A Note on Hedonic Price Estimation of Urban Residential Services: A Case Study of Rawalpindi City

1978 ◽  
Vol 17 (4) ◽  
pp. 479-494
Author(s):  
Jahan Zeb Manan
Keyword(s):  
Urban Poor ◽  
Consumer Preferences ◽  
Significant Proportion ◽  
Consumer Preference ◽  
Variable Number ◽  
Hedonic Price ◽  
Public Provision ◽  
Residential Units ◽  
Housing Services ◽  
Imputed Rent

A prerequisite for planning in the housing sector, be it urban renewal in slum areas or public provision of housing for the urban poor, is the availability of some indices of consumer preferences regarding the various housing services consumed by them. Such information facilitates decision-making as regards the size, and quality of dwellings which 'best' meet the needs of the urban poor. This study estimates the market prices (marginal valuations) of the various housing services consumed by urban households in Rawalpindi City. This is done by regressing rent/imputed rent of the residential units on the different characteristics embodied in the various units. The analysis indicates that the quantitative variable (number of rooms) explains a significant proportion of the variance in the dependent variable (rent/imputed rent). The qualitative variables (electricity, drinking water, garbage disposal and sanitary facilities, type of structure of house); when included in the model contribute significantly to the explained variance in the dependent variable. The analysis reveals (and 'quanti¬ties') consumer preference for housing services.

scholarly journals A Conceptual Discourse on Consumer’s Preference of Brandy

2019 ◽  
Vol 1 (2) ◽  
pp. 296-307
Author(s):  
Raj Maharjan
Keyword(s):  
Consumer Behavior ◽  
Consumer Choice ◽  
Reasoned Action ◽  
Action Theory ◽  
Factor Model ◽  
Choice Model ◽  
Consumer Preferences ◽  
Consumer Preference ◽  
Alcoholic Beverages ◽  
Hedonic Price

Background: Liquor industry is growing to become a global giant by empowering its competitiveness. Nowadays, alcohol has been accepted and welcomed as a normal part of everyday life with innovatively embedded alcohol development and promotion. Alcohol products consist of a range of offerings including Gin, wine, vodka and Scotch, among which brandy has been gaining higher importance. Objectives: This paper explores the consumers’ preferences for brandy, their knowledge on brandy and also the factors determining the consumer choice on consumption of brandy.This study aims to contribute to the brandy consumer behavior-responsive managerial implications, especially in hospitality industry by identifying the attributes that are perceived important for the marketing of brandy to a large segment of dynamic market. Methods: The academic discourse on this paper includes exploration of multiple dimensions related to the study of consumer behavior. Theories concerning consumer preferences, with specific focus on Reasoned Action Theory, Engel Kollat Blackwell Model, Hybrid Choice Model, Hedonic Price Model, Consumer Perception Factor Model and Conjoint Analysis are reviewed.The study on brandy, along with the differences from other alcoholic beverages, has also been included. Findings: Brandy represents a wide category and the bases of differences among types of brandy are studied along with the review of brandy products available worldwide. This study highlights brandy consumption practices in the world, benefits of brandy consumption and people’s perception towards brandy among other alcoholic beverages. Conclusions: Alcohol is the fastest growing industry and requires consumer preference for the promotions and penetration of the product into the market, and for developingthe product and improving it further.

scholarly journals Assessing Consumer Preferences for Suboptimal Food: Application of a Choice Experiment in Citrus Fruit Retail

Foods ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 15
Author(s):  
Wen-Shin Huang ◽  
Hung-Yu Kuo ◽  
Shi-Yuan Tung ◽  
Han-Shen Chen
Keyword(s):  
Sustainable Development ◽  
Food Waste ◽  
Choice Experiment ◽  
Consumer Preferences ◽  
Conditional Logistic Regression ◽  
Significant Proportion ◽  
Citrus Fruit ◽  
Consumer Preference ◽  
Random Parameter ◽  
Price Discounts

Amid the trend of sustainable development, reducing food waste is a global concern and campaigns to reduce food waste have been launched. For example, the term “food sharing” has originated from Germany and promotes sharing food instead of wasting. “The Guerilla Kitchen”, which originated from Netherlands, is an organization that also promotes avoiding wasting food. Consequently, more and more people are paying attention on this issue and we think it is necessary to understand people’s acceptance of suboptimal food, as discarded suboptimal food represents a significant proportion of food waste. Additionally, at least one-third of the food globally produced each year is classified as suboptimal and cannot be sold in the market because of a poor appearance, damaged packaging, or near expiration date, thus presenting challenges for environmental, social, and economic sustainability. Previous studies on suboptimal food have focused more on appearances and packaging dates and less on investigating traceable agricultural and price discounts, which is where food classified as suboptimal entails a discount. Moreover, citrus product attributes such as appearance, size, freshness indicators, traceable agricultural products, and price discounts were determined in terms of consumer preference through pre-measurement here, then using a choice experiment method to clarify which attributes consumers care about most (N = 485 respondents). Conditional logistic regression and a random parameter logit model (RPL) are employed to examine the various properties of a marginal willingness to pay (WTP). RPL was also used to deduce the respondents’ choices based on differences in appearance and freshness indicator. The results showed that consumers place greater emphasis on the freshness indicators (harvesting/packaging date labels) and appearance of suboptimal citrus fruits but do not focus on the size. Consumers are willing to purchase citrus fruit with a flawed appearance, although the price needs to be reduced from the original price. Although suboptimal food does not reduce health, people may still not buy it and this result in food wastage. As a result, it is essential to increase awareness regarding suboptimal foods and reduce food waste to support sustainable development.

scholarly journals Diversity in Nutrient Content and Consumer Preferences of Sensory Attributes of Peanut (Arachis hypogaea L.) Varieties in Ugandan Agroecosystems

2021 ◽  
Vol 13 (5) ◽  
pp. 2658
Author(s):  
Rose Nankya ◽  
John W. Mulumba ◽  
Hannington Lwandasa ◽  
Moses Matovu ◽  
Brian Isabirye ◽  
...  
Keyword(s):  
Arachis Hypogaea ◽  
Consumer Preferences ◽  
Consumer Preference ◽  
Nutrient Content ◽  
Intraspecific Diversity ◽  
Laboratory Evaluation ◽  
Organoleptic Characteristics ◽  
Arachis Hypogaea L ◽  
Cultivated Peanut ◽  
Nutrient Amounts

The cultivated peanut (Arachis hypogaea L.) is one of the most widely consumed legumes globally due to its nutrient content, taste, and affordability. Nutrient composition and consumer preference were determined for twenty local farmer (landrace) and commercial peanut varieties grown in the Nakaseke and Nakasongola districts of the central wooded savanna of Uganda through sensory and laboratory evaluation. Significant differences in nutrient content (p < 0.05) among peanut varieties were found within and across sites. A significant relationship between nutrient content and consumer preference for varieties within and across sites was also realized (Wilk’s lambda = 0.05, p = 0.00). The differences in nutrient content influenced key organoleptic characteristics, including taste, crunchiness, appearance, and soup aroma, which contributed to why consumers may prefer certain varieties to others. Gender differences in variety selection were significantly related to consumer preference for the crunchiness of roasted peanut varieties (F = 5.7, p = 0.016). The results imply that selecting different varieties of peanuts enables consumers to receive different nutrient amounts, while experiencing variety uniqueness. The promotion of peanut intraspecific diversity is crucial for improved nutrition, organoleptic appreciation and the livelihood of those engaged in peanut value chains, especially for the actors who specialize in different peanut products. The conservation of peanut diversity will ensure that the present and future generations benefit from the nutritional content and organoleptic enjoyment that is linked to unique peanut varieties.

Exploring the Role of Interaction Effects in Visual Conjoint Analysis

2015 ◽  
Vol 137 (9) ◽  
Author(s):  
Brian Sylcott ◽  
Jeremy J. Michalek ◽  
Jonathan Cagan
Keyword(s):  
Conjoint Analysis ◽  
Consumer Preferences ◽  
Consumer Preference ◽  
Interaction Effects ◽  
Fractional Factorial ◽  
Main Effects ◽  
Full Factorial ◽  
Biased Estimates ◽  
Data Requirements

In conjoint analysis, interaction effects characterize how preference for the level of one product attribute is dependent on the level of another attribute. When interaction effects are negligible, a main effects fractional factorial experimental design can be used to reduce data requirements and survey cost. This is particularly important when the presence of many parameters or levels makes full factorial designs intractable. However, if interaction effects are relevant, main effects design can create biased estimates and lead to erroneous conclusions. This work investigates consumer preference interactions in the nontraditional context of visual choice-based conjoint analysis, where the conjoint attributes are parameters that define a product's shape. Although many conjoint studies assume interaction effects to be negligible, they may play a larger role for shape parameters. The role of interaction effects is explored in two visual conjoint case studies. The results suggest that interactions can be either negligible or dominant in visual conjoint, depending on consumer preferences. Generally, we suggest using randomized designs to avoid any bias resulting from the presence of interaction effects.

scholarly journals Identifying the Optimal Application Rate of Three Fertilizers Used to Grow New Guinea Impatiens

2016 ◽  
Vol 34 (4) ◽  
pp. 118-122
Author(s):  
A.K. Ostrom ◽  
C.C. Pasian
Keyword(s):  
Controlled Release ◽  
Consumer Preferences ◽  
Tap Water ◽  
Consumer Preference ◽  
New Guinea ◽  
Water Soluble ◽  
Plant Weight ◽  
Preference Ratings ◽  
New Guinea Impatiens

This manuscript describes the effect of controlled-release, and water-soluble fertilizers on the growth and quality of New Guinea impatiens (NGI) (Impatiens hawkeri Bull.). Three different fertilizers were applied at three rates each in order to investigate their effect on growth and quality of ‘Paradise New Red.’ NGI. Fertilizer treatments included 1) a 20-4.4-16.6 water-soluble fertilizer (WSF), 2) a 10-1.8-2.5 soybean-based fertilizer (SBF), and 3) a 15-4-10, three-to four-month longevity controlled-release fertilizer (CRF). CRF was applied as a pre-plant at 1×, 0.75×, and 0.5× the label rate. WSF and SBF fertigation rates of 75, 150, and 250 mg·L−1 N (75, 150, and 250 ppm N), respectively, were used based on a common range of fertigation rates in a greenhouse setting from what is considered relatively low, moderate, and high for NGI production. Plants were irrigated or fertigated by hand every 1 to 5 days as needed, based on environmental conditions and plant size, with either approximately 300 mL (10.4 oz) of either tap water or a fertilizer solution. SPAD readings, above ground plant weight, consumer preference ratings, and cumulative flower number were measured and used to calculate a quality index (QI). Optimal fertilizer rates as determined by the QI were found to be 1) CRF at 7.11 kg·m−3 (11.8 lb·yd−3), 2) SBF at 150 mg·L−1 (150 ppm) N, and 3) WSF at 75 mg·L−1 (75 ppm) N. With the application method used in this work, the WSF was more efficient than the SBF because it produced high quality plants with less fertilizer applied. While for the most part overall consumer preference ratings coincided with plant dry weight, there were some exceptions, indicating that consumers can prefer plants that are not necessary the largest as indicated by their dry weights. Consumer preferences may not coincide with typical plant parameters of plant growth all the time. Consumer preferences should be always considered in an industry that sell its products based mainly on their appearance.

scholarly journals PREFERENSI KONSUMEN SAGU DI KOTA KENDARI

2018 ◽  
Vol 3 (1) ◽  
Author(s):  
Helviani Helviani ◽  
Sitti Aida Adha Taridala ◽  
Azhar Bafadal ◽  
Budiyanto Budiyanto
Keyword(s):  
Consumer Behavior ◽  
Customer Satisfaction ◽  
Conjoint Analysis ◽  
Consumer Satisfaction ◽  
Consumer Preferences ◽  
Consumer Preference ◽  
Raw Material ◽  
Market Demand ◽  
Satisfaction Index ◽  
Main Thing

Sago is a potential source of food with high calories and carbohydrates (rice equivalent). Sago consumer preferences can provide important information in making marketing strategy sago, and also is one of the indicators of market demand for the products of sago. The purpose of this study were to understand the srage of the purchase decision process undertaken by consumers of sago; analyze the level of customer satisfaction with sago attributes associated from sago; and analyze the consumer preference for various atrributes inherent in sago. The study was conducted in Kendari, Southeast Sulawesi Province. Respondents were all members of a population of 21 respondents consisting of 15 restaurant owners who provide meals made from sago and 6 owners agro-industry made from raw sago. The study used Engel Model Analysis, Costumer Satisfaction Index (CSI) Analysis, and Conjoint Analysis. The results of the analysis gives an overview of some consumer behavior based on the decision-making process shows that the benefits sought in the purchase buy sago sago is as a raw material to be processed into a menu of traditional food and traditional cakes Kendari. Color sago is the main thing, which will be seen and considered by consumers to make purchases between and will buy sago in traditional markets as close to the place of business. The level of consumer satisfaction in this study were satisfied with the preference category that consumers like sago with normal color (pure white), normal scent (odorless), low prices and package sizes are 20 kg. The resulting combination of sago four attributes (color, flavor, price and package sizes) is acceptable to describe consumers' desire sago in Kendari. Keywords: consumer behavior; sago; Engel Model; Customer Satisfaction Index (CSI); conjoint analysis

scholarly journals PRODUCT ATTRIBUTES DETERMINE THE PREFERENCE OF HERBAL MEDICINE CONSUMERS

2020 ◽  
Vol 1 (3) ◽  
pp. 149-154
Author(s):  
Himmatul Miftah ◽  
Ita Novita ◽  
H Tsuwaibah ◽  
M. A. Sunaryo
Keyword(s):  
Consumer Behavior ◽  
Herbal Medicine ◽  
Consumer Preferences ◽  
Consumer Preference ◽  
Medicinal Products ◽  
Product Attributes ◽  
Herbal Medicinal Products ◽  
Herbal Medicine Product ◽  
Close Relationship ◽  
Herbal Medicinal

Abstract: The emergence of a wide variety of herbal medicinal products requires marketers to better understand consumer behavior. The various brands offered make consumers tend to have certain preferences before making a purchase decision. This study aims to determine the attributes of herbal medicinal products that determine the level of consumer preference in the purchasing process and the closeness of the attributes to consumer preferences. The method used is interviews with consumers which are then processed with conjoint analysis to determine the attributes that are most important to consumers in making a purchase. The research concludes that the most important attributes in purchasing herbal medicine in order from the most important are the properties, price, expiration time and packaging. There is a close relationship between the combination of attributes studied and consumer preferences for herbal medicine. This study is limited to four attributes and does not use ranking ratings on the stimulus or combination of attributes, consumer behavior. The uniqueness of this study is to analyze the attributes simultaneously.   Keywords: Herbal medicine product attributes, consumer preferences, conjoin analysis, level of importance

Evaluation of hedonic scores and R-indices for visual, flavour and texture preferences of apple cultivars by British Columbian and Nova Scotian consumers

1999 ◽  
Vol 79 (3) ◽  
pp. 395-399 ◽  
Author(s):  
M. A. Cliff ◽  
K. Sanford ◽  
E. Johnston
Keyword(s):  
Regional Differences ◽  
Consumer Preferences ◽  
Block Design ◽  
Consumer Preference ◽  
Incomplete Block Design ◽  
Visual Preferences ◽  
Apple Cultivars ◽  
Carry Over ◽  
Hedonic Scale ◽  
Nova Scotian

Apple preferences were examined for regional, cultivar and order-of presentation effects. Seven apple cultivars, four (Honeycrisp, Fiesta, Cortland and Sinta) grown in Nova Scotia (NS) and three (Creston, Silken and Gala) grown in British Columbia (BC) were evaluated for visual, flavour and texture preferences using a nine-point hedonic scale. In both locations, 126 consumers evaluated all seven cultivars for their visual preferences and four of the seven cultivars for their flavour and texture preferences, using an incomplete-block design balanced for presentation order and carry-over effects. On average, the flavour and texture scores of NS consumers were higher than those of BC consumers. Regional differences were most pronounced for visual preferences, with BC consumers preferring Gala and Creston (BC-grown cultivars) and NS consumers preferring Fiesta and Cortland (NS-grown cultivars). Despite these differences, three of the four top-rated cultivars were identical (Gala, Fiesta and Cortland). Flavour preferences were the most similar, with Gala, Silken, Creston and Cortland being preferred by both NS and BC consumers. Regional differences for texture preferences were less pronounced than those for visual preferences, with Creston preferred by both groups. The BC consumers preferred the texture of Silken and Creston, while the NS consumers preferred the texture of Creston, Honeycrisp, Cortland and Gala. Results from the nine-point hedonic scale were correlated with results from the four-point R-index scale. Correlations were highest when discrimination among the cultivars was greatest. Both methodologies effectively quantified consumer preferences, with hedonic scores expressing results in relative terms and the R-index expressing results as probabilities. Key words: Sensory evaluation, consumer preference, apple-cultivar preference, R-index

scholarly journals Consumer Preferences for Different Designs of Carbon Footprint Labelling on Tomatoes in Germany—Does Design Matter?

2019 ◽  
Vol 11 (6) ◽  
pp. 1587 ◽  
Author(s):  
Stephan Meyerding ◽  
Anna-Lena Schaffmann ◽  
Mira Lehberger
Keyword(s):  
Carbon Footprint ◽  
Choice Experiment ◽  
Latent Class ◽  
Consumer Preferences ◽  
Significant Proportion ◽  
Climate Impact ◽  
Traffic Light ◽  
Tomato Production ◽  
Impact Reduction ◽  
Northern European

The climate impact of tomato production is an important issue in the sustainability of tomatoes, especially in northern European countries, such as Germany. Communicating the climate impact of products to the consumer is difficult and the design of the label might be the key to its success. For this reason, the present study compares the utilities of six different carbon footprint labels to evaluate which label design works best for the consumer. 598 consumers were surveyed in a representative online choice-experiment. The participants had to choose between tomatoes with different product characteristics, such as origin, price, organic label, and carbon footprint label. A split sample approach was used where each sub-sample with around n = 100 saw a different carbon footprint label design in the choice-experiment. The results suggest that qualitative carbon footprint labels using color-coded traffic light labelling are superior to those that claim climate impact reduction or neutrality, including those that provide more details regarding the climate impact of the product and the company. The latent class analysis with four consumer segments shows that a significant proportion of consumers in Germany would consider a carbon footprint label as an important characteristic.

The Impact of Consumer Preference Distributions on Dynamic Electricity Pricing for Residential Demand Response

2019 ◽  
Author(s):  
Samuel Dunbar ◽  
Scott Ferguson
Keyword(s):  
Demand Response ◽  
Dynamic Pricing ◽  
Consumer Preferences ◽  
Consumer Preference ◽  
Population Level ◽  
Economic Incentives ◽  
System Level ◽  
Renewable Energy Resources ◽  
Product Use ◽  
The Impact

Abstract Demand Response (DR) is the adjustment of consumer electricity demand through the deployment of one or more strategies, e.g. direct load control, policy implementation, dynamic pricing, or other economic incentives. Widespread implementation of DR is a promising solution for addressing energy challenges such as the integration of intermittent renewable energy resources, reducing capacity cost, and improving grid reliability. Understanding residential consumer preferences for shifting product usage and how these preferences are distributed amongst a population are key to predicting the effectiveness of different DR strategies. In addition, there is a need for a better understanding of how different DR programs, system level objectives, and preference distributions will impact different segments of consumers within a population. Specifically, the impacts on their product use behavior and electricity bill. To address this challenge, a product based approach to modeling consumer decisions about altering their electricity consumption is proposed, which links consumer value to their products, instead of directly to the amount of electricity they consume. This model is then used to demonstrate how population level preference distributions for altering product use impact system level objectives.

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