Consumer demand for rice grain quality in selected rural and urban markets in the Philippines
1988
Abansi, C.L. | Duff, B. | Lantican, F.A. | Juliano, B.O. (International Rice Research Inst., Los Banos, Laguna (Philippines))
A study of consumer preferences for rice quality was conducted to evaluate the relationship between price and quality using the hedonic pricing model. Consumer categories were segregated by location (urban vs rural) and three income classes-low, medium, and high. Physical and chemical characteristics considered important determinants of rice price were whiteness, translucency, grain length, foreign matter content, head rice recovery, amylose content, and alkali spread. Quality characteristics demanded by urban and rural consumers differed significantly. Differences in grain characteristics were also noted among income classes. Urban consumers were price responsive to changes in grain length, head rice recovery, foreign matter content, amylose content, alkali content spread, consumer age and education. Except for whiteness, urban consumers attached higher implicit prices to quality characteristics than rural consumers. As income levels rose, consumers become more discriminating and their willingness to pay for rice becomes increasingly dependent on grain quality characteristics. The findings demonstrate that rice consumers attach economic significance to quality considerations. Demand for quality varies widely among different consumers and strategies to improve quality must incorporate these differences. The study therefore has strong implications for rice research on breeding, cultivation and postharvest systems to produce qualities that better satisfy consumer needs.
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