Factors influencing the hedonic price of medium quality rice
| Variable | Coefficient | Standard error | Prob. |
|---|---|---|---|
| Rice aroma | 0.001196 | 0.005068 | 0.8137 |
| Rice brand | −0.002537 | 0.004535 | 0.5764 |
| Rice cleanliness | 0.022692*** | 0.007326 | 0.0022 |
| Rice durability | −0.017306*** | 0.005464 | 0.0018 |
| Rice grains | −0.005225 | 0.005888 | 0.3760 |
| Rice packaging | 0.016149*** | 0.004769 | 0.0009 |
| Rice softness | 0.007084 | 0.006030 | 0.2415 |
| Rice whiteness | 0.013181** | 0.005913 | 0.0270 |
| Location (1: urban; 0: rural) | −0.008893*** | 0.002809 | 0.0018 |
| Constant | 9.357544*** | 0.012476 | 0.0000 |
| R 2 | 0.186225 | ||
| F-statistic | 4.831071*** | ||
Factors that determine consumer preferences for premium and medium quality rice choices
| Variable | Coefficient | Prob. | Odds ratio |
|---|---|---|---|
| Rice price | −0.129634 | 0.5721 | 0.8784 |
| Rice aroma | 0.442208* | 0.0647 | 1.5561 |
| Rice brand | 0.580788** | 0.0156 | 1.7874 |
| Rice cleanliness | −0.425498 | 0.1629 | 0.6534 |
| Rice durability | 0.340815 | 0.1655 | 1.4061 |
| Rice grains | 0.273123 | 0.3368 | 1.3141 |
| Rice packaging | −0.272936 | 0.2570 | 0.7611 |
| Rice softness | 0.283672 | 0.2722 | 1.3280 |
| Rice whiteness | −0.555475* | 0.0540 | 0.5738 |
| Location (1: urban; 0: rural) | 1.628664*** | 0.0006 | 5.0971 |
| McFadden R-squared | 0.207643 | ||
| LR-statistic | 38.821910*** | ||
| H–L statistic | 0.867800 | ||
Factors that determine consumer preferences for premium and low quality rice choices
| Variable | Coefficient | Prob. | Odds ratio |
|---|---|---|---|
| Rice price | −0.632903** | 0.0217 | 0.5310 |
| Rice aroma | 0.030784 | 0.9233 | 1.0313 |
| Rice brand | 0.944663*** | 0.0004 | 2.5719 |
| Rice cleanliness | −0.444627 | 0.1888 | 0.6411 |
| Rice durability | 0.300979 | 0.3127 | 1.3512 |
| Rice grains | 0.358908 | 0.2262 | 1.4318 |
| Rice packaging | −0.560758** | 0.0330 | 0.5708 |
| Rice softness | 0.300719 | 0.3187 | 1.3508 |
| Rice whiteness | −0.045181 | 0.8872 | 0.9558 |
| Location (1: urban; 0: rural) | 1.938669*** | 0.0001 | 6.9495 |
| McFadden R-squared | 0.295212 | ||
| LR-statistic | 54.374840*** | ||
| H–L statistic | 0.219500 | ||
Robustness check for hedonic price determinants of premium quality rice
| Variable | Original model | Model 1 | Model 2 | Model 3 |
|---|---|---|---|---|
| Rice aroma | 0.007759* | 0.006529 | −0.003630* | 0.009221 |
| Rice brand | −0.010752** | −0.006990*** | −0.008305 | |
| Rice cleanliness | −0.005801 | −0.007455 | −0.006064* | −0.002057 |
| Rice durability | −0.017480*** | −0.017993*** | 0.004544* | −0.027892*** |
| Rice grains | −0.003420 | −0.002366 | −0.000739 | −0.002898 |
| Rice packaging | −0.015167*** | −0.016695*** | 0.005872*** | −0.031860*** |
| Rice softness | 0.004025 | 0.001961 | 0.001293 | 0.014043 |
| Rice whiteness | 0.015942*** | 0.016674*** | −0.000059 | 0.015449* |
| Location (1: urban; 0: rural) | −0.022326*** | −0.023105*** | ||
| Constant | 9.519467*** | 9.515726*** | 9.471978*** | 9.529102*** |
| R 2 | 0.492819 | 0.475155 | 0.333881 | 0.372088 |
| F-statistic | 20.513300*** | 21.614620*** | 5.701519*** | 6.740589*** |
| Number of observations | 200 | 200 | 100 | 100 |
Robustness check for hedonic price determinants of low quality rice
| Variable | Original model | Model 1 | Model 2 | Model 3 |
|---|---|---|---|---|
| Rice aroma | −0.008856 | −0.011759 | 0.007133 | −0.004859 |
| Rice cleanliness | 0.067930*** | 0.064705*** | 0.037892* | 0.079107*** |
| Rice durability | 0.020805** | 0.018902* | −0.043846*** | 0.047048*** |
| Rice grains | −0.005787 | −0.004053 | −0.019844 | 0.005411 |
| Rice softness | 0.049420*** | 0.044910*** | 0.008821 | 0.065477*** |
| Rice whiteness | 0.010957 | 0.012228 | 0.058741*** | 0.003104 |
| Rice brand | 0.020445** | |||
| Location (1: urban; 0: rural) | 0.032346*** | 0.030671*** | ||
| Constant | 9.123299*** | 9.116172*** | 9.280960*** | 9.045517*** |
| R2 | 0.460474 | 0.476511 | 0.226714 | 0.485164 |
| F-statistic | 23.409720*** | 21.73246*** | 4.544338*** | 14.60668*** |
| Number of observations | 200 | 200 | 100 | 100 |
Characteristics of rice consumer respondents
| Characteristics | Rural | Urban |
|---|---|---|
| Average | Average | |
| Age (years) | 46.64 | 45.30 |
| Level of formal education (%) | ||
| Elementary school (SD) | 26.00 | — |
| Junior high school (SMP) | 8.00 | — |
| Senior high school (SMA) | 44.00 | 30.00 |
| Diploma (D3) | 7.00 | 8.00 |
| Bachelor’s degree (S1) | 14.00 | 40.00 |
| Master’s degree (S2) | 1.00 | 14.00 |
| Doctorate (S3) | — | 8.00 |
| Main occupation (%) | ||
| State civil apparatus (ASN) | 12.00 | 35.00 |
| Private employee | 10.00 | 17.00 |
| Entrepreneur | 49.00 | 46.00 |
| Farmer/Fisherman | 11.00 | — |
| Laborer | 14.00 | 1.00 |
| Retired ASN | 4.00 | 1.00 |
| Number of family dependents (persons) | 3.06 | 2.96 |
| Household income (IDR/month) | 4460500.00 | 7038000.00 |
| Amount of rice consumed (kg/month) | 27.61 | 19.49 |
| Quality of rice consumed (%): | ||
| Low quality rice | 44.00 | 20.00 |
| Medium quality rice | 39.00 | 27.00 |
| Premium quality rice | 17.00 | 53.00 |
Factors that determine consumer preferences for medium and low quality rice choices
| Variable | Coefficient | Prob. | Odds ratio |
|---|---|---|---|
| Rice price | −0.662021*** | 0.0058 | 0.5158 |
| Rice aroma | −0.368537* | 0.0972 | 0.6917 |
| Rice cleanliness | −0.037667 | 0.8950 | 0.9630 |
| Rice durability | −0.142699 | 0.4919 | 0.8670 |
| Rice grains | 0.523787** | 0.0415 | 1.6884 |
| Rice softness | −0.021402 | 0.9289 | 0.9788 |
| Rice whiteness | 0.326003 | 0.1670 | 1.3854 |
| Location (1: urban; 0: rural) | 0.351668 | 0.3931 | 1.4214 |
| McFadden R-squared | 0.093328 | ||
| LR-statistic | 16.816500** | ||
| H–L statistic | 0.371800 | ||
Description of attributes and levels for rice
| Attribute | Description | Level |
|---|---|---|
| Aroma | Smell or fragrance of rice based on the sense of smell |
|
| Cleanliness | The appearance of rice based on the sense of sight regarding the number of foreign objects other than rice, such as stones, and other objects that are not part of the rice, husks or grains of rice. |
|
| Durability | Durability during storage is a series of consumer assumptions or impressions regarding the durability of rice products, which is indicated by the appearance of rice weevils which can damage the texture of rice grains from whole to incomplete and finally to flour. |
|
| Grains | The appearance of rice grains based on the sense of sight regarding the number of whole grains and/or broken grains. |
|
| Softness | Stickiness is a series of consumer assumptions or impressions regarding the level of stickiness in rice. |
|
| Whiteness | The degree of whiteness is a series of consumer assumptions or impressions of the color of rice. Rice color is distinguished into dull and white categories. |
|
| Packaging | Rice packaging is a series of consumer assumptions or impressions regarding the color and image of the packaging and the packaging materials. |
|
| Brand | A brand is a name, term, sign, symbol or emblem, color, movement, or combination of other product attributes that are expected to provide identity and differentiation from competing products. |
|
Factors influencing the hedonic price of premium quality rice
| Variable | Coefficient | Standard error | Prob. |
|---|---|---|---|
| Rice aroma | 0.007759* | 0.004672 | 0.0984 |
| Rice brand | −0.010752** | 0.004180 | 0.0109 |
| Rice cleanliness | −0.005801 | 0.006753 | 0.3914 |
| Rice durability | −0.017480*** | 0.005037 | 0.0006 |
| Rice grains | −0.003420 | 0.005427 | 0.5293 |
| Rice packaging | −0.015167*** | 0.004396 | 0.0007 |
| Rice softness | 0.004025 | 0.005558 | 0.4698 |
| Rice whiteness | 0.015942*** | 0.005450 | 0.0039 |
| Location (1: urban; 0: rural) | −0.022326*** | 0.002589 | 0.0000 |
| Constant | 9.519467*** | 0.011500 | 0.0000 |
| R 2 | 0.492819 | ||
| F-statistic | 20.513300*** | ||
Robustness check for hedonic price determinants of medium quality rice
| Variable | Original model | Model 1 | Model 2 | Model 3 |
|---|---|---|---|---|
| Rice aroma | 0.001196 | 0.003970 | 0.002305 | 0.006209 |
| Rice brand | −0.002537 | −0.017604** | 0.012776*** | |
| Rice cleanliness | 0.022692*** | 0.022739*** | 0.010012 | 0.029776*** |
| Rice durability | −0.017306*** | −0.012387** | −0.036287*** | −0.008904* |
| Rice grains | −0.005225 | −0.003512 | −0.012683 | −0.002663 |
| Rice packaging | 0.016149*** | 0.025509*** | 0.003751 | |
| Rice softness | 0.007084 | 0.009778 | 0.015938 | −0.003632 |
| Rice whiteness | 0.013181** | 0.014011** | 0.038976*** | 0.001814 |
| Location (1: urban; 0: rural) | −0.008893*** | −0.008013** | ||
| Constant | 9.357544*** | 9.356728*** | 9.361693*** | 9.354194*** |
| R 2 | 0.186225 | 0.137072 | 0.295794 | 0.325997 |
| F-statistic | 4.831071*** | 4.356895*** | 4.777936*** | 5.501768*** |
| Number of observations | 200 | 200 | 100 | 100 |
Factors influencing the hedonic price of low quality rice
| Variable | Coefficient | Standard error | Prob. |
|---|---|---|---|
| Rice aroma | −0.008856 | 0.009442 | 0.3495 |
| Rice cleanliness | 0.067930*** | 0.013889 | 0.0000 |
| Rice durability | 0.020805** | 0.009995 | 0.0387 |
| Rice grains | −0.005787 | 0.011152 | 0.6044 |
| Rice softness | 0.049420*** | 0.011219 | 0.0000 |
| Rice whiteness | 0.010957 | 0.011241 | 0.3309 |
| Location (1: urban; 0: rural) | 0.032346*** | 0.005279 | 0.0000 |
| Constant | 9.123299*** | 0.023573 | 0.0000 |
| R 2 | 0.460474 | ||
| F-statistic | 23.409720*** | ||