The use of a hybrid latent class approach to identify consumer segments and market potential for organic products in Nigeria
Muhammad Bello () and
Awudu Abdulai
Agribusiness, 2018, vol. 34, issue 2, 190-203
Abstract:
Using data from a hypothetical stated preference survey conducted in Nigeria, we show how the relative importance that consumers attach to organic products’ attributes varies strongly as a function of underlying attitudes. We specify a latent class structure that allows us to jointly analyze responses to stated choice and assignment to latent classes, while avoiding measurement error problems. Our results reveal that consumers are willing to pay premium for both health and environmental gains achieved through organic production systems, although their quantitative valuation is higher for the health concerns. Furthermore, we note that individuals with stronger preferences for organic products tend to attach a global value to the certification program, whereas the valuation tends to be more restrictive among respondents that prioritize the status quo option (conventional alternative). We also observe that differences in respondents’ geographic location and level of awareness of organic food production characteristics (prior to the survey) have significant impact on consumers’ choices.[EconLit citations: D12, Q13, Q18, Q56]
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
https://doi.org/10.1002/agr.21506
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:34:y:2018:i:2:p:190-203
Access Statistics for this article
Agribusiness is currently edited by Ronald W. Cotterill
More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().