Wardania, Nastiti
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Consumer’s Willingness to Pay for Organic Leaf Vegetables in Modern Markets in Bogor, Indonesia Wardania, Nastiti; Rachmina, Dwi; Yusalina, Yusalina
Agro Bali : Agricultural Journal Vol 7, No 3 (2024)
Publisher : Universitas Panji Sakti

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37637/ab.v7i3.1932

Abstract

The research survey suggests that there are organic products that are often purchased by consumers such as vegetables, rice, seasonings, meat, tempe, milk, eggs, fruit, coffee, tofu and cooking oil. Vegetables are the most frequently purchased organic product at 23% (David & Ardiansyah, 2017). Consumer decisions in purchasing organic food products are influenced by the premium price and this is the main obstacle (Bryła, 2016). Research survey results show that 82% of consumers are unwilling to pay a premium price above 10-20% for organic food (Xie et al., 2015). The price range of organic products ranges from 6% to almost 300% higher than the price of inorganic products (Sörqvist et al., 2013). The price difference can affect consumers' willingness to pay. Based on this, it is necessary to research how much the value of willingness to pay is to be paid by people in the city of Bogor to pay for organic leaf vegetable products. The research was conducted in Bogor City and the location selection was done by purposive sampling. The independent variables studied were age, education, expenditure, gender, number of family members, marital status, health awareness and environmental awareness. The data source in this study uses primary data. Data collection time was conducted in April-June 2024. The number of samples used in this study were 200 respondents spread in five modern market places like all fresh, farmer market, yogya bogor junction, superindo and agrimart. The dependent variable is the amount of willingness to pay value of consumers' willingness to pay for organic leaf vegetable products. The stages of discrete choice experiment (DCE) analysis include (1) determining product attributes and levels; (2) constructing product profiles; (3) obtaining a discrete choice model (DCM); (4) analyzing DCM data sets using Stata software. Selection of DCE analysis to find the WTP value chosen by respondents as consumers of organic leaf vegetables with 3 physical attributes such as product type (organic or non-organic), label (there is or there is no label) and place (directly to modern markets or through online applications). The results showed that organic vegetable consumers are willing to pay more on attributes for organic products amounting to IDR 5,890.8; having / including labels of IDR 4,292.8; and IDR 2,992.45 on online purchases. Willingness to pay provides important insights for making strategic decisions in terms of pricing, production planning, and marketing of organic vegetable products. When knowing consumer WTP, marketers can set the optimal price according to consumer purchasing power and preferences. The right price can maximize sales as well as profit margins. In addition, by knowing the price limit that consumers are willing to pay, marketers can design attractive promotions without hurting their profitability. Producers can adjust the quality or type of product according to the preferences of consumers who want to buy organic vegetables.
Consumer Preferences and Willingness to Pay for Cigarette Products in Indonesia Yafi, Muhammad Ali; Wardania, Nastiti; Maharani, Mutiara Ria Despita; Thohir, Nada Sofiyyah Van; Adyanti, Amanda Sekar; Mohammed, Ethar Hassan
HABITAT Vol. 37 No. 2 (2026): August
Publisher : Department of Social Economy, Faculty of Bio-Industry, Agriculture and Forestry, University of Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.habitat.2026.037.2.13

Abstract

Purpose: The consumption of cigarettes in Indonesia has been increasing on an annual basis. A shift in consumer preferences with regard to the purchasing of cigarettes has been observed. The government of Indonesia has the capacity to regulate the purchase of cigarettes with the objective of controlling cigarette consumption. The objective of study is to analyse cigarette consumer preferences in Indonesia and to ascertain the willingness of cigarette consumers in Indonesia to pay. Design/Methodology/Approach: The study utilised data from an online questionnaire, with a total 101 respondents. The questionnaire incorporated five attributes: type, content, taste, number of sticks, and price. The analysis employed was Discrete Choice Experiment (DCE) analysis through the stages of attribute identification and choice set construction. Findings: The findings were derived from the calculation of conditional logistic regression, wherein the attributes of content, taste, and number of sticks exhibited positive utility values, while the attributes of type and price demonstrated negative utility values. Consumer preferences were found to be oriented towards cigarette products that were characterised by filter type, mild content, original taste, and a pack size of 12 sticks. An increase in price was found to result in a decrease in consumption. A survey of consumer spending habits revealed that the following prices were considered affordable: Rp 34,777 for kretek cigarettes, Rp 37,045 for mild cigarettes, Rp 59,479 for original cigarettes, and Rp 46,282 for 16 sticks. The findings of this study indicate that producers can develop product strategies aligned with consumer preferences and willingness to pay, thereby enhancing market competitiveness and better targeting consumer demand. Originality/Value/Novelty: The novelty of this study lies in providing a comprehensive understanding of the cigarette attributes that are the top priorities for cigarette consumers in Indonesia when making purchasing decisions, using the DEC approach, and their willingness to pay for cigarette products, as measured by Willingness To Pay (WTP).