Willingness-To-Pay for Multiple Units of Eco-Friendly Wheat-Derived Products: Results from Open-Ended Choice Experiments

A non-hypothetical open-ended choice experiment was conducted to elicit Italian consumer willingness-to-pay (WTP) and demand for new wheat-derived products (flour and bread) that were produced by adopting ecological friendly post-harvest technique (high heat-treated, HHT). A sample of 270 Italian consumers were surveyed in Bologna, Catania and Palermo in June 2014. Data was analyzed using double hurdle model. Results suggest Italian consumers are willing to pay premium prices for HHT flour while they prefer to pay for HHT bread at the same price as conventional bread. Consumers’ willingness-to-pay for the second, third, and more units are lower than their WTP for the first unit of product. While factors that influence consumers’ decision to buy (or not to buy) these two new products are the same (price, location, frequency of purchasing product and perception of green consumption), factors (besides household size) that affect their desired product units differ among each products. In conclusion, Italian consumer preferences for eco-friendly label (HHT label) vary with the type of product. We conclude by discussing the implications of our findings for industry operators and marketers.