CONSUMER WILLINGNESS TO PAY FOR SAFETY LABELS IN NIGERIA: A CASE STUDY OF POTASSIUM BROMATE IN BREAD

2005, 6 (3)   p. 381-388

O Oni, O OLADELE, O Inedia

Abstract

The study analysed consumer willingness to pay for safety labels in Nigeria by a case study of potassium bromate in bread” in Benin City, Edo State. It specifi cally investigates factors that promote willingness to pay for label among consumers of bread in Benin City, Edo State. Data used for the study were obtained through a well-structured questionnaire from 200 respondents. Both descriptive analytical methods and probit regression models were used for the analysis. The study revealed that 73% of the respondents are in their active working age with 50 percent of the respondent being male and female respectively. 67 percent of the respondents are married with 55 percent having an average of 5 members per household. 99 percent of the respondents are educated i.e. they have the capability of being able to read and write. Respondents purchased bread mainly from hawkers (60%) with about 60% of them being aware of the presence of bromate in bread. 40% of the consumers used labeling as a way of identifying bromate free bread. Other methods reported deal with differences in price of bread with same weight, aroma and taste. Result also revealed that 60% of the respondents got to know about the negative effect of bromate from news (both print and mass media). Econometric results show that variables like education, gender, income, prior knowledge of bromate and perception held by respondents of negative implications of bromate signifi cantly infl uence the willingness to pay for safety labels. Education, gender, income and prior knowledge of bromate positively infl uence the probability of consumers’ decision to pay for safety label, while price of bread and confi dence and perception held by respondents of negative implications of bromate on human health infl uence consumers willingness to pay more for safety labels. The study, thus, suggests a defi ned market for bread purchases, community based awareness programme and extension of National Agency for Food and Drug Administration (NAFDAC) role beyond media advertisement.

Keywords

consumer willingness, safety labels, nigeria, bread

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