the Consumer willingness to pay using contingent valuation analysis

Abstract

Objective: to show the willingness to pay a premium for vanilla from the Totonacapan region through contingent valuation for the strengthening of vanilla in the local market.

Design/methodology/approximation: to estimate the WTP, the so-called contingent valuation methodology (CV) was followed. Based on consumer surveys in the Totonacapan region. The analysis of the information was carried out by the XLSTAT 2019 software through logistic regression from the willingness to pay data in a binary response with a confidence interval of 95% and with 100 iterations and the maximization of the function of likelihood with the Newton-Raphson algorithm.

Results: indicate that 55.63% of consumers agree that certification increases the potential to pay a premium; the accessibility of vanilla is important for 66.56% of consumers; previous experience with brands and product behavior is paramount for 56.95% of all consumers; regarding the origin of vanilla, it is important for 65.23% of consumers. Findings/conclusions: production by small local producers is an appreciated quality because it is related to the symbolic dimension and is appreciated by 68.54% of consumers.