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http://dx.doi.org/10.5762/KAIS.2019.20.1.329

An Analysis on Consumer Preference for Attributes of Agricultural Box Scheme  

Park, Jae-Dong (Kyungpook Institute for Agriculture and Rural Development)
Kim, Tae-Kyun (Dept. of Agricultural Economics, Kyungpook National Univ.)
Jang, Woo-Whan (Dept. of Agricultural Economics, Kyungpook National Univ.)
Lim, Cheong-Ryong (Rural Research Institute, Korea Rural Community Corporation)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.20, no.1, 2019 , pp. 329-338 More about this Journal
Abstract
In this study, we analyze consumer preferences based on the agricultural box scheme attributes, and make a suggestion for business revival. We estimate the marginal willingness to pay (MWTP) for box scheme attributes using a choice experiment. Attributes include the bundle method, the delivery method, and price. To select an efficient model for statistical analysis, we evaluate the conditional logit model, heteroscedastic extreme value model(HEV model), multinomial probit model, and mixed logit model under different assumptions. The results of these four models show that the bundle method, the delivery method, and price are statistically significant in explaining the probability of participation in a box scheme. The results of likelihood ratio tests show that the heteroscedastic extreme value model is the most appropriate for our survey data. The results also indicate that MWTP for a change from fixed type to selection type is KRW 7,096.6. MWTP for a change from parcel service to direct delivery and cold-chain delivery are KRW 3,497.5 and KRW 7,532.7, respectively. The results of this study may contribute to the government's local food policies.
Keywords
Box Scheme; Choice Experiments; HEV model; Independence of Irrelevant Alternatives; Willingness to Pay;
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