Consumer preference for alternative milk packaging: The case of an inferred environmental attribute

Clinton L. Neill, Ryan B. Williams

Research output: Contribution to journalArticle

6 Scopus citations

Abstract

Ecolabeling allows firms to segment a market by informing consumers about unobservable attributes of a product. Previous studies evaluate consumer preferences for products explicitly labeled as possessing positive environmental attributes. This research evaluates consumers' willingness to pay for a product that is perceived by the consumer as having environmentally friendly attributes. We explore glass packaging for fluid milk as a case study. Data were collected through a contingent valuation survey, and a bound-and-a-half logit model was employed. The estimated premium is 59.78 cents with a premium between $0.73 and $0.92 for consumers more likely to prefer the glass alternative.

Original languageEnglish
Pages (from-to)241-256
Number of pages16
JournalJournal of Agricultural and Applied Economics
Volume48
Issue number3
DOIs
StatePublished - Aug 1 2016

Keywords

  • Contingent valuation
  • environmental attributes
  • fluid milk
  • glass packaging

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