Quality Attributes and Hedonic Price Analysis of Ghee
In the post-WTO scenario processed food industry is witnessing intra-industry trade, i.e., trade in similar products. It also means that there will be intense competition between foreign and Indian companies in the domestic market. This competition will compel companies to focus their attention on product differentiation and branding. This is possible if companies prepare themselves to be quality competitive. In order to be quality competitive, firms have to understand consumers perception and valuation of various quality attributes. Hedonic price analysis, a methodology used for this purpose, is extensively used for processed food products in developed countries. However, it has not been applied to Indian food markets. We conduct a hedonic price analysis of a typical Indian processed food product - ghee. Results indicate that consumers are willing to pay a premium for branded over non-branded ghee, and, for corporate brands over cooperative brands. Flavour is an important quality attribute valued by consumers. While texture is not that important, an agreement needs to be developed on whether or not there is an ideal colour attribute for ghee. The results imply that branding generates reputation, and, cooperatives may want to enhance their brand equity. Firms may do well in improving flavour to enhance ghee quality. Another implication is that large firms and other organizations need to generate data on measurements of food quality attributes so that hedonic price analysis can be effectively used for strategic food quality management.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Phone: 91 79 2630 7241|
Fax: 91 79 2630 6896
Web page: http://www.iimahd.ernet.in/publications
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Nerlove, Marc, 1995. "Hedonic price functions and the measurement of preferences: The case of Swedish wine consumers," European Economic Review, Elsevier, vol. 39(9), pages 1697-1716, December.
- Oczkowski, Edward, 2001. "Hedonic Wine Price Functions and Measurement Error," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 374-82, December.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, Oxford University Press, vol. 98(4), pages 659-679.
When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:wp01752. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.