Factors Affecting Consumers' Willingness to Pay for Good Quality Sweetpotato in Papua New Guinea

Abstract

In this paper, the influence of socio-economic and product quality attributes on consumers' willingness to pay for good quality sweetpotato in Papua New Guinea was examined. The quality of sweetpotato was assessed by consumers based on its physical appearance, taste and maturity. Using a two-step double hurdle model, the determinants of the discrete choice on willingness to pay, and the amount of premiums consumers were willing to pay for better quality sweetpotato, were estimated. Of the 356 respondents surveyed, 88% were found to be willing to pay an average of 2.22 kinas per kg more for better quality sweetpotatoes, with a minimum of 0.96 kinas per kg and a maximum of 3.47 kinas per kg. The premiums that consumers were willing to pay were influenced by socio-economic factors such as education, the place of origin (Highlands regions), the number of years the household has been living in Port Moresby, as well as product quality attributes such as the physical appearance of the roots (freshness, cleanliness, shape and size), the maturity of the roots, and the sweetness. These results provide useful information on consumer preferences and quality requirements for sweetpotato that will enable farmers and researchers to produce the appropriate qualities that better meet market demand.