IDEAS home Printed from https://ideas.repec.org/p/ags/aaea16/235996.html
   My bibliography  Save this paper

The Effects of Emotion on Consumers’ Willingness-to-Pay (WTP) for Eco-labeled Fresh Produce

Author

Listed:
  • Chen, Xuqi
  • Gao, Zhifeng

Abstract

This study exams consumers’ Willingness-to-Pay (WTP) for eco-labeled fresh produce under the influence of emotion. Previous literature has indicated a significant correlation between emotion and consumer final purchase decisions. However, few researchers conducted the study within the context of eco-labeled products. In this paper, about 2,500 participants were asked to evaluate four different types of eco-labeled fresh strawberries in terms of WTP. Respondents’ emotion and changes in emotion after a stimulus were measured. Contingent valuation method was used to estimate consumers’ WTP. Multivariate tobit model and seemingly unrelated regression (SUR) were used to estimate the effect of emotion on consumers’ WTP for eco-labeled products. Results show that emotion has a significant positive effect on consumers’ WTP for GMO-free, organic and natural products. Meanwhile, it also has a significant positive impact on the WTP premium for these three products and locally produced products as well, using conventional counterpart as the base.

Suggested Citation

  • Chen, Xuqi & Gao, Zhifeng, 2016. "The Effects of Emotion on Consumers’ Willingness-to-Pay (WTP) for Eco-labeled Fresh Produce," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235996, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235996
    DOI: 10.22004/ag.econ.235996
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/235996/files/AAEA%20P9900%20The%20Effects%20of%20Emotion%20on%20Consumers_%20WTP%20for%20eco-labeled%20Fresh%20Produce_Chen_%20Gao.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.235996?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Shiv, Baba & Fedorikhin, Alexander, 2002. "Spontaneous versus Controlled Influences of Stimulus-Based Affect on Choice Behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 87(2), pages 342-370, March.
    2. Machleit, Karen A. & Eroglu, Sevgin A., 2000. "Describing and Measuring Emotional Response to Shopping Experience," Journal of Business Research, Elsevier, vol. 49(2), pages 101-111, August.
    3. Batte, Marvin T. & Hooker, Neal H. & Haab, Timothy C. & Beaverson, Jeremy, 2007. "Putting their money where their mouths are: Consumer willingness to pay for multi-ingredient, processed organic food products," Food Policy, Elsevier, vol. 32(2), pages 145-159, April.
    4. Douadia Bougherara & Pierre Combris, 2009. "Eco-labelled food products: what are consumers paying for?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(3), pages 321-341, September.
    5. Conner, David S. & Christy, Ralph D., 2004. "The Organic Label: How To Reconcile Its Meaning With Consumer Preferences," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(1), pages 1-4, March.
    6. Jayson L. Lusk, 2003. "Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 840-856.
    7. Carlsson, Fredrik & Martinsson, Peter & Akay, Alpaslan, 2011. "The effect of power outages and cheap talk on willingness to pay to reduce outages," Energy Economics, Elsevier, vol. 33(5), pages 790-798, September.
    8. Dawn Thilmany & Craig A. Bond & Jennifer K. Bond, 2008. "Going Local: Exploring Consumer Behavior and Motivations for Direct Food Purchases," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1303-1309.
    9. Loureiro, Maria L. & Hine, Susan E., 2002. "Discovering Niche Markets: A Comparison Of Consumer Willingness To Pay For Local (Colorado Grown), Organic, And Gmo-Free Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(3), pages 1-11, December.
    10. Gong, Min & Baron, Jonathan, 2011. "The generality of the emotion effect on magnitude sensitivity," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 17-24, February.
    11. Cathy R. Wessells & Robert J. Johnston & Holger Donath, 1999. "Assessing Consumer Preferences for Ecolabeled Seafood: The Influence of Species, Certifier, and Household Attributes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1084-1089.
    12. James Murphy & Thomas Stevens & Darryl Weatherhead, 2005. "Is Cheap Talk Effective at Eliminating Hypothetical Bias in a Provision Point Mechanism?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(3), pages 327-343, March.
    13. Eroglu, Sevgin A. & Machleit, Karen & Barr, Terri Feldman, 2005. "Perceived retail crowding and shopping satisfaction: the role of shopping values," Journal of Business Research, Elsevier, vol. 58(8), pages 1146-1153, August.
    14. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Xuqi & Gao, Zhifeng & House, Lisa, 2015. "Willingness to Pay for Niche Fresh Produce across the States: Why Are Consumers Willing to Pay More for the Less Favorite?," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196901, Southern Agricultural Economics Association.
    2. Onken, Kathryn A. & Bernard, John C. & Pesek, John D., Jr., 2011. "Comparing Willingness to Pay for Organic, Natural, Locally Grown, and State Marketing Program Promoted Foods in the Mid-Atlantic Region," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-15, April.
    3. Carroll, Kathryn A. & Bernard, John C. & Pesek, John D. Jr., 2013. "Consumer Preferences for Tomatoes: The Influence of Local, Organic, and State Program Promotions by Purchasing Venue," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-18.
    4. Ying, Jiahui & Shonkwiler, Vanessa P. & Campbell, Benjamin L., 2018. "Willingness to Pay or Not to Pay: Valuing Foods Some Respondents Find Distasteful," 2018 Annual Meeting, August 5-7, Washington, D.C. 274065, Agricultural and Applied Economics Association.
    5. Iryna Printezis & Carola Grebitus & Stefan Hirsch, 2019. "The price is right!? A meta-regression analysis on willingness to pay for local food," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    6. Carlos E. Carpio & Olga Isengildina-Massa, 2009. "Consumer willingness to pay for locally grown products: the case of South Carolina," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 412-426.
    7. Adalja, Aaron & Hanson, James & Towe, Charles & Tselepidakis, Elina, 2015. "An Examination of Consumer Willingness to Pay for Local Products," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(3), pages 253-274, December.
    8. Chad M. Baum & Robert Weigelt, 2019. "How Where I Shop Influences What I Buy: The Importance of the Retail Format in Sustainable Tomato Consumption," Economic Complexity and Evolution, in: Andreas Chai & Chad M. Baum (ed.), Demand, Complexity, and Long-Run Economic Evolution, pages 141-169, Springer.
    9. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    10. Shi, Wei & Halstead, John & Huang, Ju-Chin, 2016. "Consumers’ Willingness to Pay for Locally Grown Produce: Comparison of New Hampshire and Massachusetts Results," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236109, Agricultural and Applied Economics Association.
    11. Celine Michaud & Daniel Llerena & Iragael Joly, 2013. "Willingness to pay for environmental attributes of non-food agricultural products: a real choice experiment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(2), pages 313-329, March.
    12. Chen, Xuqi & Gao, Zhifeng & Swisher, Marilyn & House, Lisa & Zhao, Xin, 2018. "Eco-labeling in the Fresh Produce Market: Not All Environmentally Friendly Labels Are Equally Valued," Ecological Economics, Elsevier, vol. 154(C), pages 201-210.
    13. Dominique Ami & Frédéric Aprahamian & Olivier Chanel & Stéphane Luchini, 2011. "A Test of Cheap Talk in Different Hypothetical Contexts: The Case of Air Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 111-130, September.
    14. Yiwen Yang & PingSun Leung & Chu‐wei Tseng, 2022. "Price premium or price discount for locally produced food products? A 5W1H approach in meta‐analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2261-2274, September.
    15. Chen, Xuqi & Gao, Yujuan & Gao, Zhifeng, 2022. "Impacts of color-coded nutrition facts panel and consumer responses," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322206, Agricultural and Applied Economics Association.
    16. Satimanon, Thasanee & Weatherspoon, Dave D., 2010. "Hedonic Analysis of Sustainable Food Products," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 13(4), pages 1-17.
    17. Grebitus, Carola & Lusk, Jayson L. & Nayga, Rodolfo M., 2013. "Effect of distance of transportation on willingness to pay for food," Ecological Economics, Elsevier, vol. 88(C), pages 67-75.
    18. Stobbe, Tracy, 2016. "Making Sense of the Dollars Spent at Farmers’ Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-24, July.
    19. Marco A. Palma & Alba J. Collart & Christopher J. Chammoun, 2015. "Information Asymmetry in Consumer Perceptions of Quality-Differentiated Food Products," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(3), pages 596-612, November.
    20. Kathryn A. Carroll & Lydia Zepeda, 2024. "Food Miles and Regional Logos: Investigating Consumer Preferences in the Midwestern United States," Sustainability, MDPI, vol. 16(7), pages 1-20, March.

    More about this item

    Keywords

    Agribusiness; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; Marketing;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea16:235996. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.