Consumer Preference of Table Banana Quality by Income Groups in the Philippines: Hedonic Price Analysis

Romiel John P Basan ()
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Romiel John P Basan: Faculty, Department of Agricultural Economics, College of Business, Development Economics and Management, University of Southern Mindanao, 9407, Kabacan, Cotabato

Asian Journal of Agriculture and Development, 2016, vol. 13, issue 2, 21-34

Abstract: Income has been found to be a strong determinant of consumers’ demand for agricultural commodity such as banana, and has been strongly correlated with consumer preference. However, literature on consumer preferences vis-à -vis fruit quality as segmented by income group is lacking. This study aims to determine the table banana preferred by consumers in low-, middle-, and high-income groups and its effect on price. Descriptive statistics and hedonic regression were used to analyze the data. Results revealed that high-income consumers were more discriminating than low- and middle-income consumers in terms of cluster size and fruit length. This means that high-income consumers are willing to pay premium price for banana quality. Consumer under different income class in the society have their own preferences when making purchase decisions with respect to the embodied attributes of banana. A well-informed clientele can be chosen and proper market segmentation and marketing plan can be prepared. Taking into account quality considerations will enable both farmers and traders to further increase their profit.

Keywords: hedonic price analysis; consumer preference; income groups; banana quality (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:sag:seajad:v:13:y:2016:i:2:p:21-34

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