Factors Affecting Consumer Choice and Willingness to Pay for Milk Attributes

Daria J. Bernard and Alan Mathios

No 19366, 2005 Annual meeting, July 24-27, Providence, RI from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This study used weekly scanner data to determine within the milk market the factors that affect consumer choice of non-rBST and organic products and the implications for the development of niche markets. This was accomplished by first understanding what product attributes affected demand for milk and then determining how much consumers were willing to pay for these attributes. The former was done within the multinomial logit framework while the latter used the hedonic price model to infer WTP. Results showed the price effect for rBST-free was the largest while the price effect for organic was the smallest and that consumers were willing to pay more for both rBST-free and organic milk compared to conventionally produced milk.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Pages: 34
Date: 2005
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea05:19366

DOI: 10.22004/ag.econ.19366

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