Willingness to Pay for Fruit Attributes: A Conjoint Analysis

Abstract

Purpose: Identification of consumer preferences is important in designing products. Producers will immensely benefit by knowing them to capture the market share. In light of this, we evaluate consumers’ stated preferences for various attributes of four popular fruits: grapes, sweet orange, pear and pomegranate. Research Method: We run a Rank Ordered Logistic Regression (ROLOGIT) and calculate Willingness to Pay (WTP) for fruit attributes. Findings: We find that the perception of the fruits selected is contingent upon only a handful of attributes. We find that crispness and price are significant attributes in Pear. Price has a non-significant effect on preferences for grapes. Sweetness, shelf life and price significantly influence consumer choice when buying sweet oranges. Seeds that are relatively low in bitterness and softness are the two key attributes influencing the purchase decisions of Pomegranate. Research Limitations: The number of attributes used in the choice card was limited to most important attributes. Additionally, only a main effect model was estimated without considering the interaction effects of attributes in this study. Originality/ Value: Favorable features of fruits in Sri Lankan condition has not been studied so far. Thus, incorporating favorable features of the fruits considered into breeding programs of the local counterparts of these fruits may be fruitful.