Theoretical and Perceptual Market Values for Fresh Squeezed Orange Juice

Hyeyoung Kim, Lisa A. House, Zhifeng Gao

Abstract


This study measures product differentiation effects from observing the fresh orange juice being squeezed on the willingness to pay for a glass of fresh juice. Both the Westendorp price sensitivity meter and a hypothetical choice experiment are used to estimate consumer willingness to pay. Results from the hypothetical choice model indicated when participants observed the process of squeezing fresh oranges to make juice, they were statistically willing to pay higher values not only for the fresh squeezed orange juice, but other types of orange juices as well. The van Westendorp method failed to pick up significant differences in willingness to pay for fresh, or other, juices. This may be due to the lack of theoretical grounding and incentive compatibility, leading to underestimating the value of the fresh squeezed orange juice.


Full Text: PDF DOI: 10.5539/ijms.v4n2p45

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Marketing Studies  ISSN 1918-719X(Print) ISSN 1918-7203(Online)

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the 'ccsenet.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.