Identifying product attributes and consumer attitudes that impact willingness-to-pay for a nutraceutical-rich juice product

Lydia J.R. Lawless, Andreas Drichoutis, Rodolfo Nayga, Renee T. Threlfall and Jean-François Meullenet

MPRA Paper from University Library of Munich, Germany

Abstract: A non-hypothetical Becker–DeGroot–Marschak (BDM) auction-like mechanism was utilized to determine consumer characteristics, attitudinal factors, and product sensory attributes that affect willingness-to-pay (WTP) for a nutraceutical-rich juice blend (75%Concord+12%Pomegranate+13%Black Cherry). Participants (n=228) were recruited for a BDM mechanism that included four treatment groups: Info (received a potential health statement), Taste (evaluated the sensory attributes of the juice blend), InfoTaste (evaluated the sensory attributes of the juice blend and received the potential health statement), and Control (neither tasted nor received the potential health statement about the juice blend). As part of the post-auction questionnaire, participants completed incentivized risk and time preference survey tasks. The participants’ average WTP for the nutraceutical-rich juice blend was $3.45/bottle. Average overall liking for all participants for the nutraceutical-rich juice was 7.42 (on a 9-point scale), which indicated general consumer acceptance. The time preference coefficient (-8.87) indicated that higher time discount rates (lower future orientation) were associated with lower WTP within the Info group. Risk preference did not affect WTP. WTP increased by $0.25 for every unit increase in sweetness toward just-about-right (JAR) on the 5-point scale, $0.20 per every unit decrease in black cherry flavor toward JAR, and $0.29 per every unit decrease in bitterness toward JAR. Non-hypothetical WTP mechanisms offer realistic valuations and alternative insights about consumers and products.

Keywords: experimental auction; risk aversion; time preference; just about right; willingness to pay; optimization (search for similar items in EconPapers)
JEL-codes: D12 I0 (search for similar items in EconPapers)
Date: 2012-06-15, Revised 2014-01-18
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