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Using Choice Experiments to Measure Consumers’ Preferences for Functional Dairy Products in Germany: Are Willingness-To-Pay Estimates Affected by Starting Point Bias?

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  • Bechtold, Kai-Brit
  • Abdulai, Awudu

Abstract

This study employs stated preference data from a choice experiment to address two issues related to consumer demand for functional dairy products: (1) Consumers’ preferences for functional dairy product attributes in Germany, and (2) are willingness-to-pay estimates obtained in the choice experiment affected by starting point bias? Based on a random parameter logit model, our results indicate that dairy products enriched with omega-3 fatty acids and bearing a health claim that is aimed at healthy blood vessels and healthy metabolism are highly valued. Furthermore, results reveal that willingness-to-pay is indeed susceptible to starting point bias. In a two-split sample approach, we find that varying the price levels displayed in the first choice set significantly affects respondents’ willingness-to-pay for functional dairy products.

Suggested Citation

  • Bechtold, Kai-Brit & Abdulai, Awudu, 2012. "Using Choice Experiments to Measure Consumers’ Preferences for Functional Dairy Products in Germany: Are Willingness-To-Pay Estimates Affected by Starting Point Bias?," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 135073, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc12:135073
    DOI: 10.22004/ag.econ.135073
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    References listed on IDEAS

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    Keywords

    Demand and Price Analysis; Health Economics and Policy; Research Methods/ Statistical Methods;
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