4. Conclusions
Both a hypothetical choice experiment and the van Westendorp price sensitivity meter were used to study the impact of a product differentiation strategy by demonstrating fresh squeezing of oranges in front of consumers who were asked about prices for orange juice. Fresh squeezed orange juices were preferred to NFC and from concentrate juices. The demonstration of the squeezing process increased not only the values of fresh squeezed orange juice, but also the values of NFC and from concentrate. People who watched the squeezing process had heterogeneous preferences and WTP increased by 4.7%. The premium for fresh squeezed orange juice was almost double that of NFC. Though we found a higher WTP, this does not take into account the potential reaction of demand. Given previous studies finding orange juice demand is elastic, an increase in price, which would be expected given an increase in costs (from the addition of a juicer and related labor), may not result in increases in revenue. Our findings indicate that the van Westendorp PSM underestimated prices, likely due to the lack of incentive compatibility, descriptive methods that are not driven by consumer behavior, and a high rate of inconsistency. Although Gellyunck and Viaene (2002) found that the acceptable price range from PSM for on-farm processed yogurt was similar to price settings from conjoint analysis, the study was limited to comparison of product values from PSM to conjoint analysis due to lack of information on WTP. The PSM only provided the different price distributions between two groups as shown in CE results. The CE results provide statistically significant differences of consumer preferences toward observing the squeezed processing and evaluated the values at 2 to 5 percent more than van Westendorp method. A final note should address limitations of this research. Given the sample is not fully representative of demographics, the amounts generated from willingness to pay would not necessarily be representative of the full population. However, given the same sample was used to test both methods, the difference found between the van Westendorp and CE methods would not be impacted by this potential selection bias.
4. บทสรุปBoth a hypothetical choice experiment and the van Westendorp price sensitivity meter were used to study the impact of a product differentiation strategy by demonstrating fresh squeezing of oranges in front of consumers who were asked about prices for orange juice. Fresh squeezed orange juices were preferred to NFC and from concentrate juices. The demonstration of the squeezing process increased not only the values of fresh squeezed orange juice, but also the values of NFC and from concentrate. People who watched the squeezing process had heterogeneous preferences and WTP increased by 4.7%. The premium for fresh squeezed orange juice was almost double that of NFC. Though we found a higher WTP, this does not take into account the potential reaction of demand. Given previous studies finding orange juice demand is elastic, an increase in price, which would be expected given an increase in costs (from the addition of a juicer and related labor), may not result in increases in revenue. Our findings indicate that the van Westendorp PSM underestimated prices, likely due to the lack of incentive compatibility, descriptive methods that are not driven by consumer behavior, and a high rate of inconsistency. Although Gellyunck and Viaene (2002) found that the acceptable price range from PSM for on-farm processed yogurt was similar to price settings from conjoint analysis, the study was limited to comparison of product values from PSM to conjoint analysis due to lack of information on WTP. The PSM only provided the different price distributions between two groups as shown in CE results. The CE results provide statistically significant differences of consumer preferences toward observing the squeezed processing and evaluated the values at 2 to 5 percent more than van Westendorp method. A final note should address limitations of this research. Given the sample is not fully representative of demographics, the amounts generated from willingness to pay would not necessarily be representative of the full population. However, given the same sample was used to test both methods, the difference found between the van Westendorp and CE methods would not be impacted by this potential selection bias.
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