Wuyang Hu

Consumer Acceptance and Willingness to Pay for Blueberry Products with Nonconventional Attributes

Consumer acceptance and willingness to pay for three nonconventional attributes associated with six processed blueberry products was examined through an in-store conjoint experiment survey. Both credence and experience attributes were considered, including whether the products were produced locally, and whether they were organic or sugar-free. The results indicate heterogeneity in consumer preference and willingness to pay for different attributes across product categories. Local products and organic formulations generally received positive willingness to pay across all products. This information has implications for blueberry growers and retailers who are trying to create and position value-added products for maximum revenue.

Assessing Consumer Willingness to Pay for Value-Added Blueberry Products Using a Payment Card Survey

This study offers insights on consumer acceptance and willingness to pay for three value-added blueberry products. A modified payment card approach was used. The analytical framework adopted allows the researcher to attach straightforward economic interpretation to the estimated impacts of willingness to pay factors. Results show consumer socio-economic characteristics are important determinants but play different roles depending on the products. Information on health benefits may also be important. However, it is found that outside information or consumer self-stated awareness of blueberries’ health benefits have different impacts. These impacts may function as substitutes rather than complements to each other.

Risk Perceptions, Social Interactions and the Influence of Information on Social Attitudes to Agricultural Biotechnology

We assess Canadian’s risk perceptions for genetically modified (GM) food and probe influences of socio-economic, demographic and other factors impinging on these perceptions. An internet-administered questionnaire with two stated choice split-sample experiments that approximate market choices of individual grocery shoppers is applied to elicit purchase behavior from 882 respondents across Canada. Data are collected to assess the influence on respondents’ choices for a specific food product (bread) of 1) product information which varies in content and by source and 2) information provided through labeling. These data also enable: a) analysis of trade-offs made by consumers between possible risks associated with GM ingredients and potential health or environment benefits in food and b) assessment of influences on respondents’ search for/access of product information. We rigorously document the extent and type of variation in Canadian consumers’ attitudes and risk perceptions for a selected GM food. This is pursued in analysis of experiment 1) data using a latent class model to analyze 445 consumers’ choices for bread products. We identify four distinct groups of Canadian consumers: 51% (value seekers) valued additional health or environmental benefits and were indifferent to GM content; traditional consumers (14 %) preferred their normally-purchased food; fringe consumers (4%) valued the health attribute and could defer consumption. Another 32 % (anti-GM) strongly opposed GM ingredients in food irrespective of introduced attributes. Thus there is a dichotomy in Canadian attitudes to GM content in food: a small majority of the sample (55 per cent) perceive little or no risk from GM food, but this is strongly opposed by 46% of respondents. Differences in gender, number of children in the household, education, and age are associated with the likelihood of segment membership. We also report on the search for information on characteristics of the GM food by a sample of 445 respondents with opportunity for voluntary access to related information through hyperlinks in the survey. Slightly less than half actually sought such information. Gender, employment status, rural or urban residency and the number of children in the household all affected the probability that respondents would access information. A further research component examines product choices made in the context of two common GM labeling policies: mandatory and voluntary labeling. We find these two types of strategies to have distinctive impacts on consumers and on measures of social welfare. Knowledge of these may help policy makers to make more informed analyses of the alternative labeling policies. Specific findings also provide base-line measures of Canadians’ attitudes to risks of GM technology in the context of food and environmental risks, as well as documenting the importance of context influences and reference points on consumers’ preferences for GM food. We also develop methodological improvements for accurately estimating the value of information on a negative attribute. The project built upon initial findings from a previous AARI project (#AARI Project #2000D037) and is complemented by research supported through a Genome Prairie GE3LS (Genetics, Ethics, Environment, Economics, Law and Society) project: “Commercialization and society: its policy and strategic implications.”

Logit models: smallest versus largest extreme value error distributions

The general term ‘type I extreme value distribution’ underlying the logit model is not fully precise. Through a case study, this study compares two models based on the distribution – one with the smallest specification and one with the largest. Results show these two models are different.

Consumer cluster analysis and demand for blueberry jam attributes.

Using a recent in-store stated choice survey, this study examines consumer preference and willingness to pay for blueberry jam with quality attributes not commonly seen on the market. A cluster analysis is first adopted to classify consumers into different groups based on a large number of consumer characteristic variables. A spilt sample analysis is conducted under each cluster and results indicate that consumers behave differently in separate clusters and the derived economic values associated with each attribute also depend on cluster membership.

Product information and Chinese consumers’ willingness-to-pay for fair trade coffee

Purpose - – The purpose of this paper is to investigate Chinese consumers’ willingness-to-pay (WTP) for fair trade coffee given different amount of product information. Although coffee is becoming more popular in China, the concept of fair trade is often found unfamiliar to most Chinese consumers. Design/methodology/approach - – A total of 564 consumers were interviewed in Hubei, China. The key survey question asked consumers’ willingness to purchase a cup of fair trade coffee compared to a traditional cup of coffee. A modified payment card approach was used to elicit WTP. Before answering the purchase question, respondents were randomly assigned to one of three different information scenarios: basic definition, impact on sustainability and the environment, and information including both environmental and social implications. Findings - – Results indicated that consumers were generally willing to pay additional amount for fair trade coffee. Information played an important role in determining what types of consumers were responsive to fair trade coffee. Furthermore, the amount of information provided and consumer WTP did not follow a linear relationship. Practical implications - – Results obtained in this study are useful for coffee marketers to better target their promotion strategies. Originality/value - – In contrast to Chinas fast growing coffee market, little is known about consumer preferences and far less on fair trade coffee. This study is the first of its kind to understand Chinese consumers’ preferences for coffee in general and for fair trade coffee in specific.

Residents' willingness-to-pay for attributes of rural health care facilities.

CONTEXT As todays rural hospitals have struggled with financial sustainability for the past 2 decades, it is critical to understand their value relative to alternatives, such as rural health clinics and private practices. PURPOSE To estimate the willingness-to-pay for specific attributes of rural health care facilities in rural Kentucky to determine which services and operational characteristics are most valued by rural residents. METHODOLOGY We fitted choice experiment data from 769 respondents in 10 rural Kentucky counties to a conditional logit model and used the results to estimate willingness-to-pay for attributes in several categories, including hours open, types of insurance accepted, and availability of health care professionals and specialized care. FINDINGS Acceptance of Medicaid/Medicare with use of a sliding fee scale versus acceptance of only private insurance was the most valued attribute. Presence of full diagnostic services, an emergency room, and 24-hour/7-day-per-week access were also highly valued. Conversely, the presence of specialized care, such as physical therapy, cancer care, or dialysis, was not valued. In total, respondents were willing to pay

Recreational Demand for Equestrian Trail-Riding

225 more annually to support a hospital relative to a rural health clinic. CONCLUSION Rural Kentuckians value the services, convenience, and security that rural hospitals offer, though they are not willing to pay more for specialized care that may be available in larger medical treatment centers. The results also inform which attributes might be added to existing rural health facilities to make them more valuable to local residents.

Values for Recreational Beach Quality in Oahu, Hawaii

Using data collected from a combination of on-site and on-line surveys, this study examines recreational demand for equestrian trail-riding in Kentucky. A truncated, negative binomial regression is applied to analyze individuals’ visitation behavior consistent with a travel cost model. Results suggest that distance is the most significant determinant of average annual visits to a particular site. Various trail site characteristics, such as trail length, scenic overlooks, and trail markers, affect the number of visits an individual takes. Geographic information system (GIS) analysis permits the identification of equestrian population centers. Information obtained from this study offers a decision base for policymakers to use to manage existing equestrian trails and locate new ones.

Willingness to Pay for Broadband Access by Kentucky Farmers

ABSTRACT Pristine coastal environments are the key to Hawaiis worldwide fame and attraction to tourists, yet their economic value remains understudied. This article examines preferences for characteristics associated with beach recreation in Oahu, Hawaii, among residents and tourists. Consideration is given to sand quality, water quality, congestion levels, and swimming safety conditions in the context of a choice experiment. The choice experiment conveys attribute levels almost entirely through pictures, and results suggest that this novel portrayal is well understood by respondents. Excessive congestion and water quality are regarded as the most important beach attributes, specifically the avoidance of poor water quality in favor of a chance to experience excellent water quality. Some evidence suggests that significantly different willingness to pay (WTP) exists among residents and tourists on Oahu with poor water quality and excellent water quality being more important to tourists, while residents place greater value on avoiding excessive congestion. JEL Codes: Q25, Q26.