Consumption decision and WTP Sample Clauses

Consumption decision and WTP. If a brand owner or retailer is not prepared to focus on a niche market, he should focus on the personal benefits that bio-based products bring (potentially communicated through a label) and be aware that most consumers are only willing to pay little or no more for bio- based products. In some cases it may be determined or perceived that the consumer is unwilling to pay the green premium for a bio-based product of equal quality. In other words: no higher price can be charged for the bio-based product. In this case brand owners of consumer products may take the initiative that actors along the value chain carry the burden and absorb the higher product costs. This strategy has been applied in the recent past by brands such as Coca- Cola and IKEA. It allows brands to focus on image and branding, looking at the problem from a different perspective.