Determinants of Decision to Pay a Price Premium for Modified Food by Consumers of the Republic of Korea

The knowledge of the overall willingness-to-pay and the specific price premiums consumers accept when buying foods with less fat, saturated fat, sodium, sugar and more fiber shapes food manufacturer and distributor marketing strategies and supports the development of public health strategies. This study applies survey data collected in Korea to identify consumer profiles associated with the expressed willingness to pay a premium for foods with nutritionally desired attributes and, next, estimates the influence of consumer and household characteristics on the WTP a particular premium level for such foods. Results indicate the importance of socio-economic variables such as location, income and education, variables representing the risk of health problems (stroke, certain cancers), food being organic, support for food genetic modification or research, and attributes related to food preparation (cook fast, prepared with little waste or can be processed at home).