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Consumer Preference For Alternative Milk Packaging: The Case Of An Inferred Environmental Attribute

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  • NEILL, CLINTON L.
  • WILLIAMS, RYAN B.

Abstract

Ecolabeling allows firms to segment a market by informing consumers about unobservable attributes of a product. Previous studies evaluate consumer preferences for products explicitly labeled as possessing positive environmental attributes. This research evaluates consumers’ willingness to pay for a product that is perceived by the consumer as having environmentally friendly attributes. We explore glass packaging for fluid milk as a case study. Data were collected through a contingent valuation survey, and a bound-and-a-half logit model was employed. The estimated premium is 59.78 cents with a premium between $0.73 and $0.92 for consumers more likely to prefer the glass alternative.

Suggested Citation

  • Neill, Clinton L. & Williams, Ryan B., 2016. "Consumer Preference For Alternative Milk Packaging: The Case Of An Inferred Environmental Attribute," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 48(3), pages 241-256, August.
    • Handle: RePEc:cup:jagaec:v:48:y:2016:i:03:p:241-256_00
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    Citations

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    Cited by:

    1. Carsten Herbes & Johannes Dahlin & Peter Kurz, 2020. "Consumer Willingness To Pay for Proenvironmental Attributes of Biogas Digestate-Based Potting Soil," Sustainability, MDPI, vol. 12(16), pages 1-19, August.
    2. Shi, Longzhong & Chen, Xuan & Chen, Bo & Qiu, Jingran & Li, Li, 2021. "Assessing Consumers’ Willingness to Pay for Covid-19-tested Food Labels," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329403, Asian Society of Agricultural Economists (ASAE).
    3. Neill, Clinton L. & Holcomb, Rodney B., 2019. "Does a food safety label matter? Consumer heterogeneity and fresh produce risk perceptions under the Food Safety Modernization Act," Food Policy, Elsevier, vol. 85(C), pages 7-14.
    4. Mikah O. Oliver & Iva Jestratijevic & James Uanhoro & Dee K. Knight, 2023. "Investigation of a Consumer’s Purchase Intentions and Behaviors towards Environmentally Friendly Grocery Packaging," Sustainability, MDPI, vol. 15(11), pages 1-18, May.
    5. Longzhong Shi & Xuan Chen & Bo Chen, 2023. "Covid‐19‐tested food labels," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(2), pages 203-230, June.
    6. Gregory Howard & Brian E. Roe & Matthew G. Interis & Jay Martin, 2020. "Addressing Attribute Value Substitution in Discrete Choice Experiments to Avoid Unintended Consequences," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(4), pages 813-838, December.
    7. Igor Popovic & Bart A. G. Bossink & Peter C. van der Sijde & Christine Y. M. Fong, 2020. "Why Are Consumers Willing to Pay More for Liquid Foods in Environmentally Friendly Packaging? A Dual Attitudes Perspective," Sustainability, MDPI, vol. 12(7), pages 1-14, April.
    8. Blemings, Benjamin & Zhang, Peilu & Neill, Clinton L., 2023. "Where is the value? The impacts of sow gestation crate laws on pork supply and consumer value perceptions," Food Policy, Elsevier, vol. 117(C).
    9. Van Asselt, Joanna & Nian, Yefan & Soh, Moonwon & Morgan, Stephen & Gao, Zhifeng, 2022. "Do plastic warning labels reduce consumers' willingness to pay for plastic egg packaging? – Evidence from a choice experiment," Ecological Economics, Elsevier, vol. 198(C).
    10. Neill, Clinton L. & Lahne, Jacob, 2022. "Matching reality: A basket and expenditure based choice experiment with sensory preferences," Journal of choice modelling, Elsevier, vol. 44(C).
    11. Roe, Brian E. & Interis, Matthew G. & Howard, Gregory E., 2018. "Utilizing Subjective Beliefs in Stated Preference Models: Issues and Solutions," 2018 Annual Meeting, August 5-7, Washington, D.C. 274017, Agricultural and Applied Economics Association.
    12. Marion Garaus & Christian Garaus & Elisabeth Wolfsteiner & Charlotte Jermendy, 2022. "Anthropomorphism as a Differentiation Strategy for Standardized Reusable Glass Containers," Sustainability, MDPI, vol. 14(15), pages 1-17, August.

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