Impact of Information on Northeastern U.S. Consumer Willingness to Pay for Aronia Berries

Abstract

Consumption of berries has increased significantly over the past couple of years. As such, producers and retailers are experimenting with new berry varieties to capture market share and increase their profitability. We examine consumer preference and willingness to pay (WTP) for a relatively new-to-market berry (aronia: Aronia mitschurinii Skvortsov et Maitulina) compared with another relatively new berry (black currant: Ribes nigrum L.) as well as more traditional (raspberry: Rubus idaeus L., blueberry: Vaccinium corymbosum L., and blackberry: Rubus fruticosus L.) berries. Given that aronia berries have an astringent/bitter flavor while having high antioxidant levels we investigate how taste and health information impact preference and WTP. Furthermore, we add to the literature by investigating the differences in WTP for locally and nonlocally (regional, the United States, and outside the United States) labeled berries across varying retail outlets (i.e., farmer’s markets, farm stands, grocery store). We find that new berries (aronia and black currant) are heavily discounted compared with more traditional berries. Potentially negative taste information (i.e., astringent/bitter flavor) has a negative impact on WTP, whereas positive health information has a positive impact on WTP. The positive effect of health information tends to offset the impact of the negative taste information. With respect to local labeling and retail outlet, locally labeled berries at a farmer’s market and farm stand have WTP values similar to locally labeled berries at a grocery store. On the other hand, nonlocally labeled berries sold at a grocery store were discounted compared with locally labeled berries at a grocery store.