Would you like to bid higher for additional information? Examining consumers’ willingness to pay for blockchain proven goods in the Norwegian food industry

Abstract

This study focuses on the effect blockchain technology has on consumers’ willingness to pay, when used to record and present food provenance information. This was done through an experimental auction, where consumers bid on food products that differed on the method additional food provenance information was conveyed (labels or blockchain), within one of three food categories (pork, fish, or chicken). Through multiple regression analyses, results indicate that customers have an increased willingness to pay towards products that have additional information regardless of the method of conveyance. This result is evident in all three categories, but variation in ratios is observed. Moreover, results disclose that labels enhance willingness to pay to a greater extent than blockchain, but is only significant within one of the three food categories. Lastly, knowledge about blockchain is positively correlated with willingness to pay, however this is not statistically significant. A discussion and interpretation of results are undertaken, further implications for business practices are identified, and proposals for further research are introduced.