Consumer willingness to pay for vanilla using contingent valuation analysis

Abstract

Objective: To show the willingness to pay a premium for vanilla from the Totonacapan region through contingent valuation analysis for the strengthening of vanilla in the local market. Design/methodology/approach: To contingent valuation methodology (CV) was followed to estimate the WTP, based on consumer surveys in the Totonacapan region. The information analysis was carried out by the XLSTAT 2019 software through logistic regression of the willingness to pay data in a binary response with a confidence interval of 95% and with 100 iterations, and maximization of the likelihood function with the Newton-Raphson algorithm. Results: The results indicate that 55.63% of the consumers agree that certification increases the potential to pay a premium; the accessibility of vanilla is important for 66.56% of consumers; previous experience with the brands and product behavior is paramount for 56.95% of all consumers; regarding the origin of vanilla, it is important for 65.23% of consumers. Findings/conclusions: Production by small-scale local producers is an appreciated quality because it is related with the symbolic dimension and is appreciated by 68.54% of consumers.