WTP for Naga case is listed in Table 5. The first thing we have to mention is that the
value of WTP is very high considering the average price of rice paid by this sample, that
is 18.22 peso. There are two possible reasons which may cause this result. One is that
respondents in Naga were not familiar with organic rice since it has a limited availability
in this market. The sample summary shows that 67 percent of the respondents in Naga
city had never heard about organic rice. Therefore, it is possible that respondents
overreacted to health risk or other newly stated factors. The other possible reason is that
interviewers could not make respondents consider their budget constraints sufficiently.
Although we cannot obtain implications given the absolute value of WTP, we can still
evaluate the estimated results by considering their relative magnitudes to learn something
about consumer preferences in Naga city