Valuing Attributes of Fluid Milk in Laos

16 Pages Posted: 12 Oct 2017

See all articles by Jae Won Lee

Jae Won Lee

University of Virginia - Department of Economics

Taeyoon Kim

Seoul National University

Viengsakoun Napasirth

National University of Laos

Date Written: September 30, 2017

Abstract

This study estimates the random utility function of fluid milk using 1,165 survey responses in Laos. It finds that both products' attributes and individual characteristics affect consumers’ preference for the milk and the hypothetical brand of Laos-Korea has a potential compared to four real dairy products. Results also show that calories have a positive relationship with consumer’s preference while the price and fat content have a negative one. The decision for choosing each brand is significantly affected by individual characteristics such as gender, age, whether or not respondents live with their children, the level of education, income, the frequency of purchasing milk per week, and the region where they live. The preference for five brands appears in the order of Foremost, Nabong, Thai-Danish, Meiji, and Lao-Korea, and probabilities of purchasing each brand at the mean level are 30.9%, 17.48%, 21.48%, 15.0% and 10.39%, respectively. Nabong that was Lao national milk brand still has a significant market power even though it was closed in 2008. The policies to promote milk industry by implementing its national milk brand again would be more effective if it focuses on the young generation, female consumers, families with children, quality of dairy products, and Vientiane capital areas.

Keywords: Laos, Consumer Preference, Fluid Milk, Conditional Logit, National Brand

JEL Classification: Q18, D12, Q13

Suggested Citation

Lee, Jae Won and Kim, Taeyoon and Napasirth, Viengsakoun, Valuing Attributes of Fluid Milk in Laos (September 30, 2017). East Asian Economic Review, Vol. 21, No. 3, pp. 259-274, September 2017, DOI 10.11644/KIEP.EAER.2017.21.3.331. Available at SSRN: https://ssrn.com/abstract=3051512 or http://dx.doi.org/10.2139/ssrn.3051512

Jae Won Lee

University of Virginia - Department of Economics ( email )

237 Monroe Hall
P.O. Box 400182
Charlottesville, VA 22904-418
United States

Taeyoon Kim (Contact Author)

Seoul National University ( email )

Kwanak-gu
Seoul, 151-742
Korea, Republic of (South Korea)

Viengsakoun Napasirth

National University of Laos ( email )

Lao-Thai Friendship Rd. Sokpaluang
Sisatanak District
Laos

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