Consumers’ Willingness to Pay for Food with Information on Animal Welfare, Lean Meat Essence Detection, and Traceability

Lingling Xu, Xixi Yang, Linhai Wu, Xiujuan Chen, Lu Chen and Fu-Sheng Tsai
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Lingling Xu: Institute for Food Safety Risk Management, School of Business, Jiangnan University, Wuxi 214122, China
Xixi Yang: Institute for Food Safety Risk Management, School of Business, Jiangnan University, Wuxi 214122, China
Linhai Wu: Institute for Food Safety Risk Management, School of Business, Jiangnan University, Wuxi 214122, China
Xiujuan Chen: Institute for Food Safety Risk Management, School of Business, Jiangnan University, Wuxi 214122, China
Lu Chen: School of Humanity and Law, Northeast Agricultural University, Haerbin 150030, China
Fu-Sheng Tsai: Department of Business Administration, Cheng Shiu University, Kaohsiung 83347, Taiwan

IJERPH, 2019, vol. 16, issue 19, 1-22

Abstract: Amid high-profile food scares, health concerns and threats of information imperfection and asymmetry, the Chinese pork industry faces increasing demands from consumers for assurances regarding quality and production methods in both the domestic and export markets. Using a real choice experiment (RCE), 316 consumers in Wuxi, located in China’s Jiangsu Province, were randomly surveyed to examine the impact of various factors (e.g., traceability, lean meat essence testing, animal welfare, appearance, and price) on consumers’ preference and willingness to pay (WTP) for pork products. A random parameter logit model was estimated, and the results show that having a traceable code is the second important factor after price for consumers, corresponding to a WTP of 4.76 yuan per catty, followed by a bright red appearance, a national stocking density standard of animal welfare, and detected no lean meat essence, corresponding to a WTP of more than 2 yuan per catty. In addition, there is a complementary interrelationship between a traceable code and a bright red appearance, detected no lean meat essence, and a national stocking density standard of animal welfare. The results concerning the latent class model (LCM) indicate that 56.9% of consumers are “quality-focused” consumers who are willing to pay a high price for traceable code, detected no lean meat essence, a national stocking density standard of animal welfare, and bright red appearance attributes. A further 28.1% are “price-sensitive” consumers who pay significant attention to the price, and the price that they pay for each product is meagre. The consumers with “preference combination attributes” attach greater value to interaction attributes, such as a traceable code combined with detected no lean meat essence or a bright red appearance and detected no lean meat essence combined with a national stocking density standard of animal welfare or a bright red appearance, accounting for 15% of consumers. The government should improve the traceability system, increase the intensity of lean meat essence testing, promote the welfare level of pigs, and promote public education and publicity on pork quality and safety attributes. Meanwhile, enterprises can formulate “differentiated” pork products, according to different consumer groups, and appropriately increase prices, according to production costs, in order to meet the requirements for pork quality and safety for consumers.

Keywords: consumer; willingness to pay; pork; real choice experiment; China (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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