Consumers’ willingness-to-pay for convenient catfish products: Results from experimental auctions in Arkansas

Authors: ADHIKARI, SAROJ - University Of Arkansas At Pine Bluff; DEB, UTTAM - University Of Arkansas At Pine Bluff; DEY, MADAN - Texas State University; XIE, LIN - University Of Arkansas At Pine Bluff; KHANAL, NABIN - University Of Arkansas At Pine Bluff; Grimm, Casey; Bland, John; Bechtel, Peter

Submitted to: Aquaculture Economics & Management
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 10/19/2020
Publication Date: 11/10/2020
Citation: Adhikari, S., Deb, U., Dey, M.M., Xie, L., Khanal, N.B., Grimm, C.C., Bland, J.M., Bechtel, P.J. 2020. Consumers’ willingness-to-pay for convenient catfish products: Results from experimental auctions in Arkansas. Aquaculture Economics & Management. 25(2):135-158. https://doi.org/10.1080/13657305.2020.1840663.
DOI: https://doi.org/10.1080/13657305.2020.1840663

Interpretive Summary: Five new catfish products were developed that are ready-to-cook, so are more convenient to the consumer, where trends show a preference for foods with minimal preparation times. Three products were panko-breaded to specifically give a crunchy product when baked. They differed in size, using either a strip, standard fillet, or a Delacata fillet. The other two products were marinated and to be cooked by microwave. One was marinated with a ginger marinade, while the other was a sriracha marinade. They were tested by a consumer panel through an experimental auction to determine how the visual attributes affected the consumers’ level of acceptance and willingness to pay for the product. In addition, the panel participants’ socio-economic backgrounds were correlated with the results. Consumer acceptance and willingness-to-pay showed a preference for the panko-breaded products over marinated products. Younger participants and African Americans showed a higher preference. The higher quality Delacata fillet products showed the highest acceptance and willingness-to-pay bid prices.

Technical Abstract: This study has examined consumers’ acceptance, preference and willingness to pay (WTP) for five newly developed convenient (ready-to-cook) catfish products. These products were developed by the University of Arkansas at Pine Bluff in collaboration with Texas State University and USDA Agricultural Research Services, New Orleans. Required data for the study were collected from 121 catfish consumers through 18 sessions of experimental auctions (Vickrey’s second-price auction) conducted in Arkansas. Participants evaluated the visual sensory attributes (appearance, color, glossiness and serving size) of the products and elicited their WTP for each of the products through bid (quoted price) in separate sealed envelopes. Consumers’ acceptance for various product attributes was measured through hedonic scale (Likert scale) and just about right (JAR) scale. Consumers preferences for the products and their attributes were analyzed through two-way internal preference mapping (Principal Component Analysis) and three-way internal preference mapping (Parallel Factor Analysis—PARAFAC). The Tobit model was used to examine the role of consumer’s acceptance level for product attributes and socio-economic characteristics of the participant on their WTP. The study revealed that acceptance level for panko breaded products was higher than marinated products. Consumers preferred breaded products than marinated products. Higher willingness to pay was associated with the higher acceptance ratings for product attributes, young participants and African American catfish consumers. Participant’s education level (dummy for BS graduates) was negatively associated with their WTP. It was concluded that all the newly developed catfish products are likely to be successful as future seafood products in the United States.