Hedonic Analysis of Retail Egg Prices Using Store Scanner Data - An Empirical Study on the Korean National Agricultural Cooperative Federation Hypermarkets

Abstract

The purpose of this research is to identify egg attributes that affect egg prices and to estimate values of each attribute in the Korean egg market. A hedonic price model is developed to estimate values of egg attributes, and the model is estimated using store scanner data. Attributes considered in this study include natural characteristics, feeding methods, packaging methods and marketing. The results show that the status of egg fertility, organic feeding, and free-range feeding are main attributes that positively affect the retail price of eggs. The findings indicate that Korean customers prefer eggs produced through natural feeding processes. The findings can be used to develop better marketing and production strategies for both retailers and producers. On the basis of findings of the present study, various future studies regarding the micro-marketing and profitability analysis could be performed.