Abstract
An alternative approach to traditional consumer behaviour and demand theory is characteristics theory, which assumes that a consumer’s utility function is generated by the characteristics, or attributes, that goods and services possess. Instead of a utility being a function of a product, it becomes a function of the attributes provided by these products. In this paper a hedonic pricing model is used to investigate the influence of sucrose level and cooking time on cowpea prices in Senegal. Cooking time has a significant impact on price only at Tilene market in Dakar, while the sucrose contents tend to provide a premium throughout. Further investigation shows that the local varieties, AW, Matam and Ndiassiw have higher sucrose contents than the other cowpea varieties.
Highlights
An alternative approach to traditional consumer behaviour and demand theory is characteristics theory, which assumes that a consumers utility function is generated by the characteristics, or attributes, that goods and services possess
Very little is known about the willingness of consumers in Senegal to pay for certain characteristics of cowpeas
Results from the defined model show an overall R2 of 81.9 per cent (Table 2). This result suggests that the independent variables included in the model jointly explain 81.9 per cent of the variation observed in cowpea prices
Summary
An alternative approach to traditional consumer behaviour and demand theory is characteristics theory, which assumes that a consumers utility function is generated by the characteristics, or attributes, that goods and services possess. Instead of a utility being a function of a product, it becomes a function of the attributes provided by these products. It is important to measure the specific characteristics that consumers perceive as providing them with utility. This can be done by using a hedonic pricing model. Very little is known about the willingness of consumers in Senegal to pay for certain characteristics of cowpeas. Will such information assist producers to more appropriately align what they produce with consumer needs and preferences, it will assist intermediaries to lower transaction costs through more efficient marketing.
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