Analyzing the consumer sweet tooth: a field experiment on consumer preferences for chocolate
Date
2014
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Publisher
University of Delaware
Abstract
In an environment of increasingly health conscious consumers, how they feel about the quality and safety of foods from different regions could have significant impact on their impressions of, and willingness to pay (WTP) for, origin labeled products leading to more government involvement in creating origin labeling programs. This study aimed to determine if regional labels on chocolate bars: 1) influenced consumers' taste perceptions, and 2) changed their WTP. In order to complete these objectives both a taste evaluation and BDM auction mechanism were employed in five field experiment sessions conducted at different locations in Delaware. Results showed a higher perceived food safety, food quality, and economic status for Europe and the U.S. over South America and Africa. When comparing labeled versions, participants preferred the taste of, and were willing to pay more for, chocolate from more-developed (Europe and the U.S.) over the less-developed regions. However, in comparing labeled and unlabeled versions of the same chocolate, it was found that origin labels did not hinder taste evaluations or WTP, and instead typically resulted in premiums. This was counter to initial hypotheses and suggests implementing voluntary or mandatory origin label can raise product evaluations and increase sales. Taste evaluation and WTP bid difference models were conducted in order to identify variables that had a significant impact on the premium origin labeled products obtained over unlabeled products. Even though significant variables varied widely by model, there were a few that had an impact on both taste evaluation and WTP differences including income, children, post graduate education, and consumer importance placed on quality.