IDEAS home Printed from https://ideas.repec.org/p/cde/cdewps/186.html
   My bibliography  Save this paper

Using a Discrete Choice Experiment to Elicit the Demand for a Nutritious Food: Willingness-to-Pay for Orange Maize in Rural Zambia

Author

Listed:
  • J. V. Meenakshi

    (Department of Economics, Delhi School of Economics, Delhi, India)

  • Abhijit Banerji

    (Department of Economics, Delhi School of Economics, Delhi, India)

  • Victor Manyong

    (International Institute of Tropical Agriculture)

  • Keith Tomlins

    (Natural Resources Institute, University of Greenwich)

  • Priscilla Hamukwala

    (University of Zambia)

  • Nitya Mittal

    (Department of Economics, Delhi School of Economics, Delhi, India)

Abstract

Using a discrete choice experiment, this paper estimates the willingness to pay for biofortified orange maize in rural Zambia. The study design has five treatment arms, which enable an analysis of the impact of nutrition information, comparing the use of simulated radio versus community leaders in transmitting the nutrition message, on willingness to pay, and to account for possible novelty effects in the magnitude of premiums or discounts. The estimation strategy also takes into account lexicographic preferences of a subset of our respondents. The results suggest that (a) orange maize is well liked and can compete with white maize in the absence of a nutrition campaign, (b) there is a premium for orange maize with nutrition information, and (c) the mode of nutritional-message dissemination does not have a large impact on consumer acceptance, and (d) novelty effects do not translate into higher willingness to pay for orange maize.

Suggested Citation

  • J. V. Meenakshi & Abhijit Banerji & Victor Manyong & Keith Tomlins & Priscilla Hamukwala & Nitya Mittal, 2010. "Using a Discrete Choice Experiment to Elicit the Demand for a Nutritious Food: Willingness-to-Pay for Orange Maize in Rural Zambia," Working papers 186, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:186
    as

    Download full text from publisher

    File URL: http://www.cdedse.org/pdf/work186.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2006. "Lexicographic Preferences in Discrete Choice Experiments: Consequences on Individual-Specific Willingness to Pay Estimates," Working Papers 2006.128, Fondazione Eni Enrico Mattei.
    2. De Groote, Hugo & Kimenju, Simon Chege, 2008. "Comparing consumer preferences for color and nutritional quality in maize: Application of a semi-double-bound logistic model on urban consumers in Kenya," Food Policy, Elsevier, vol. 33(4), pages 362-370, August.
    3. Tschirley, David L. & Santos, Ana Paula, 1995. "Who Eats Yellow Maize? Preliminary Results of a Survey of Consumer Maize Preferences in Maputo, Mozambique," Food Security International Development Working Papers 54697, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Lusk Jayson L & Schroeder Ted C., 2006. "Auction Bids and Shopping Choices," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-39, August.
    5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    6. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
    7. Muzhingi, Tawanda & Langyintuo, Augustine S. & Malaba, Lucie C. & Banziger, Marianne, 2008. "Consumer acceptability of yellow maize products in Zimbabwe," Food Policy, Elsevier, vol. 33(4), pages 352-361, August.
    8. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    9. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
    10. Stevens, Robyn & Winter-Nelson, Alex, 2008. "Consumer acceptance of provitamin A-biofortified maize in Maputo, Mozambique," Food Policy, Elsevier, vol. 33(4), pages 341-351, August.
    11. David Hensher & John Rose & William Greene, 2005. "The implications on willingness to pay of respondents ignoring specific attributes," Transportation, Springer, vol. 32(3), pages 203-222, May.
    12. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
    13. Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2006. "Lexicographic Preferences in Discrete Choice Experiments: Consequences on Individual-Specific Willingness to Pay Estimates," Working Papers 2006.128, Fondazione Eni Enrico Mattei.
    14. Avner Shaked & John Sutton, 1982. "Relaxing Price Competition Through Product Differentiation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(1), pages 3-13.
    15. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-1150, September.
    16. Gro Steine & Kari Kolstad, 2006. "Consumers' Willingness to Pay for the Color of Salmon: A Choice Experiment with Real Economic Incentives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1050-1061.
    17. Alfnes, Frode & Guttormsen, Atle G. & Steine, Gro & Kolstad, Kari, 2006. "Ajae Appendix: Consumers’ Willingness To Pay For The Color Of Salmon: A Choice Experiment With Real Economic Incentives," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(4), pages 1-8, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pedersen, Line Bjørnskov & Mørkbak, Morten Raun & Scarpa, Riccardo, 2020. "Handling resolvable uncertainty from incomplete scenarios in future doctors' job choice – Probabilities vs discrete choices," Journal of choice modelling, Elsevier, vol. 34(C).
    2. Murekezi, Abdoul & Oparinde, Adewale & Birol, Ekin, 2017. "Consumer market segments for biofortified iron beans in Rwanda: Evidence from a hedonic testing study," Food Policy, Elsevier, vol. 66(C), pages 35-49.
    3. Chowdhury, Reajul & Crost, Benjamin & Hoffmann, Vivian, 2022. "Marketing fortified rice: Effects of aspirational messaging and association with free distribution," Food Policy, Elsevier, vol. 112(C).
    4. Genie, Mesfin G. & Nicoló, Antonio & Pasini, Giacomo, 2020. "The role of heterogeneity of patients’ preferences in kidney transplantation," Journal of Health Economics, Elsevier, vol. 72(C).
    5. Wu, Linhai & Liu, Pingping & Chen, Xiujuan & Hu, Wuyang & Fan, Xuesen & Chen, Yuhuan, 2020. "Decoy effect in food appearance, traceability, and price: Case of consumer preference for pork hindquarters," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    6. Carrasco-Garcés, Moisés & Vásquez-Lavín, Felipe & Ponce Oliva, Roberto D. & Diaz Pincheira, Francisco & Barrientos, Manuel, 2021. "Estimating the implicit discount rate for new technology adoption of wood-burning stoves," Energy Policy, Elsevier, vol. 156(C).
    7. Belton, Cameron A. & Sugden, Robert, 2018. "Attention and novelty: An experimental investigation of order effects in multiple valuation tasks," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 103-115.
    8. Katherine P. Adams & Travis J. Lybbert & Stephen A. Vosti & Emmanuel Ayifah, 2016. "Using an economic experiment to estimate willingness-to-pay for a new maternal nutrient supplement in Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 47(5), pages 581-595, September.
    9. Knox, Stephanie A. & Viney, Rosalie C. & Gu, Yuanyuan & Hole, Arne R. & Fiebig, Denzil G. & Street, Deborah J. & Haas, Marion R. & Weisberg, Edith & Bateson, Deborah, 2013. "The effect of adverse information and positive promotion on women's preferences for prescribed contraceptive products," Social Science & Medicine, Elsevier, vol. 83(C), pages 70-80.
    10. Banerji, Abhijit & Birol, Ekin & Karandikar, Bhushana & Rampal, Jeevant, 2016. "Information, branding, certification, and consumer willingness to pay for high-iron pearl millet: Evidence from experimental auctions in Maharashtra, India," Food Policy, Elsevier, vol. 62(C), pages 133-141.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meenakshi, J. V. & Banerji, A. & Manyong, Victor & Tomlins, Keith & Hamukwala, Priscilla & Zulu, Rodah & Mungoma, Catherine, 2010. "Consumer acceptance of provitamin A orange maize in rural Zambia:," HarvestPlus working papers 4, International Food Policy Research Institute (IFPRI).
    2. Mohammed H. Alemu & Søren Bøye Olsen & Suzanne E. Vedel & John Kinyuru & Kennedy O. Pambo, 2016. "Integrating sensory evaluations in incentivized discrete choice experiments to assess consumer demand for cricket flour buns in Kenya," IFRO Working Paper 2016/02, University of Copenhagen, Department of Food and Resource Economics.
    3. Mohammed H. Alemu & Søren B. Olsen, 2017. "Can a Repeated Opt-Out Reminder remove hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products," IFRO Working Paper 2017/05, University of Copenhagen, Department of Food and Resource Economics.
    4. Banerji, A. & Chowdhury, Shyamal K. & de Groote, Hugo & Meenakshi, Jonnalagadda V. & Haleegoah, Joyce & Ewoo, Manfred, 2013. "Using elicitation mechanisms to estimate the demand for nutritious maize: Evidence from experiments in rural Ghana," HarvestPlus working papers 10, International Food Policy Research Institute (IFPRI).
    5. Mohammed H. Alemu & Søren B. Olsen & Suzanne E. Vedel & John N. Kinyuru & Kennedy O. Pambo, 2017. "Can insects increase food security in developing countries? An analysis of Kenyan consumer preferences and demand for cricket flour buns," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(3), pages 471-484, June.
    6. Wongprawmas, Rungsaran & Canavari, Maurizio, 2017. "Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand," Food Policy, Elsevier, vol. 69(C), pages 25-34.
    7. Kesternich, Iris & Heiss, Florian & McFadden, Daniel & Winter, Joachim, 2013. "Suit the action to the word, the word to the action: Hypothetical choices and real decisions in Medicare Part D," Journal of Health Economics, Elsevier, vol. 32(6), pages 1313-1324.
    8. Ana I. Sanjuán‐López & Helena Resano‐Ezcaray, 2020. "Labels for a Local Food Speciality Product: The Case of Saffron," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 778-797, September.
    9. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    10. Van Loo, Ellen J. & Caputo, Vincenzina & Lusk, Jayson L., 2020. "Consumer preferences for farm-raised meat, lab-grown meat, and plant-based meat alternatives: Does information or brand matter?," Food Policy, Elsevier, vol. 95(C).
    11. Celine Michaud & Daniel Llerena & Iragael Joly, 2013. "Willingness to pay for environmental attributes of non-food agricultural products: a real choice experiment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(2), pages 313-329, March.
    12. Mørkbak, Morten Raun & Olsen, Søren Bøye & Campbell, Danny, 2014. "Behavioral implications of providing real incentives in stated choice experiments," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 102-116.
    13. Fredrik Carlsson & Mitesh Kataria & Elina Lampi, 2010. "Dealing with Ignored Attributes in Choice Experiments on Valuation of Sweden’s Environmental Quality Objectives," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 65-89, September.
    14. Mohammed Hussen Alemu & Søren Bøye Olsen, 2020. "An analysis of the impacts of tasting experience and peer effects on consumers’ willingness to pay for novel foods," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 653-674, October.
    15. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    16. Moser, Riccarda & Raffaelli, Roberta & Notaro, Sandra, 2010. "The Role Of Production Methods In Fruit Purchasing Behaviour: Hypothetical Vs Actual Consumers’ Preferences And Stated Minimum Requirements," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116426, European Association of Agricultural Economists.
    17. Ozge Dinc‐Cavlak & Ozlem Ozdemir, 2021. "Comparing the willingness to pay through three elicitation mechanisms: An experimental evidence for organic egg product," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 782-803, October.
    18. Veettil, Prakashan Chellattan & Speelman, Stijn & Frija, Aymen & Buysse, Jeroen & van Huylenbroeck, Guido, 2011. "Complementarity between water pricing, water rights and local water governance: A Bayesian analysis of choice behaviour of farmers in the Krishna river basin, India," Ecological Economics, Elsevier, vol. 70(10), pages 1756-1766, August.
    19. Lim, Kar Ho & Ojha, Renu & Nayga, Rodolfo M. & Sullivan, Pauline, 2021. "The Heterogeneous Interaction Effect of Country-of-Origin to Seafood Eco-label," 2021 Annual Meeting, August 1-3, Austin, Texas 313867, Agricultural and Applied Economics Association.
    20. Fifer, Simon & Rose, John & Greaves, Stephen, 2014. "Hypothetical bias in Stated Choice Experiments: Is it a problem? And if so, how do we deal with it?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 164-177.

    More about this item

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    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:cde:cdewps:186. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sanjeev Sharma (email available below). General contact details of provider: https://edirc.repec.org/data/cdudein.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.