Investigation of Consumer’s Preferences of Rice by Applying Choice Modeling Approach with Emphasis on National Production: Case Study of Gorgan

Subject Areas : Agricultural Economics Research

HAMID AMIRNEJAD ¹ (Agricultural Economics Department Sari Agricultural Sciences and Natural Resources University)
shahrzad mirkarimi ² (دانشجوی دکتری رشته اقتصاد کشاورزی دانشگاه علوم کشاورزی و منابع طبیعی ساری)
parva tonakbar ³ (دانشجوی دکتری رشته اقتصاد کشاورزی دانشگاه علوم کشاورزی و منابع طبیعی ساری)
nazi heidari ⁴ (دانشجوی دکتری رشته اقتصاد کشاورزی دانشگاه علوم کشاورزی و منابع طبیعی ساری)

Received: 2018-05-21 Accepted : 2019-07-12 Published : 2019-09-23

Keywords: Willingness to pay, Choice Experiment, Characteristics of Rice, Multiple Logit, Conditional logit,

Abstract :

The importance of realization the food security, the exigency to supporting of national production and increasing competitive space that are reflected in politics of resilient economy make essential the study of the sustainability of the important products. Subject to importance of rice in basket of Iranian households, this study assesses consumer’s preferences of this crop by applying a Choice Experiment approach and with an emphasis on national production. The data were collected by simple random sampling method in 1395 through a field survey of 165 households through Cochran formula in Gorgan. The results of the study show that consumers in Gorgan are willing to pay significant amounts to improve the characteristics of rice, which, the most willingness to pay is to improve the characteristic of producing country with assuming the constant of other conditions. Also, the characteristics like taste, nutritional health, the improvement of the rice grain size and bulk packaging are important at the next level that consumers are willingness to pay 4800, 3900, 1500 and 750 Tomans per kg, to improve each one.

References:

 

- Abazari, A. (2011). Effective Factors on Rice Consumers' Preferences, Case Study: Mazandaran Province. Master's Thesis of Agricultural Economics, Faculty of Agricultural Engineering, Sari Agricultural Sciences and Natural Resources University.

- Abdi, F., Atarodi kashani, Z., Mirmiran, P.,& Esteki, T. (2015). Surveying Global and Iranian Food Consumption Patterns: A Review of the Literature. Journal of Fasa University of Medical Sciences, 5(2): pp. 159-167.

- Adamowicz, W., Boxall, P., Williams, M., & Louviere, J. (1995). Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation. Staff Paper. 95-03.

- Alinia, F., Nouri Delavar, M.Z., and Hosseini Chaleshtari, M. (2015). Developments in the production of rice by introducing High-yielding varieties. Agricultural Research and Training Organization. First Edition, pp 62.

- Amirnejad, H., & Ataei Solot, K. (2011). Economic valuation of environmental resources. Sari, The publication of the Avaye Masih, pp 432.

- Ahmad Hanis, I.A.H., Jinap, S., Mad Nasir, S., Alias, R. & Karim, M.S. (2012). Consumers’ demand and willingness to pay for rice attributes in Malaysia. International Food Research Journal, 19: pp. 59-66.

- Bagheri, M. & Najafi, B. (2011).Welfare effects of import tariff reduction on rice market in Iran. Journal of Agricultural Economics Researches, 3(1): pp. 181-194.

- Bennett, J., and Blamey, R. (2001). The Choice Modeling Approach to Nonmarket Valuation. Cheltenham UK and Northampton, Ma, USA: Adward Elgar.

- Agricultural Statistics, (2014). Available at http://amar.maj.ir

- Biorl, E., Karosakis, K., and Koundouri, P. (2006). Using a Choice Experiment to Account for Preference Heterogeneity in Wetland Attributes: The Case of Cheimaditida Wetland in Greece. Paper to be presented at the Third World Congress of Environmental and Resource Economists. July 3rd-7th, Kyoto, Japan. pp. 1-43.

- Cosmina, M., Gallenti, G., Marangon, F., & Troiano, S. (2015). Attitudes Towards Honey Among Italian Consumers: A Choice Experiment Approach. Paper Prepared for Presentation at the EAAE-AAEA Joint Seminar, Consumer Behavior in a Changing World: Food, Culture, Society, Naples, Italy.

- Econ-Fleuret, A., & Pirier, J. (2010). Using the Choice Experiment Method for Valuing Improvements in Water Uality: A Simultaneous Application to Four Recreation Sites, Work in Paper.

- Han, D.B., Nayga, R.M.J. Lee, J.Y., & Yoon, J.M. (2012). Assessing Korean Consumers’ Valuation for Domestic and Imported Rice: Importance of Country of Origin and Food Miles Information. Selected Paper prepared for presentation at the Southern Agricultural Economics Association Annual Meeting, Birmingham, AL. 4-7.

- Hanley, N., Mourato, S., & Wright, R. (2001). Choice modelling approaches: a superior alternative for environmental valuation? Journal of Economic Surveys, 15: pp. 1-15.

- Jalili Kamju, S.P., Khoshakhlagh, R., Fotros, M.H., & Derakhshani, M. (2015). Estimating the preferences of native and exotic citizens in encounter with ecosystem services of Zayanderud: Choice modeling. Journal of Quarterly Energy Economics Review, 10(42): pp. 1-24.

- Kaseb, A., Ghorbani, M., Karbasi, A.R., & Kohansal, M.R. (2015). Valuation of investment properties in renewable energy in Khorasan Razavi province. Journal of Agricultural Economics, 9(4): pp. 221-245.

- Keiko, A., Kenjo, A., & Kiyokazo, U. (2017). A Choice Experiment to Compare Preferences for Rice in Thailand and Japan: The Impact of Origin, Sustainability, and Taste, Food duality and Preference. Food Quality and Preference, 56: pp. 274-284.

- Ku, J.S., & Yoo, S. (2010). Willingness to Pay for Renewable Energy Investment in Korea: A Choice Experiment Study. Journal Renewable and Sustainable Energy Reviews, 14: pp. 2196-2201.

- Lagerkvist, C.J., & Okello, J. (2016). Using the integrative model of behavioral prediction and censored quantile regression to explain consumers’ revealed preferences for food safety: Evidence from a field experiment in Kenya. Food Quality and Preference, 49: pp. 75–86.

- Lianfan, S., Brian, A., Jayson, L., & Frank, A. (2011). A Comparison of Auction and Choice Experiment: An Application to Consumer Willingness to Pay for Rice with Improved Storage Management. Selected Paper Prepared for Presentation at the 2011 AAEA & NAREA Joint Annual Meeting, Pittsburgh, Pennsylvania, July, 24-26. pp 1-25      

- Liu, X., & Wirtz, K.W. (2010). Managing Coastal Area Resources by Stated Choice Experiments. Estuarine, Coastal and Shelf Science, 86: pp. 512-517.

- Marzban, H. & Ostadzad, A.H. The Impact of Economic Sanctions on Gross Domestic Product and Social Welfare for Iran: Generalized Stochastic Growth Model. Iranian Journal of Economic Research, 20(63): pp. 37-69.

-Louviere, J.J., & Woodworth, G. (1983). Design and analysis of simulated consumer choice or allocation experiments: an approach based on aggregate data. Journal of Marketing Research, 20: pp. 350-367.

- McFadden, D. (1973). Conditional Logit Analysis of Qualitative Choice Behavior. Academic Press, New York, pp. 105-142.

- Mousavi, S.H. & Esmaeeli, A. (2011). The Impacts of Import tariff policy on the domestic rice market in Iran. Journal of Agricultural Economics Researches, 3(2): pp. 1-20.

- Panico, T., Del Giudice, T., & Caracciolo, F. (2014). Quality Dimensions and Consumer Preferences: A Choice Experiment in the Italian extra-virgin Olive Oil Market. Agricultural Economics Review, 15(2): pp. 100-112.

- Parizan, V., & Bakhshodeh, M. (2008). The role of government' support in producer's income and consumer's expenditure on wheat and rice in Iran. Iranian Journal of Economic Research, 10(34): pp. 161-178.

- Romano, D., de Groot, D., Grafakas, S., Hein, L., Nocella, G., & Tassone, V. (2008). Internet-based valuation and group valuation methodologies. SENSOR Report Series, Available at http://www.sensor-ip.eu, ZALF, Germany.

- Salehnia, M., Hayati, B., Ghahremanzadeh, M., & Molaei, M. (2014). Estimating the value of improvement in Lake Uremia’s environmental: choice experiment. Journal of Agricultural Economics and Development, 27(4): pp. 267-276.

- Samadi, S., Jalili Kamju, S.P., Rahimi, T., & Shirinkhah, Y. (2015). Assess preferences and estimate willingness to pay for using clean air in Esfehan: Application of choice model and conditional logit model. Journal Urban-Regional Studies and Research, 7(25): pp. 141-162.

- Sharzie, GH., & Jalili Kamju, S.P. (2013). Choice modeling: A new method for valuing environmental goods, Case Study Ganjnameh Hamedan. Journal of the Economic Research, 13(3): pp. 1-18.

- Shine, A., O'Reilly, S., & O'Sullivan, K. (1997). Consumer use of nutrition labels. British Food Journal, 99: pp. 290-96.

- Smyth, R.L., Watzin, M.C., & Manning, R.E. (2009). Investigating Public Preferences for Managing Lake Champlain Using a Choice Experiment. Journal of Environmental Management, 90: pp. 615-623.

- Vega, D.C., and Alpizar, F. (2011). The Case of the Toro 3 Hydroelectric Project and the Recreo Verde Tourist Center in Costa Rica. Environment for Development: Discussion Paper Series, May, EfD DP.

- Wallmo, K., & Lew, D.K. (2011). Valuing Improvements to Threatened and Endangered Marine Species: An Application of Stated Preference Choice Experiments. Journal of Environmental Management, 92: pp. 1793-1801.

- Zhang, M., Zeiss, M.R., & Geng, SH. (2015). Agricultural pesticide use and food safety: California’s model. Journal of Integrative Agriculture, 14(11): pp. 2340–2357.