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Factors Affecting Consumers' Willingness to Pay for Imported Offal in Indonesia: A Case Study for Makassar City

Author

Listed:
  • Vidyahwati Tenrisanna

    (Department of Social Economics of Animal Husbandry, Faculty of Animal Husbandry, Hasanuddin University, Indonesia)

  • Mohammad Mafizur Rahman

    (School of Commerce, University of Southern Queensland, Australia)

  • Rasheda Khanam

    (School of Commerce, University of Southern Queensland, Australia)

Abstract

This study explores the factors that affect consumers' willingness to pay (WTP) for imported offal in Makassar, Indonesia. The primary data derived from a field survey and hedonic price model are used for obtaining the estimated results. The paper finds that age, occupation (OFFICER), level of education (UNIVERSITY GRADUATE), ethnicity (BUGIS), NON-AFFORDABILITY, and ACCESSIBILITY significantly affect the WTP for imported offal in Makassar. Also the marginal implicit price (MIP) calculation shows that the willingness to pay of higher prices for imported offal decreases for older consumers. It is also found that if the price of imported offal in the market increases, the willingness to pay for the product will decrease.

Suggested Citation

  • Vidyahwati Tenrisanna & Mohammad Mafizur Rahman & Rasheda Khanam, 2016. "Factors Affecting Consumers' Willingness to Pay for Imported Offal in Indonesia: A Case Study for Makassar City," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 15(2), pages 145-159, December.
  • Handle: RePEc:ijb:journl:v:15:y:2016:i:2:p:145-159
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    References listed on IDEAS

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    Keywords

    hedonic price; imported offal; WTP;

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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