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DETERMINANTS OF CONSUMER ATTITUDES AND PURCHASE INTENTIONS WITH REGARD TO GM FOODS

DETERMINANTS OF CONSUMER ATTITUDES AND PURCHASE INTENTIONS WITH REGARD TO GM FOODS. BY James O. Bukenya, Department of Agribusiness; Alabama A&M University Natasha R. Wright, Department of Agribusiness; Alabama A&M University. INTRODUCTION.

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DETERMINANTS OF CONSUMER ATTITUDES AND PURCHASE INTENTIONS WITH REGARD TO GM FOODS

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  1. DETERMINANTS OF CONSUMER ATTITUDES AND PURCHASE INTENTIONS WITH REGARD TO GM FOODS BY James O. Bukenya, Department of Agribusiness; Alabama A&M UniversityNatasha R. Wright, Department of Agribusiness; Alabama A&M University

  2. INTRODUCTION • To examine the determinants of consumer attitudes, perceptions towards, and willingness to accept (WTA) GM-tomatoes in Huntsville metropolitan area. • Consumer acceptance of GM products has become an indicator for assessing how prosperous the market for GM products will be in the future. • The previous researches suggests that consumers are still hesitant to buy GM products because of uncertain effects of human health.

  3. DATA AND METHOD • CVM has been taken up. • 292 questionnaires designed to collect information on shopper’s • demographics, • attitude • perception • knowledge • willingness to purchase

  4. DATA AND METHOD(CONT’D) • Provided a description of GM food. • Presented with a hypothetical situation. • First Question; if GM-food were sold at the same price as the non GM, would they be willing to purchase. • Second Question; given at a discount price of GM, would they be willing to purchase.

  5. ECONOMIC APPROACH • Logit Model; to estimate probabilities of choosing alternative I for respondent n. • Ordered Probit Mode; to estimate probability of choosing GM or non GM. • A random utility model is;

  6. RESULT • The estimated pseudo R2 value is 0.342. • The results from the model; • 64 (76) of the total sample ; purchase at the same price, but not at a higher price • 96 (95) of the total sample ; less likely to purchase at the same price, but would at a discount • 132 (121) of the total sample ; less likely to purchase neither at the same price nor at a discount

  7. RESULT(CONT’D)

  8. RESULT (CONT’D) • The estimated effects of each independent variable • demographic ; insignificant • self reported knowledge and education about biotechnology ; the more self reported knowledge the more WTA. The more education levels the less WTA. • the stronger risk and safety concern, the lower WTP. • the more important labeling of GM, the lower WTP.

  9. RESULT (CONT’D) • The results for the bid discount and income variable • perceived safety risks, still buying at a discount price • 40% discount price to induce to purchase • marginal effect of each independent variable • bid discount ; no desire to purchase as the same but at discount ; 2.4549 ; absolutely no desire ; -2.7892

  10. RESULT (CONT’D) • marginal effect of each independent variable (cont’d) • shopper type ; given a discount price ; 0.7946 • labeling ; -0.2023 • perception variable ; -0.1571

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