Information Effects on Consumers' Preferences and Willingness to Pay for a Functional Food Product: The Case of Red Ginseng Concentrate*

Byeong-il Ahn, Mo Se Bae, Rodolfo M. Nayga, Jr

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

This paper elicits consumers' preferences associated with attributes of a very popular food product in Asia: red ginseng concentrate. The results of a choice experiment suggest that an asymmetric information problem can cause consumers' preferences and valuation for red ginseng concentrate to be significantly influenced by objective information about the product's attributes. The results imply that while objective information can result in differential changes in valuation for different product attributes, it can increase consumers' willingness to pay for red ginseng concentrate. The paper also discuss important policy and marketing implications from the results of the study.

Original languageEnglish
Pages (from-to)197-219
Number of pages23
JournalAsian Economic Journal
Volume30
Issue number2
DOIs
Publication statusPublished - 2016 Jun 1

Keywords

  • choice experiment
  • conditional logit
  • consumers’ preferences
  • marginal willingness to pay
  • random parameter logit

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

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