Hostname: page-component-586b7cd67f-dlnhk Total loading time: 0 Render date: 2024-11-25T20:55:35.670Z Has data issue: false hasContentIssue false
  • English
  • Français

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

Published online by Cambridge University Press:  26 January 2015

Wuyang Hu ,
Timothy Woods ,
Sandra Bastin ,
Linda Cox  and
Wen You
Wuyang Hu
Affiliation:
Department of Agricultural Economics, University of Kentucky, Lexington, KY
Timothy Woods
Affiliation:
Department of Agricultural Economics, University of Kentucky, Lexington, KY
Sandra Bastin
Affiliation:
Department of Nutrition and Food Science, University of Kentucky, Lexington, KY
Linda Cox
Affiliation:
College of Tropical Agriculture and Human Resources, University of Hawaii at Manoa, Honolulu, HI
Wen You
Affiliation:
Department of Agricultural and Applied Economics, Virginia Tech, Blacksburg, VA
Get access Rights & Permissions [Opens in a new window]

Abstract

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.

Keywords

blueberrypayment card contingent valuationvalue-addedwillingness to payD12Q13
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 43 , Issue 2 , May 2011 , pp. 243 - 258
Copyright
Copyright © Southern Agricultural Economics Association 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Amo, K. Taking Value-Added Foods to Market. Blethen Maine Newspapers Inc., April 13, 2005. Internet site: http://business.mainetoday.com/selfemployment/savvy/050413foodmakers.shtml (Accessed April 10, 2007).Google Scholar
Baer, A.G., and Brown, C. “Adoption of E-Marketing by Direct Market Farms in the Northeastern U.S.” Selected Paper, American Agricultural Economics Association Annual Meeting, Long Beach, CA, July 23-26, 2006.Google Scholar
Brox, J.A., Kumar, R.C., and Stollery, K.R. “Estimating Willingness to Pay for Improved Water Quality in the Presence of Item Nonresponse Bias.” American Journal of Agricultural Economics 85(2003):414–28.10.1111/1467-8276.00130Google Scholar
Cameron, T.A. “The Impact of Grouping Coarseness in Alternative Grouped-Data Regression Models.” Journal of Econometrics 35(1987):37–57.10.1016/0304-4076(87)90080-7Google Scholar
Cameron, T.A., and Huppert, D.D. “Referendum Contingent Valuation Estimates: Sensitivity to the Assignment of Offered Values.” Journal of the American Statistical Association 86(1991): 910–18.10.1080/01621459.1991.10475131Google Scholar
Carriquiry, M., and Babcock, B.A. “Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry.” American Journal of Agricultural Economics 89(2007): 12–23.10.1111/j.1467-8276.2007.00959.xGoogle Scholar
Cowan, T. Value-Added Agricultural Enterprises in Rural Development Strategies. Report for Congress, Congressional Research Service RL 31598. 2002. Internet site: http://bennelson.senate.gov/documents/CRS/Agriculture/CRS_AddedValueEnterprises.pdf (Accessed November 1, 2007).Google Scholar
Cummings, R.G., and Taylor, L.O. “Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method.” The American Economic Review 89(1999):649–65.10.1257/aer.89.3.649Google Scholar
Ehmke, M.D., Warziniack, T., Schroeter, C., and Morgan, K. “Applying Experimental Economics to Obesity in the Family Household.” Journal of Agricultural and Applied Economics 40(2008): 539–49.S1074070800023828Google Scholar
Ellerman, J., McFeeters, D., and Fox, J. “Direct Marketing as a Value-Added Opportunity for Agriculture” Fact Sheet AE-8-01. Ohio State University, 2001.Google Scholar
Erickson, K.W., Blank, S.C., Moss, C.B., and Mishra, A.K. “Regional Changes in the Distribution of Net Value Added in U.S. Agriculture, 1960-2002.” Selected Paper, Western Agricultural Economics Association Annual Meeting, Honolulu, HI, June 30-July 2, 2004.Google Scholar
Ernst, M. and Woods, T. “Marketing Highbush Blueberries in Kentucky” University of Kentucky Cooperative Extension Service publication AEC-EXT 2004-01. University of Kentucky, 2004.Google Scholar
Giannakas, K., and Yiannaka, A. “Market and Welfare Effects of Second-Generation, Consumer-Oriented GM Products.” American Journal of Agricultural Economics 90(2008):152–71.10.1111/j.1467-8276.2007.01053.xGoogle Scholar
Hobbs, J.E., Bessell, K.M., and Kerr, W.A. “Food Safety and Private International Law: Liability, Traceability and Transboundary Marketing.” Journal of International Food & Agribusiness Marketing 18(2006):7–13.10.1300/J047v18n03_02Google Scholar
Hu, W. “Use of Spike Models in Measuring Consumers' Willingness to Pay for Non-GM Oil.” Journal of Agricultural and Applied Economics 38(2006):525–38.S1074070800022598Google Scholar
Hu, W., Adamowicz, W.L., and Veeman, M.M. “Labeling Context and Reference Point Effects in Models of Food Attribute Demand.” American Journal of Agricultural Economics 88(2006): 1034–49.10.1111/j.1467-8276.2006.00914.xGoogle Scholar
Hu, W., Woods, T.A., and Bastin, S. “Consumers' Acceptance and Willingness to Pay for Blueberry Products with Non-conventional Attributes.” Journal of Agricultural and Applied Economics 41(2009): 1–14.Google Scholar
Hu, W., Zhong, F., and Ding, Y. “Actual Media Reports on GM and Chinese Consumers' Willingness to Pay for GM Soybean Oil.” Journal of Agricultural and Resource Economics 31(2006): 376–90.Google Scholar
Huffman, W., Rousu, M., Shogren, J.F., and Tegene, A. “The Effects of Prior Beliefs and Learning on Consumers' Acceptance of Genetically Modified Foods.” Journal of Economic Behavior & Organization 63(2007): 193–206.10.1016/j.jebo.2005.04.019Google Scholar
Huygen, I., Veeman, M., and Lerohl, M. “Cost Implications of Alternative GM Tolerance Levels: Non-Genetically Modified Wheat in Western Canada.” AgBioForum 6(2004): 169–77.Google Scholar
Krinsky, I., and Robb, A. “On Approximating the Statistical Properties of Elasticities.” The Review of Economics and Statistics 68(1986):715–19.10.2307/1924536Google Scholar
Lapan, H., and Moschini, G. “Grading, Minimum Quality Standards, and the Labeling of Genetically Modified Products.” American Journal of Agricultural Economics 89(2007):769–83.10.1111/j.1467-8276.2007.01002.xGoogle Scholar
Lessler, J., and Kalsbeek, W.D. Nonsampling Error in Surveys. New York: John Wiley & Sons, 1992.Google Scholar
Lusk, J.L., and Parker, N. “Consumer Preferences for Amount and Type of Fat in Ground Beef.” Journal of Agricultural and Applied Economics 41(2009):75–90.S107407080000256XGoogle Scholar
Mancino, L., and Kinsey, J. “Diet Quality and Calories Consumed: The Impact of Being Hungrier, Busier and Eating Out.” Working Paper 04-22, The Food Industry Center, University of Minnesota, 2004.Google Scholar
McKee, G.J. “The Development, Operation, and Dissolution of a Value-Added Cooperative: United Sprint Wheat Processors” Agribusiness and Applied Economics Report No. 594, North Dakota State University, 2006.Google Scholar
Mitchell, R.C., and Carson, R.T. Using Surveys to Value Public Goods: The Contingent Valuation Method. Washington, D.C.: Resources for the Future, 1989.Google Scholar
Puaha, H., and Tilley, D.S. “Investment Decisions in New Generation Cooperatives: A Case Study of Value Added Products (VAP) Cooperative in Alva, Oklahoma.” Selected Paper, Southern Agricultural Economics Association Annual Meeting, Mobile AL, February 1-5, 2003.Google Scholar
Roe, J.D. “Value Added What??…Horizontal versus Vertical Expansion in Iowa Production Agriculture.” Selected Paper, American Agricultural Economics Association Annual Meeting, Providence RI, July 24-27, 2005.Google Scholar
Rousu, M., Huffman, W., Shogren, J.F., and Tegene, A. “Effects and Value of Verifiable Information in a Controversial Market: Evidence from Lab Auctions of Genetically Modified Food.” Economic Inquiry 45(2007):409–432.10.1111/j.1465-7295.2007.00017.xGoogle Scholar
Singletary, K.W., and Morganosky, M.A. “Functional Foods: Consumer Issues and Future Challenges.” Journal of Food Distribution Research 35(2004): 1–5.Google Scholar
Smith, T.A., Huang, C.L., and Lin, B.-H. “Does Price or Income Affect Organic Choice? Analysis of U.S. Fresh Produce Users.” Journal of Agricultural and Applied Economics 41(2009):731–44.S1074070800003187Google Scholar
Sumberg, J., and Reece, D. “Agricultural Research through a ‘New Product Development’ Lens.” Experimental Agriculture 40(2004):295–314.10.1017/S0014479704002030Google Scholar
US Highbush Blueberry Council. Nutrition. 2002. Internet site: http://www.blueberry.org/health.htm (Accessed November 16, 2007).AMBIGUOUS (245 citations)Google Scholar