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An Analytical Study On Consumer's Preferences For Eggs Attributes Through Conjoint Survey

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Pacific Business Review International

Volume 9 Issue 7, Jan. 2017

An Analytical Study on Consumer's Preferences for


Eggs Attributes through Conjoint Survey

Jitender Kumar Abstract


Research Scholar Today, all over the world eggs are considered as an important part of
IMSAR, M.D.U., Rohtak daily meals. In India, consumption of milk, meat and eggs are rising
than that of cereals. The Economic Survey of 2015-16 presented that
Prof. Rajkumar the agriculture of India is a system of mixed crop-livestock. This
Dean Student Welfare survey explained that rank of India is first in production of milk i.e.
Director of Placement Cell 18.5% of all over the world production with an output of 146.3 million
IMSAR, M.D.U., Rohtak tons annually. This study focuses on preferences of egg purchaser and
uses conjoint analysis to identify consumer preferences in the market.
By applying technique the trade off that consumers make between size,
color, price , packaging, functional, feed given to chicken in the
purchasing of egg for 95 respondents was established. Data is collected
from primary sources through a well structured questionnaire. For the
collection of data convenience sampling is used. Sample respondents
are teachers and students of various departments of M.D.University,
Rohtak. The result found that 63.2% of respondents are eggetarian and
remaining 36.8% are non-eggetarian. Results also analyzed which
level of attributes is preferred by respondents.
Keywords: Consumer's Preferences, Eggs, Attributes, Conjoint
Survey

Introduction
Today, all over the world eggs are considered as an important part of
daily meals. In India, consumption of milk, meat and eggs are rising
than that of cereals. As we saw in the past, the agricultural output (i.e.
37%) growth was come from animal products. Eggs and Meat output
from the total output has grown faster and poultry the fastest. In an
Indian economy, the food sector plays a vital role in concern of
development and growth of a country. With the introducing of New
Economic Policy (LPG) 1991, Many Multinational Corporations starts
their business in India and because of, LPG policy, more consumers
attracts towards the fast food products and very much to the egg
products. Therefore, demand for fast food has increased while the
demand for staple food has decreased. From the last decades, patterns
regarding food consumption of consumers have been changed rapidly
with the changes takes place in an environment. With the expansion of
industries in India, there are lots of employment opportunities
generated and because of this, income level of consumers also
increases which result in great demand of quality and fast food.

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ŸConsumers gives dually importance on a balanced diet, Egg's consumption across Asia Pacific Nations, especially
brand consciousness , higher education levels, in China and India is increasing because there is high
healthfulness, superior quality , convenience and valued volume of middle class population and their purchasing
animal welfare are certain factors through which consumers power is also increasing. These Nations, dominates the
are decided whether they buy the egg products or not. There global market of eggs.
are lots of factors which affects the choices of consumers
The Economic Survey of 2015-16 presented that the
like:-
agriculture of India is a system of mixed crop-livestock. This
ŸEnvironmental Factors survey explained that rank of India is first in production of
milk i.e. 18.5% of world production with an annual output of
ŸCultural Factors
146.3 million tons in 2014-15 and this was 137.69 million
ŸConsumers Tastes and Preferences tons in 2013-14 with 6.26% growth rate. Production of egg
and fish was also registered with an increasing trend over the
ŸIncome level of consumers
years. Production of egg was around 78.48 billion in 2014-
ŸBuying behavior of consumers 15, but the production of poultry meat was estimated at 3.04
MT. Total Gross Domestic Product of country has 1% of
ŸContextual influences
fisheries sector and 5.08 of agriculture sector. The
ŸPrice of product etc. production of fish is showing an increasing trend as it was
10.16 MT during 2014-15 but in 2015-16 it was estimated at
4.79 MT.
Demand Projections of Livestock Products in India
Table - 1
Product 1993 2000 2010 2020
Milk 46.18 60.77 94.3 147.21
Mutton and Goat 0.83 1.36 3.81 12.72
Meat
Beef and Buffalo 0.49 0.61 0.84 1.15
Meat
Chicken 0.25 0.33 0.52 0.81
Eggs 9.62 13.88 24.9 44.06
Source: www.google.com/search/project on poultry-7-638

Review of Literature positive marginal WTPs for cage-free, outdoor access,


access to nests box, perches, scratching pads and more
It is remarkable to analyze what research work has been
space. In both choice experiment, the WTP for cage-free
done in every part of the world in context of consumer
attributes or housing systems with cage-free attributes (i.e.,
preferences regarding egg products. Many studies have been
free run and free range systems) was lower in treatment 2
conducted by the researchers in the field of consumer
(with additional information) than treatment 1.
preferences regarding egg products. An attempt has been
made to present a critique review of the literature available. Hanis.A and Nasir.M(2013) in his journal analyzed the
Some of the studies are: preference of consumers for the selected egg attributes by
conjoint analysis in Malaysia. A sample of 202 respondents
A stated choice analysis was done by Yiqing LU (2013) to
from the capital cities of all states in Malaysia was taken to
know the preference of consumers for egg products from
establish the trade-offs between the selected attributes i.e.
Enhanced Animal Welfare Production System in Canada.
size of eggs, colour, size of packaging, functional attribute
The main objective of the study was to develop new
and price with different levels of these attributes. Theory of
economic knowledge about the egg market which include
Demand given by Lancaster was taken as base for this study.
Canadian consumers marginal WTP for each housing
To make an analysis descriptive analysis was done followed
systems, organization that verifies the housing system, as
by rating score for egg attributes, relative importance or egg
well as the characteristics of a housing system. By using
attributes and willingness to pay for egg attributes
Conjoint Analysis he indicated in his result that consumers
respectively. Malaysian consumers most prefer (large,
of Canada are willing to pay a premium of $1.147 and
omega, brown and 10 per packet) egg profile. They also
$0.550 for eggs from free run and free range systems
found that excellent marketing strategies were needed to
respectively, and verification for the housing systems, but
establish a consumer oriented market. Consumer’s
not for eggs from enriched cage systems. There were also

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Volume 9 Issue 7, Jan. 2017

willingness to buy for the product was high but the primary sources through a well structured questionnaire. For
functional attributes of egg was less preferred the collection of data convenience sampling is used. Sample
comparatively according to this study. respondents are teachers and students of various
departments of M.D.U Rohtak. 100 questionnaires were
Yan Heng (2015) executed a survey to check the Consumer
distributed among respondents, but 95 questionnaires were
attitudes in case of egg products. An online survey was
found complete in all respects. In this study, responses
conducted to collect the data and this survey was conducted
collected through questionnaire are coded, tabulated and is
nationwide. Stratified sampling technique was used for
analyzed with the help of statistical and analytical packages
collecting data and a pilot study with 60 respondents was
like SPSS. Conjoint analysis is used in this paper.
taken to pre-test the data. He found in his result that majority
of respondents (63.5%) perceived the conventional layer Conjoint Analysis
management practices of housing hens in cages. 86%
Conjoint analysis model establish consumer trade-offs
respondents favored the quality of products produced in
amongst multi-attribute concepts to know the preferences of
animal –friendly environment. Cage- free attribute was
consumers. According to this model products is a chain of
preferred by respondents with the highest average premium
fixed levels of attributes and that the total utility that the
of $0.49 per dozen.
consumer consumes. It gives many attribute combinations
Objective of the study that are most preferred by consumers and also give
information how these combinations are important and also
The main objective of the study is to find out the factors
the importance of each and every attribute.
which affect the preferences of consumers while buying
eggs through Conjoint Analysis. Steps to conduct conjoint analysis
Research Methodology The first task in Conjoint Analysis study is to establish the
attributes and level of attributes to include in the actual
Research methodology of the present study is as follows:-
questionnaire. The attributes and their various levels are
In the present study, mainly exploratory research design is identified using an exploratory research and discussion with
adopted, as the main purpose of the study is to gain new experts. Once the attributes and their various levels are
insights in context of consumer preferences regarding egg identified the respondents are presented with the
products. It also represented some characteristics of combination of attributes with levels to show their
descriptive research designs. Data is collected from preference for various combinations.
Table-2: Different Attributes and their Levels

Selected Attributes of the Study Selected Level of Attributes


Size Large(more than 73 gm)
Medium(53-73gm)
Small(less than 53gm)
Color Brown
White
Packaging 6 per pack
10 per pack
12 per pack
30 per pack
Functional Omega(enhanced)
Regular(non-enhanced)
Price Rs. 4 per egg
Rs.6 per egg
Rs.8 per egg
Feed given to chicken Organic
Conventional
Source: Researcher Calculation
Two approaches are available for constructing conjoint with the use of SPSS Orthogonal Fractional Factorial
analysis stimuli i.e. the pair-wise approach and full profile Design. These combinations are presented to the
approach. In full profile approach complete profiles are respondents where respondents were asked to rank the egg
consider for all the attributes. In the present study, the total in the range of one to sixteen. Responses collected through
possible profiles are 3*2*4*2*3*2= 288. In order to reduce questionnaire are coded, tabulated and analyzed with the
the task of respondent's evaluation, a fractional factorial help of Conjoint Analysis.
design is employed and the set of 16 profiles is generated

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Pacific Business Review International

Table-3

Size Colour Packaging Functional Price Feed


given to
chicken
1. large(more than Brown 12 per pack omega(enhanced) Rs.4 per Organic
73gm) egg
2. small(less than Brown 12 per pack omega(enhanced) Rs.4 per organic
53gm) egg
3. large(more than Brown 30 per pack regular(non Rs.8 per organic
73gm) enhanced) egg
4. small(less than white 30 per pack regular(non Rs.4 per Conventio
53gm) enhanced) egg nal
5. medium(53- brown 6 per pack omega(enhanced) Rs.4 per Conventio
73gm) egg nal
6. medium(53- white 12 per pack regular(non Rs.4 per organic
73gm) enhanced) egg
7. small(less than White 10 per pack regular(non Rs.4 per organic
53gm) enhanced) egg
8. small(less than Brown 30 per pack omega(enhanced) Rs.4 per Conventio
53gm) egg nal
9. large(more than White 6 per pack regular(non Rs.4 per Conventio
73gm) enhanced) egg nal
10. medium(53- brown 10 per pack regular(non Rs.8 per Conventio
73gm) enhanced) egg nal
11. small(less than brown 12 per pack regular(non Rs.6 per Conventio
53gm) enhanced) egg nal
12. medium(53- white 30 per pack omega(enhanced) Rs.6 per organic
73gm) egg
13. small(less than white 6 per pack omega(enhanced) Rs.8 per organic
53gm) egg
14. small(less than brown 6 per pack regular(non Rs.6 per organic
53gm) enhanced) egg
15. large(more than white 10 per pack omega(enhanced) Rs.6 per Conventio
73gm) egg nal
16. small(less than white 12 per pack omega(enhanced) Rs.8 per Conventio
53gm) egg nal

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Volume 9 Issue 7, Jan. 2017

Results and Discussion descriptive analysis of the study, followed by rating score for
eggs attributes is discussed.
Findings of the study are presented in this part. Here,
Table- 4: Demographic profile of respondents
Demographic Factors Percentage N=95
47.4
Gender Male
52.6
Female
<20 31.6

Age 20-40 66.

>40 2.1
Up to UG 48.4

Education 51.6
PG and above
<40,000 32.6

Income Level 40,000-1,00,000 36.8

>1,00,000 30.5
Student 84.2

Occupation Service 11.6

Business 4.2
The distribution of demographic profiles of respondents is remaining were up to UG(48.45%). Respondents' income
as: of the total respondents, 47.4% were male and 52.6 were was grouped into three categories, below 40,000; 40,000-
female. The age of respondents were grouped into Three 1,00,000 and above 1,00,000. About 32.6% were from
categories; Less than 20 yrs., 20-40 and above 40 yrs. Of below 40,000, 36.8% were between 40,000-1,00,000 and
these, the highest group according to the age range was 20- about 30.5% were above 1,00,000. In terms of respondents'
40 years old (66.3%), followed by <20 years old (31.6%), occupation, the category of occupation was divided into
>40 years old (2.1%).Respondents' education was three. The categories were; student, serviceman, business.
categorized into two group; up to UG and PG & above. About 84.2% were student followed by 11.6% were working
51.6% respondents were PG and above and the others as serviceman and 4.2% were included in business.
Table- 5: Whether respondent is eggetarian or not
Frequency Percent
No 35 36.8
Valid Yes 60 63.2
Total 95 100.0

As it is evident from the table-5, 63.2% of respondents are shows that majority of the respondents are eggetarian.
eggetarian and remaining 36.8% are non-eggetarian. It
Table-6: Form of consuming egg
Frequency Percent
Fried 17 17.9
Boiled 41 43.2
Valid Roasted 4 4.2
All of them 33 34.7
Total 95 100.0

As above table shows that 17.9% of respondents use fried remaining 34.7% use a mix of the three forms.
eggs, 43.2% use boiled eggs, 4.2% use roasted eggs and

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Table-7
Benefits you seek from consuming egg
Frequency Percent
Protein 69 72.6
Vitamins 20 21.1
Valid
Fat contents 6 6.3
Total 95 100.0

Table 6 shows that 72.6% of respondents consume eggs for for fat contents respectively.
protein followed by 21.1% consume for vitamin and 6.3%
Table-8: Purpose of eating egg
Frequency Percent
Health benefits 89 93.7
Habitual 1 1.1
Valid
Comfort food 5 5.3
Total 95 100.0

The result shows that 93.7% respondents eat eggs for health 1% respondents eat eggs habitually. It shows the awareness
benefits and 5.3% considered it as a comfort food and only of respondents for health benefits.
Ranking score for egg profiles
Table-9: Utilities
Utility Estimate Std. Error

small(less than 53gm) -.464 .402


Size
medium(53-73gm) .167 .471
large(more than 73gm) .297 .471
White -.368 .301
Colour
Brown .368 .301
30 per pack .274 .522
12 per pack .342 .522
Size of packaging
10 per pack -.228 .522
6 per pack -.389 .522

regular(non enhanced) -.033 .301


Functional
omega(enhanced) .033 .301
Rs.4 per egg 1.259 .402
Price Rs.6 per egg -.764 .471
Rs.8 per egg -.495 .471
Conventional -.548 .301
Feed given to chicken
Organic .548 .301
(Constant) 8.301 .333

Apart from that, the result also discussed which level of preferred by the respondents (utility= .342). The
attributes is preferred by respondents. Generally, higher consistency between the size of eggs (the larger egg was
utility value reflects better demand for the attributes. With better) and the size of packaging (more egg per packaging
regard to size of eggs, large eggs was most preferred was better). As explained earlier, the study discovered that
(utility= .297), followed by medium eggs with (utility=.167) functional attributes were the least preferred attributes of
and small eggs was not preferred (utility= -.464). In case of egg compared to other attributes. However, in terms of
colour, consumer preferred brown eggs more compared to preferences of the level of functional attributes, omega eggs
white eggs. The utility for both were .368 and -.368 were still preferred compared to regular eggs. The utility for
respectively. For the size of packaging 12 per pack was both levels were .033 and -.033 respectively.

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Volume 9 Issue 7, Jan. 2017

Table -10: Importance Values


Size 14.060
Colour 13.608
Size of packaging 13.507
Functional 1.205
Price 37.384
Feed given to chicken 20.236
Averaged Importance Score
In terms of relative importance of egg attributes, we found between color and size of packaging. They give almost equal
that price of eggs topped the list of six attribute included in importance to these attributes. It was unexpected that
the study. As illustrated in table 10, the relative importance functional attributes was found as the least preferred
of price was 37.38 compared to other attributes for eggs. attribute by consumers as it only contributed 1.2% in terms
Feed given to chicken was ranked second (20.23) and size of relative importance of attribute of eggs.
was ranked third (14.06). The respondents are indifferent
Table-11: Correlations
Value Sig.
Pearson's R .880 .000
Kendall's tau .650 .000

a. Correlations between observed and estimated preferences


Reliability and Validity tau is 0.650, value of Pearson's R is 0.880 These values show
that results are significant at 5 percent level of significance
Basically results are analyzed for checking accuracy,
as both the values are high.
reliability and validity. The objective of conjoint analysis is
to ascertain how consistently the model predicts the set of References
preference evaluations under different situations. Results
Ahmad Hanis, I. A. H, Jinap, S., Mad Nasir, S., Alias, R. and
obtained by conjoint analysis are reliable and valid as:
Muhammad Shahrim, A. K. 2013. Consumers'
While evaluating the goodness of fit of the estimated
preferences for eggs attributes in Malaysia:
conjoint model, we found that value of Kendall's tau is
Evidence from conjoint survey. International Food
0.650, value of Pearson's R is 0.880. These values show that
Research Journal 20 (5) 2865-2872.
results are significant at 5 percent level of significance as
both the values are high. Alias, R., Nik Mustapha, R. A, Abdul Aziz, A. R. and Ahmad
Zubaidi, B. 1999. Demand and prospects for food in
Limitations
Malaysia. Seminar on repositioning the agriculture
1. Selection of attributes and their levels included in this industry in the next millennium. Serdang:
study is a limitation because there are also some Universiti Putra Malaysia.
attributes which may be important for the consumers
Furst, T., Connors, M., Bisogni, C. A., Sobal, J. and Falk, L.
beyond those considered in this study.
W. 1996. Food choice: a conceptual model of the
2. The effects of demographic factors were not analyzed process. Appetite 26(3): 247-266.
with demand and egg attributes.
Yiqing LU ( 2013). Consumer Preference for Eggs from
Conclusion Enhanced Animal Welfare Production System: A
Stated Choice Analysis . University of Guelph.
In conclusion, we can say that this study provide valuable
inputs to producers or marketers to improve their marketing Yan Heng ( 2015). three essays on differentiated products
efforts as well as market positioning in line with the and heterogeneous consumer preferences: the case
demanded egg attributes. Majority of the respondents was of table eggs. doctor of philosophy. department of
eggetarian. It is found that respondents are aware about their agricultural economics. college of agriculture.
health benefits. The result also discussed which level of kansas state university.
attributes is preferred by respondents. In terms of relative
http://pib.nic.in/newsite/printrelease.aspx?relid=136849
importance of egg attributes, we found that price (37.384) of
eggs topped the list but functional attributes (1.205) was https://www.uky.edu/fsic/SurveyeggPref.pdf
found as the least preferred attribute of six attribute included
www.google.com/search/project on poultry-7-638
in the study. While evaluating the goodness of fit of the
estimated conjoint model, we found that value of Kendall's

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