Visual Attention's Influence on Consumers’ Willingness‐to‐Pay for Processed Food Products

ABSTRACT The primary objective of our study was to investigate the impact of extrinsic cues (specifically production method, origin, and nutrient content claim labels) on consumers’ willingness‐to‐pay (WTP) for processed foods (apple juice and salad mix). Data were collected using an experimental auction in combination with eye‐tracking analysis. Tobit models were used to analyze the data. We found that participants were willing to pay a premium for local or domestically produced apple juice. Organic production methods positively impacted participants’ WTP for both products. Additionally, results suggest that consumer visual attention increases for important product attributes that positively or negatively impact their WTP bids. Supply chain members (producers, processors, and retailers) can promote important product attributes using labels and in‐store promotions to give consumers additional information and influence their food selection preferences. In turn, these promotions may help supply chain members acquire additional customers and encourage healthy consumption patterns. [EconLit citations: D120, M310]

[1]  William Vickrey,et al.  Counterspeculation, Auctions, And Competitive Sealed Tenders , 1961 .

[2]  Julie A. Caswell,et al.  Toward a More Comprehensive Theory of Food Labels , 1992 .

[3]  J. E. Russo,et al.  An Eye-Fixation Analysis of Choice Processes for Consumer Nondurables , 1994 .

[4]  A. Connolly,et al.  How does design affect decision at point of sale? , 1996 .

[5]  K. Rayner Eye movements in reading and information processing: 20 years of research. , 1998, Psychological bulletin.

[6]  R. Pieters,et al.  Visual attention during brand choice : The impact of time pressure and task motivation , 1999 .

[7]  Brian E. Roe,et al.  The Impact of Health Claims on Consumer Search and Product Evaluation Outcomes: Results from FDA Experimental Data , 1999 .

[8]  M. Land,et al.  The Roles of Vision and Eye Movements in the Control of Activities of Daily Living , 1998, Perception.

[9]  R. Dholakia Going shopping: key determinants of shopping behaviors and motivations , 1999 .

[10]  R. Govindasamy,et al.  PREDICTING WILLINGNESS-TO-PAY A PREMIUM FOR ORGANICALLY GROWN FRESH PRODUCE , 1999 .

[11]  Dale F. Duhan,et al.  Point-of-purchase displays, product organization, and brand purchase likelihoods , 1999 .

[12]  L. B. Acebrón,et al.  The importance of intrinsic and extrinsic cues to expected and experienced quality: an empirical application for beef , 2000 .

[13]  Michel Wedel,et al.  Eye Fixations on Advertisements and Memory for Brands: A Model and Findings , 2000 .

[14]  L. Åberg,et al.  Attitudes towards organic foods among Swedish consumers. , 2001 .

[15]  Boris M. Velichkovsky,et al.  Towards an express-diagnostics for level of processing and hazard perception , 2002 .

[16]  Michel Wedel,et al.  Breaking Through the Clutter: Benefits of Advertisement Originality and Familiarity for Brand Attention and Memory , 2002, Manag. Sci..

[17]  Scot Burton,et al.  Making Healthful Food Choices: The Influence of Health Claims and Nutrition Information on Consumers’ Evaluations of Packaged Food Products and Restaurant Menu Items , 2003 .

[18]  Frode Alfnes,et al.  Consumers' Willingness to Pay for the Color of Salmon: A Choice Experiment with Real Economic Incentives , 2006 .

[19]  C. Francis,et al.  Marketing locally produced foods: Consumer and farmer opinions in Washington County, Nebraska , 2005, Renewable Agriculture and Food Systems.

[20]  I. Vermeir,et al.  Sustainable Food Consumption: Exploring the Consumer “Attitude – Behavioral Intention” Gap , 2006 .

[21]  Terry L. Childers,et al.  If I touch it I have to have it: Individual and environmental influences on impulse purchasing , 2006 .

[22]  Jason P. Brown,et al.  Consumer Behavior, Public Policy, and Country-of-Origin Labeling , 2006 .

[23]  W. Umberger,et al.  Strategic market planning for value-added natural beef products: A cluster analysis of Colorado consumers , 2006, Renewable Agriculture and Food Systems.

[24]  John C. Bernard,et al.  Consumer Likelihood to Purchase Chickens with Novel Production Attributes , 2007, Journal of Agricultural and Applied Economics.

[25]  Mary M Hayhoe,et al.  Trade-offs between gaze and working memory use. , 2007, Journal of experimental psychology. Human perception and performance.

[26]  Madeleine E. Pullman,et al.  UNRAVELING THE FOOD SUPPLY CHAIN: STRATEGIC INSIGHTS FROM CHINA AND THE 2007 RECALLS* , 2008 .

[27]  A. Rangel,et al.  Biasing simple choices by manipulating relative visual attention , 2008, Judgment and Decision Making.

[28]  Gastón Ares,et al.  Influence of nutritional knowledge on perceived healthiness and willingness to try functional foods , 2008, Appetite.

[29]  David A. Hensher,et al.  Modelling attribute non-attendance in choice experiments for rural landscape valuation , 2009 .

[30]  Jennifer S. James,et al.  Product Differentiation and Market Segmentation in Applesauce: Using a Choice Experiment to Assess the Value of Organic, Local, and Nutrition Attributes , 2009, Agricultural and Resource Economics Review.

[31]  Andreas Glöckner,et al.  How Distinct are Intuition and Deliberation? An Eye-Tracking Analysis of Instruction-Induced Decision Modes , 2009, Judgment and Decision Making.

[32]  Chanjin Chung,et al.  Effects of Country of Origin Labeling in the U.S. Meat Industry with Imperfectly Competitive Processors , 2009, Agricultural and Resource Economics Review.

[33]  John M. Rose,et al.  Simplifying choice through attribute preservation or non-attendance: Implications for willingness to pay , 2009 .

[34]  Wendy J. Umberger,et al.  Does altruism play a role in determining U.S. consumer preferences and willingness to pay for natural and regionally produced beef , 2009 .

[35]  J. Caswell,et al.  Market and Welfare Impacts of COOL on the U.S.-Mexican Tomato Trade , 2010 .

[36]  Tracy Irani,et al.  Naturally confused: consumers’ perceptions of all-natural and organic pork products , 2010 .

[37]  Michel Wedel,et al.  Raising the BAR: Bias Adjustment of Recognition Tests in Advertising , 2010 .

[38]  Christopher L. Newman,et al.  The Positive Influence of State Agricultural Marketing Programs on Adults' Fruit and Vegetable Consumption , 2012, American journal of health promotion : AJHP.

[39]  Marvin T. Batte,et al.  Consumer preferences for local production and other value-added label claims for a processed food product , 2012 .

[40]  Jacob L. Orquin,et al.  Attention and choice: a review on eye movements in decision making. , 2013, Acta psychologica.

[41]  D. V. Byrne,et al.  Impact of product information and repeated exposure on consumer liking, sensory perception and concept associations of local apple juice , 2013 .

[42]  Gastón Ares,et al.  Consumer Visual Processing of Food Labels: Results from an Eye‐Tracking Study , 2013 .