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Table 3. Contd.
Hong et al. 4427
C2 -0.235 0.133 3.134 1 0.077 0.790
C3 -0.221 0.111 3.971 1 0.046* 0.802
C4 0.524 0.365 2.058 1 0.151 1.688
C5 -0.249 0.347 0.516 1 0.473 0.780
D1 -1.298 0.493 6.937 1 0.008** 0.273
D2 0.399 0.232 2.953 1 0.086 1.491
Constant -18.786 3.281 32.788 1 0.000 0.000
**, * indicate significance of the estimated non-zero coefficients 1 and 5%.
gender can be an important part of the market
segmentation in future research. Consumers' household
monthly income has a significant positive impact on
willingness to pay for C. sativus. The higher the
household income is, the stronger the consumers'
willingness to pay. As household income levels increase,
the proportion of consumers to pay for C. sativus will rise.
C. sativus is a non-necessity in daily life. Actually, it is
currently considered the world's most expensive herbal
medicine. Only the higher income level family can
purchase it regularly. Consumers' marital status has a
significant positive impact on willingness to pay for C.
sativus. Married people are more willing to pay for C.
sativus. Unmarried people lack the recognition of health
functions of C. sativus, so it is not be included in their
consumption expenditure. Different from unmarried
people, married people pay more attention to health.
Health expenditure accounts for a large proportion in their
consumption expenditure. Married people have more
willingness to pay for C. sativus. Consumers' attitude to
health functions has a significant positive impact on
willingness to pay for C. sativus. The dried stigmas of C.
sativus have notable curative effects on promoting blood
circulation by removing blood stasis, cooling blood
detoxification, removing depression and anchoring mind.
The more consumers care about health functions of C.
sativus, the more it can stimulate their desire to pay for it.
Consumer attitude of active ingredient content has a
significant positive impact on willingness to pay for C.
sativus. The main biologically active ingredient of C.
sativus are crocins analogues (including crocin 1-4), a
family of red-colored and water-soluble carotenoids. The
more consumers care about active ingredient content of
C. sativus, the more it can stimulate their desire to pay for
it. Taste of C. sativus has a significant positive impact on
willingness to pay for C. sativus. If consumers pay more
attention to the taste of C. sativus, they are more willing
to accept the product with a good taste. The C. sativus
products including dried stigmas and extracts are mainly
sold in the market. Their taste is not very good, with a
slightly bitter taste. Technology can be used to adjust the
taste to meet the consumers' demand. Consumers'
comparative purchasing behavior has a significant
negative impact on willingness to pay for C. sativus. The
more discerning the consumers are, the more hesitating
they are to pay for C. sativus. According to marketing
theory, in the introduction period, advertisement focuses
on developing consumers' awareness. In growth period,
especially when the product is growing rapidly and
transits to the maturity period, we should focus on
cultivating consumers' understanding of the overall level
of products. Only when consumers understand and
accept the health functions of C. sativus, rather than
purchase it as a novelty, will they have a positive
response to the health products. Price of C. sativus has a
significant negative impact on willingness to pay for C.
sativus. Due to the high price, willingness to pay for C.
sativus is reduced. Many consumers cannot afford such
costly product. New agricultural production technologies
should be adopted to improve the yield per unit area. Thus,
the price of C. sativus can be cut down, enabling more
consumers to pay for C. sativus.
Based on the foregoing results, some policy
implications are as follows: first, both government
agencies and manufacturers should strengthen the
propaganda of health function of C. sativus. The
government should provide more information about C.
sativus on the media, releasing relative scientific,
objective. Thus, the degree of consumers' awareness
and concern level regarding C. sativus can be improved.
Secondly, the government should strengthen the
supervision and regulation of the implementation of the
project. Because of high price, there are many
counterfeits in the market. The government should
strengthen efforts to fight against counterfeiting, ensuring
the stable development of the market. Thirdly,
manufacturers should pay attention to the effect of
consumers' personal characteristics on their purchase
behavior, locate the target consumer rightly, choose
appropriate marketing channels and advance marketing
strategy for C. sativus. Finally, in the early stages of
introduction period, the government should give more
policy support such as providing financial credit at lowinterest
rate, reducing tax, and offering subsidies.
Conclusion
In this study, we examined the impact of various factors