Acceptance and willingness to pay for potato-based cookies: a case of urban consumers in South-western Uganda.

Abstract

In Uganda, potato is mainly consumed in boiled form. However, there is a huge potential for processing potato into high value products because of the growing population coupled with changes in food eating habits and increased demand for snacks especially among urban consumers. Such high-value potato products include chips, cookies, cakes, bread and waffles. Using the newly developed potato-based cookies, the study sought to address the question whether these products are accepted by consumers, and the price they are willing to pay for them. The study further investigated factors likely to influence consumer willingness to pay for the cookies. It was hypothesised that potential consumers are different in terms of cookie buying frequency, and the income they earn has an influence on their willingness to pay for the cookies. The study was conducted in South-western Uganda in Kabale, Kisoro, and Mbarara urban areas where a random sample of 613 potential consumers was interviewed. Contingent valuation method, descriptive analysis, Logit and Tobit econometric models were used to analyze the market survey data. Results indicate a high level of consumer acceptance for the potato-based cookies; about 91% accepting to buy the cookies. Taste was the most important attribute consumers considered while purchasing cookies followed by the price. Consumer’s age, income, per capita quantity and availability of related snacks significantly influenced the frequency of cookie purchases. The minimum price consumers were willing to pay was about 603 Uganda Shillings (US$ 0.63) per 100gm pack. The willingness to pay was positively and significantly (P≤0.05) influenced by income of a consumer and the proportion of their food budget, but negatively influenced by being employed and the number of dependants in the household. The processor should, therefore, produce differentiated products with assorted attributes in order to cater for the various consumer segments. The cookies should be produced using low-cost production and efficient technologies and marketed at a relatively competitive price