Estimating consumer preferences and willingness to pay for the underutilised indigenous chicken products

•We studied both rural and the urban consumers.•Contingent valuation technique and Two-step Heckmann regression model were used.•Products’ attributes and the socioeconomic factors influences consumers’ willingness to pay.•A set of attributes that the consumers evaluates contributes to the preference...

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Bibliographic Details
Published in:Food policy 2013-08, Vol.41, p.218-225
Main Authors: Bett, H.K., Peters, K.J., Nwankwo, U.M., Bokelmann, W.
Format: Article
Language:English
Subjects:
chicken meat
Chickens
color
Consumer attitudes
Consumer preferences
Consumers
Contingent valuation
data collection
education
Eggs
family size
farmers
flavor
Food prices
Food security
Food supply
Foods
Income
Indigenous chicken
issues and policy
Kenya
livelihood
Local goods
marketing strategies
markets
Mathematical models
Meat
meat substitutes
Policies
Poultry
Preferences
prices
Rural
Rural areas
sales
Socioeconomic factors
surveys
taste
Two-step Heckman
Willingness to pay
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Summary:•We studied both rural and the urban consumers.•Contingent valuation technique and Two-step Heckmann regression model were used.•Products’ attributes and the socioeconomic factors influences consumers’ willingness to pay.•A set of attributes that the consumers evaluates contributes to the preference for IC products.•Consumers are willing to pay more for the underutilised IC products both in the rural and urban areas. Indigenous chicken serves many functions, which include the provision of meat and eggs for home consumption and income from sales. The purpose of this study was to estimate the consumers’ responsiveness to an increase in prices of the indigenous chicken products and how much they are willing to pay for them in the market. The survey was conducted in the selected three regions of Kenya. A total of 930 respondents were interviewed both in the urban and rural areas. Contingent valuation experiment was used in empirical data collection. The two-step Heckman selection model was utilised to analyse consumers decisions and the amount they were willing to pay. The study results revealed that consumers are willing to pay 23.26% per kg more for indigenous chicken meat and 41.53% for eggs. Socioeconomic factors like age, income, education and family size significantly determines consumers’ willingness to pay. Other important factors include the indigenous chicken meat substitutes’ prices, attributes like taste/flavour and the product’s form on purchase. The yolk colour and size of eggs determined the consumers’ willingness to pay. Preferences for indigenous chicken products were found to be high. This information will assist in understanding both the urban and rural consumer’s behaviour. Therefore, useful for the indigenous chicken producers, breeders, marketers and policy makers in developing efficient production and marketing strategies. This would also provide a means of improving food security and livelihoods of the rural poor indigenous chicken farmers.
ISSN:0306-9192
1873-5657
DOI:10.1016/j.foodpol.2013.05.012