Page 17 - 2020 Virtual International Symposium

Consumer’s Willingness to Pay for Food Attributes: A Case of Spinach

A Student Multidisciplinary Applied Research Team (SMART) Project

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Jieyu Hao , Jialiang Sun , Chloe Qiu , Alethia Chan , Wei Jiang , Darren Tsai , Yu Suo , Shenzhe Zhang 8
Team Leader : Lin Fu 9

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Faculty/Field Advisors: Nancy Chau , Arnab Basu , Silin Tang 12

Study 1: Chinese Consumers‘ Willingness to Pay for Blockchain Certified Spinach

Introduction Methodology

• Respondents took a survey about selecting spinach with different
• Food safety incidents have plagued China’s history. To restore

combinations of prices, packaging and certifications.
trust in food systems and promote food security, efforts have

• Conditional logit model was used to analyze consumers’

been made to reduce information asymmetry between

preference on Blockchain certification compared to other three
producers and consumers. Blockchain has immense potential in

certifications.

ensuring transparency, especially in such a digital economy.

• Aims to understand Chinese consumers’ preference on

Blockchain certification.

Findings

1.2 1.067 Preference weight on Certifications

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0.8
There is sex differential

0.6 0.497

in preference on

0.4 0.273 0.259

0.2 Blockchain certification

0

Non-polluted Green food Organic Blockchain Conclusions
Preference weight

The preference weight on on Blockchain • Respondents always show strongest preference on non-polluted

Blockchain is the lowest compared Male 0.393 spinach. Male respondents prefer Blockchain more than female do.

to non-polluted, green food and Female 0.21 • Contrary to the assumption that more educated people prefer

organic certification. Blockchain than the less educated do, education level is not

0 0.2 0.4 0.6
positively associated with the preference on Blockchain.

Study 2: Chinese Consumers' Willingness to Pay for Spinach Among Different Age Groups

Introduction Methodology

• Aims to explore Chinese consumers’ willingness to pay • Respondents took a survey about selecting spinach with different

for fresh produce among different age groups. combinations of prices, packaging and certifications, and

• Takes into consideration three potential factors that may they were divided into five age groups: 18-29, 30-39,40-49,50-59,

influence their buying decisions—price, packaging and and 60+.

certification. • Conditional logit model was used on each group separately so that

the estimated results could extract the preference difference

across the age groups.

Findings

Conclusions

Price: Elder consumers are

sensitive to price, which is • Consumers over 60 are less willing to pay a premium for fresh

not evident among younger
produce compared to younger customers.

consumers

• Consumers of all age groups have a preference of products in bulk

over plastic bags or plates.

(* 1= Extremely familiar, 2= Somewhat familiar,

3=Slightly familiar, 4= Not familiar at all)
• Consumers over 60 are less willing to pay for the fresh produce

Certifications: Compared to younger with certification, while another group composed of younger

consumers, elder consumers are less likely
consumers has a higher WTP towards certification.

to pay higher price for the certified spinach

Acknowledgements Affiliations

1,5 Cornell Institute for Public Affairs
We are extremely grateful to the

2,3,4,7,8,9,10,11 Charles H. Dyson School of Applied
Walmart Foundation, Walmart

China, Beijing Farmer’s Market, and Economics and Management

the Cornell China Center. 6 Department of Computer Science

12 Mars Global Food Safety Center