24pgs, Increasingly, the health claims made by food products focus on the marketing of specific molecular enrichments. Research exploring consumers’ willingness to pay (WTP) for health claims assumes that individuals hold perfect information on the benefits of the enrichment, and that their valuations depend solely on whether or not they need to improve their health. While health interventions are aimed at individuals at higher health risk, consumers may be unaware of the health risks that they face, limiting the effectiveness of a generic targeting strategy. Using an orthogonal experimental design, we explore the impact of two factors on the WTP for vitamin D enrichment in eggs: whether the information is person-specific or generic; and the presence of a health claim explaining the vitamin D enrichment. Results indicate that it is the provision of information, not the health claim, that influences WTP. Both generic and personalised information lead to similar increases in the WTP for vitamin D enrichment. While we only observe a direct effect of generic information on the WTP for vitamin D enrichment, personal information may also operate by increasing the perceived risk of vitamin D deficiency. Our results support the use of personalised health information during the choice task as a means of increasing the sales of healthy products.
15pgs, Research has suggested to not solely include cognitive processes but also affective processes in economic choice modeling. Studying Medjool dates, we conducted a laboratory experiment combining choice experiments and eye-tracking to account for cognitive processes. In addition, participants indicated their level of worry related to production practices to account for affective processes. Our results show that consumers worry more about pesticide residues than genetic modification in foods. They also pay more attention to labels related to these production practices compared to other labels; and the production practice labels received the highest willingness to pay (WTP). Results from linear regressions show that both cognitive and affective processes are associated with WTP. Especially in the full model for WTP for pesticide-free labeling an increase of attention by 1 s increases WTP on average by $0.10 and an increase of the level of worry from one category to the next increases WTP on average by $0.17. Overall, results show that including both cognitive and affective processes as explanatory variables is important when determining factors associated with WTP.
13 pages, In Ghana, groundwater, accessed through wells and boreholes, is generally unregulated and may be contaminated with pollutants including excess nitrates from agricultural chemical fertilizers. Yet, studies estimating how clean groundwater is valued are not available in Ghana. In addition, some research suggests that the pre-experiment information provided to survey respondents affects their valuation of an identical outcome. This paper estimates smallholder farmers’ preferences for groundwater protection using pre-experiment information focused on one of two outcomes: environment or health. The double-bounded contingent valuation (DBCV) approach is used to estimate willingness to pay (WTP) to protect groundwater quality. The estimation accounts for shift and anchoring effects, which are common issues with the DBCV method. The mean WTP from the health (environmental) information subsample is about US$19 (US$17) per acre, and the values are significantly different between the information conditions. The findings shed light on the importance of using precise information in eliciting WTP in a developing country setting.
USA: College of Agricultural, Consumer and Environmental Sciences, University of Illinois at Urbana-Champaign.
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 202 Document Number: D12123
Notes:
Via online research summary. 4 pages., Summary of a research project among rural and urban residents in the Upper Sangamon River Watershed in central Illinois to learn how much people care about local water quality, fish populations, and algae blooms, and how much they care about meeting Environmental Protection Agency targets which benefit the Gulf of Mexico. Responses indicated that rural and urban residents value efforts to reduce watershed pollution and are willing to pay for environmental improvements.
Online via https://newprairiepress.org/jac, Authors identified five labels related to animal welfare that are frequently found on food packages in USA grocery stores Results of a controlled online experiment among consumers showed that while most consumers lacked knowledge regarding meaning of the labels and certification standards, they relied on the labels with simplistic terms as heuristic cues to judge the ethical treatment of hens on the farm. The selected labels did not lead consumers to pay a higher premium for the labeled products.
9 pages, This study assessed crop farmers’ willingness to pay for AESs and identified factors influencing their willingness to pay for AESs. Data were collected from 292 randomly selected crop farmers’ households between December 2017 and February 2018 using a questionnaire through face-to-face interviews. Data were analyzed using frequency counts, percentages and Tobit regression model. The study found that 92% of the respondents are willing to pay for AESs. It was also found that farmer’s age, education attainment, farming experience, distance from farm to the nearest important road, income (both farm and nonfarm) and attitude towards AESs are significant determinants of farmers willingness to pay for AESs. The study recommends that these variables be given proper policy consideration by the government and other stakeholders in the design and the implementation of a workable fashion of privatizing extension services for the expected impact of improving extension services and farmers’ productivity hence improved quality of life.
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 136 Document Number: D11434
Notes:
5 pages., Online from FMI Foundation., This report summarizes findings of an online survey distributed to 2,000 U.S. egg/chicken consumers with demographics representing the U.S. population. Findings indicated that "price is a significant driver for the majority of consumers, that consumer response is sensitive to information provided about cage-free production practices, and that willingness-to-pay for cage-free eggs changes in the presence of other label attributes."
29 pages., Findings of a survey among consumers indicated that consumers recognize different kinds of functional foods, are willing to pay a premium for their purchase, and perceive possible health value. However, they appeared anxious about the health benefits these foods communicate in their labels.
14 pages., Online via UI electronic subscription., Examines the impact of gain and loss message framing and issue involvement elicitation on consumer willingness to pay for two food safety enhancing technologies: cattle vaccines against E. coli and direct-fed microbials. Results showed strong consumer preference and willingness to pay for the technologies and consumer welfare gains from their introduction.
