Market Price Determination for Ready-to-Cook Catfish Products: Insights from Experimental Auctions

Abstract

Determination of the right price is vital for the success of newly developed food products. This study examined the market prices and their determinants for five ready-to-cook catfish products: Panko-Breaded Standard Strips (PBSS), Panko-Breaded Standard Fillet (PBSF), Panko-Breaded Delacata Fillet (PBDF), Sriracha-Marinated Delacata Fillet (SMDF), and Sesame-Ginger-Marinated Delacata Fillet (SGMDF). Market prices were derived using Vickrey’s second-price auction, where the second-highest bid represents the market price. We analyzed experimental auction data from 121 consumers using a logit model to estimate the probability of offering the market price based on product sensory attributes, socio-demographic characteristics of the participants, and the level of competition (panel size). Consumers’ willingness-to-pay (WTP) was elicited in two rounds: before tasting (visual evaluation) and after tasting (organoleptic evaluation) the products. Breaded products received higher market prices than marinated products, with PBDF ranked highest. Sensory traits, especially taste, along with income, education, and grocery shopping involvement, significantly influenced the formation of market price. Increased competition elevated the market prices. Both product features and consumer characteristics significantly affect market price outcomes, and experimental auctions provide a robust tool for understanding consumer behavior toward newly developed food products.Agricultural Science