S-shape relationship between customer satisfaction and willingness to pay premium prices for high quality cured pork products in Spain

This paper explores 2 different probabilistic models explaining willingness to pay premium prices for high-quality cured products from the swine industry. Seven cured pork products (sausage, fuet, ham, loin, shoulder, salami and pepperoni) were studied in 9 food-stores in Valladolid, Spain. Consumers of the products were interviewed (686 completed surveys). It was found by using mixed effect statistical models that the relationship between willingness to pay a premium price and customer satisfaction had nonlinear behavior, following an S-shape with inverted slope which was the first empirical evidence of this type of behavior in meat products in real market conditions. It was also established that the interaction between satisfaction and current expenditure on the product was significant and indispensable for explaining consumers' willingness to pay premium price for cured pork products.

► We model relationship customer satisfaction and willingness to pay a premium price. ► We study seven cured pork products in Spain. ► This relationship follows an S-shape with inverted slope. ► Interaction between satisfaction and current expenditure also is important.