Differentiating Price Sensitivity from Willingness to Pay: Role of Pricing in Consumer Acceptance of Upcycled Foods

Abstract

ABSTRACT The problem of food waste continues to plague the world. Upcycled foods, made from ingredients remaining from the manufacturing of other food products, are a partial solution to the food waste problem. Limited research on consumer acceptance of upcycled foods suggests a commercial prospect for these foods. While encouraging, extant findings tell us little about the role of pricing in crafting a market for such foods. We investigate consumers’ price sensitivity for upcycled foods vis-à-vis conventional alternatives. We find that compared to conventional alternatives, consumers exhibit a higher price sensitivity for upcycled foods. We discuss the academic and managerial implications of these findings.