Consumers’ Preferences for Egg Attributes with Tendency Purchase Organic Eggs and Willingness to Pay for the Preferences within Central Region and Southern Region of Malaysia

Abstract

Purpose: Egg is one of the few foods consists of complete high quality protein source and as a main protein source in Malaysia. Organic eggs industry is an underdeveloped niche market in Malaysia but exponential grow industry in develop countries. The objectives of the study are examined consumers’ preferences toward egg attributes and tendency of consumers choose organic eggs with willingness to pay for the attributes within Central Region and Southern Region of Malaysia.   Theoretical framework: Based on previous study, Lancaster’s theory argue that consumers derive utility not from good directly but from the attributes of the good that satisfy consumer need and wants (Lancaster, 1971). TRA explained the relationship between attitudes and subjective norm that influenced human intention and behavior and this theory is used to predict human reaction towards a subject based on the attitudes and behavioral intentions (Fishbein & Ajzen, 1975). TPB is differ from TRA where it has additional of perceived behavioral control, where together with the attitudes and subjective norm, shaped both intention and behaviors (Ajzen, 1991).   Design/Methodology/Approach: The target population of this study will focus on consumer adults with the age more than 18 years old and purchase eggs within 3 months. The location of respondents will be within Central Region and Southern Region of Malaysia. The consumers 18 years old above with purchase eggs within 3 months, will be include in the sampling frame from the target population. Any adults not consume eggs within 3 months will exclude in the study.  A simple random sampling technique stemmed from probability sampling technique was used to select the respondents (Ajina, 2019), where questionnaires were sent out to all the end-users in the list of sampling frame and all responses will be recorded accordingly. The obtained surveys had gone through a vetting process after the actual data collection. Incomplete questionnaires having a response rate of more than 15% will be deleted from the data set because they compromise the results' reliability and validity. The respondents not purchase any eggs within 3 months will exclude in the conjoint analysis.   Findings: Total 156 respondents and 149 respondents were purchasing egg within 3 months selected as sample for conjoint analysis. The results of conjoint analysis indicated price is the most important attribute for consumer preferences follow by size, production type, color and packaging. The best combination of egg attribute with highest total utilities value is RM 0.4/egg, size A, brown color, 10 eggs per pack and organic production type with total utility value 7.477 and WTP RM0.51/egg. The result indicates tendency of consumer toward organic egg and higher than other production type. This is the first study in Malaysia showed positive preference of consumers toward organic eggs with positive WTP RM 0.11/egg for attribute organic egg alone.   Research, practical & social implications: The finding of relative importance attributes for this study is different from the study by (Hanis, Nasir, Jinap, Alias, & Karim, 2013) where size is the most important attribute follow by size of packaging, color and functional of egg without consider production type and price. This study allows producers have clear picture and direction to produce eggs with low price, bigger brown eggs, organic or conventional with nutrient enrichment and low size of packaging to fulfil consumers’ need and want.   Originality/Value: This study is the first finding showed positive tendency of consumers in Malaysia toward organic eggs and more important than other type of production system. In term of Willing to Pay (WTP), consumer WTP for some of the attribute like size A, size B, organic, conventional with nutrient enrichment and brown eggs. The finding gives a clear picture to industry player to strategy planning the products according to consumers’ preferences and fulfil their need and want.