Willingness to Pay a Premium for Safer Fresh Tomato: The Case of Urban Consumers in Tirana, Albania

Authors

  • Myslym Osmani Department of Economics and Rural Development Policy, Agricultural University of Tirana, “Pajsi Vodica”St., 1029, Koder Kamez, Tirana, Albania
  • Ilir Tomorri Department of Agribusiness Management, Agricultural University of Tirana, “Pajsi Vodica”St., 1029, Koder Kamez, Tirana, Albania
  • Adelida Osmani Ergen Department of Architecture and Design, Urban Economics, Siirt University, Turkey

DOI:

https://doi.org/10.36941/ajis-2021-0038

Keywords:

Consumer, Multinomial model, Risk, Safety, Willingness to Pay

Abstract

The objective of this study is the consumer’s willingness to pay a premium price (WTP) for greater safety of fresh tomatoes and the factors that determine it, in the city of Tirana, Albania. Primary data are used for over 800 individuals collected through a special face-to-face survey. Econometric methods, such as multivariate regression model and multinomial logistic models have been used. Tomato consumers are willing to pay an average premium of around 16% over the current price. Among the most important factors identified as positively affecting WTP are the level of perceived safety risk of the consumer, the frequency of adverse health events in the past, the level of risk intolerance, consumer concern about food safety, and consumer knowledge about food safety. Household income and its size are two other factors that positively impact WTP, while consumer perceptions of the farmer's ability to produce healthy tomatoes have a negative effect on expected WTP. The religious affiliation of the consumer turns out to be a determinant of WTP. Demographic and cultural characteristics, such as gender, age, and educational background do not seem to affect WTP for safer fresh tomato. Finally, some political implications are discussed.

 

Received: 30 October 2020 / Accepted: 03 January 2021 / Published: 5 March 2021

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Published

2021-03-05

How to Cite

Osmani, M. ., Tomorri, I. ., & Ergen, A. O. . (2021). Willingness to Pay a Premium for Safer Fresh Tomato: The Case of Urban Consumers in Tirana, Albania. Academic Journal of Interdisciplinary Studies, 10(2), 54. https://doi.org/10.36941/ajis-2021-0038

Issue

Section

Research Articles