Consumer willingness to pay for quality attributes of pangasius (pangasianodoan hypophthalmus) in Bangladesh: A hedonic price analysis

Abstract

Pangasius farming in Bangladesh has grown quickly to its current levels of mass production. While the large supplies provide protein for poor consumers, the rapid development of the industry has led to low quality. The aim of this study is to analyze whether domestic consumers are willing to pay more for higher quality pangasius. To measure the implicit price of the quality attributes establishing the willingness to pay for each of the quality attribute of pangasius, we used a semi-structured questionnaire to interview a total of 292 consumers while they were purchasing pangasius from different retail markets across 10 districts in Bangladesh. The study used hedonic price model considering a semi-log functional form of regression. The results showed that odor is the most influential attribute as consumers are found to pay 7% less if the pangasius smells bad. Moreover, the quality attributes such as fish size, form, color, appearance, and abdomen are important for pangasius purchase decision. The consideration of quality attributes are varied by the demographics of consumers. The implication of the results is that Bangladeshi consumers are willing to pay more for higher quality pangasius, which is important knowledge for the growing pangasius industry in Bangladesh.