Perceived quality characteristics influencing households’ preference for local and imported rice and their effect on price in the northern region, Ghana

Abstract

The study investigates how perceived rice quality characteristics influence household preference for local and imported rice and its effect on prices. A multi-stage sampling technique was used to select 400 rice consuming households from Tamale, Yendi and Savelugu in the northern region. A structured questionnaire was used to interview one consumer (the woman in charge of purchasing and cooking of food) in each household on the quality characteristics that influence their demand for either local rice or imported rice. Rice quality characteristics were ranked with about 71% agreement in descending order of taste, colour, cleanness, nutrient content, safe health, aroma, grain size, texture and cooking time. The results showed that colour had the highest implicit value of Gh¢ 4.42, followed by taste (Gh¢ 2.66). The rest are cooking time (Gh¢ 1.39), grain size (Gh¢ 0.33), impurities (Gh¢-1.08) and texture (Gh¢-1.38). These results indicate the importance consumers attach to rice brands on the basis of product characteristics. To encourage the consumption of domestic rice requires that production and processing methods of local rice are improved in order to bring it, at least at par with the qualities of imported rice.

Keywords: Hedonic Price Model, Quality Characteristics, Rice Preferences, Implicit Value, Northern Ghana