Consumer willingness to pay for cheese with a social sustainability attribute

The social dimension of sustainability is becoming very relevant on the consumer purchasing decision, especially in the food sector. This research analyzed the willingness to pay (WTP) of Chilean consumers for cheese with a social sustainability attribute using a double-bounded dichotomous choice format. Results showed that the WTP for a price premium depends on three variables: age, income and previous knowledge regarding social sustainability. The mean WTP is 7.5% over the average price of cheese; although, combining relevant variables and changing values over their range shows that firms can obtain up to a 12.9% price premium if they focus on younger and high income consumers that have a previous good knowledge about social sustainability practices. Additionally this study presented a novel market oriented methodological approach for identifying and quantifying specific niche markets based on the WTP.

Automated summary

This research analyzed the willingness to pay of Chilean consumers for cheese with a social sustainability attribute, and found that the willingness to pay for a price premium is influenced by age, income, and previous knowledge regarding social sustainability. The study also presented a market-oriented approach to identify and quantify specific niche markets based on the willingness to pay.