Identifying product attributes and consumer attitudes that impact willingness-to-pay for a nutraceutical-rich juice product

A non-hypothetical Becker–DeGroot–Marschak (BDM) auction-like mechanism was utilized to determine consumer characteristics, attitudinal factors, and product sensory attributes that affect willingness-to-pay (WTP) for a nutraceutical-rich juice blend (75%Concord+12%Pomegranate+13%Black Cherry). Participants (n=228) were recruited for a BDM mechanism that included four treatment groups: Info (received a potential health statement), Taste (evaluated the sensory attributes of the juice blend), InfoTaste (evaluated the sensory attributes of the juice blend and received the potential health statement), and Control (neither tasted nor received the potential health statement about the juice blend). As part of the post-auction questionnaire, participants completed incentivized risk and time preference survey tasks. The participants’ average WTP for the nutraceutical-rich juice blend was $3.45/bottle. Average overall liking for all participants for the nutraceutical-rich juice was 7.42 (on a 9-point scale), which indicated general consumer acceptance. The time preference coefficient (-8.87) indicated that higher time discount rates (lower future orientation) were associated with lower WTP within the Info group. Risk preference did not affect WTP. WTP increased by $0.25 for every unit increase in sweetness toward just-about-right (JAR) on the 5-point scale, $0.20 per every unit decrease in black cherry flavor toward JAR, and $0.29 per every unit decrease in bitterness toward JAR. Non-hypothetical WTP mechanisms offer realistic valuations and alternative insights about consumers and products.