Quan Shiwen, Yu Xiaohua, Zeng Yinchu: A Study on Chinese Consumers' Preference for Milk Powder Producing Areas——Comparative analysis based on selection experiment and revealed preference data

Release time:2017-01-26Author: Quan Shiwen, Yu Xiaohua, Zeng Yinchu

This paper adopts the experimental method of selection, and analyzes the preferences of consumers in Beijing and Xi'an for the attributes of milk powder production area based on the multivariate Logit and random parameter Logit model on the basis of 1362 samples. The results show that "origin label" is the most important label when consumers buy milk powder, and consumers generally prefer "original imported" milk powder. The average premium paid by consumers in the two cities for imported milk powder was 150 yuan/barrel and 161 yuan/barrel, which were 65.41% and 77.38% higher than the actual purchase price of milk powder. Although there is a hypothetical bias in the selection experiment method, that is, consumers' willingness to pay for different milk powder labels is systematically overestimated, the relative importance of different milk powder labels is consistent in the selection experiment and the revealed preference model. In addition, consumers' preferences for different milk powder labels are related, among which, there is a substitute relationship between original imported labels and organic certification labels.