Richard H. Thaler, 2008.
"Mental Accounting and Consumer Choice,"
INFORMS, vol. 27(1), pages 15-25, 01-02.
- Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
- James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005. "A Meta-analysis of Hypothetical Bias in Stated Preference Valuation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, 03.
- List, John A. & Shogren, Jason F., 1998.
"Calibration of the difference between actual and hypothetical valuations in a field experiment,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 37(2), pages 193-205, October.
- John List & Jason Shogren, 1998. "Calibration of the difference between actual and hypothetical valuations in a field experiment," Natural Field Experiments 00296, The Field Experiments Website.
- Verbeke, Wim & Ward, Ronald W., 2003. "Importance of EU Label Requirements: An Application of Ordered Probit Models to Belgium Beef Labels," 2003 Annual meeting, July 27-30, Montreal, Canada 22077, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Barbara J. Kanninen, 1993. "Optimal Experimental Design for Double-Bounded Dichotomous Choice Contingent Valuation," Land Economics, University of Wisconsin Press, vol. 69(2), pages 138-146.
- Hoehn, John P. & Randall, Alan, 1987. "A satisfactory benefit cost indicator from contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 226-247, September.
- Loureiro, Maria L. & Umberger, Wendy J., 2007. "A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability," Food Policy, Elsevier, vol. 32(4), pages 496-514, August.
- Loureiro, Maria L. & Umberger, Wendy J., 2002. "Estimating Consumer Willingness-To-Pay For Country Of-Origin-Labels For Beef Products," 2002 Annual meeting, July 28-31, Long Beach, CA 19745, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Luomala, Harri T., 2007. "Exploring the role of food origin as a source of meanings for consumers and as a determinant of consumers' actual food choices," Journal of Business Research, Elsevier, vol. 60(2), pages 122-129, February.
- Loureiro, Maria L. & Umberger, Wendy J., 2005. "Assessing Consumer Preferences for Country-of-Origin Labeling," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(01), April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.