Determinants of Consumption and Willingness to Pay for Fermented Probiotic Dairy Products in Metropolitan Delhi

Abstract

The present study attempted to explain the factors which influenced the per capita consumption of fermented probiotic dairy products, using primary data collected from various locations of Metropolitan Delhi. The data for the study was collected by direct personal interview method based on a well-structured schedule. The data on customers ’willingness to pay for prominent and popular ones were collected from 250 respondents based on the socio-demographic information of the household. To carry out the functional analysis, Tobit regression model was selected for knowing about the determinants of the consumption pattern of fermented probiotic dairy products. The study revealed that the Marginal Willingness to Pay (WTP) of the respondents for Probiotic Drink is highest at a price of 22, for a quantity of 80 ml when purchased from Supermarkets and with a health claim of improving digestion. The most important factors determining the consumers ’willingness to pay are governed by the product's purchase location followed by health claims. The Marginal WTP of the respondents for Probiotic Dahi is highest at a price of 25, for a quantity of 200 g when purchased from local shops and with a health claim of the immune booster. The most important factors determining the consumers ’willingness to pay are governed by the product's purchase location followed by prices. The results of the analysis revealed that income, occupation and food habit of the respondents have the significant influence on monthly per capita consumption of fermented probiotic dairy products.