Price strategy of rice in Chiang Mai, Thailand

Abstract

This study aims to investigate price strategy of rice in Chiang Mai province of Thailand. The amount of 827 consumers from 25 districts in Chiang Mai is sample size of this study. Results of this study reveal that there are two common types of market: General (conventional) and safety/organic markets. The rice are packed in three common units of purchase are litre, sack, and kilogram, respectively. In general, ultimate consumers purchase rice in the unit of litre at any time as they want. The results also show that the price of rice sold in the general (conventional) and safety/organic markets are the same, regardless of units of purchase. Some recommendations could be, therefore, made since ultimate consumers could not distinguish quality and standard between general and safety/organic products; therefore, business firms should provide clear information that is more useful to ultimate consumers. On the other hand, ultimate consumers should purchase rice at the safety/organic market, since its price is the same as that in the general (conventional) market. In addition, rice sold in the safety/organic market has higher standard quality than that in the general (conventional) market. © 2017 Serials Publications Pvt. Ltd.