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

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  • 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, 2016, Boston, Massachusetts 235996, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea16:235996
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    File URL: http://purl.umn.edu/235996
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    References listed on IDEAS

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    Keywords

    Emotion; Willingness to pay (WTP); Eco-labels; Fresh Strawberry; Contingent Valuation (CV); Agribusiness; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; Marketing;

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