determinants of consumer attitudes and purchase intentions with regard to gm foods
DESCRIPTION
DETERMINANTS OF CONSUMER ATTITUDES AND PURCHASE INTENTIONS WITH REGARD TO GM FOODS. BY James O. Bukenya, Department of Agribusiness; Alabama A&M University Natasha R. Wright, Department of Agribusiness; Alabama A&M University. INTRODUCTION. - PowerPoint PPT PresentationTRANSCRIPT
DETERMINANTS OF CONSUMER ATTITUDES AND PURCHASE
INTENTIONS WITH REGARD TO GM FOODS
BY
James O. Bukenya, Department of Agribusiness; Alabama A&M University Natasha R. Wright, Department of Agribusiness; Alabama A&M University
INTRODUCTION
To examine the determinants of consumer attitudes, perceptions towards, and willingness to accept (WTA) GM-tomatoes in Huntsville metropolitan area.
Consumer acceptance of GM products has become an indicator for assessing how prosperous the market for GM products will be in the future.
The previous researches suggests that consumers are still hesitant to buy GM products because of uncertain effects of human health.
DATA AND METHOD
CVM has been taken up.
292 questionnaires designed to collect information on shopper’s
demographics,
attitude
perception
knowledge
willingness to purchase
DATA AND METHOD (CONT’D)
Provided a description of GM food.
Presented with a hypothetical situation.
First Question; if GM-food were sold at the same price as the non GM, would they be willing to purchase.
Second Question; given at a discount price of GM, would they be willing to purchase.
ECONOMIC APPROACH
Logit Model; to estimate probabilities of choosing alternative I for respondent n.
Ordered Probit Mode; to estimate probability of choosing GM or non GM.
A random utility model is;
RESULT
The estimated pseudo R2 value is 0.342.
The results from the model;
64 (76) of the total sample ; purchase at the same price, but not at a higher price
96 (95) of the total sample ; less likely to purchase at the same price, but would at a discount
132 (121) of the total sample ; less likely to purchase neither at the same price nor at a discount
RESULT (CONT’D)
RESULT (CONT’D)
The estimated effects of each independent variable
demographic ; insignificant
self reported knowledge and education about biotechnology ; the more self reported knowledge the more WTA. The more education levels the less WTA.
the stronger risk and safety concern, the lower WTP.
the more important labeling of GM, the lower WTP.
RESULT (CONT’D)
The results for the bid discount and income variable
perceived safety risks, still buying at a discount price
40% discount price to induce to purchase
marginal effect of each independent variable
bid discount ; no desire to purchase as the same but at discount ; 2.4549
; absolutely no desire ; -2.7892
RESULT (CONT’D)
marginal effect of each independent variable (cont’d)
shopper type ; given a discount price ; 0.7946
labeling ; -0.2023
perception variable ; -0.1571