Willingness to pay for safer dairy products in China
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Bright Dairy & Food Co., Ltd., a joint-stock company headquartered in Shanghai, was involved in five food safety incidents from June to September 2012. The objective of this study is to analyze Shanghai customers’ willingness to pay (WTP) for the safer baby cheese from Bright Dairy. This study utilized interval regression to investigate the impact of consumers’ demographic characteristics, buying habits, and food safety perceptions on their WTP. A total of 318 adult respondents from two nursery schools in Shanghai were involved in a survey of food safety attitudes and consumer behavior. Results show that consumers’ age, attitude for baby cheese’s safety, purchasing frequency of Bright Dairy’s baby cheese product, and their alternative choice of other native or foreign brands of baby cheese, have significant effects on their willingness to pay for safer baby cheese. Finally, consumers are willing to pay a 16.54% premium (RMB 1.82/92g) for safer baby cheese.