Effect of Quality and Packaging on the Price of Edible Sunflower Oil

مجله اقتصاد و توسعه کشاورزی

Article 6, Volume 37, Issue 2 - Serial Number 59, July 2023, Pages 203-215   

Document Type: Research Article-en

DOI: 10.22067/jead.2023.83025.1199

Authors

A.H. Chizari^{* 1, 2}; M. Dehghani¹

¹Department of Agricultural Economics, College of Agriculture and Natural Resources, University of Tehran, Tehran, Iran

²Lecturer of Applied Economics Zanvyl Krieger School of Arts and Sciences Johns Hopkins University

Abstract

The prices accepted by consumers in the market are influenced by the characteristics of the goods, based on consumer behavior. Each of these features contributes to the price agreed upon by both consumers and suppliers. The packaging of a product plays a crucial role in attracting consumers and protecting the product from damage. High-quality and visually appealing packaging can create a positive perception among consumers, potentially resulting in a higher price point. Additionally, specialized packaging techniques designed to preserve freshness and extend the shelf life of oil can also impact the price. This study investigates the impact of quality and packaging on the price of sunflower oil in Iran. The primary objective was accomplished using the hedonic pricing method. Given the qualitative and ordinal nature of the dependent variable, the ordinal logit model was employed. The sample size was determined through a two-stage cluster sampling approach, which involved collecting 350 questionnaires from consumers in Tehran city. Statistical analysis was conducted using Shazam and Stata software. Numerous factors influence the consumption of sunflower oil at various levels. However, in general, factors such as increasing age, higher income levels, the presence of diseases, and dietary considerations contribute to a decrease in its consumption. On the other hand, factors like improving product quality, enhancing the quality of oil packaging, increasing consumer loyalty towards edible oil, and rising online sales of this product contribute to an increase in its demand.

Keywords

Edible oil; Ordinal logit; Packaging; Quality; Sunflower

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