Do Consumers Pay More for What They Value More? The Case of Local Milk-based Dairy Products in Senegal

Senegalese consumers prefer milk-based dairy products that are local and fresh to ones produced with imported powder. However, prices for fresh-milk-based and powder-based products are not significantly different. I address this puzzle by first confirming the preference using choice-based conjoint data to evaluate whether Senegalese consumers will pay a significant positive premium for fresh local products. I then identify price determinants using a unique dataset of milk product characteristics. The results verify the Senegalese preference for fresh local dairy products and show that consumers’ misinformation regarding product composition prevents them from allocating a higher price to local milk-based products.


Issue Date:
2014-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/165909
Published in:
Agricultural and Resource Economics Review, Volume 43, Number 1
Page range:
158-177
Total Pages:
20




 Record created 2017-04-01, last modified 2017-04-28

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