How useful is acceptability to explain economic value? An application on the introduction of innovative saffron products into commercial markets

We initiate consumer acceptability experiments to examine how sensorial, in concert with non-sensorial attributes, interact and influence hedonic scores and willingness to pay (WTP). Food neophobia scales are also incorporated as a precursor for WTP. Employing a sample of consumers from the Northern Spanish town of Zaragoza, we examine two varietal innovations incorporating saffron which are already produced 'small scale' in the nearby rural locality.We find that consumer expectations are a strong precursor of WTP. Positive disconfirmation (i.e. the product is better than expected) negatively impacts on WTP for one product innovation, although no such relation is found for contrast and assimilation effects. Notwithstanding, our model's predictive capacity of WTP for either product innovation strongly converges with their actual prices paid in small rural markets. Finally, for one product innovation, greater neophobia is statistically correlated with lower WTP. Consequently, effective labelling and marketing strategies targeted at food neophiles, offer local saffron producers a potentially lucrative market segment.

Research highlights► Consumer expectations are a strong precursor of the willingness to pay (WTP). ► The estimated WTP is close to the price paid in real market conditions. ► Neophobia is statistically correlated with lower WTP for one product innovation.