Factors affecting the price of saffron )using the Hedonic pricing and artificial neural network model)

Abstract

Saffron, a valuable agricultural product in the national and international level is valued by consumers in different ways and the price paid for it depends on different factors. Identifying these factors can be helpful to marketing saffron with the price that is consistent with consumer preferences. The major aim of this study is to evaluate the factors that affect the price of saffron in Mashhad using the Hedonic pricing model. What distinguishes this study from previous studies is using the sensitivity analysis approach in the context of artificial neural networks. The information needed for this research was collected from 120 saffron buyers in the city of Mashhad with the random sampling approach. Considering the 14 explanatory variables, the results showed that age and brand have the least impact on the price of saffron, while the consumption goals variable has a significant effect on the price of this product. Among the goals, nutritional uses has a positive effect, and medical and industrial uses have a negative effect on the price of saffron. According to the research findings, manufacturers and suppliers of saffron are recommended to price the product according to the buyers’ consumption goals, sale style and the saffron type, respectively.

Keywords

• pricing
• Neural Network
• Consumer Preferences
• Consumption Goals