Analysis of Consumer Preferences for Green Tea Products: A Randomized Conjoint Analysis in Thai Nguyen, Vietnam

Abstract

How local economies can successfully develop remains an important issue for any developing country. One mechanism for promotion of economic development is government-driven policy. The problem is that it is not clear whether public-led economic promotion attracts consumers and which promotion factors are relatively significant for boosting particular goods. This paper examines attributes of green tea products likely influencing consumer preferences, focusing on the Thai Nguyen area in Vietnam as an example. In this area, the “One Commune, One Product” (OCOP) project has been implemented by the local government. This study employs randomized conjoint analysis based on data collected from 450 randomly selected consumers in several local supermarkets. Interestingly, the results show that online style sales have a negative preference for the purchase of green tea products, while transparency, such as the traceability of the product and product information, and reliability, such as certification, enhance the purchase of these products by consumers. However, this finding is not necessarily robust because our results indicate that approximately 90% of consumers tend to choose the default pair, which means that they do not actively prefer the product, possibly implying that this kind of public-led promotion is not yet broadly familiar to all people.