The preference for sustainable coffee and a new approach for dealing with hypothetical bias

Wuepper, David; Clemm, Alexandra; Wree, Philipp

doi:10.1016/j.jebo.2018.12.012

Cited by 36 publications

(24 citation statements)

References 48 publications

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“…[50,51]). For example, some studies have found that WTP estimates are subject to hypothetical bias [52,53], meaning that individuals overstate how much they would pay compared to a real situation. This could be a reason that the WTPs measured here exceed previous estimates of the amounts spent on programmes in reality [16,21].…”

Section: Discussionmentioning

confidence: 99%

Measuring commissioners’ willingness-to-pay for community based childhood obesity prevention programmes using a discrete choice experiment

et al. 2020

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Background In the UK, rates of childhood obesity remain high. Community based programmes for child obesity prevention are available to be commissioned by local authorities. However, there is a lack of evidence regarding how programmes are commissioned and which attributes of programmes are valued most by commissioners. The aim of this study was to determine the factors that decision-makers prioritise when commissioning programmes that target childhood obesity prevention. Methods An online discrete choice experiment (DCE) was used to survey commissioners and decision makers in the UK to assess their willingness-to-pay for childhood obesity programmes. Results A total of 64 commissioners and other decision makers completed the DCE. The impact of programmes on behavioural outcomes was prioritised, with participants willing to pay an extra £16,600/year if average daily fruit and vegetable intake increased for each child by one additional portion. Participants also prioritised programmes that had greater number of parents fully completing them, and were willing to pay an extra £4810/year for every additional parent completing a programme. The number of parents enrolling in a programme (holding the number completing fixed) and hours of staff time required did not significantly influence choices. Conclusions Emphasis on high programme completion rates and success increasing children’s fruit and vegetable intake has potential to increase commissioning of community based obesity prevention programmes.

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Section: Discussionmentioning

confidence: 99%

Measuring commissioners’ willingness-to-pay for community based childhood obesity prevention programmes using a discrete choice experiment

et al. 2020

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“…The lack of evaluation tools has become a major barrier to policy-making [50]. For example, field experiments have questioned the credibility of the effects of sustainability labels [9]. However, the field environment is also much noisier, and habitual decision making is not fully accounted for in previous implementations.…”

Section: Discussionmentioning

confidence: 99%

“…Therefore, consumers' habitual decision making is not fully accounted for. Meanwhile, field experiments have provided alternative and more credible estimates of consumer choices in relation to sustainable products [9]. Evaluating consumers' real purchase behaviour becomes a clear trend in sustainability studies.…”

Section: Methodology Notesmentioning

confidence: 99%

“…Due to the above-mentioned data limitations, previous analyses of consumer choices of sustainable products have had to rely more on experimental data. Discrete Choice Experiments [8]-and, more recently, field experiments [9]-can both report consumers' willingness-to-pay for (hypothetical or real) sustainable products. The experimental methods are powerful and valuable in investigating exogenous factors that facilitate habit-formation process [2].…”

Section: Introductionmentioning

confidence: 99%

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Explaining Consumer Heterogeneity in Structural State-Dependence

Wang

Liu

2020

Sustainability

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Consumers are heterogeneous in their inertial responses to previous consumptions. Information on consumers’ structural state-dependence is valuable for evaluating consumers’ habit-forming strength and thus can be used for encouraging more sustainable consumption. Conventional methods of estimating such effects are complex and require repeated purchase data, which is difficult to obtain when consumers are inexperienced in buying sustainable products. In this paper, we utilize consumers’ previous switch behaviour data and investigate whether it can explain heterogeneous state-dependence effects. We demonstrate this in consumer-packaged goods markets using scanner datasets. Consumers’ normalized brand switches in a different product category several years ago are used to measure inter-temporal preference variations that are stable and are independent of products and markets. Accounting for household characteristics, we find that some variation in switch behaviour is highly stable: it explains a significant portion of consumers’ structural state-dependence in the market under investigation. Therefore, consumers’ switch tendencies can be structural to their preference. The finding suggests that incorporating consumers’ switch behaviour from other choice domains can be a simple and effective method of understanding the heterogeneous effects behind habit formation. Our constructed measure has broad implications in shifting consumer behaviour to be more sustainable.

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“…The consumer behavior literature has predominantly examined consumer preferences for product attribute(s) based on survey or choice experiments data (Hu, Batte, Woods, & Ernst, 2012; Hu, Woods, & Bastin, 2009; Kikulwe, Birol, Wesseler, & Falck‐Zepeda, 2011). The potential drawback of such methods is the hypothetical bias—consumers might not behave in the same manner in an actual retail purchasing setting as they indicate in a survey or choice experiment (Wuepper, Clemm, & Wree, 2019).…”

Section: Modelmentioning

confidence: 99%

Consumer proximity and brand loyalty in craft soda marketing: A case study of Ale‐8‐One

et al. 2020

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Craft soda has become increasingly popular among consumers. Local manufacturers have opportunities to use a variety of strategies to differentiate their products from nationally recognized brands, including the use of real or natural ingredients, premium ingredients, and locally sourced ingredients, handmade and small batches, and creative taste. Loyal consumers of craft sodas often live within the proximity of the production location, and the manufacturers are normally small with a limited distribution area. From the local manufacturer's standpoint, it is important to segment the market based on the closeness to their distribution territory when studying the market demand, or at least to recognize if such locational preferences exist with a view toward identifying market expansion strategies. In this paper, we focus on the case for a Kentucky local craft soda producer, Ale-8-One. We examine the demand for craft and noncraft soft drinks using Nielsen scanner data to test whether consumer behavior is different in the core markets. The results show that, in this case, craft soda consumers are less price responsive and more brand loyal in the core market, compared with the outside market.

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The preference for sustainable coffee and a new approach for dealing with hypothetical bias

Cited by 36 publications

References 48 publications

Measuring commissioners’ willingness-to-pay for community based childhood obesity prevention programmes using a discrete choice experiment

Measuring commissioners’ willingness-to-pay for community based childhood obesity prevention programmes using a discrete choice experiment

Explaining Consumer Heterogeneity in Structural State-Dependence

Consumer proximity and brand loyalty in craft soda marketing: A case study of Ale‐8‐One

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