scholarly journals WILLINGNESS TO PAY: A PROXY TO PRODUCT PRICE

2021 ◽  
pp. 137-143
Author(s):  
Tongam Sihol Nababan ◽  
Raya Panjaitan ◽  
Ferry Panjaitan ◽  
Kornel Munthe
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Contingent Valuation Method ◽  
Consumer Perception ◽  
Demand Model ◽  
Product Price ◽  
Pricing Policy ◽  
Valuation Method ◽  
True Value ◽  
The Government

Information about willingness to pay (WTP) essentially aims to protect consumers from the abuse of monopoly power owned by companies in the supply of quality products and prices. The consumer's WTP of a product can be an appropriate basis in determining the pricing policy for a product because he can reveal the true value or price of the product based on consumer perception. The price proxy with the WTP can still meet the assumption of the traditional demand model (Marshallian demand model) where the price is not set (regulated) by the government. WTP can be obtained by using a contingent valuation method.

scholarly journals Smallholder Farmers’ Willingness to Pay for Agricultural Production Cost Insurance in Rural West Java, Indonesia: A Contingent Valuation Method (CVM) Approach

Risks ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 69 ◽  
Author(s):  
Dadang Jainal Mutaqin ◽  
Koichi Usami
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Agricultural Production ◽  
Production Cost ◽  
Smallholder Farmers ◽  
Contingent Valuation Method ◽  
West Java ◽  
Valuation Method ◽  
Cropping Season ◽  
The Government

To reduce the negative impacts of risks in farming due to climate change, the government implemented agricultural production cost insurance in 2015. Although a huge amount of subsidy has been allocated by the government (80 percent of the premium), farmers’ participation rate is still low (23 percent of the target in 2016). In order to solve the issue, it is indispensable to identify farmers’ willingness to pay (WTP) for and determinants of their participation in agricultural production cost insurance. Based on a field survey of 240 smallholder farmers in the Garut District, West Java Province in August–October 2017 and February 2018, the contingent valuation method (CVM) estimated that farmers’ mean willingness to pay (WTP) was Rp 30,358/ha/cropping season ($2.25/ha/cropping season), which was 16 percent lower than the current premium (Rp 36,000/ha/cropping season = $2.67/ha/cropping season). Farmers who participated in agricultural production cost insurance shared some characteristics: operating larger farmland, more contact with agricultural extension service, lower expected production for the next cropping season, and a downstream area location.

Valuation of community forestry in Ethiopia: a contingent valuation study of rural households

2000 ◽  
Vol 5 (3) ◽  
pp. 289-308 ◽  
Author(s):  
ALEMU MEKONNEN
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Community Forestry ◽  
Contingent Valuation Method ◽  
Sample Selection ◽  
Household Head ◽  
Empirical Literature ◽  
Contingent Valuation Study ◽  
Valuation Method ◽  
The Government

Community forestry projects in Ethiopia have been implemented using the top–down approach, which may have contributed to the failure of most of these projects. The so-called community plantations practically belonged to the government and the labour contribution of the local communities in the establishment of the plantations was mainly in exchange for wages. In this paper, we use the contingent valuation method to examine the determinants of the value of community forestry in rural Ethiopia and its feasibility, when the plantations are established, managed, and used by the communities themselves. The value elicitation format used is discrete question with open-ended follow-up which is closer to the market scenario our respondents are familiar with compared, for example, with the single discrete choice format. Unlike most other studies, we use a tobit model with sample selection in the empirical analysis of the bid function to correct for the effect of excluding invalid responses (protest zeros, outliers and missing bids) from the analysis. The analysis of the bid function shows that household size, household income, distance of homestead to proposed place of plantation, number of trees owned and sex of household head are significant variables that explain willingness to pay. We also find that there are significant differences in willingness-to-pay across sites. It is hoped that this study contributes to the limited empirical literature on community forestry in developing countries by indicating some of the conditions under which community plantations will be acceptable and feasible.

French consumer perception, preference of, and willingness to pay for fresh fruit based on country of origin

2014 ◽  
Vol 116 (5) ◽  
pp. 805-820 ◽  
Author(s):  
Zhifeng Gao ◽  
Shu Sing Wong ◽  
Lisa A. House ◽  
Thomas H. Spreen
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Contingent Valuation Method ◽  
Country Of Origin ◽  
Citrus Fruit ◽  
Consumer Perceptions ◽  
Fresh Fruit ◽  
Consumer Perception ◽  
Content Type ◽  
Valuation Method

Purpose – The purpose of this study is to determine French consumer perceptions and preferences for fresh fruit from different countries. French consumer willingness to pay (WTP) for citrus fruit and the factors affecting WTP are also determined. Design/methodology/approach – An online consumer survey was conducted in France to collect data on consumer perceptions and preferences for fresh fruits from different countries. The contingent valuation method is used to estimate consumer WTP for fresh citrus fruit. A double hurdle model is used to determine the factors that have substantial impact on consumer preferences. Findings – Results show that fresh fruit from China was perceived as the lowest quality, the least safe, and the cheapest among the fruit from various countries. French consumers had the highest stated WTP for fresh fruit from France, followed by fruit from Spain. In addition, consumer WTP for country of origin varies by type of fruit. Research limitations/implications – The contingent valuation method does not require consumers to purchase the product being evaluated, which may overestimate consumer stated WTP. Practical implications – More domestically produced fresh fruit may be provided to satisfy consumer demand for fruit produced in their own countries. As second in consumer stated WTP, Spain should take advantage of the lower price high quality perceptions of their fresh fruit to gain a larger market share in France. Lower rated countries, such as China, Brazil, and Israel, need to improve consumer perception of the fruit from their countries to gain a better position in the fresh fruit market of France. Originality/value – This is the first paper to present French consumer perception of fresh fruit and WTP for citrus fruit from different countries.

Willingness of tobacco farmers to accept compensation for tobacco crop substitution in Lichuan City, China

2021 ◽  
pp. tobaccocontrol-2021-056751
Author(s):  
Xinyu Wan ◽  
Jianjun Jin ◽  
Shenghong Ran
Keyword(s):  
Contingent Valuation ◽  
Contingent Valuation Method ◽  
Willingness To Accept ◽  
Face To Face ◽  
Valuation Method ◽  
Female Farmers ◽  
Substitution Policy ◽  
The Mean ◽  
Expected Benefits ◽  
The Government

ObjectiveThis study, conducted in China, explores tobacco farmers’ willingness to accept (WTA) compensation for tobacco crop substitution.MethodsThe contingent valuation method was used to elicit farmers’ WTA compensation. A face-to-face survey was conducted with 280 tobacco farmers in Lichuan City, China. The standard logit regressions were used to identify the factors that influence farmers’ WTA.ResultsWithout compensation, most of the respondents were unwilling to implement tobacco crop substitution. However, if the government provided compensation, the proportion of respondents’ willingness for substitution increased to 86.7%. Male tobacco farmers are more likely to accept a given compensation value than female farmers. Older tobacco farmers have a higher probability of accepting compensation. The number of farmers engaged in tobacco growing in a family is negatively associated with the probability of accepting a given compensation amount. Tobacco farmers with greater confidence in the expected benefits of tobacco crop substitution tend to be more willing to accept compensation. The mean WTA estimate was achieved as US$2020.35/ha/year.ConclusionsIf appropriate compensation is provided for tobacco farmers, there is a potential to implement the tobacco crop substitution policy in the study area.

Reliability and Validity of the Contingent Valuation Method for Estimating Willingness to Pay: A Case of In Vitro Fertilisation

2018 ◽  
Vol 17 (1) ◽  
pp. 103-110 ◽  
Author(s):  
Stella Nalukwago Settumba ◽  
Marian Shanahan ◽  
Willings Botha ◽  
Muhammad Zulilhaam Ramli ◽  
Georgina Mary Chambers
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Contingent Valuation Method ◽  
Reliability And Validity ◽  
In Vitro Fertilisation ◽  
Valuation Method

scholarly journals Paying the price to solve fisheries conflicts in Brazil’s Marine Protected Areas

2018 ◽  
Author(s):  
Priscila Lopes ◽  
Sebastian Villasante
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Protected Areas ◽  
Marine Protected Areas ◽  
Contingent Valuation Method ◽  
Slight Tendency ◽  
Valuation Method ◽  
Fernando De Noronha

Ecosystems services (ES) provide food and recreation to humans, but are fast being degraded. Marine Protected Areas (MPAs) have been proposed as a way to protect some of these ES, but decisions regarding what gets protection and what gets consumed can be a source of conflicts. One such example is the Fernando de Noronha MPA (Brazil), where there is a conflict between shark-directed tourism and fishers who would like to access the no-take part of the MPA during part of the year. A contingent valuation method (Willingness to Pay) was used to ascertain if tourists would accept compensating fishers for not disturbing the sharks during a specific period of the year, by adding a symbolic increase in the taxes they already pay to either visit the island or to visit the no-take part of the MPA. Tourists were open to this alternative (67-71%), regardless of the fee being paid. However, there was a slight tendency to reject the fee when the tourists saw sharks during their stay, suggesting that a closer contact with these animals triggered a less sympathetic attitude towards fishers, probably because they start seeing fishers as wrongdoers, even if this is the worst choice for conservation. Although such a hypothetical payment was easily accepted by the majority of the tourists and could represent an affordable solution to conflicts, convincing those who reject such social compensation, especially if based on an irrational choice, would be an important step for sharks and for the MPA as a whole.

scholarly journals ANALISIS WILLINGNESS TO PAY DAN PENGARUH VARIABEL PENDAPATAN, JUMLAH TANGGUNGAN RUMAH TANGGA, USIA, AKSES KE SEKOLAH TERHADAP PEMILIHAN SERTA PENGEMBANGAN STRATEGI PENGELOLAAN SEKOLAH

2021 ◽  
Vol 6 (1) ◽  
pp. 77-88
Author(s):  
Christina Utami ◽  
Metta Padmalia
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation Method ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
User Fees ◽  
Snowball Sampling ◽  
Valuation Method ◽  
The Government

The purpose of this study is to estimate and analyze the willingness to pay  and fax tor the factors that affect the willingness to pay at High School in the of Semarang. The method used is Contingent Valuation Method (CVM) and multiple linear regression analysis. The number of samples in this study were 238 respondents, the sampling technique was done by snowball sampling. The results of this study indicate that the average willingness to pay (WTP) of households in High Schools in Semarang is Rp.559.034,00. Factors that have a significant influence on WTP values are income variables, number of household dependents, age and length of access. Whereas the factors that have no effect on willingness to pay (WTP) are parents' education variables. Based on the results of the study, the suggestions that can be put forward are the management or the government to improve the quality of the Vocational School as well as the development of a transparency policy on the collection and allocation of user fees and other resources.

scholarly journals STRATEGI PENINGKATAN PENDAPATAN ASLI DAERAH MELALUI RETRIBUSI SEKTOR PARIWISATA (Studi Kasus Kawasan Wisata Dataran Tinggi Dieng Kabupaten Wonosobo)

2020 ◽  
Vol 9 (1) ◽  
pp. 17
Author(s):  
Reni Novianti ◽  
Lukman M. Baga ◽  
A. Faroby Falatehan
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Contingent Valuation Method ◽  
Valuation Method

Kabupaten Wonosobo memiliki potensi pada sektor pariwisata, salah satunya objek wisata Dataran Tinggi Dieng. Pariwisata merupakan salah satu sektor yang berpotensi memberikan kontribusi terhadap Pendapatan Asli Daerah (PAD). Akan tetapi, kontribusi PAD Wonosobo dalam pembiayaan belanja daerah kurang dari 15 persen. Oleh karena itu, tujuan dilaksanakannya penelitian ini adalah untuk menganalisis kondisi objek wisata terhadap beberapa atribut dengan menggunakan analisis IPA; mengestimasi nilai willingness to pay pengunjung dengan menggunakan Contingent Valuation Method (CVM); serta merumuskan strategi peningkatan PAD Kabupaten Wonosobo melalui peningkatan retribusi objek wisata Dataran Tinggi Dieng dengan menggunakan analisis SWOT. Hasil analisis IPA menunjukkan atribut kondisi jalan menuju kawasan wisata, kebersihan, pelayanan, promosi, penanganan keluhan pengunjung, kemacetan, tempat pembuangan sampah, fasilitas toilet dan musholla menjadi prioritas utama untuk diperbaiki. Sedangkan dari hasil analisis CVM diperoleh nilai WTP sebesar Rp16 513 per orang. Berdasarkan hasil analisis tersebut serta hasil wawancara yang telah dilakukan, dapat teridentifikasi faktor-faktor yang menjadi kekuatan, kelemahan, peluang dan ancaman yang dituangkan dalam matriks SWOT. Terdapat lima strategi yang berperan dalam peningkatan retribusi objek wisata dataran tinggi dieng yaitu: 1) Meningkatkan kerjasama dalam pengelolaan dan pengembangan sumberdaya wisatayang memiliki daya tarik; 2) Membangun sistem yang terintegrasi; 3) membangun dan memperbaiki sarana dan fasilitas umum; 4) memperbaiki akses menuju objek wisata; dan 5) merumuskan peraturan yang mengatur tentang pariwisata, pengelolaan objek wisata beserta elemen-elemennya.

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