Information and WTP: Fruit Quality Perceptions and Consumer Satisfaction

Consumers face information problems in choosing certain types of foods that best match theirpreferences and assure satisfaction. For fresh fruits, expectations about the easting experiencecannot be assured through external inspection of the product at the time of purchase, nornecessarily through experience. Limited information provided by the supply industry,unexploited product differentiation by marketers, and lack of awareness among consumers ofquality attributes, of the intrinsic heterogeneity of fresh produce, can lead to reducedconsumer satisfaction, which in turn affects consumption patterns and attenuates the impactof policy initiatives to improve diet and health.The research reported here employed the second price Vickrey experimental auction methodto test consumer perceptions of fruit quality by evaluating the willingness to pay (WTP) ofconsumers for five different varieties of soft citrus under three different informationconditions: visual inspection of the fruit before peeling; visual inspection after peeling; andafter consumption. Significant differences were found in valuations of the different varietiesas consumers gained information. Juiciness, sweetness and acidity were the attributes mostclosely correlated with WTP under conditions of full information, and also with the overallevaluation of the different varieties.Implications for growers, traders, and for policy are inferred from the results. Growers andmarketers must know not only about consumer behaviour in general, but must gather marketinformation about purchasing and consumption behaviour in relation to preferences forspecific products. The potential mismatch between the purchase decision and satisfactionposes challenges for policy makers hoping to change dietary habits. In countries wheredietary patterns, global food distribution systems and consumption patterns are changingfastest, and where health indicators are most under threat, the message is that governmentsshould continue to engage actively with the food industry in the promotion of healthyproducts.