Home Cooking and Willingness to Pay: Local Blueberry Pancake, Muffin, and Banana Bread Mixes in a Take-and-Bake Experiment

Yves T. Ilunga, Timothy Woods (), Marvin Batte and Samane Zarebanadkoki

No 230289, 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas from Southern Agricultural Economics Association

Abstract: This article explores measurable factors that influence consumers’ willingness to pay for locally produced blueberry mixes: Pancake mix, Muffin mix and Banana Bread mix. The innovative aspect of this study is the experiential take-and-bake experiment survey used in order to evaluate consumers’ willingness to pay for the product. A survey, along with two of the three recipes – dry mixes to be combined with locally grown frozen fruit - was distributed to potential consumers at diverse locations of study. Participants were instructed to prepare the products at home, sample the prepared product and then evaluate the product and process. Sensory and preparation experience attributes for each recipe were considered as potential variables influencing overall WTP, including previous cooking experience for similar products, watching the Food Network, and related shopping choices. The post-preparation survey used a payment card approach to elicit WTP for each product tried as well as the hypothetical third product not tried. A total of 101 out of 102 participants (99.01%) completed the process and returned the survey. Average WTP for the blueberry pancake mix was $3.45, muffin mix $3.25, and the banana-blueberry bread $3.39. The estimate regression of Censored Tobit model of WTP suggests Trial of one product out of three is significant and Age of participant also is significant. The positive correlation of some variables estimate Trial, Baking of Blueberries Experience, Education, Income, Gender (Male), and Watching Food Network showed that these factors have positive effect on WTP for some products. The paper develops the WTP models and also examines the experience versus the hypothetical effects on stated WTP. The results provide some measure of market opportunity, suggest positioning strategies, and also suggest strong returns to home trial marketing incentives for these products.

Keywords: Community/Rural/Urban Development; Consumer/Household Economics; Marketing (search for similar items in EconPapers)
Pages: 8
Date: 2016-01-06
New Economics Papers: this item is included in nep-dcm, nep-exp and nep-pr~
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea16:230289

DOI: 10.22004/ag.econ.230289

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