Grace, Delia

Hai Hoang Tuan Ngo

Hang Le-Thi

Hung Nguyen-Viet

Lindahl, Johanna F.

Målqvist, M.

Phi Nguyen-Hong

Phuc Pham-Duc

Sinh Dang-Xuan

Trang T.H. Le

Unger, Fred

CGSpace

Better lives through livestockImpact of perception and assessment of consumers on willingness to pay for pork from upgraded shops: An experimental approachHai Hoang Tuan Ngo,1,2.3, Sinh Dang-Xuan2, Mats Målqvist3, Phuc Pham-Duc1,6, Phi Nguyen-Hong1, Hang Le-Thi1,Hung Nguyen-Viet2,3, Trang T.H. Le2, Johanna F. Lindahl3,4,5, Fred Unger2, Delia Grace4,71 Center for Public Health and Ecosystem Research, Hanoi University of Public Health, Hanoi, Vietnam2 International Livestock Research Institute, Hanoi, Vietnam3 Department of Women's and Children's Health, Uppsala University, Uppsala, Sweden4 International Livestock Research Institute, Nairobi, Kenya5 Department of Clinical Sciences, Swedish University of Agricultural Sciences, Uppsala, Sweden6 Institute of Environmental Health and Sustainable Development, Hanoi, Vietnam7 Natural Resource Institute, University of Greenwich, Kent ME4 4TB, United KingdomSAFEPORK Pork Conference, New Orleans, May 15-17th 20232Outline1. Introduction2. Methodology3. Result4. Discussion31. Introduction- High prevalence of microbial contamination in retailed pork in Vietnam- Most pork sold from traditional sector- Consumers prefer and trust this VCFigure 1&2: Traditional pork shops in Vietnam➢ Research question: can consumer WTP drive an intervention to improve pork safety in the informal sector4Conventional approach to assessing WTP• Ask consumers directly• Conjoint valuation • Over-estimateNewer, experimental approach▪ Real life experiment▪ Mock-up with real money▪ Experimental Auctions▪ Individual Experiments▪ Becker-DeGroot-Marshack2. Methods5• Study location: Hung Yen province and Thai Nguyen province (Northern Vietnam)• Participants: o 152 consumers at 3 marketso Interviewed via questionnaire• Pork shop:o Conventional shop: equipped with selling toolso Upgraded shop: equipped with hygienic tools (cloths, disinfection liquid, sprayer) and selling tools, posterso One in two consumers got food safety message2. MethodologyFigure 3: Study sites6Experimental Auction• Create market environment• Present alternative ways to sell product• Auction product: 0.5 kg shoulder pork2. MethodologyFigure 4: Conventional shop Figure 5: Upgraded shopConventional vs upgraded shopReceiving vs not receiving food safety message 72. MethodologyStep 1: Enumerator informed and interviewed participants (via questionnaire)Step 2: Participants were introduced and practiced the Becker-DeGroot-Marschak (BDM) auction process. Step 3: Participants observed the shops, filled in their assessment and the bids for each shopStep 4: Enumerator confirmed the bids and assessment with the participantsStep 5: Enumerator randomly drew the shop for auction game, then the random price of pork. Result: If the drawn price was higher than participant’s bid, he/she lost the auction game and go home with 100,000 VND (4.3$). Otherwise, he/she won the auction game and had to buy the pork at the draw price, they then received the pork and the remaining money.Auction procedure• Customers make bid. • Bid is compared to a price determined by a random number generator. • If bid > price, customer pays price and gets pork. • If bid is < price, pay nothing and receive nothing.83. ResultParticipants characteristics (N=152):Characteristics Mean SDAgeFood expenditure (thousand VND/day) Household sizeNumber of children in HHNumber of elderly people in HHNumber of pork dishes eaten /weekAmount of pork bought per shop (kg)51.9 102 3.980.350.736.441.0811.8681.710.60.85.431.05Gender   Male   FemaleFrequency15137Percentage9.990.1The most consumed type of pork    Bacon   Shoulder   OthersFrequency 993320Percentage 65.121.712.293. ResultExperience with pork-borne diseases and concern about contaminated pork (N=152)Items Frequency PercentageExperience with potential pork-borne disease symptoms everStomach acheDiarrheoaNauseaVomit  No symptoms observed 24161279315.810.57.94.661.2Concerns about eating contaminated pork   Not worried   A bit worried   Worried   Very worried   Extremely worried283638681.35.323.72544.7103. ResultPerception and assessment about the pork shopItem Mean Min Max MedianWillingness to pay for pork (Thousand VND/kg & $)   From upgraded shop (1)   From typical shop (2)   Difference in WTP ((1) minus (2))78 (3.4$)65 (2.8$)13** (0.6$)50 (2.2$)40 (1.7$)-10 (-0.4$)140 (6$)120 (5.2$)60 (2.6)80* (3.5$)60* (2.6$)10 (0.4$)*: Significantly different (p<0.01) with Wilcoxon signed rank test **: Significantly different from 0 (p< 0.01) with t-test- 80% participants believed practices at upgraded shop would improve pork safety- Upgraded shop (9.3/10) score was significantly higher rated than conventional shop (7.6/10) in food safety condition using an objective checklist113. ResultRegression results:• Shop perceived as clean increased the WTP for pork from upgraded shop but did not affect WTP for pork from conventional shop;• The more frequent the pork consumption the higher WTP for upgraded pork • Perception (e.g., more worried) about food safety decreased WTPs for all pork but increased the difference in WTP (i.e., more worried more WTP for upgraded pork)• Risk message showed no impact on WTP for both products (one in five get sick from eating pork from traditional, not upgraded shop)124. Conclusion – in traditional VN pork VC- Consumer will pay 20% more for pork from an upgraded pork shop compared to conventional one.- The premium paid is enough to cover the cost of upgrading and generate a small profit (paper under submission).- The more a shop is perceived clean, the more the consumer will pay.- Fear-based food safety messages may not be effective.13Acknowledgements• This work was financed by ACIAR under SafePORK project.• This study was implemented in a partnership with Hanoi University of Public Health, Thai Nguyen University of Agriculture and Forestry.THANK YOU

Impact of perception and assessment of consumers on willingness to pay for pork from upgraded shops: An experimental approach

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Impact of perception and assessment of consumers on willingness to pay for pork from upgraded shops: An experimental approach

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