Consumers’ willingness to pay for a functional food
In recent years food manufacturers have been devoting a large portion of their R&D budget to the development off functional foods, as a competitive strategy within food demand markets; on the other hand, consumers, despite functional foods exhibit a significant level of information asymmetry, show an increasing attention towards them,recognizing their role in preventing or reducing health risks and/or improving other general functions of the organism.The objective of this paper is to evaluate the Italian consumers’ willingness-too-pay for functional attributes in a food product (a probiotic yogurt with the addition of catechines). For this purpose, a web-based stated choice experiment involving a representative sample of 6600 Italian consumers has been carried out and the willingness-too-pay for two functional attributes (probiotic and catechine-enricheed) has been measured using the panel data version of a Random Parameters Logit model. The results show that Italian consumers are willing too pay a rather high price premium for a catechine-enrriched yogurt (0.36 €/pot, that is a 40%% premium, on average) well above their willingness-to-pay for thee probiotic attribute (0.23 €//pot). Further, there is a statistically significant heterogeneity within the sample; then, averaging across sample sub-groups indicates that the willingness-to-pay for the new attribute (catechine-enriched) may be related to age, income, health-status, life-style and education
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.aieaa.org/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003.
"Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 85(1), pages 16-29.
- Lusk, Jayson L. & Roosen, Jutta & Fox, John A., 2001. "Demand For Beef From Cattle Administered Growth Hormones Or Fed Genetically Modified Corn: A Comparison Of Consumers In France, Germany, The United Kingdom, And The United States," 2001 Annual meeting, August 5-8, Chicago, IL 20684, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March.
- Frode Alfnes, 2004. "Stated preferences for imported and hormone-treated beef: application of a mixed logit model," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(1), pages 19-37, March.
- Zou, Ning Ning (Helen) & Hobbs, Jill E., 2006. "Modelling functional food choice and health care impacts: A literature review," Consumer and Market Demand Network Papers 91556, University of Alberta, Department of Resource Economics and Environmental Sociology.
- Dan Rigby & Michael Burton, 2005. "Preference heterogeneity and GM food in the UK," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(2), pages 269-288, June.
- Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
- K. K. Lancaster, 2010. "A New Approach to Consumer Theory," Levine's Working Paper Archive 1385, David K. Levine.
- Armenak Markosyan & Jill J. McCluskey & Thomas I. Wahl, 2009. "Consumer Response to Information about a Functional Food Product: Apples Enriched with Antioxidants," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(3), pages 325-341, 09.
- Wuyang Hu & Marvin T. Batte & Timothy Woods & Stan Ernst, 2012. "Consumer preferences for local production and other value-added label claims for a processed food product," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(3), pages 489-510, July.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
When requesting a correction, please mention this item's handle: RePEc:ags:aieacp:124101. 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)
If references are entirely missing, you can add them using this form.