Iranian seafood consumers’ willingness to pay for fresh fish

Abstract

An increasing interest and growth potential has emerged for Norwegian salmon in Iran’s seafood market. Willingness to pay (WTP) for Norwegian salmon, Iranian rainbow trout, and Iranian narrow-barred Spanish mackerel is estimated for seafood consumers in Iran. Marginal effects of taste, convenience, nutrition, and demographic factors on WTP, are also estimated. A survey among 359 food shoppers was conducted in Tehran province, employing a Multiple Price List (MPL) and a stated preferences method. Based on this survey, estimated WTP for Norwegian salmon is $12.54, which is almost half of its current price in the market. The results indicate that WTP for Norwegian salmon is higher among high-income groups; and also taste, nutrition, and consumption frequency can increase this WTP up to $17.45. This implies that businesses can take advantage of the existing opportunities for Norwegian salmon among Iranian seafood consumers by increasing their WTP and balancing the prices accordingly. Differentiating Norwegian salmon with respect to its attributes, and using local seafood stores in wealthy regions as the distribution channel, are the suggested strategies for development of the consumption of Norwegian salmon among Iranian seafood consumers.