Abstract
The purpose of this study is to examine the importance of low calorie content in Japanese consumers’rice purchasing decisions. The Choice Modeling (Random Parameter Logit Model) is used to quantify the welfarechange associated with the change in the level of low calorie content label, local origin label, price attributes for a sample of Japanese consumers taken in March 2009.
The consumer has a positive perception of local origin label. The average evaluation of the low calorie content attribute is negative (−116 yen/5 kg). However, half of samples have a positive perception of low calorie content. Their willingness to pay for low calorie content range from 800 to 900 yen/5 kg. The results suggests that latent demand for low calorie labeled rice is limited.
