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High prices in any industry, agricultural especially, tend to spur new investment opportunities. Recent prices for pecans have been high relative to their historical pattern, suggesting investment opportunities for pecans. Prior to any investment, the investor needs to know what products consumers are demanding and how profitable it is to grow those products. This study assessed Texas consumers' preferences for pecan products and the profitability of growing pecans in the central Texas region. A choice experiment was conducted amongst Texas consumers to reveal consumers' preferences and determine their willingness-to-pay for the attributes comprising pecan products. A stochastic production model was formulated to determine the profitability of three different types of pecan orchards: a native orchard with no irrigation, an improved varieties orchard with irrigation, and an improved varieties orchard without irrigation. Results from the choice experiment indicated that consumers preferred large size pecans, native variety pecans, pecan halves, United States-grown pecans, and Texas-grown pecans. The choice experiment also found that consumers were heterogeneous in their preferences for all attributes except pecan variety and U.S. origin. Results from the stochastic production model indicated that the most profitable pecan orchard in central Texas was the irrigated improved orchard.

In a world with diverse consumer preferences, it can be challenging for producers to determine marketing strategies and production practices that maximize their profits while meeting consumer demand for fresh products. Consumers could be willing to pay for products that reduce environmental impact, but producers must know whether these changes will pay off. This study estimated consumers’ willingness to pay for specific environmental factors pertaining to fresh tomato production using a choice experiment survey. This study found that Southeastern consumers are willing to pay a price premium for specific environmental factors: water conservation, reduced pesticide residue, fewer miles between production location and purchase location, and tomatoes grown without petroleum-based fertilizers. The results of this study are beneficial to regional tomato producers, who could incorporate specific environmental practices into current production schedules that lead to incremental changes in the environmental attributes that were evaluated in this survey.

Within the East coast and West Coast oyster market, oysters are generally marketed using product attributes and brand name. However the Gulf oyster market does not involve branding. Using choice experiment method and online survey data, the study estimated the effect of branding Gulf oysters on Gulf and Non-Gulf consumers’ willingness to pay. Alternative-specific conditional logit, Nested logit and Alternative-specific multinomial probit methods of analysis were used to investigate the Independence of Irrelevant Alternative assumption made about consumers. Pooled and scaled models were used to analyze the identified data categories from which consumers were found to share the same oyster preferences. The results found that consumers on the average were willing to pay more for the oysters harvested from their own region relative to those harvested from outside their region. They were willing to pay a less for oysters harvested outside their region.

Master of Science / Department of Agricultural Economics / Hikaru H. Peterson / Farmer-to-consumer direct marketing institutions have expanded significantly in the last decades. In particular, Community Supported Agriculture (CSA) has developed exponentially in the US and in Europe. CSAs consist of a contract in which the consumer buys a share of the farm production at the beginning of the season and receive in exchange a bundle of products regularly. CSAs still account for a marginal share of food sales today and many questions remain unanswered, such as the level of knowledge of the general public about CSA, the potential size of the market, its consumer characteristics, and the main motivations and barriers that lead consumers to either join or not join CSAs. This study focused on addressing these questions for the Kansas City area and the central region in France. Another objective was to give recommendations to farmers on how to develop CSAs. Two versions of the surveys were designed and conducted in the US and in France to address the objectives. Particularly, two types of questions were used in order to elicit willingness to pay (WTP): an open-ended question and a choice experiment. A Tobit model and discrete choice models were run to analyze results from the open-ended question and the choice experiment, respectively. Results show that around 80 percent of the population knew little about CSAs. The understanding of the demand for CSAs shows that a potential market, accounting for around 25 percent of the population, exists, but consumers are very exigent and farmers need to provide well-considered contracts to attract consumers. Recommendations to farmers are presented following the 4P method. For the Product, the variety offered seems to be the most important point. For Price, it has been estimated from the demand at $300 in the US and €400 in France for a basic share. Promotion would need to focus on education. Having various delivery locations would be the best option concerning Place; home delivery was found to be unnecessary. Tendencies found in the US and in France were similar except for educational activities: the French are looking more for these opportunities than Americans who care more about convenience.

Doctor of Philosophy / Department of Agricultural Economics / Hikaru Hanawa Peterson / Consumers’ food demand has been found to be affected not only by prices and income, but also by their increasing concern about factors like health benefits, animal welfare, and environmental impacts. Thus, many food producers have differentiated and advertised their products using relevant attributes. The increasing demand and supply of differentiated food products have raised questions regarding consumer preferences and producer strategies. This dissertation consists of three essays and empirically examines the egg market to shed light on related issues. The first question that this study aims to answer is whether consumers are willing to pay a premium for livestock and dairy products associated with improved animal welfare. Consumers’ attitude towards such products not only affect manufacturers’ production decisions, but also influence policy makers and current legislations. Using a national online survey with choice experiments, the first essay found that consumers in the study sample valued eggs produced under animal-friendly environment, suggesting incentives for producers to adopt animal welfare friendly practices. In an actual shopping trip, consumers usually need to choose from products with multiple attributes and labels. Studying how consumers with heterogeneous preferences process these information simultaneously and make decisions is important for producers to target interested consumer segments and implement more effective labeling strategies. In the second essay, a different national online survey was administered. The analysis using a latent class model categorized the sample respondents into four classes, and their preferences toward attributes and various label combinations differed across classes. Scanner data, which record actually purchased choices, are an important source of information to study consumer preferences. Diverging from the traditional demand approaches that are limited in studying differentiated product markets using scanner data, this study used a random coefficient logit model to overcome potential limitations and examine the demand relationship as well as price competition in the differentiated egg market. The third essay found that conventional and private labeled eggs yielded higher margins due to less elastic demand and cautioned producers of specialty eggs, which are usually sold at high prices despite their much more elastic demand.

Background: Tooth loss has a negative impact on patients’ general health and wellbeing. Dental prostheses can restore oral function, aesthetics and improve oral health related quality of life. Preferences for dental prostheses cannot be fully captured using existing clinical studies and questionnaires. Discrete choice experiment (DCE) is a novel method in health economics to elicit people’s preference for treatments and it allows the researcher to integrate all aspects relevant to treatment into evaluation and measurement of interrelationship between factors. The aim of this PhD thesis is to use a mixed method of DCE and qualitative interviews to analyse dentists and patient’s preferences for dental prosthesis choices in replacing missing teeth. Methods: Discrete choice experiment questionnaires were developed, describing dental prosthdontic treatments in multi-dimensions, including outcome, process and economic factors. Survey and analysis using the questionnaires were conducted with dentists and patients in Edinburgh. Qualitative interviews with Edinburgh dentists and patients were carried out to derive factors to aid the DCE questionnaire design and provide in-depth understanding of DCE results. Systematic reviews were performed to summarise existing evidence on prosthesis evaluation in traditional quantitative studies and perception of prostheses in qualitative interviews. The current application of DCEs in dentistry was also systematically reviewed. Results: Treatment longevity was identified as the most important factor for dentists and patients’ treatment decisions of anterior missing tooth replacements, followed by appearance and chewing function. Dentists put more value on fixation/comfort and treatment procedure than patients. Patients cared about cost of treatment whereas dentists were relatively insensitive. Gender, age and treatment experience significantly influenced patients’ preference for treatment characteristics. Dental implant supported crown was preferred by dentists, whereas patients gave higher utility to traditional prosthodontic treatments. The monetary benefit of fixed dental prostheses ranged from £1856 -£3848 for patients, far exceeding their willingness-to-pay (WTP), which was £120 - £240. Dentists were willing to pay £600-£3000, more than the perceived benefit £503 to £1649. Qualitative study identified the above factors and provided interpretation of DCE results. Problems in the dental care system related to referral and training for dental implant treatments were raised. Discussion: This thesis is the first DCE application in dentistry evaluating and comparing dentists and patients preferences for missing tooth replacements. Dentists and patients’ preferences were elicited qualitatively and qualitatively integrating multidimensional factors. Patients’ preference for treatments, monetary benefit and WTP were demonstrated to be different from dentists’. Treatment benefits exceeded patients WTP for fixed dental prostheses.

The question of whether outsourcing is a good or bad organizational practice has traditionally come down to whether the positive financial impact of outsourcing overcomes the potential organizational liabilities. The theoretical model proposed in this thesis argues that such thinking underestimates the positive organizational benefits that arise from outsourcing by giving inadequate consideration to impacts that outsourcing has on the innovation cycle of outsourcing providers. This research adds to our understanding of outsourcing decision-making in three important ways. First, the thesis presents how innovation benefits can arise from outsourcing and proposes four potential innovation benefits from outsourcing – the motivation for creativity, innovation scale, innovation scope and complementarity of capability. The central hypotheses argue that these beneficial factors should increase the likelihood of a decision to outsource an activity. Second, this research extends our understanding of outsourcing by examining the moderating effect of value appropriation on the decision to outsource. Third, the thesis provides a rigorous empirical utility theoretical approach – best-worst scaling and discrete choice modeling – to understanding managerial preferences and the components of outsourcing decision making. The findings reveal that a significant segment of managers do indeed look beyond cost in choosing to outsource, focusing instead to concentrate broadly on a supplier’s commitment to innovation, complementarity of capabilities and the ability of an outsourcing contract to appropriate value created in a relationship. This implies that the managerial application of outsourcing is not restricted to a short-term solution for cost savings, but can potentially be thought of, and used as, a strategic mechanism to drive innovation in organizations. Some benefits may not be immediately obvious (e.g., a supplier’s motivation for innovation) and require more awareness from managers. Together, the theory and empirics provide insight into outsourcing decision-making and the opportunities for extending outsourcing as a strategic mechanism to drive innovation more broadly.

The purpose of this paper is to investigate how individuals with different characteristics make their choice-decisions when consuming STIGA table tennis blades, which are combinations of various attributes, such as price, control, attack, etc. It is expected that the general trend of choice behavior on this special commodity can be, at least to some extent, revealed. Data were collected using questionnaires sent to registered members of a table tennis club in China. The questionnaires included information and questions about individuals’ monthly income levels, ages, technique styles, etc. A multinomial logit model was then applied to analyze factors determining Chinese consumers’ choice behavior on STIGA table tennis blades. The results indicated that the main element influencing Chinese consumers’ choice of STIGA ping-pong blades was the technique style and other variables did not seem to influence the choice of table tennis blades. These results might be explained by the limited sample size as well as unmeasured and immeasurable factors. Thus, a more extensive research is needed to be conducted in the future.

The question of whether outsourcing is a good or bad organizational practice has traditionally come down to whether the positive financial impact of outsourcing overcomes the potential organizational liabilities. The theoretical model proposed in this thesis argues that such thinking underestimates the positive organizational benefits that arise from outsourcing by giving inadequate consideration to impacts that outsourcing has on the innovation cycle of outsourcing providers. This research adds to our understanding of outsourcing decision-making in three important ways. First, the thesis presents how innovation benefits can arise from outsourcing and proposes four potential innovation benefits from outsourcing – the motivation for creativity, innovation scale, innovation scope and complementarity of capability. The central hypotheses argue that these beneficial factors should increase the likelihood of a decision to outsource an activity. Second, this research extends our understanding of outsourcing by examining the moderating effect of value appropriation on the decision to outsource. Third, the thesis provides a rigorous empirical utility theoretical approach – best-worst scaling and discrete choice modeling – to understanding managerial preferences and the components of outsourcing decision making. The findings reveal that a significant segment of managers do indeed look beyond cost in choosing to outsource, focusing instead to concentrate broadly on a supplier’s commitment to innovation, complementarity of capabilities and the ability of an outsourcing contract to appropriate value created in a relationship. This implies that the managerial application of outsourcing is not restricted to a short-term solution for cost savings, but can potentially be thought of, and used as, a strategic mechanism to drive innovation in organizations. Some benefits may not be immediately obvious (e.g., a supplier’s motivation for innovation) and require more awareness from managers. Together, the theory and empirics provide insight into outsourcing decision-making and the opportunities for extending outsourcing as a strategic mechanism to drive innovation more broadly.