Effects of Inattention and Repeat Purchases: A Choice-Based Conjoint Study of Consumer Preferences for Farmstead Milk Attributes

ABSTRACT Survey elicitation of consumer preferences for product attributes where survey-taker inattention bias exists can lead to irrational product choices. Survey-taker inattention measures, such as screen reading time, can be confounded by repeat product purchasers taking the survey. This study estimates consumer willingness to pay (WTP) for farmstead milk attributes, including pasteurization type (VAT, HTST, Ultra), packaging (plastic, paper, glass), and homogenization/milkfat content (low-fat, whole, full-fat homogenized, and full-fat cream-line) while controlling for respondent inattention. These attributes entail key equipment purchase decisions to enter the milk processing business. The survey design accounts for effects of survey-taker inattention and prior product purchases. Attribute premiums and discounts were estimated using a random parameter logit model estimated in WTP-space. The Attentive/Repeat-purchase group of 817 respondents prefers VAT or HTST pasteurized, low-fat farmstead milk, packaged in plastic or glass containers. Inattention effects were confounded with product familiarity, with inattention effect being strongest among new customers.