Factors Affecting Consumers’ Purchasing Decision of Popular Rice Brands in Dhaka City

Abstract

The focus of this study is to investigate consumers’ evaluat ion of rice attributes in different markets of Dhaka cit y. The study empirically examines the relat ionship between the retail price of rice and its attributes in the Dhaka cit y markets, using the hedonic pricing model. In this study, data were collected from retailers’ shop in Agargaon, Taltola, Shewrapara, Kajipara, Mirpur 10, Mirpur 11, Mirpur-1, Mirpur-2, Mirpur-6, and Mirpur DOHS in Dhaka cit y in 2023. A total of 200 customers were chosen by using simple random sampling technique from different retail markets. The results illustrate that consumers pay a premium price for observable attributes, such as white rice, aroma, glutinous rice, medium bold grain, medium slander grain and slander grain. However, poverty level in selected consumers in the Dhaka cit y is 5.0% in terms of head count rat io (HCR) which is much lower than nat ional level poverty (18.0%). Taking into consideration the above ment ioned arguments, the study suggests that the government should support rice breeders to release new rice variet ies wit h more aroma and attractive size and shapes of rice.