Consumers' willingness to pay for conventional, organic and functional yogurt: Evidence from experimental auctions

Riccardo Vecchio*, Ellen J. Van Loo, Azzurra Annunziata

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

51 Citations (Scopus)

Abstract

This research is aimed at investigating consumers' willingness to pay (WTP) for conventional, organic and functional yogurts in two different information treatments. The basic information treatment provided respondents with yogurts labelled conventional, organic or functional while the second treatment included additional information. To elicit values for these specific products, 100 Italian consumers participated in an experimental auction using the Vickrey fifth-price sealed-bid mechanism. Findings reveal that providing additional information through a specific health claim increases consumer's perceived value of the functional yogurt, while for the organic counterpart additional information on organic regulation does not add much to the premium. Moreover, our study shows that specific socio-demographic variables (as gender, age, presence of kids in the household and the need to follow a specific diet) positively affect WTP for functional and organic yogurts.

Original languageEnglish
Pages (from-to)368-378
Number of pages11
JournalInternational Journal of Consumer Studies
Volume40
Issue number3
DOIs
Publication statusPublished - May 2016
Externally publishedYes

Keywords

  • Experimental auctions
  • Organic food
  • Willingness-to-pay
  • Yogurt: functional food

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