Consumers’ preference and willingness to pay for enriched snack product traits in Shashamane and Hawassa cities, Ethiopia

Abstract This study investigated the consumers’ preference and willingness to pay for enriched snack product traits. Using a choice experiment framework, we generated 8400 observations from a random sample of 700 respondents in Shashamanne and Hawassa city administrations. Taste parameters and heter...

Full description

Bibliographic Details
Main Authors: Jemal Ahmed, Tewodros Tefera, Girma T. Kassie
Format: Article
Language:English
Published: SpringerOpen 2020-05-01
Series:Agricultural and Food Economics
Subjects:
Online Access:http://link.springer.com/article/10.1186/s40100-020-00157-1
_version_ 1828878764342247424
author Jemal Ahmed
Tewodros Tefera
Girma T. Kassie
author_facet Jemal Ahmed
Tewodros Tefera
Girma T. Kassie
author_sort Jemal Ahmed
collection DOAJ
description Abstract This study investigated the consumers’ preference and willingness to pay for enriched snack product traits. Using a choice experiment framework, we generated 8400 observations from a random sample of 700 respondents in Shashamanne and Hawassa city administrations. Taste parameters and heterogeneities were estimated using the generalized multinomial logit (G-MNL) model. The results reveal nutrition and/or health claim labeling is the most influential trait on the consumers’ decision to buy enriched snack products followed by mango flavor, sorghum chickpea main ingredient, price, and mixed shape. The WTP estimates show that consumers are willing to pay a premium for nutrition and/or health claim labeling equal to 1.43, 1.6, and 8.03 times higher than for a change in the flavor of the products from tomato to mango, the improvement of main ingredients to sorghum chickpea, and change of the product shape from spherical to mixed shape, respectively. The heterogeneities (variations) around the mean taste parameters were partially explained by sex, family size, and educational levels of the respondents. Generally, the consumers in the study areas prefer buying sorghum chickpea main ingredients, a combination of different shapes (mixed shape), mango flavored, and nutrition and/or health claim-labeled enriched snack products. Therefore, we suggest designing and implementing innovative ways of promoting snack products to urban communities with a deliberate focus on these traits to create a snack with the best combination. Given the high literacy of urban consumers and influential role of nutrition and/or health claim labeling trait on consumers’ decision, the trait-based promotion and marketing of the products constitute the right strategy.
first_indexed 2024-12-13T09:12:40Z
format Article
id doaj.art-1285cd4645b641fdbcf6916193087901
institution Directory Open Access Journal
issn 2193-7532
language English
last_indexed 2024-12-13T09:12:40Z
publishDate 2020-05-01
publisher SpringerOpen
record_format Article
series Agricultural and Food Economics
spelling doaj.art-1285cd4645b641fdbcf69161930879012022-12-21T23:52:53ZengSpringerOpenAgricultural and Food Economics2193-75322020-05-018112010.1186/s40100-020-00157-1Consumers’ preference and willingness to pay for enriched snack product traits in Shashamane and Hawassa cities, EthiopiaJemal Ahmed0Tewodros Tefera1Girma T. Kassie2Department of Agricultural Economics, Oda Bultum UniversitySchool of Environment, Gender and Development Studies, Hawassa UniversityInternational Center for Agricultural Research in the Dry Areas (ICARDA)Abstract This study investigated the consumers’ preference and willingness to pay for enriched snack product traits. Using a choice experiment framework, we generated 8400 observations from a random sample of 700 respondents in Shashamanne and Hawassa city administrations. Taste parameters and heterogeneities were estimated using the generalized multinomial logit (G-MNL) model. The results reveal nutrition and/or health claim labeling is the most influential trait on the consumers’ decision to buy enriched snack products followed by mango flavor, sorghum chickpea main ingredient, price, and mixed shape. The WTP estimates show that consumers are willing to pay a premium for nutrition and/or health claim labeling equal to 1.43, 1.6, and 8.03 times higher than for a change in the flavor of the products from tomato to mango, the improvement of main ingredients to sorghum chickpea, and change of the product shape from spherical to mixed shape, respectively. The heterogeneities (variations) around the mean taste parameters were partially explained by sex, family size, and educational levels of the respondents. Generally, the consumers in the study areas prefer buying sorghum chickpea main ingredients, a combination of different shapes (mixed shape), mango flavored, and nutrition and/or health claim-labeled enriched snack products. Therefore, we suggest designing and implementing innovative ways of promoting snack products to urban communities with a deliberate focus on these traits to create a snack with the best combination. Given the high literacy of urban consumers and influential role of nutrition and/or health claim labeling trait on consumers’ decision, the trait-based promotion and marketing of the products constitute the right strategy.http://link.springer.com/article/10.1186/s40100-020-00157-1Choice experimentGeneralized multinomial logitPreference heterogeneitySnack productsWillingness to pay
spellingShingle Jemal Ahmed
Tewodros Tefera
Girma T. Kassie
Consumers’ preference and willingness to pay for enriched snack product traits in Shashamane and Hawassa cities, Ethiopia
Agricultural and Food Economics
Choice experiment
Generalized multinomial logit
Preference heterogeneity
Snack products
Willingness to pay
title Consumers’ preference and willingness to pay for enriched snack product traits in Shashamane and Hawassa cities, Ethiopia
title_full Consumers’ preference and willingness to pay for enriched snack product traits in Shashamane and Hawassa cities, Ethiopia
title_fullStr Consumers’ preference and willingness to pay for enriched snack product traits in Shashamane and Hawassa cities, Ethiopia
title_full_unstemmed Consumers’ preference and willingness to pay for enriched snack product traits in Shashamane and Hawassa cities, Ethiopia
title_short Consumers’ preference and willingness to pay for enriched snack product traits in Shashamane and Hawassa cities, Ethiopia
title_sort consumers preference and willingness to pay for enriched snack product traits in shashamane and hawassa cities ethiopia
topic Choice experiment
Generalized multinomial logit
Preference heterogeneity
Snack products
Willingness to pay
url http://link.springer.com/article/10.1186/s40100-020-00157-1
work_keys_str_mv AT jemalahmed consumerspreferenceandwillingnesstopayforenrichedsnackproducttraitsinshashamaneandhawassacitiesethiopia
AT tewodrostefera consumerspreferenceandwillingnesstopayforenrichedsnackproducttraitsinshashamaneandhawassacitiesethiopia
AT girmatkassie consumerspreferenceandwillingnesstopayforenrichedsnackproducttraitsinshashamaneandhawassacitiesethiopia