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Integration and validation of an SMS-based bidding procedure of eliciting consumers' willingness-to-pay for food

(2016) BRITISH FOOD JOURNAL. 118(9). p.2200-2217
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Organization
Abstract
Purpose : Despite the large body of research on consumers' willingness-to-pay for new food, few studies have tried to integrate new technology-based systems and improve their validity. The purpose of this paper is to analyse the integration of short messaging service (SMS) in experimental auctions. Design/methodology/approach : Based on a case study on iodine biofortified food with 180 household decision makers in Africa, a standard Becker-Degroot-Marschak procedure was compared with the novel SMS-based procedure through five information/auction rounds. Thereby, a standard protocol commonly employed in validation of medical diagnostic tests was adopted, assessing the sensitivity, specificity, precision, negative predictive values, likelihood ratios and post-test probability. Findings : The SMS-based elicitation exhibited high levels of sensitivity (89-95 per cent), specificity (63-73 per cent), precision (40-60 per cent), NPV (92-98 per cent), LR+(2.6-3.3) and LR-(0.08-0.2) for all the auction rounds. The post-test plot indicates that the novel procedure is particularly consistent in ascertaining positive and negative valuations for a new food product. Originality/value : Even though SMS-based bidding is shown to be an accurate, but also convenient and attractive bidding procedure, which is in line with novel ways of purchasing food, further validation is inevitable to determine its reliability in different contexts and its most effective use.
Keywords
Becker-Degroot-Marschak (BDM), Experimental auction, Food, Preference, QUALITY, SPECIFICITY, SENSITIVITY, EXPERIMENTAL AUCTIONS, PREDICTIVE VALUES, Short messaging service (SMS), Willingness-to-pay (WTP), HEALTH, MAIZE, INFORMATION, ACCEPTANCE, MECHANISM

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Citation

Please use this url to cite or link to this publication:

Chicago
Mogendi, Joseph Birundu, Hans De Steur, Anselimo Makokha, and Xavier Gellynck. 2016. “Integration and Validation of an SMS-based Bidding Procedure of Eliciting Consumers’ Willingness-to-pay for Food.” British Food Journal 118 (9): 2200–2217.
APA
Mogendi, J. B., De Steur, H., Makokha, A., & Gellynck, X. (2016). Integration and validation of an SMS-based bidding procedure of eliciting consumers’ willingness-to-pay for food. BRITISH FOOD JOURNAL, 118(9), 2200–2217.
Vancouver
1.
Mogendi JB, De Steur H, Makokha A, Gellynck X. Integration and validation of an SMS-based bidding procedure of eliciting consumers’ willingness-to-pay for food. BRITISH FOOD JOURNAL. 2016;118(9):2200–17.
MLA
Mogendi, Joseph Birundu et al. “Integration and Validation of an SMS-based Bidding Procedure of Eliciting Consumers’ Willingness-to-pay for Food.” BRITISH FOOD JOURNAL 118.9 (2016): 2200–2217. Print.
@article{8104109,
  abstract     = {Purpose : Despite the large body of research on consumers' willingness-to-pay for new food, few studies have tried to integrate new technology-based systems and improve their validity. The purpose of this paper is to analyse the integration of short messaging service (SMS) in experimental auctions. 
Design/methodology/approach : Based on a case study on iodine biofortified food with 180 household decision makers in Africa, a standard Becker-Degroot-Marschak procedure was compared with the novel SMS-based procedure through five information/auction rounds. Thereby, a standard protocol commonly employed in validation of medical diagnostic tests was adopted, assessing the sensitivity, specificity, precision, negative predictive values, likelihood ratios and post-test probability. 
Findings : The SMS-based elicitation exhibited high levels of sensitivity (89-95 per cent), specificity (63-73 per cent), precision (40-60 per cent), NPV (92-98 per cent), LR+(2.6-3.3) and LR-(0.08-0.2) for all the auction rounds. The post-test plot indicates that the novel procedure is particularly consistent in ascertaining positive and negative valuations for a new food product. 
Originality/value : Even though SMS-based bidding is shown to be an accurate, but also convenient and attractive bidding procedure, which is in line with novel ways of purchasing food, further validation is inevitable to determine its reliability in different contexts and its most effective use.},
  author       = {Mogendi, Joseph Birundu and De Steur, Hans and Makokha, Anselimo and Gellynck, Xavier},
  issn         = {0007-070X},
  journal      = {BRITISH FOOD JOURNAL},
  keywords     = {Becker-Degroot-Marschak (BDM),Experimental auction,Food,Preference,QUALITY,SPECIFICITY,SENSITIVITY,EXPERIMENTAL AUCTIONS,PREDICTIVE VALUES,Short messaging service (SMS),Willingness-to-pay (WTP),HEALTH,MAIZE,INFORMATION,ACCEPTANCE,MECHANISM},
  language     = {eng},
  number       = {9},
  pages        = {2200--2217},
  title        = {Integration and validation of an SMS-based bidding procedure of eliciting consumers' willingness-to-pay for food},
  url          = {http://dx.doi.org/10.1108/BFJ-11-2015-0428},
  volume       = {118},
  year         = {2016},
}

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