Integration and validation of an SMS-based bidding procedure of eliciting consumers’ willingness-to-pay for food

Abstract

Purpose Despite the large body of research on consumers’ willingness-to-pay for new food, few studies have tried to integrate new technology-based systems and improve their validity. The purpose of this paper is to analyse the integration of short messaging service (SMS) in experimental auctions. Design/methodology/approach Based on a case study on iodine biofortified food with 180 household decision makers in Africa, a standard Becker-Degroot-Marschak procedure was compared with the novel SMS-based procedure through five information/auction rounds. Thereby, a standard protocol commonly employed in validation of medical diagnostic tests was adopted, assessing the sensitivity, specificity, precision, negative predictive values, likelihood ratios and post-test probability. Findings The SMS-based elicitation exhibited high levels of sensitivity (89-95 per cent), specificity (63-73 per cent), precision (40-60 per cent), NPV (92-98 per cent), LR+(2.6-3.3) and LR−(0.08-0.2) for all the auction rounds. The post-test plot indicates that the novel procedure is particularly consistent in ascertaining positive and negative valuations for a new food product. Originality/value Even though SMS-based bidding is shown to be an accurate, but also convenient and attractive bidding procedure, which is in line with novel ways of purchasing food, further validation is inevitable to determine its reliability in different contexts and its most effective use.