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Measuring heterogeneity, survey engagement and response quality in preferences for organic products in Nigeria

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  • Muhammad Bello
  • Awudu Abdulai

Abstract

The identification of the market potentials of organic products is important in the drive towards a sustainable agricultural development in sub-Saharan Africa (SSA). However, available evidence shows that valuing attributes of credence goods (such as organic products) while using stated preference methods faces additional obstacles compared to other normal goods. In this study, we examine consumers’ preferences and willingness-to-pay (WTP) for health and environmental attributes of organic products in Nigeria. We employ an approach that allows us to adequately capture the value of organic products by linking part of the heterogeneity across respondents to differences in scale, while making use of indicators of survey engagement, without risks of endogeneity bias and measurement error that arise from the deterministic methods. The empirical results show that market for organic products exists in Nigeria, with reduction in pesticide residues attribute attracting the highest value, followed by the certification programme. Furthermore, we observe that increases in the latent engagement variable lead to a greater probability of agreement with statements relating to survey understanding and realism, and hence more substantive output.

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  • Muhammad Bello & Awudu Abdulai, 2016. "Measuring heterogeneity, survey engagement and response quality in preferences for organic products in Nigeria," Applied Economics, Taylor & Francis Journals, vol. 48(13), pages 1159-1171, March.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1159-1171
    DOI: 10.1080/00036846.2015.1093089
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    Cited by:

    1. Wiktor Budziński & Mikołaj Czajkowski, 2018. "Hybrid choice models vs. endogeneity of indicator variables: a Monte Carlo investigation," Working Papers 2018-21, Faculty of Economic Sciences, University of Warsaw.
    2. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part II. Conceptualisation of external validity, sources and explanations of bias and effectiveness of mitigation methods," Journal of choice modelling, Elsevier, vol. 41(C).
    3. Oluwagbenga Akinwehinmi & Kolawole Ogundari & Taye Timothy Amos, 2022. "Consumers’ food control risk perception and preference for food safety certification in emerging food markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 690-708, September.
    4. Akinwehinmi, Oluwagbenga & Ogundari, Kolawole & Amos, Taiwo, 2021. "Consumers' Food Control Risk Perception and Preference for Government-Controlled Safety Certification in Emerging Food Markets," 2021 Conference, August 17-31, 2021, Virtual 315312, International Association of Agricultural Economists.
    5. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part II. Macro-scale analysis of literature and effectiveness of bias mitigation methods," Papers 2102.02945, arXiv.org.
    6. Joanna Mazur & Katarzyna Śledziewska & Damian Zieba, 2018. "Regulation of Geo-blocking: does it address the problem of low intraEU iTrade?," Working Papers 2018-20, Faculty of Economic Sciences, University of Warsaw.
    7. Akinwehinmi, Joseph Oluwagbenga & Amos, Taye Timothy & Ogundari, Kolawole, 2021. "Consumer preferences for organic vegetables in southwestern Nigeria: A choice experiment approach," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 16(1), March.
    8. András István Kun & Marietta Kiss, 2021. "On the Mechanics of the Organic Label Effect: How Does Organic Labeling Change Consumer Evaluation of Food Products?," Sustainability, MDPI, vol. 13(3), pages 1-25, January.
    9. Bello, Muhammad & Abdulai, Awudu, 2016. "Identification of consumer segments and market potentials for organic products in Nigeria: A Hybrid Latent Class approach," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246965, African Association of Agricultural Economists (AAAE).

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