Customer’s Behavior and Willingness to Pay for the Antioxidant Eggs

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Rahayu Relawati, Bambang Yudi Ariadi, Harpowo

Abstract

Chicken eggs enriched with antioxidants are produced to provide functional foods that are healthier to consume, with a premium price. The study was intended to analyze customers’ assessment, buying behavior, and willingness to pay the antioxidant (AO) chicken eggs. The study was conducted in Malang Regency, the closest location to the UMM Farm Business Unit. Primary data were obtained from interviews with customers of the AO and conventional eggs. The data were analyzed with a quantitative descriptive design and the t-test. The results suggested that customers assessed the AO chicken eggs had better nutritional content than the conventional one and produced a better impact on health. Customers’ behavior indicated that the purchase of the AO eggs was still lower than conventional eggs, although customers' tasting attitude on the AO egg portrayed a higher preference. Customers were willing to pay more expensive to the AO eggs. The price of AO eggs without any label was 7% higher than the conventional counterpart during the time of the study. If the AO eggs are labeled, they will take a premium price of 21% more than conventional eggs. The results recommended the producers to do packaging and labeling to the AO eggs to expand the market. Moreover, the UMM Farm needs to consider various packaging designs based on consumer preferences and determine the market penetration of the AO eggs.

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