Willingness to pay for consumer food products in scientific research

Abstract

Theoretical background : The basis for developing a company's pricing strategy is information on consumers' willingness to pay (WTP). In order to properly estimate the demand for the products offered, it is necessary to understand the reactions of consumers to different price levels of goods. Research on WTP has been developing dynamically in the international arena for over a decade. The concept of WTP as presented in the article, a concept which may support decisions concerning pricing policy and influence the earnings of entrepreneurs, is rarely discussed in Polish publications. Purpose of the article : Based on the analysis of the literature, the article attempts to answer the question of whether, if buyers are willing to pay a higher price for certain characteristics of food products, WTP is an important predictor of consumers' purchase decisions. Research methods : The article contains studies of Polish and world literature in the field of the development and application of WTP in the context of food consumer products. Main findings : Consumers will most likely accept a higher price if they perceive that the value of a particular characteristic of the product distinguishes it from conventional goods. This means that it is not the price but the WTP that determines the decision to buy a food product. The relationship between value and price, and thus WTP, is crucial in the process of forecasting consumer choices.