Consumer preference for alternative milk packaging: The case of an inferred environmental attribute

Abstract

Ecolabeling allows firms to segment a market by informing consumers about unobservable attributes of a product. Previous studies evaluate consumer preferences for products explicitly labeled as possessing positive environmental attributes. This research evaluates consumers' willingness to pay for a product that is perceived by the consumer as having environmentally friendly attributes. We explore glass packaging for fluid milk as a case study. Data were collected through a contingent valuation survey, and a bound-and-a-half logit model was employed. The estimated premium is 59.78 cents with a premium between $0.73 and $0.92 for consumers more likely to prefer the glass alternative.

Description

© The Author(s) 2016. cc-by-nc-nd

Keywords

Contingent valuation, environmental attributes, fluid milk, glass packaging

Citation

Neill, C.L., & Williams, R.B.. 2016. Consumer preference for alternative milk packaging: The case of an inferred environmental attribute. Journal of Agricultural and Applied Economics, 48(3). https://doi.org/10.1017/aae.2016.17

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