2018 ASHS Annual Conference
Consumer Preferences and Willingness-to-Pay for Rose Attributes
Consumer Preferences and Willingness-to-Pay for Rose Attributes
Wednesday, August 1, 2018: 10:15 AM
Jefferson East (Washington Hilton)
Discrete Choice Experiments (DCE) are used to investigate consumer preferences and willingness-to-pay for roses. DCE is a technique for measuring buyers’ tradeoffs among multiple attributes of products and services. It has been widely used in the field of marketing research to determine consumer’s preferences for products. It is based on the simple premise that consumers evaluate the overall value of a product, service, or idea by combining the separate amounts of value provided by each product attribute.
In this DCE the evaluated features include price, disease tolerance, heat resistance, drought resistance, bloom size, and leaf coverage on perceptions, liking and willingness-to-pay for rose characteristics. With price ranging from $10-$25 and relative to the average price of around $12.70, large blooms generated price premiums of $4.40. Tolerance to disease, heat, and drought resulted in $12.80, $13.20, and $8.50 premiums, respectively. Full leaf coverage resulted in a $5.00 premium. While these were the average premiums, there was some heterogeneity in willingness-to-pay for all the product attributes. Eye-tracking was used to reveal visual attention to the rose attributes. The eye-tracking data is used to complement the choice data for attribute attendance in order to obtain more accurate measures of willingness to pay.
In this DCE the evaluated features include price, disease tolerance, heat resistance, drought resistance, bloom size, and leaf coverage on perceptions, liking and willingness-to-pay for rose characteristics. With price ranging from $10-$25 and relative to the average price of around $12.70, large blooms generated price premiums of $4.40. Tolerance to disease, heat, and drought resulted in $12.80, $13.20, and $8.50 premiums, respectively. Full leaf coverage resulted in a $5.00 premium. While these were the average premiums, there was some heterogeneity in willingness-to-pay for all the product attributes. Eye-tracking was used to reveal visual attention to the rose attributes. The eye-tracking data is used to complement the choice data for attribute attendance in order to obtain more accurate measures of willingness to pay.