A Semi-parametric Estimator of Willingness-to-pay Applied to Dichotomous Choice Contingent Valuation Data

The use of dichotomous choice questions (Are you willing to pay $x?) has been advocated as superior to open ended questions (What would you be willing to pay?) in contingent valuation studies of non‐market goods. A supplementary dichotomous choice question, raising or lowering the bid price depending on the initial response, gives increased precision. However, a problem with these methods is that identifying the mean willingness to pay (WTP) is more complex, and often conditional on making a distributional assumption. This paper will present a semi‐parametric method for estimating WTP without invoking any such assumptions, using the interval inherent in the double bounded format, and based on estimating the underlying hazard function for the distribution of WTP. An advantage of the approach over other non‐parametric methods is that it allows one to include respondent characteristics as determinants of the individual decisions, and does so within a computationally straightforward framework.     

Choice of Rice Production Practices in Ghana: A Comparison of Willingness to Pay and Preference Space Estimates

Rice has been identified as an important food security crop in Ghana. However, there is a production deficit and new technologies to reduce the deficit are not widely adopted. Although poor adoption by farmers’ is often linked to constraints such as access to information, farmers’ perceptions of the technologies are also important. We apply an advanced discrete choice experiment to evaluate farmers’ preferences for rice production practices. Specifically, we generate willingness to pay (WTP) estimates using willingness to pay space (WS) and compare these with values from the indirect or preference space (PS) method. Our modelling also accounts for the effects on WTP estimates of farmers’ stated attribute importance (SAI) information. Empirical results from WS and PS models reveal that on average, farmers value higher yields and are negatively affected by higher risk of crop failure and labour requirements. Comparing the performance of the two models, we find the WS model provides a superior fit to our data and reduces the likelihood of producing implausible WTP estimates. Further, SAI inclusion did not produce much variation in our WTP estimates.     

Consumer Preference and Willingness to Pay for a Local Label Attribute in Western Australian Fresh and Processed Food Products

This study investigates Western Australia’s consumer attitudes toward and preferences for locally produced food products signified by a state-funded campaign logo, Buy West Eat Best (BWEB). A choice experiment using both a fresh and a processed food product (skinless chicken breast and fruit yogurt) is conducted to assess willingness to pay for a local production attribute and other label claims. We find that consumer awareness and preference for local foods is high. However, this high preference is not because the product is locally produced but because of the local attributes associated with high-quality products. The study highlights the importance of successfully differentiating products through credible labeling schemes in order to capture market premium.     

Rethinking the UK System of Doctoral Training in Marketing

There have been considerable changes in the system of doctoral education and training in the UK over the last decade. Despite the introduction of a range of ESRC initiatives, the UK marketing academy has been slow to actively debate this aspect of marketing education. This approach is different from that in the US where doctoral training practices in marketing have been widely debated by the AMA. The paper aims to fill this gap by critically assessing the UK system of doctoral training in marketing. The article begins with a brief overview of the historical development of postgraduate education and training in the UK in order to contextualise the subsequent discussion. Some of the most influential reports and policy documents over the last 40 years will be assessed, specifically in relation to how they have shaped, and continue to shape, ESRC policy and postgraduate education more generally in the UK. A critical evaluation of the existing research guidelines in marketing is undertaken and the need for more specific guidelines and a more wide-ranging and inclusive approach to the syllabus than is currently offered in many UK universities is proposed. The paper also explores the importance of staff expertise and critical mass in the context of delivering cost-effective, specialised provision. The article concludes by proposing new structures that marketing departments may wish to consider in delivering research training through the use of coalitions and the use of up-to-date developments in information technology.