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Possibilities and constraints of marketing enviromentally friendly produced vegetables in Thailand

Subject Area Agricultural Economics, Agricultural Policy, Agricultural Sociology
Term from 2000 to 2009
Project identifier Deutsche Forschungsgemeinschaft (DFG) - Project number 5278964
 
Final Report Year 2007

Final Report Abstract

The research aims to provide in-depth information on possibilities and constraints of consumer-oriented marketing for environmentally friendly produced vegetables (EFPV) in Thailand. The study comprises an overview of the Thai vegetable (and especially EFPV) productionmarketing-system; an evaluation of product attributes desired by consumers applying conjoint analysis; an analysis of the purchase decision by use of logistic regression; an assessment of consumers' willingness to pay (WTP) based on double bounded contingent valuation method; and the derivation of starting points to improve the marketing of EFPV. The introduction is followed by a systematic and profound description of the market for vegetables in general and for EFPV in particular using official statistics, complemented by invaluable information collected from representatives of public and private actors involved in the EFPV-production-marketing-system. The thesis then shortly reviews the theory of consumer purchase decision-making and discusses the methods used to analyse the primary data that were collected by face-to-face interviews with 1,320 respondents at different points of sale in Bangkok, Chiang Mai, and Khon Khaen. The questionnaire and the survey are thoroughly commentated. The three main tasks are based on suitable theoretical concepts and sophisticated methods. The results are generated in a stepwise process by cautiously varying model specifications, simultaneously taking account of statistical and economic findings. The process ends up with an "ultimate" model for each of the three approaches. Special merits to be stressed are: the comparison of OLS- and MONANOVA-estimates in the conjoint section; and the application of a double-bounded contingent valuation method being more efficient than the commonly used single-bounded approach, including the selection of the probability distribution. Finally, the findings are translated into recommendations for public and private agents to improve EFPV-consumption and -purchase, especially: confidence is the most important factor determining consumption and purchase of EFPV. Hence, high quality and its efficient control are vital to further develop the market. Similar to EU-experience, Thai government should initiate a "unified certificate" and effective controls to reduce the current consumer confusion caused by the host of different labels and certificates, and to increase confidence. - Special EFPV-customer characteristics to be taken into account are: affiliation to special diets; concerns about health hazards and environmental problems associated with conventional production, especially pesticide contamination; high income; higher age; preparing food at home. On the other hand: price is not the limiting constraint - consumers' WTP is estimated even higher than the prevailing EFPV-price premiums.

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