International Journal of Business and Economics Volume 15, No. 2 December, 2016

Factors Affecting Consumers' Willingness to Pay for Imported Offal in Indonesia: A Case Study for Makassar City

Vidyahwati Tenrisanna

Department of Social Economics of Animal Husbandry, Faculty of Animal Husbandry, Hasanuddin University, Indonesia

Mohammad Mafizur Rahman

School of Commerce, University of Southern Queensland, Australia

Rasheda Khanam

School of Commerce, University of Southern Queensland, Australia

Abstract

This study explores the factors that affect consumers' willingness to pay (WTP) for imported offal in Makassar, Indonesia. The primary data derived from a field survey and hedonic price model are used for obtaining the estimated results. The paper finds that age, occupation (OFFICER), level of education (UNIVERSITY GRADUATE), ethnicity (BUGIS), NON-AFFORDABILITY, and ACCESSIBILITY significantly affect the WTP for imported offal in Makassar. Also the marginal implicit price (MIP) calculation shows that the willingness to pay of higher prices for imported offal decreases for older consumers. It is also found that if the price of imported offal in the market increases, the willingness to pay for the product will decrease.

Keywords：hedonic price, imported offal, WTP.

JEL Classifications：C83, D12, Q13.

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