IDEAS home Printed from https://ideas.repec.org/a/ags/pojard/355902.html
   My bibliography  Save this article

Implicit price estimation of quality attributes influencing rice prices and choice decisions of consumers in Nigeria

Author

Listed:
  • Obih, Uchenna
  • Baiyegunhi, Lloyd J. S.

Abstract

Consumers’ preference for imported rice brands in Nigeria has been largely due to differences in the quality attributes of local and imported rice brands. This paper presents the findings of a study conducted in the Federal Capital Territory (FCT), Nigeria to determine the relative importance and prices consumers pay for rice quality attributes. Hedonic model was estimated using 2014 dataset collected from a survey of 460 rice consumer households. The results showed that the household respondents paid an average price of NGN10,416 ($53) and NGN7,567 ($38) for a 50 kg bag of imported and local rice brands respectively. Quality attributes contribute about 48–52% of the prices consumers paid for rice. High swelling capacity, whiter after-cook color, neatness, and grains separateness mostly influence market prices of imported rice in Nigeria as consumers would pay an average of additional NGN326 ($1.65), NGN320 ($1.60), NGN158 ($0.80) and NGN122 ($0.61) respectively on these quality attributes in order to avoid local rice. These findings present rice breeders, processors and marketers with investment challenges as well as opportunities of which the implications for designing quality improvement and marketing policies and programmes for the development of Nigeria’s rice industry were discussed.

Suggested Citation

  • Obih, Uchenna & Baiyegunhi, Lloyd J. S., 2017. "Implicit price estimation of quality attributes influencing rice prices and choice decisions of consumers in Nigeria," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 45(3), March.
    • Handle: RePEc:ags:pojard:355902
    DOI: 10.22004/ag.econ.355902
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/355902/files/IMPLICIT%20PRICE%20ESTIMATION%20OF%20QUALITY%20ATTRIBUTES%20INFLUENCING%20RICE%20PRICES%20AND%20CHOICE%20DECISIONS%20OF%20CONSUMERS%20IN%20NIGERIA.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.355902?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. George T. Chiou & Dean T. Chen & Oral Capps, 1993. "A Structural Investigation of Biotechnological Impacts on Cotton Quality and Returns," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 467-478.
    2. H. S. Houthakker, 1952. "Compensated Changes in Quantities and Qualities Consumed," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 19(3), pages 155-164.
    3. Dalton, Timothy J., 2004. "A household hedonic model of rice traits: economic values from farmers in West Africa," Agricultural Economics, Blackwell, vol. 31(2-3), pages 149-159, December.
    4. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    5. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, September.
    6. Frederick V. Waugh, 1928. "Quality Factors Influencing Vegetable Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 10(2), pages 185-196.
    7. George W. Ladd & Veraphol Suvannunt, 1976. "A Model of Consumer Goods Characteristics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(3), pages 504-510.
    8. Johnson, Michael E. & Takeshima, Hiroyuki & Gyimah-Brempong, Kwabena & Kuku-Shittu, Oluyemisi, 2013. "Policy options for accelerated growth and competitiveness of the domestic rice economy in Nigeria," NSSP policy notes 35, International Food Policy Research Institute (IFPRI).
    9. Olszewski, Wojciech & Wolinsky, Asher, 2016. "Search for an object with two attributes," Journal of Economic Theory, Elsevier, vol. 161(C), pages 145-160.
    10. Sara Duvenage & Hettie Schonfeldt & Rozanne Kruger, 2010. "Food product attributes guiding purchasing choice of maize meal by low-income South African consumers," Development Southern Africa, Taylor & Francis Journals, vol. 27(3), pages 309-331.
    11. Seck, Papa A. & Tollens, Eric & Wopereis, Marco C.S. & Diagne, Aliou & Bamba, Ibrahim, 2010. "Rising trends and variability of rice prices: Threats and opportunities for sub-Saharan Africa," Food Policy, Elsevier, vol. 35(5), pages 403-411, October.
    12. Wilson, William W., 1984. "Hedonic Prices In The Malting Barley Market," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(01), pages 1-12, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. N. Koffi Amegbeto & Victor M. Manyong & Ousmane Coulibaly & Robert Asiedu, 2008. "Estimating market demand for fresh yam characteristics using contingent valuation: implications for crop breeding and production choices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 349-363, November.
    2. Jordan, Jeffrey L. & Shewfelt, R.L. & Prussia, Stanley E. & Hurst, W.C., 1985. "Estimating Implicit Marginal Prices Of Quality Characteristics Of Tomatoes," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-8, December.
    3. Smed, Sinne & Hansen, Lars Garn, 2018. "Consumer Valuation of Health Attributes in Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(2), May.
    4. McVey, Marty Jay, 1996. "Valuing quality differentiated grains from a total logistics perspective," ISU General Staff Papers 1996010108000012326, Iowa State University, Department of Economics.
    5. Edmeades, Svetlana, 2006. "Varieties, Attributes and Marketed Surplus of a Subsistence Crop: Bananas in Uganda," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25654, International Association of Agricultural Economists.
    6. Hyberg, Bengt & Uri, Noel D. & Oliveira, Valencia, 1996. "The quality characteristics of Japanese soybean imports," Japan and the World Economy, Elsevier, vol. 8(1), pages 81-98, March.
    7. Dimitrios Giannias, 1999. "Market Positioning of Differentiated Products," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(1), pages 29-39.
    8. Anneleen Vandeplas & Bart Minten, 2015. "Food quality in domestic markets of developing economies: a comparative study of two countries," Agricultural Economics, International Association of Agricultural Economists, vol. 46(5), pages 617-628, September.
    9. Edmeades, Svetlana, 2005. "A Hedonic Perspective to Estimating a Marginal Value Function for a Subsistence Crop," 2005 Annual meeting, July 24-27, Providence, RI 19500, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Rose Fiamohe & Tebila Nakelse & Aliou Diagne & Papa A. Seck, 2015. "Assessing the Effect of Consumer Purchasing Criteria for Types of Rice in Togo: A Choice Modeling Approach," Agribusiness, John Wiley & Sons, Ltd., vol. 31(3), pages 433-452, June.
    11. Parket, Douglas & Zilberman, David, 1989. "Price Transmission Across Marketing Levels in a Hedonic Framework," CUDARE Working Papers 198498, University of California, Berkeley, Department of Agricultural and Resource Economics.
    12. Jordan, Jeffery L. & Shewfelt, R.L. & Prussia, S.E. & Myers, S., 1986. "Estimatin ihe Value of Peach Quality Characteristics Jeffrey L. Jordan, R. L. Shewfelt, S. E. Prussia, S. Myers," 1986 Annual Meeting, July 27-30, Reno, Nevada 278034, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Eric Koomen & Jasper Dekkers & Mark Koetse & Piet Rietveld & Henk Scholten, 2005. "Valuation of metropolitan open space - presenting the research framework," ERSA conference papers ersa05p599, European Regional Science Association.
    14. Ankamah-Yeboah, Isaac & Nielsen, Max & Nielsen, Rasmus, 2016. "Price premium of organic salmon in Danish retail sale," Ecological Economics, Elsevier, vol. 122(C), pages 54-60.
    15. Mahdieh Yazdani, 2021. "House Price Determinants and Market Segmentation in Boulder, Colorado: A Hedonic Price Approach," Papers 2108.02442, arXiv.org.
    16. Ankamah-Yeboah Isaac & Max Nielsen & Rasmus Nielsen, 2015. "Organic Salmon – Considered a Fisheries or Agricultural Product Among Consumers?," 2015 EAFE (European Association of Fisheries Economists) Conference Papers 003, Nisea.
    17. Steiner, Bodo E., 2002. "The Valuation Of Labelling Attributes In A Wine Market," 2002 Annual meeting, July 28-31, Long Beach, CA 19718, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Ward, Clement E. & Lusk, Jayson L. & Dutton, Jennifer M., 2008. "Implicit Value of Retail Beef Product Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-18.
    19. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    20. Doherty, Edel & Campbell, Danny, 2011. "Demand for improved food safety and quality: a cross-regional comparison," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108791, Agricultural Economics Society.

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pojard:355902. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.jard.edu.pl/en/main .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.