African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4131

Full Length Research Paper

Evaluating the impact of government subsidies on traceable pork market share based on market simulation: The case of Wuxi, Chin

Xiujuan Chen
  • Xiujuan Chen
  • Food Safety Research Base of Jiangsu Province, School of Business, Jiangnan University, No. 1800 Lihu Avenue, Wuxi 214122, China.
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Linhai Wu
  • Linhai Wu
  • Food Safety Research Base of Jiangsu Province, School of Business, Jiangnan University, No. 1800 Lihu Avenue, Wuxi 214122, China.
  • Google Scholar
Shasha Qin
  • Shasha Qin
  • Food Safety Research Base of Jiangsu Province, School of Business, Jiangnan University, No. 1800 Lihu Avenue, Wuxi 214122, China.
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Dian Zhu
  • Dian Zhu
  • Department of Economics, School of Dongwu Business, Soochow University, No. 50 Donghuan Road, Suzhou 215021, China.
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  •  Received: 04 January 2016
  •  Accepted: 07 March 2016
  •  Published: 28 April 2016

Abstract

In this study, choice-based conjoint (CBC) analysis combined with multivariate logistic regression model was used to investigate the Chinese consumers’ willingness to pay (WTP) for traceable pork hindquarters with different levels of attributes. High, medium and low-level traceable pork profiles were constructed, and the market share of traceable pork hindquarters was simulated under different types of government subsidies. The results showed that traceability information was the most preferred attribute for consumers. With increased government subsidies, the market share of the different levels of traceable pork hindquarters all increased accordingly. A government subsidy percentage of 3% was concluded to be the best choice for traceable pork hindquarters considering government subsidies and market share elasticity.

Key words: Consumers’ willingness to pay, the traceable pork, choice-based conjoint, market simulation, government subsidies.