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Factors Affecting Consumers’ Willingness to Pay for Good Quality Sweetpotato in Papua New Guinea

Renato Villano, Chang, Hui-Shung (Christie), John Kewa and Donald Irving

Australasian Agribusiness Review, 2016, vol. 24

Abstract: In this paper , the influence of socio - economic and product quality attributes on consumers’ willingness to pay for good quality sweetpotato in Papua New Guinea was examined . The quality of s weetpotato was assessed by consumers based on its physical appearance, taste and maturity. Using a two - step double hurdle model, the determinants of the discrete choice on willingness to pay , and the amount of premiums consumers were willing to pay for better quality sweetpotato, were estimated. Of the 356 respondents surveyed , 88% were found to be willing to pay an average of 2.22 kinas per kg more for better quality sweetpotatoes , with a minimum of 0.96 kinas per kg and a maximum of 3.47 kinas per kg . The premiums that consumers were willing to pay were influenced by socio - economic factors such as education, the place of origin ( Highlands regions), the number of years the household has been living in Port Moresby , as well as product quality attributes such as the physical appearance of the roots (freshness, cleanliness, shape and size), the maturity of the roots, and the sweetness . These results provide useful information on consumer preferences and quality requirements for sweetpotato that will enable farmers and researchers to produce the appropriate qualities that better meet market demand.

Keywords: Crop Production/Industries; Demand and Price Analysis (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:auagre:262479

DOI: 10.22004/ag.econ.262479

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