Consumer Substitution Behavior and Price Elasticity of Demand for Fish Products in Coastal Nigeria: Empirical Evidence of Bayelsa State

Abstract

This study investigated the responses of fish consumption patterns of households in Bayelsa State, Nigeria to price volatility. The sampling technique used was mixed cross sectional method, where four Local Government Areas were purposively selected due to their nearness to fish activities and high fish consumption pattern. The respondents were selected by systematic random sampling. The number of questionnaires distributed was 400 of which 308 were recovered and the analyses were based on the 308 responded questionnaires. A structured questionnaire (Effect of Price Change on Fish Consumption Patterns ). Cronbach's Alpha was used to determine the reliability of the instrument and was found to have an acceptable internal consistency. Data were statistically analyzed with descriptive statistics, Spearman's Rank Correlation and Ordinal Logistic Regression. The results indicated that price changes of fish were statistically significant and affected household fish consumption trend leading to a decrease in fish consumption and an increase in substitution with other protein sources. The Spearman's Rank Correlation indicated that there was a moderate positive and statistically significant correlation between changes in fish prices and fish consumption behaviour of household members (r = 0.547, p < 0.05). But there was very little and statistically insignificant negative relationship between responsiveness to fish price changes and the household income (r = −0.099, p = 0.083). The results of the Ordinal Logistic Regression also showed that the overall model was statistically significant and that the price change of the fish, consumption pattern, household income and gender were significantly influencing fish consumption behaviour. Price changes in fish proved to be best predictors. The analysis shows that the prices of fish have a significant effect on household consumption decisions. It suggests the need for investment in aquaculture, subsidy for fish producers and availability of cheap and affordable credit, development of adequate storage and distribution system, and measures to support the purchasing power of the fish household to improve food security and nutritional status.

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