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The Importance of taste in experimental auctions: consumers’ valuation of calorie and sweetener labeling of soft drinks

Author

Listed:
  • Karen E. Lewis
  • Carola Grebitus
  • Rodolfo M. Nayga Jr
Abstract
A majority of purchases that consumers make are classified as repeat purchases. One of the main reasons why consumers make repeat food purchases is the food's taste. Therefore, we examined the importance of including taste testing in nonhypothetical experimental auctions. Specifically, we used two experiments to determine consumers’ willingness to pay for soft drinks labeled with different calorie and sweetener information. In Experiment 1, participants tasted the soft drinks prior to the bidding rounds. In Experiment 2, participants did not taste the soft drinks prior to the bidding rounds. Bidding behavior for the soft drinks was significantly different between Experiment 1 and Experiment 2. Results suggest that including taste testing in the design of experimental auctions is important to accurately capture consumers’ willingness to pay for foods that are purchased repeatedly. Results also imply that policies aimed at combating obesity by making the calorie content of foods more visible may not produce desired outcomes.

Suggested Citation

  • Karen E. Lewis & Carola Grebitus & Rodolfo M. Nayga Jr, 2016. "The Importance of taste in experimental auctions: consumers’ valuation of calorie and sweetener labeling of soft drinks," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 47-57, January.
    • Handle: RePEc:bla:agecon:v:47:y:2016:i:1:p:47-57
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    File URL: http://hdl.handle.net/10.1111/agec.12208
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    References listed on IDEAS

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    2. Canavari, Maurizio & Drichoutis, Andreas C. & Lusk, Jayson L. & Nayga, Rodolfo, 2018. "How to run an experimental auction: A review of recent advances," MPRA Paper 89715, University Library of Munich, Germany.
    3. DeLong, Karen L. & Syrengelas, Konstantinos G. & Grebitus, Carola & Nayga, Rodolfo M., 2021. "Visual versus Text Attribute Representation in Choice Experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).
    4. Mohammed Hussen Alemu & Søren Bøye Olsen, 2020. "An analysis of the impacts of tasting experience and peer effects on consumers’ willingness to pay for novel foods," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 653-674, October.

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