Choosing Brands: Fresh Produce Versus Other Products

Posted: 11 Apr 2008

See all articles by Yanhong H. Jin

Yanhong H. Jin

Texas A&M University - Department of Agricultural Economics

David Zilberman

University of California, Berkeley - Department of Agricultural & Resource Economics

Amir Heiman

The Hebrew University of Jerusalem, Dept. of Environmental Economics and Management

Date Written: 2007-07

Abstract

Assuming that brands contribute to quality risk reduction, prestige, and design, we derive and test hypothesis on the willingness to pay (WTP) for brands across different product categories (electronics, clothing, packaged food, and fresh produce). Using the random effect tobit model on the stated point value of WTP and the ordered probit model on the stated range of WTP, we find that WTP for brands of fresh produce is least among the four product categories controlling for relevant demographic variations. Simulations show that fresh produce has a higher optimal price premium for brands but with a much smaller market share.

Suggested Citation

Jin, Yanhong H. and Zilberman, David and Heiman, Amir, Choosing Brands: Fresh Produce Versus Other Products (2007-07). American Journal of Agricultural Economics, Vol. 90, Issue 2, pp. 463-475, May 2008. Available at SSRN: https://ssrn.com/abstract=1118999 or http://dx.doi.org/10.1111/j.1467-8276.2007.01062.x

Yanhong H. Jin (Contact Author)

Texas A&M University - Department of Agricultural Economics ( email )

342B Blocker building
College Station, TX 77843-2124
United States
979-458-1355 (Phone)
979-862-1563 (Fax)

David Zilberman

University of California, Berkeley - Department of Agricultural & Resource Economics ( email )

Berkeley, CA 94720
United States

Amir Heiman

The Hebrew University of Jerusalem, Dept. of Environmental Economics and Management ( email )

P.O. Box 12
Rehovot, 76100
Israel

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