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Consumers’ willingness to pay for dairy products: what the studies say? A Meta-Analysis

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  • Ngoulma, Jeannot
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    Willingness to pay (WTP) and consumer’s preferences for dairy products (milk, yogurt, butter and cheese) have attracted attention of researchers. Therefore, several studies have focused on the question of the measure of WTP for these different products. However, these studies found a value of WTP, which is positive or negative between different dairy products, or through the same types of products. We conduct a meta-analysis with the aim to observe the different factors, which can explain the variations of the results of the studies. Therefore, we selected 21 studies (corresponding to 142 observations) which estimates the WTP of consumers for dairy products. A geographical Indication (GI), a Bio label or other signs of quality, differentiates these products. As results, we found that on average, label’s effect is an important quality signal for surveyed consumers. Indeed, GI and Bio label on average increase the WTP of consumers for dairy products. Then, we highlighted that European consumers have an average of positive WTP for dairy products and this result is quite pronounced for French consumers. On the other hand, consumers seem to have a higher WTP for products derived from cow's milk and goat's milk. Finally, among dairy products, cheese has on average a negative and highly significant WTP. These results remain robust, that we use a sample consumer’s (conjoint analysis, auction, choice experiment, etc.) or a sample prices (hedonic price method), even after withdrawal of outliers. We concluded that the case of the cheese deserves more attention due to the particularity of consumer’s WTP for this type of dairy product.

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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 65250.

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    Date of creation: 24 Jun 2015
    Handle: RePEc:pra:mprapa:65250
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