Consumer demand for branded and packaged processed foods: the case of rural and urban towns in Tanzania
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Date
2020-12
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Agricultural Economics Society of Tanzania
Abstract
This paper elicit the demand for packaged and branded processed food products in selected
urban and rural towns of Tanzania, where 630 consumers were randomly selected from two
urban and four rural towns based on their size and distance from the primary city Dar es
salaam. Garrett’s Ranking Technique and Multinomial Logistic Model were used to assess
consumer’s purchasing habits and drivers of choices for branded and packaged processed
foods. Results show that there are variations and some similarities in consumer habits in rural
and urban towns, and in small and big towns on: - the type of processed foods bought, source of
processed food, preference on brand types and drivers of consumer choices. The study shows
that majority of the consumers in urban towns are driven by “quantity” while the rural
consumers are driven by “storage” when buying packaged maize flour; on the other hand,
“large volume” drives urban consumers, and “safety” rural consumers when buying packaged
edible oil. In addition, the study showed that consumers from both rural and urban towns prefer
branded to unbranded products due to their preference for “good sensory attributes”.
Furthermore, results from the Multinomial Logistic Model report education, income, level of
refinement and price to have a significant influence on the choice of a brand type for edible oil;
while household size, trust, safety and nutrition are important factors influencing the choice of
a brand type for maize flour. Implying choice of brand is different for different products,
depending on the proliferation of these brands.
Description
Keywords
Processed Food, Rural, Urban, Brand, Package, Maize Flour, Cooking Oils