Factors Influencing Milk Consumption of Rural Households in Northern Vietnam

Abstract

The aims of this research were to identify the factors affecting milk consumption of rural households. As well as to determine the effects of these factors on the rural household’s intention to consume milk. A random sample of 514 rural households in northern Vietnam was selected to collect data on their milk consumption. Methodologically, statistical analysis was used to identify the preferences of rural households in purchasing dairy products and the two-step econometric technique was applied to measure the effects of the socio-economic and demographic factors and characteristics of milk market on milk consumption of the rural households. The integrating results from the two models showed that household’s income and convenience in milk buying have strongly positive effects on milk consumption of the rural households. At the lighter level, numbers of children and elders in the rural household also have positive effects on the probability of milk purchasing of rural households and milk expenditure while educational level was only found to affect milk expenditure of the rural households. In contrast, age of the rural household head and the importance of milk price have significant negative effects on both decisions of milk consumption of the rural households, decision to buy milk and level of milk expenditure. Finally, several implications of this study highlighted the contribution of the research to theory by enriching body of literature and marketing perspective by showing the worthy bases for the companies to determine their target rural consumers and improve their products.