Consumers’ willingness to pay more for Shrimps in Suburban Mumbai

Abstract

The study has been conducted with the objectives of finding whether the consumers are willing to pay more for shrimps in an suburban area of Mumbai, and if so, how much and what are the factors behind it. The study has revealed that the consumers are willing to pay a price higher than the market price of shrimps. The five factors behind their willingness to pay more for shrimps are: taste and preferences, lower prices, high nutritional value with low fat-content, proximity (easy access), and familiarity with a shop, in that order. The factor ‘taste and preference’ has been found so dominating that consumers are willing to pay even ` 500/kg in comparison to the prevailing market price of`` 225± 25/kg. The willingness to pay a higher price for other attributes varied from ` 400/kg to ` 280/kg. Out of the five determinants, two, viz ‘taste and preferences’ and ‘nutrition’ have been found statistically significant. And therefore regression analysis has been carried out for these two variables using Tobit model.