IDEAS home Printed from https://ideas.repec.org/p/ags/aaea05/19428.html
   My bibliography  Save this paper

Consumer Willingness to Pay for Breads Marketed as "Low-Carbohydrate"

Author

Listed:
  • Wachenheim, Cheryl J.
  • Nganje, William E.
  • Kaitibie, Simeon
  • Johnston, Gretchen

Abstract

Bread producers are taking advantage of healthy feeding habits by developing new "low carbohydrate" products to entice customers. These low carbohydrate breads are generally more expensive than conventional types. This study tests the hypothesis that consumers are willing to pay higher premium for "low carbohydrate" breads at various locations and markets. We use retail data in a hedonic pricing framework to estimate the premium paid for the "low carbohydrate" attribute of bread. Results show that the implicit price of the "low carbohydrate" attribute of bread ranges from about 0.06¢ to 1.1¢ per gram, reflecting the amount consumers are willing to pay above the price of conventional bread.

Suggested Citation

  • Wachenheim, Cheryl J. & Nganje, William E. & Kaitibie, Simeon & Johnston, Gretchen, 2005. "Consumer Willingness to Pay for Breads Marketed as "Low-Carbohydrate"," 2005 Annual meeting, July 24-27, Providence, RI 19428, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19428
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/19428
    Download Restriction: no

    References listed on IDEAS

    as
    1. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    2. Ty Feldkamp & Ted C. Schroeder, 2004. "Experimental Auction Procedure: Impact on Valuation of Quality Differentiated Goods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 389-405.
    3. Stiegert, Kyle W. & Blanc, Jean-Pierre, 1997. "Japanese Demand For Wheat Protein Quantity And Quality," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(01), July.
    4. Kantor, Linda Scott, 1998. "A Dietary Assessment of the U.S. Food Supply: Comparing Per Capita Food Consumption with Food Guide Pyramid Serving Recommendations," Agricultural Economics Reports 34079, United States Department of Agriculture, Economic Research Service.
    5. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    6. Brooker, John R. & Terry, Danny E. & Eastwood, David B., 1986. "Hedonic Pricing Of Food Items Based On Nutritive Attributes," Journal of Food Distribution Research, Food Distribution Research Society, vol. 17(1), February.
    7. Nayga, Rodolfo M., Jr., 1998. "Consumer Characteristics Associated With Low Fat, Low Cholesterol Foods," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 1(01).
    8. Mancino, Lisa & Lin, Biing-Hwan & Ballenger, Nicole, 2003. "The Role Of Economics In Eating Choices And Weight Outcomes," Agricultural Information Bulletins 33781, United States Department of Agriculture, Economic Research Service.
    9. Maguire, Kelly B. & Owens, Nicole N. & Simon, Nathalie B., 2004. "The Price Premium for Organic Babyfood: A Hedonic Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
    10. Samikwa, Duncan D. & Brorsen, B. Wade & Sanders, Larry D., 1998. "Hedonic Prices Of Malawi Burley Tobacco," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 1(01).
    11. repec:feb:artefa:0069 is not listed on IDEAS
    12. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    low carbohydrate bread; hedonic price; willingness to pay; Institutional and Behavioral Economics; D12;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    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:aaea05:19428. See general information about how to correct material in RePEc.

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

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.