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Title: Estimating consumer willingness to pay a price premium for Alaska secondary wood products.

Author: Donovan, Geoffrey H.; Nicholls, David L.

Date: 2003

Source: Res. Pap. PNW-RP-553. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 7 p

Publication Series: Research Paper (RP)

Description: Dichotomous choice contingent valuation survey techniques were used to estimate mean willingness to pay (WTP) a price premium for made-in-Alaska secondary wood products. Respondents were asked to compare two superficially identical end tables, one made in China and one made in Alaska. The surveys were administered at home shows in Anchorage, Fairbanks, and Sitka in March and April 2002. Results indicated that, on average, respondents were willing to pay an additional $82 for the Alaska-made table, above a base price of $50. The 95 percent confidence bounds on this estimate of mean WTP are $68.10 and $96.10. Survey design and sample demographics are discussed as possible upward biases on the mean WTP for the Alaska-made table. Despite these possible biases, we concluded that place of manufacture is a significant competitive advantage for Alaska secondary wood product manufacturers marketing their products in Alaska.

Keywords: Secondary manufacturing, furniture, willingness to pay, contingent valuation, marketing, Alaska

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Citation:


Donovan, Geoffrey H.; Nicholls, David L. 2003. Estimating consumer willingness to pay a price premium for Alaska secondary wood products. Res. Pap. PNW-RP-553. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 7 p

 


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