Hedonic price analysis of rice grain quality in Indonesia
1989
Adnyana, M.O. (Balai Penelitian Tanaman Pangan Bogor (Indonesia)) | Damardjati, D.S.
A study on consumer preferences for rice quality was conducted in some selective urban area in Indonesia, such as Medan, Jakarta and Ujung Pandang. The aim was to determine the relationship between the quality and price per kg of rice. Hedonic pricing analysis was employed to explore this objective. The study was also aimed to compare the demand of each quality attribute as expressed by different groups of consumers. Urban consumers grouping was based on their locations and levels of income (low, medium, and high). The relevant characteristic of rice considered as affecting the consumers were whiteness, amylose content, score of alkaly, and stickyness. The results show that consumers in Jakarta were the most affected by the quality in making their decision to purchase rice compared to those in Medan and Ujung Pandang. However consumers in Ujung Pandang mostly prefer hard tasting brands of rice, while those in Jakarta prefer smooth tasting brands and consumers in Medan behave moderately. All consumers were very responsive to changes in the implicit price of characteristics. Substitution of one characteristic to another was commonly identified in Urban area, however low income consumers show some complementary relationship of one characteristic to other. It was indicated that variability of demand for quality of rice was relatively high and consumers in Indonesia considered such quality are very important in relation to their decision to choose a particular brand of rice.
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