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Consumer willingness to pay for traditional food products

Author

Listed:
  • Balogh, Péter
  • Békési, Dániel
  • Gorton, Matthew
  • Popp, József
  • Lengyel, Péter
Abstract
Reflecting the growing interest from both consumers and policymakers, and building on recent developments in Willingness to Pay (WTP) methodologies, we evaluate consumer preferences for an archetypal traditional food product. Specifically we draw on stated preference data from a discrete choice experiment, considering the traditional Hungarian mangalitza salami. A WTP space specification of the generalized multinomial logit model is employed, which accounts for not only heterogeneity in preferences but also differences in the scale of the idiosyncratic error term. Results indicate that traditional food products can command a substantial premium, albeit contingent on effective quality certification, authentic product composition and effective choice of retail outlet. Promising consumer segments and policy implications are identified.

Suggested Citation

  • Balogh, Péter & Békési, Dániel & Gorton, Matthew & Popp, József & Lengyel, Péter, 2016. "Consumer willingness to pay for traditional food products," Food Policy, Elsevier, vol. 61(C), pages 176-184.
    • Handle: RePEc:eee:jfpoli:v:61:y:2016:i:c:p:176-184
    DOI: 10.1016/j.foodpol.2016.03.005
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    References listed on IDEAS

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