This study employed a choice experiment (CE) to ascertain consumer preferences and willingness to pay (WTP) for non-market food product quality attributes. Data were obtained from a large mail survey and estimated with a random parameter logit model.
The results indicate that Swedish consumers place greater monetary worth on the use of mobile abattoirs for cattle than for pigs, and even place a negative monetary value for mobile abattoirs in broiler production. We show how CE data can be used to estimate individual WTP, using a random parameter logit model. We find that there is a substantial difference in heterogeneity between consumers WTP for mobile abattoirs for the types of livestock included. Based on estimated distributions of WTP and available cost estimates, the market share for mobile abattoirs is predicted. The approach taken is vital to agribusinesses intending to serve specialized niche markets. Our results are useful for forming product differentiation strategies within the food industry as well as for the formation of food policy.
Co-authors:
Peter Frykblom and Carl Johan Lagerkvist
