Understanding Consumer Preferences and Estimating Willingness-to-pay for Orange-fleshed Sweetpotato Juice: Does Nutrition Information Matter?
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1 Understanding Consumer Preferences and Estimating Willingness-to-pay for Orange-fleshed Sweetpotato Juice: Does Nutrition Information Matter? Temesgen F. Bocher, Kirimi Sindi, and Jan Low International Potato Center World Congress on Root and Tuber Crops Nanning, Guangxi, China, January 18-22, 2016
2 Introduction Sweetpotato is #1 produced crop in Rwanda 18.3% of all crop produc0on Only 7.1 % of land (NISR 2013) Farmers complain of lack of market Orange- fleshed sweetpotato is a new type of sweetpotato for most Rwandese Product development opens new market opportuni0es
3 Rwanda Super Foods Main focus on developing OFSP bakery products & their commercializa0on: 4 years On right: Mr. Sina Gerard, owner of SINA or Urwibutso Enterprises
4 2014: Potential for OFSP Juice
5 2014: Potential for OFSP Juice Pro-Vitamin A rich OFSP Sugar Ascorbic Acid (Vitamin C) Citric Acid Sodium Benzoate Carboxymethyl Cellulose Xanthan Gum Variety: Gahingamukunga Energy: 61 kcal/100 gms Beta- carotene (as RAE): 58 µg/100 ml Vitamin C (as Ascorbic Acid): 62.6 mg/100 gms Energy: 67 kcal/100 gms Beta- carotene (as RAE): 77.9 µg/100 ml Vitamin C (as Ascorbic Acid): 86.4 mg/100 gms
6 The Competition in the Existing Market. 100% Pineapple SINA Lots of sugar added 100% Pineapple Inyange
7 Key Questions 1) Do consumers in key markets in Rwanda accept an orange- fleshed sweetpotato (OFSP) juice, either 100% or as a 20% blend with an exis0ng pineapple juice (Agasha) compared to two dominant pineapple juices already on the market (Agasha & Inyange) 2) What are the determinants of juice preference? 3) What is the willingness- to- pay (WTP) for these different juices? 4) Does the WTP for OFSP juices (either 100% or 80%) change when par0cipants are provided with informa0on that OFSP juice is a good source of vitamin A and vitamin A is important for health?
8 Methodology 952 par0cipants over 7 days 9-16 May 2014 Markets: 7 sites in Kigali (capital of Rwanda) & 2 other towns where new product promo0on would be likely: - - Musanze, second largest city - - Muhanga, town in Rwanda Super Foods interven0on area Low- end markets: Musanze local market, Musanze main bus sta0on, Muhanga local market and bus sta0on, Kimironko local market, Kicukiro market and Kabuga market Low- /middle- end markets: SINA Nyirangarama, SINA Nyabugogo (Kigali), SINA Kigali town, SINA Musanze, SINA Muhanga High- /middle- end markets: SINA shop at Union Trade Centre (Kigali)
9 Methodology Enumerators set up 2 chairs and tables in front of market Each juice in same transparent plas0c bohle Samples marked with symbol, not product name or content 1 st asked about juice buying habits Then ask to compare appearance of the 4 different juices Water for drinking before tas0ng each juice Each juice evaluated separately with ques0ons asked, including what they would pay for the juice Then compared between juices, selec0ng preferred Then found out if knows anything about vitamin A & what they know Then informed about 2 OFSP containing juices with vitamin A Then asked whether they would prefer them to those without vitamin A Then ask to compare the two OFSP juices
10 Description of Study Participants 947 cases with full informa0on 59% male, 41% female Average age 29 years; range 6 to 89 years 79% buy juice weekly Among those, on average buy 2.9 liters of juice 32% buy par0cular type because it is affordable 25% because it is tasty 29% because it is healthy
11 Results Overall Opinion: No Addi0onal Informa0on Like very much Like slightly 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Neither dislike or like Dislike very much Dislike slightly OFSP Pineapple Opinion Pine- apple - Inyange - SINA Pine- apple OFSP 80:20 Blend 100% OFSP Dislike very much 7% 3% 18% 19% Dislike slightly 9% 7% 21% 26% Neither dislike or like 12% 13% 17% 17% Like slightly 36% 44% 22% 24% Like very much 36% 33% 22% 14% Pineapple Blend Sample size: 947 participants, 7 markets
12 Consideration of Attributes Driving Choice Proportion of Respondents Citing Attribute Attributes Pineapple- Inyange Pineapple- SINA OFSP 80:20 Blend 100% OFSP Has right amount of sugar Likes aroma Likes taste Likes color Good mouthfeel/consistency Would pay for this juice Sample size: 947 respondents, taste testing in May
13 Willingness-to-Pay (Without Nutrition Information) Juice type Best juice % Mean WTP (Rfr) Willingness- to- Pay (WTP) Std Dev Min Max Mean WTP (USD) Pineapple- Inyange Pineapple- SINA OFSP 80:20 Blend % OFSP Overall Sample size: 947 participants 13
14 Effect of Nutritional Information Juice type Color Aroma Taste Consistency WTP Pineapple- Inyange Pineapple- SINA OFSP 80:20 Blend % OFSP T- sta0s0cs difference in means without nutri0onal informa0on of the juice OFSP vs P- Inyange 11.34*** *** *** *** OFSP vs P- SINA 13.85*** *** *** *** *** Blend vs P- Inyange 9.31*** *** * 5.29*** Blend vs P- SINA 12.14*** *** T- sta0s0cs difference in means with nutri0onal informa0on of the juice OFSP vs P- Inyange 7.16*** *** 5.84*** 2.02* OFSP vs P- SINA 6.58*** * 3.20** 2.56* Blend vs P- Inyange 9.76*** 3.33*** 14.90*** 15.12*** 5.39*** Blend vs P- SINA 8.75*** 6.61*** 9.03*** 9.55*** 4.80*** * p < 0.05, ** p < 0.01, *** p < *
15 After Receiving Nutrition Information Opinion of Two OFSP Containing Juices (%) Juice Very good Good Average Bad Very bad OFSP 80:20 Blend % OFSP Sample size: 947 participants Men WTP 35 Rwf (5 cents) more for 100% OFSP; 31 Rwf (4 cents) for blend than women Those with prior vitamin A knowledge WTP 58 Rfw (8 cents) more for blend; 31 Rfw (4 cents) for 100% OFSP than those without 15
16 Conclusions Preference and willingness to pay for juice containing OFSP changed significantly in posieve direceon ager introducing the nutrieonal informaeon. Most preferred juice, Pineapple- SINA has very high sugar content & is probably least healthy OFSP 80:20 Blended juice would be more likely to succeed than 100% OFSP juice & would be compeeeve with exiseng pineapple juices 100% OFSP juice would require special markeeng campaign as a lower sugar, healthier product Designed packaging, but owner postponed inveseng in juice due to need for markeeng promoeon funds & breakdown in pasteurizaeon equipment
17 谢谢 MURAKOZE 17
18 Thank you
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