How Do Quality Attributes of Banana Vary by Market Segments? A Hedonic Pricing Analysis

Background: Bananas are the second most produced and consumed fruit in Bangladesh, but mostly by poor consumers. The purpose of this study is to identify the important quality attributes of bananas. Methods: In total, 200 respondents were physically interviewed from three regions of Bangladesh using a self-administered, semi-structured questionnaire from September to October 2020. The study applies hedonic pricing model to estimate the marginal implicit price of those attributes of bananas. Result: The results show that poor consumers buy and consume more bananas (62% more) than other income levels. Results also indicate that variety is the most influential attribute for banana purchase decisions, i.e., consumers pay 12% more for sagar bananas. Consumers also pay more for size, color, damage-free and wrinkle-free bananas and less for hard flesh and an extra stick. The study concludes that banana sellers may make more money if marketing plans are developed for each of the consumer market segments.