2016, Volume 24, Paper 3
ISSN: 1883-5675

Factors affecting consumers’ willingness to pay for good quality sweet potato in Papua New Guinea

Renato Villanoa
Hui-Shung (Christie) Chang
John Kewac
Donald Irving

The influence of socio-economic and product quality attributes on consumers’ willingness to pay for good quality sweet potato in Papua New Guinea is examined. The quality of sweet potato was assessed by consumers based on its physical appearance, taste and maturity. Using a two-step double hurdle model, the determinants of the discrete choice on willingness to pay, and the amount of premiums consumers were willing to pay for better quality sweet potato, were estimated. Of the 356 respondents surveyed, 88% were found to be willing to pay an average of 2.22 kinas per kg more for better quality sweet potatoes, with a minimum of 0.96 kinas per kg and a maximum of 3.47 kinas per kg. The premiums that consumers were willing to pay were influenced by socio-economic factors such as education, the place of origin (Highlands regions), the number of years the household has been living in Port Moresby, as well as product quality attributes such as the physical appearance of the roots (freshness, cleanliness, shape and size), the maturity of the roots, and the sweetness. These results provide useful information on consumer preferences and quality requirements for sweet potato that will enable farmers and researchers to produce the appropriate qualities that better meet market demand.

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