DETERMINANTS OF CONSUMER ATTITUDES AND PURCHASE INTENTIONS WITH REGARD TO GM FOODS

DETERMINANTS OF CONSUMER ATTITUDES AND PURCHASE

INTENTIONS WITH REGARD TO GM FOODS

BY

James O. Bukenya, Department of Agribusiness; Alabama A&M University Natasha R. Wright, Department of Agribusiness; Alabama A&M University

INTRODUCTION

To examine the determinants of consumer attitudes, perceptions towards, and willingness to accept (WTA) GM-tomatoes in Huntsville metropolitan area.

Consumer acceptance of GM products has become an indicator for assessing how prosperous the market for GM products will be in the future.

The previous researches suggests that consumers are still hesitant to buy GM products because of uncertain effects of human health.

DATA AND METHOD

CVM has been taken up.

292 questionnaires designed to collect information on shopper’s

demographics,

attitude

perception

knowledge

willingness to purchase

DATA AND METHOD (CONT’D)

Provided a description of GM food.

Presented with a hypothetical situation.

First Question; if GM-food were sold at the same price as the non GM, would they be willing to purchase.

Second Question; given at a discount price of GM, would they be willing to purchase.

ECONOMIC APPROACH

Logit Model; to estimate probabilities of choosing alternative I for respondent n.

Ordered Probit Mode; to estimate probability of choosing GM or non GM.

A random utility model is;

RESULT

The estimated pseudo R2 value is 0.342.

The results from the model;

64 (76) of the total sample ; purchase at the same price, but not at a higher price

96 (95) of the total sample ; less likely to purchase at the same price, but would at a discount

132 (121) of the total sample ; less likely to purchase neither at the same price nor at a discount

RESULT (CONT’D)

RESULT (CONT’D)

The estimated effects of each independent variable

demographic ; insignificant

self reported knowledge and education about biotechnology ; the more self reported knowledge the more WTA. The more education levels the less WTA.

the stronger risk and safety concern, the lower WTP.

the more important labeling of GM, the lower WTP.

RESULT (CONT’D)

The results for the bid discount and income variable

perceived safety risks, still buying at a discount price

40% discount price to induce to purchase

marginal effect of each independent variable

bid discount ; no desire to purchase as the same but at discount ; 2.4549

; absolutely no desire ; -2.7892

RESULT (CONT’D)

marginal effect of each independent variable (cont’d)

shopper type ; given a discount price ; 0.7946

labeling ; -0.2023

perception variable ; -0.1571