Estimating Price Premiums for Breads Marketed as “Low-Carbohydrate Breads”

Consumer willingness to pay for healthier food products: A systematic review

“…Most of the experiments were conducted in Spain ( n = 10) 28 , 39 , 43 , 44 , 46 and the USA ( n = 5). 42 , 47 , 48 , 50 , 51 Another three experiments took place in the UK, 29 , 39 two in Peru, 41 while the remainder (one each) were from Australia, 40 Italy, 45 South Korea, 49 France, 29 Belgium, 29 and Netherlands. 29 In 10 experiments, the choice tasks were conducted online, 29 , 39 , 40 , 42 while one DCE survey was delivered by mail and completed in the participant's home.…”

“… 43 One experiment used sales data obtained from grocery and non‐grocery stores to estimate consumer WTP. 51 In the vast majority of experiments (92%), the target population was aged 18 years or older and the primary household shopper or food consumer. 28 , 29 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 48 , 49 , 50 One experiment assessed youth (10–18 years) WTP for whole grain snacks with either fruit or vegetables.…”

“…Most of the experiments (25 of 26) 28 , 29 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 used stated preference methods to elicit consumer WTP for healthier foods, and only one experiment used the revealed preference method of hedonic pricing. 51 Twenty two of the 25 experiments that used stated preference methods were DCEs or conjoint analyses, while the other three used contingent valuation 41 , 47 and experimental auctions. 43 Only 5 of the 15 studies 28 , 29 , 39 , 40 , 44 included in this review reported that their WTP questions were piloted.…”

“… 50 Also, studies that were conducted at a national level 29 , 39 , 40 had a larger sample size than studies that were conducted at the city level or in specific settings such as in supermarket, home, or university campus. The experiment by Nganje et al 51 did not involve participants directly and instead used sales data (681 observations) to estimate consumer WTP.…”

“…All the included experiments reported the incremental monetary value and/or percentage price (increase or decrease) customers would pay for healthier products. Twenty‐three experiments (88.5%) 29 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 49 , 50 , 51 showed that consumers would pay a price premium for healthier products compared to less healthy alternatives (positive WTP), two experiments showed negative WTP results, 28 , 48 and in one experiment, the results were inconclusive. 44 In the 23 (88.5%) experiments that showed positive WTP, consumers were willing to pay a price premium of between 5.6% and 91.5% (mean 30.74%) for healthier products compared to conventional (regular) alternatives.…”