December 14, 2009, 11:00–12:30
Toulouse
Room MF 323
Agricultural and Food Industrial Organization Seminar
Abstract
The aim of our article is to understand consumer preferences for wood and competitive materials. Assuming that a wood product is composed of various attributes, we consider that consumers’ choices are not guided by observed characteristics but, instead, by the quality perception consumers have of these attributes. An econometric model integrating this factor by means of latent variables allows us to analyze the influence of individual characteristics and information (external sources and/or experience) on product quality perception. We also include consumers’ attitudes in the model by supposing that the importance consumers place on attributes accurately describes their tastes. Data on material choices (wood vs. vinyl) for window frames validate our assumptions.
Keywords
quality perception; information; taste; latent variable model; wood;
JEL codes
- C25: Discrete Regression and Qualitative Choice Models • Discrete Regressors • Proportions
- D12: Consumer Economics: Empirical Analysis
- L15: Information and Product Quality • Standardization and Compatibility