Consumer valuation of quality rice attributes in a developing economy : evidence from a choice experiment in Vietnam

2018 
Purpose This paper investigates consumers’ willingness to pay (WTP) for quality rice attributes in urban areas in the South of Vietnam, including organic and Integrated Pest Management (IPM) as sustainable production methods, and claims about health benefits and fair farmer prices. Design/methodology/approach Cross-sectional data were collected in 2015 using a survey including a choice experiment (CE) (n = 500). Generalized mixed logit models were estimated. Findings Vietnamese consumers are willing to pay a premium of 82 percent for organic rice, and 45 percent for rice produced using IPM, compared to conventionally produced rice. They are also willing to pay a premium of 95 percent for rice claiming to be rich in vitamins and other nutrients, and 50 percent for rice that guarantees a fair price to rice farmers. Research limitations/implications A hypothetical CE was employed. Future research using revealed preference methods is suggested. Originality/value This study makes a significant contribution to ...
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