consumer panel, showed a highly significant correlation of 0.83 (von
Oppen, 1976; von Oppen and Parthasarathy Rao, 1982).
RESULTS REPORTED ON HEDONIC PRICE ANALYSIS
A number of hedonic price analyses have been conducted to assess
consumer preferences for quality characteristics in raw products that are
either used for direct consumption or for processing. With products for
end consumption, the hedonic price analysis has primarily focused on
vegetables, fruits and meat such as tomatoes, strawberries, peaches, ap-
ples or mouton, beef and pork (Waugh, 1928; Jordan et al., 1985; Jor-
dan et al., 1985, 1988, and 1990; Tronstad et al., 1992; Ladd, 1978;
Hayenga et al., 1985; O’Connell, 1986; Williams, 1989; Wahl et al.,
1995). With regard to raw products for processing, the literature mainly
reports studies on wheat, barley and cotton (Ethridge and Davis, 1982;
Wilson, 1984; Veeman, 1987; Larue, 1991; Bowman and Ethridge, 1992;
Uri et al., 1994). Table 3.2 provides an overview of some of the reported
models, showing goodness of fit as well as t-values and quality charac-
teristics that have a significant influence on price.
Looking at these economically relevant quality characteristics shows
that for products used in direct consumption, characters creating a di-
etary utility seem not to be as important as the evident traits determin-
ing the taste and the outer appearance of a product. The only exception
here is fat content. In comparison, for the quality of raw products used
for processing, cryptic quality traits influencing technical utility are
clearly more significant in determining price than are evident criteria
(Table 3.2).
A review of the literature on hedonic price analysis applied to derive
selection criteria for breeding reveals that cryptic traits influencing di-
etary utility of the product are far more significant than evident traits,
which have an impact on nonessential utilities such as the aesthetic ap-
pearance of the product (see Table 3.3). With the exception of ground-
nut and barley, most products reported are mainly used for direct
consumption. Sorghum in India, beans in Mexico and rice in Thailand
constitute principal staple foods. It is obvious that these studies focus-
ing on markets of staple food products in countries with relatively low
income have their own logic.
Generally, the more careful consumers are in making their choice, the
more essential a good is considered. In low-income countries nutrition
often depends on one staple food and in addition consumers spend a
Results Reported on Hedonic Price Analysis 55