IDEAS home Printed from https://ideas.repec.org/p/ags/saea15/196901.html
   My bibliography  Save this paper

Willingness to Pay for Niche Fresh Produce across the States: Why Are Consumers Willing to Pay More for the Less Favorite?

Author

Listed:
  • Chen, Xuqi
  • Gao, Zhifeng
  • House, Lisa

Abstract

Willingness to pay (WTP) has been one of the most widely used methodologies to reveal consumer preference. In this study, we assess the consumer's preference for several types of fresh strawberry, including organic, locally produced, naturally grown, GMO-free, and estimate the corresponding WTP through the method of open-ended contingent valuation (CV). Results showed that although consumers generally preferred locally produced and naturally grown over organic, however, WTP for organic was oppositely higher than locally produced and naturally grown. Furthermore, this disparity was indicated not to be homogenous across all regions based on our national survey.

Suggested Citation

  • Chen, Xuqi & Gao, Zhifeng & House, Lisa, 2015. "Willingness to Pay for Niche Fresh Produce across the States: Why Are Consumers Willing to Pay More for the Less Favorite?," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196901, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea15:196901
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/196901/files/SAEA_full%20paper_Chen_%20Gao_%20HouseRev.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. James, Jennifer S. & Rickard, Bradley J. & Rossman, William J., 2009. "Product Differentiation and Market Segmentation in Applesauce: Using a Choice Experiment to Assess the Value of Organic, Local, and Nutrition Attributes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(3), pages 1-14, December.
    2. James Murphy & Thomas Stevens & Darryl Weatherhead, 2005. "Is Cheap Talk Effective at Eliminating Hypothetical Bias in a Provision Point Mechanism?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(3), pages 327-343, March.
    3. Jayson L. Lusk, 2003. "Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 840-856.
    4. Batte, Marvin T. & Hooker, Neal H. & Haab, Timothy C. & Beaverson, Jeremy, 2007. "Putting their money where their mouths are: Consumer willingness to pay for multi-ingredient, processed organic food products," Food Policy, Elsevier, vol. 32(2), pages 145-159, April.
    5. Sayman, Serdar & Onculer, Ayse, 2005. "Effects of study design characteristics on the WTA-WTP disparity: A meta analytical framework," Journal of Economic Psychology, Elsevier, vol. 26(2), pages 289-312, April.
    6. Carlsson, Fredrik & Martinsson, Peter, 2006. "Do Experience and Cheap Talk influence Willingness to Pay in an Open-Ended Contingent Valuation Survey?," Working Papers in Economics 190, University of Gothenburg, Department of Economics.
    7. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    8. Bouyssou, Denis, 1992. "Ranking methods based on valued preference relations: A characterization of the net flow method," European Journal of Operational Research, Elsevier, vol. 60(1), pages 61-67, July.
    9. Mary Jo Kealy & Robert W. Turner, 1993. "A Test of the Equality of Closed-Ended and Open-Ended Contingent Valuations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 321-331.
    10. James, Jennifer S. & Rickard, Bradley J. & Rossman, William J., 2009. "Product Differentiation and Market Segmentation in Applesauce: Using a Choice Experiment to Assess the Value of Organic, Local and Nutrition Attributes," Working Papers 48916, Cornell University, Department of Applied Economics and Management.
    11. Dubourg, W R & Jones-Lee, M W & Loomes, Graham, 1994. "Imprecise Preferences and the WTP-WTA Disparity," Journal of Risk and Uncertainty, Springer, vol. 9(2), pages 115-133, October.
    12. Don L. Coursey & John L. Hovis & William D. Schulze, 1987. "The Disparity Between Willingness to Accept and Willingness to Pay Measures of Value," The Quarterly Journal of Economics, Oxford University Press, vol. 102(3), pages 679-690.
    13. David S. Brookshire & Larry S. Eubanks & Alan Randall, 1983. "Estimating Option Prices and Existence Values for Wildlife Resources," Land Economics, University of Wisconsin Press, vol. 59(1), pages 1-15.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Agribusiness; Food Consumption/Nutrition/Food Safety; Marketing;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:saea15:196901. 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/saeaaea.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.