kosovo consumer buying behavior preferences and demand for milk and dairy products

iliriana miftari
Department of International Environment and Development Studies Master Thesis 30 credits 2009

Supervisor: Fred Håkon Johnsen

DECLARATION
I hereby declare that this thesis is accomplished with my own work and all sources of literature that I have used are cited. I also assure that this work has not been presented to any other university.

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III . with much love and thanks. and my two brothers.DEDICATION This work is dedicated to my parents. Artan and Arian.

Prof.Prof.ACKNOWLEDGEMENT My special gratitude goes to my supervisor Ass. thanks a lot for all their love. who were the main initiator for my study program at University of Life Sciences. My appreciation goes also to Ass. I also wish to thank my field assistant Rozafa Miftari for her sincerity and tireless during field work. Special thanks go to my best friend Panadda Larpkern. Besim Gojnovci. Prof. IV . Great acknowledge goes to Lånekassen.Prof. Great thanks go to those surveyed for their time and patience during the interviews.Skënder Muji. Prof. Ilbrahim Mehmeti. and Paul Okullo. Arbina Kaja. support and encouragement that gave it to me. Halim Gjergjizi. Prof. I wish to acknowledge Prof. Mujë Gjonbalaj for his continues support and encouragement throughout my study. Mustafë Pllana. Jehona Shkodra. Prof.Fred Håkon Johnsen for his wise advice and great support in accomplishment of my master thesis. without its financial support my study program would be onerous manageable. Shukri Fetahu. I also wish to thank my colleagues at University of Prishtina.Mensur Vegara and Ass. My special gratitude go to my dear parents who continuously made sacrifice to keep me in school. Hysen Bytyqi.

brand. cream. Two associated statistical techniques. Product attributes such as quality. The study was carried out in five Kosovo regions (Prishtina. and education were significant in explaining variation in quantity consumed and the expenditures on milk and other dairy products. The stratified random sampling has been applied in selecting people who would be included in the sample. other demographic and socioeconomic factors had significantly impact on the frequencies of buying milk and other dairy products. Kosovo consumers preferred bigger packages for curd and cheese. and cheese were the main dairy products consumed by majority of Kosovo consumers. Majority of the Kosovo consumers had favourable bias towards domestic versus foreign dairy products. attitudes. The preference towards new dairy products and innovation was dependent on respondent’s characteristics. and Gjilan). The consumer’s preference towards market place was significantly dependent on demographic and socioeconomic household characteristics Dairy products with shorter shelf life were bought more frequently by the consumers compared to those with longer shelf life. respondent’s age. taste. price. Supermarkets and grocery stores were the most preferred market places by the consumers when buying milk and other dairy products. The data used in this study were obtained through direct interviews with Kosovo consumers aged 18 years and older. The Household’s characteristics such as income. employment. and the origin of product were significantly dependent on demographic and socioeconomic factors. wrapping. The results show that milk. The consumers’ attitudes toward product features such as nutritive content.Abstract The aim of this study was to analyse consumer buying behaviour. product safety. the number of children. and price were the main features motivating Kosovo consumers to purchase domestic dairy products. curd. Smaller packages were predominantly more preferred for fruit yoghurt and butter. safety. needs and wants toward dairy products. preferences. Apart from product life. multiple linear function and binary logistic function have been used to explain the relationships between the quantity and expenditures on milk and other dairy products with demographic and socioeconomic household characteristics. package size. Peja. Television and newspapers were the media most often used by the consumers to get information about the dairy products. taste. yoghurt. size. V . The consumers’ demand for milk and other dairy products was quite stable throughout the year. Mitrovica. Prizren.

1 Descriptive Statistics on the Household Characteristics……………………… 25 25 25 VI . 2.2 Sample Selection……………………………………………………………… 3.. METHODOLOGY…………………………………………………………….. 23 CHAPTER IV……………………………………………………………………. 3..2 Overview of the Kosovo Dairy Sector………………………………………. INTRODUCTION……………………………………………………………… V VI VIII X XI 1 1 1. 15 3. 4..5 Justification……………………………………………………………………..1 Factor Influences Consumer Behaviour………………………………………..... 11 11 11 12 15 15 3.... 21 3. II DEDICATION…………………………………………………………………….. 2.. 2 1.. 2.2 Estimation procedure……………………………………………………….1 Variable Description and Measurement……………………………………. III ACKNOWLEDGEMENT………………………………………………………… IV ABSTRACT……………………………………………………………………….. TABLE OF CONTENTS…………………………………………………………. CHAPTER III……………………………………………………………………. LIST OF TABLES………………………………………………………………. 9 CHAPTER II……………………………………………………………………. 4. 8 1...2 The Stimulus model of the Consumer Behaviour…………………………….4.4 Model Specification…………………………………………………………… 19 3.3 Agriculture Sector Strategy and Policies……………………………………… 5 1. Results and Discussion…………………………………………………………. THEORETICAL BACKGROUND……………………………………………. LIST OF ACRONYMS…………………………………………………………… CHAPTER I……………………………………………………………………… 1.4 Problem Statement……………………………………………………………...3 Data Collection……………………………………………………………….1 Background……………………………………………………………………. 1 1... 16 18 3.1 The Study Area……………………………………………………………….4..6 Objectives and Research questions…………………………………………….TABLE OF CONTENTS DECLARATION………………………………………………………………. 9 1. LIST OF FIGURES……………………………………………………………….

.. 62 Appendix A2/Tables……………………………………………………………….. 59 APPENDIX………………………………………………………………………... 4.3. 66 VII .3 Model Estimation…………………………………………………………….3.. 62 Appendix A1/Questionnaire……………………………………………………….1 Binary Logistic linear Estimated Parameters……………………………….4.. 43 CHAPTER V……………………………………………………………………... 4. Conclusion……………………………………………………………………… 53 LIST OF REFERENCES………………………………………………………. 53 5.2 Multiple linear Estimated Parameters………………………………………..2 Descriptive Statistics on Consumer buying Behaviour………………………. 29 40 40 4.

Relationship of whether the respondent i buys fruit yoghurt and the predictors included in the equation 1…………………………………………… Table 21. Table 17.. Summary statistics of the average expenditures on milk and other dairy products by the HHs……………………………………………………… Table 18. Pairwise comparison between regions………………………………. Table 15. Recoded variables used in the test of independence………………….. Summary statistics of the household characteristics………………….. Dependent variables used in the estimation of the average quantity of 21 the product i purchased in litre or kilogram in the HHi………………………… Table 5.. Relationship of whether the respondent i buys cream and the 41 41 40 40 33 34 27 27 28 33 VIII ..LIST OF TABLES Table 1. Table 16 The annual average per capita consumption…………………………. Evolution of the local processors on daily milk processing…………… 4 Table 4. The estimated livestock situation in 2005……………………………. Pairwise comparison between females and males…………………… Table 13.. Dependent variables used in the estimation of the fitted model in the equation 1………………………………………………………………………. Table 6. Relationship of whether the respondent i buys milk and the predictors included in the equation 1…………………………………………… Table 19. Pairwise comparison between rural and urban household…………… Table 14. Independent variables used in the estimation of the quantity and the expenditures on milk and six other dairy products…………………………….. Summary statistics of the average quantity of milk and other dairy products purchased by the HHs…………………………………………………. 25 Table 12. Table 9. Dependent variables used in the estimation of the average monthly 21 expenditures on the product i in euro per month in the HHi……………………. Dairy farm structure in Kosovo………………………………………. Table 8. 3 Table 2. Relationship of whether the respondent i buys yoghurt and the predictors included in the equation 1…………………………………………… Table 20. Table 7.. Independent variables (factors) used in the estimation of the fitted model in the equation 1…………………………………………………………. Table 10. Dependent variables used in the estimation of the fitted model in the equation 1………………………………………………………………………. 3 Table 3.. 23 22 23 22 22 Table 11.

Table 29. Relationship of whether the respondent i prefers domestic dairy products and the predictors included in the equation 1…………………………. Table 27. Relationship of whether respondent i started buying new dairy products last year and the predictors included in the equation 1……………… Table 30. Test of independence between evaluation of product attributes and demographic and socioeconomic characteristics……………………………….. Relationship of whether the respondent i prefers foreign dairy products and the predictors included in the equation 1…………………………. dairy products and demographic and socioeconomic characteristics…………………. 58 57 56 43 43 42 42 42 42 41 41 IX . Test of independence between the market places and demographic and socioeconomic characteristics……………………………………………… Table 31. Relationship of whether the respondent i fulfils the demand for milk and dairy products and the predictors included in the equation 1……………… Table 26. Relationship of whether the respondent i buys curd and the predictors included in the equation 1…………………………………………… Table 23.predictors included in the equation 1…………………………………………… Table 22. Relationship of whether the respondent i buys butter and the predictors included in the equation 1…………………………………………… Table 25. Test of independence between the frequencies of buying milk. Relationship of whether respondent i prefers new dairy products and the predictors included in the equation 1………………………………………. Table 28.. Relationship of whether the respondent i buys cheese and the predictors included in the equation 1…………………………………………… Table 24. Table 32.

.. The level of the mass media used by the respondents………………. Seasonal consumption patterns on butter…………………………… Figure 14. 36 Figure 12.LIST OF FIGURES Figure 1.Market places preferred by consumers when buying milk and other dairy produces…………………………………………………………………. Seasonal consumption patterns on yoghurt………………………….. Figure 5. Seasonal consumption patterns on curd…………………………….Stratification of the sample size………………………………………. 37 Figure 13. Seasonal consumption patterns on cheese…………………………. Seasonal consumption patterns on cream…………………………… 32 35 35 36 36 32 31 Figure 11.. Figure 15.. 17 Figure 4...... Seasonal consumption patterns on fruit yoghurt……………………. Respondents’ answers in terms of buying milk and six other dairy products………………………………………………………………………….. Figure 6.. The evaluation of product features in order of importance…………. 37 38 39 X .. Stage model of the consumer buying process………………………. Figure 9.. Seasonal consumption patterns on milk……………………………… Figure 8... 13 14 Figure 3. Frequencies of buying milk and other dairy products……………….. Stimulus-response model of the consumer behaviour………………. Figure 2. Figure 10. Figure 7.

LIST OF ACRONYMS ANOVA Analysis of Variance ARDP Agricultural Rural Development Plan CEFTA Central European Free Trade Agreement EU European Union GDP Gross Domestic Product GMP Good Manufacturing Practices HACCP Hazard Analysis Critical Control Points HH Household KARDP Kosovo Agricultural Rural Development Plan KCBS Kosovo Cluster Business Support KDPA Kosovo Dairy Processing Association MAFRD Ministry of Agriculture Forestry and Rural Development MPS Ministry of Public Services SOK Statistical Office of Kosovo SWOT Strengths Weaknesses Opportunities and Threats UHT Ultra High Temperature UN United Nations UNMIK United Nations Mission in Kosovo VAT Value Added Tax XI .

placed Kosovo under temporary UN Administration (UNMIK – United Nations Mission in Kosovo). The agriculture sector was heavily harmed by the last conflict. most of the farms stopped production. about 45% of the Kosovo population is considered to be poor. According to the World Bank (2007) estimation.CHAPTER I 1. economic re-activation. Kosovo has gone ahead in the building of its democratic institutions and macroeconomic stabilization. 2003). This large fraction of the Kosovo population just around the poverty line reflects the socio-economic phenomenon where sources available to society are used to satisfy the wants of small fraction while many have not even met their basic needs (Chambers.1-2). inter-ethnic reconciliation and building new bridges of cooperation with the countries in the region were the main challenges accompanying Kosovo after the last conflict. 2007. While overall stagnation culminated in 1999. pp. The decline of the agriculture sector which started during the 1990s resulted from the emigration of the Kosovo population (1820%) to the Western European Countries. Despite the difficult circumstances after the last conflict. In 2005 Kosovo had the highest poverty rate of the countries in the Western Balkans. The total amount of the destruction and deprivation in rural areas was estimated to be 737 million dollars (MAFRD. p.1 Background After the end of the last war in 1999. The estimated average real GDP growth between 2002 and 2007 has been slow at less than one and half percent. 2007. ‘’This slow expansion was mainly due to a combination of low investment and the ongoing withdrawal of the international community in Kosovo’’ (World Bank. an effort to build the peace. while a smaller fraction (18%) was in extreme poverty. the United Nations (UN) Security Council Resolution 1244 (UNSCR1244). -1- . having consequences to the food processing industry. ‘’It experienced a strong recovery mostly based on an immense inflow of foreign assistance and external private inflows estimated to equal up to 50 percent of GDP’’ (Fock.4). 1983). INTRODUCTION 1. The poverty phenomenon has remained persistent and is widespread within the Kosovo society. Building self-governed democratic institutions.

It is characterized by small subsistence farms. its contribution to the employment rate was between 25-30% (informal self-employed agriculture workers). The proportion of the Kosovo labour force engaged in agriculture sector/farming was the highest in the Western Balkans countries and it is around five times higher than in European Union (EU) countries. The sector’s contribution to GDP during the period 20002005 was 25-27%. Despite its low efficiency and loss of traditional export markets. Given that majority (55%) of the Kosovo population is concentrated in rural areas. The livestock census conducted by Statistical Office of Kosovo (SOK) in November 2003 was used as the determinative base of the animal numbers in Kosovo. Consequently. agriculture has remained an important sector in mitigating rural poverty. 10. its contribution to the value of total exports in 2005 was 16%. where approximately 50% of the livestock was killed and roughly 40% of the livestock infrastructure (stalls) was destroyed (MAFRD. The high contribution of the agriculture sector to GDP was not due to high productivity. Due to the creation of this situation there has been a market shortage in animal and dairy commodities. 2006. Since the end of the war ‘’up to the first quarter of 2003. MAFRD. p. Particular damages affected the dairy sector. there has been a sharp increase of the imported animal and dairy products for market equilibrium to be established as well as to meet the market demand. 2006). Even though efforts were made to improve the livestock situation -2- . As with most other Kosovo sectors the last conflict in 1999 caused considerable damage to the agricultural sector. This high proportion of the labour force involved in agriculture clearly indicates the low efficiency of this sector. Agriculture remains an important sector and an engine towards economic growth and EU accession. but rather to the declining contribution of the other sectors in GDP. high input costs. many donors helped in the restocking of the cattle herd. During the period 2000-2005. 2003). 1. low productivity.000 pregnant heifers were imported and distributed to farmers’’ (Rural Development Plan 2007-2013.2 Overview of the Kosovo Dairy Sector The Kosovo dairy sector is one of the most promising sectors and has consistently performed well since the end of the last war.Agriculture has historically been an important sector in Kosovo’s economy. poor infrastructure and poor advisory services (Ministry of Agriculture Forestry and Rural Development.19). Moreover.

7% of rural households have dairy cows. yoghurt and white cheese.378 787 83.289 Percentage 94% 5% 1% 100% No.880 Source: Agriculture Household Survey. milk production in Kosovo was estimated to be approximately 257. with low capacity for Green market . 1 -3- . the most common type of the dairy farms in Kosovo is the traditional/subsistence farm (94%). 45. of cows <5 5–9 > 10 Kosovo dairy sector is mainly dominated by milk.124 4. livestock in Kosovo has still remained at a very low level. Milk production in Kosovo is derived only from the private sector.through import and donor support. Table represents the livestock census conducted by SOK in 2005. 41. Local milk production is mainly intended for the domestic market. followed by the semi-commercial farm (5%) and the commercial farm (1%). As is shown in table 2 most of the Kosovo dairy farms are small traditional/subsistence farms dispersed across the countryside. low technology and low milk quality.4% is sold on the local green market1 mostly as raw milk or white cheese. while only 13% is sold on the processing market. 2009). According to the MAFRD classification. Of the total domestic milk produced. Dairy farm structure in Kosovo Type of farm Traditional/Subsistence Semi Commercial Commercial Total Source: ASPAUK Project No. It was estimated that 67.500 tons/year. According to the official statistical data.707 Buffaloes 622 Sheep and goats 151. The estimated livestock situation in 2005 Livestock Number Cattle 351. with an average 1. since the public sector collapsed during the transition period between 1990 and 1999.827 Milk cows 186.signifies local markets where un-pasteurised milk and cheese is sold directly to consumers by farmers.2 dairy cows per household (HH) (Rural Development Plan 2007-2013. There are 19 dairy processors where commercial and semi-commercial farms have the possibility to sell the produced milk (Nushi and Selimi.6% is consumed on the farm. Table 1. The most important elements affecting marketability of the domestic milk produced to the processing market were milk collection cost. 2006. 2006). Table 2. of farms 78. SOK.

2 3 Low milk quality in terms of a high bacterial count. the capacity of daily milk intake for processing was 30. Bajraktari and Wittkowsky. ‘’Considering that milk quality has a big impact on the final product and shelf-life’’.000 litres in 2007. Yearly milk processing capacity was estimated to be 16.800 2006 92.000 Source: Kosovo Dairy Processing Association . kos3.200 2007 114. dairy commodities are dominant in the daily diet and the main source of protein.800 2004 71. sour cream. This study revealed that 89. It was estimated that milk consumption per capita was approximately 170 litres per year. 2008) on dairy market assessment.300 tons are processed in the dairy plants (Rural Development Plan 2007-2013. Kosovo milk quality at the farm level as well as dairy products has still remained at a poorer quality compared to the imported articles. -4- . proclaimed that among dairy commodities. There are no estimations available with regard to the quantity consumed of other dairy commodities. 2006). but due to the evident impediments highlighted above. there is still not enough good milk quality coming to the processing plants. Table 3. which increased to 114. However.milk production and low milk quality2. Evolution of the local processors on daily milk processing Year Milk in litres 2003 30. ultra high temperature processed (UHT) milk. Seasonal difference in the quantity of raw milk production is an additional obstacle for the local dairy processors. Kos . However. A study conducted by Kosovo Cluster Business Support (KCBS.800 litres. only 12. white cheese.000 tons. During the period of 2003 through 2007 there was a remarkable investment by local investors in milk processing capacity.milk drink between yoghurt and sour crème. 2006). and white cheese are the main items produced by the local dairy processors. Large market share and successful penetration in the market of some imported dairy products above Kosovo prices proved that consumers are willing to pay high prices for better quality. were most frequently dairy commodities purchased by Kosovo consumers.000 2005 74. yoghurt.KDPA In Kosovo. which makes the milk collection procedure more expensive. which renders them unable to steadily and fully utilize their capacities. two technical assistant projects worked in the improvement of the milk quality and ability of dairy processors to test quality when buying milk (Oldham. Fresh milk. fresh milk and yoghurt.7% of the Kosovo households occasionally buy milk. In 2003.

cream and cheese. 1. environmental. Production of milk and other dairy products in Kosovo is relatively costly as most of the livestock is reared in a stallfeed system rather than pasture fed. Forestry and Rural Development (MAFRD) in partnership with other stakeholders such as the Farmers’ Associations. Its vision for Kosovo agricultural and rural development during 2007-2013 was to ‘’make a balanced contribution to the economic. This is why imported UHT milk and other dairy products and compete successfully on the local market. In 2006 Kosovo launched its Agriculture and Rural Development Plan 2007-2013 (ARDP) (MAFRD. opportunities. -5- .3 Agriculture Sector Strategy and Policies Administratively. through effective and profitable partnerships between the private sector. 76% was made up of Kosovo farms supply. UHT milk accounts for the highest share of the total value of imports (about 40%) followed by cream and fruit yoghurt. the Rural Advisory Service. and Kosovo as a whole. (ii) Improved competitiveness and efficiency of primary agricultural production in order to achieve import substitution and take advantage of export markets. the agriculture sector and policy is set at national level. quality at farm and factory level is still considered to be at a lower level. Moreover. weaknesses.Kosovo is considered to be a huge importer of dairy products. social and cultural well-being of rural areas. general objectives for agricultural rural development in Kosovo were set as below: (i) Additional income for farmers and rural population on purpose to improve living standards and working conditions in rural areas. Based on the Kosovo’s agri-rural situation and after SWOT (strengths. and threats) analysis. The aim of ARDP was to provide a framework to guide future agriculture sector policies. Of the total domestic milk demand. Export increases during the summer season. while the Albanian market is the main absorber of Kosovo’s dairy commodities. central/local government and local communities within the European context’’. while 24% was supplemented by import. while the execution of the policy is accomplished at national and municipality levels. The Ministry of Agriculture. Among the imported dairy commodities. Export of Kosovo dairy products is limited to a few items. mostly UHT milk. and the Veterinary and Food Agency play major roles in policy formulation and implementation. 2006) which outlines objectives and key measures for the agriculture sector.

(iv) (v) Improved on-farm / in-factory quality and hygiene standards. Two key approaches for achieving KARDP 2007-2013 objectives were set as below: I. Start aligning Kosovo’s rural sector with four axes of current EU rural development strategy. particularly through diversification. The achievement of the KARDP 2007-2003 was built on the following four axes with the eight key measures: Axis 1: Competitiveness Development of vocational training to meet rural needs (Measure 1) Restructuring physical potential in the agri-rural sector (Measure 2) Managing water resources for agriculture (Measure 3) Improving the processing and marketing of agricultural products (Measure 4) Axis 2: Environment and improved land use Improving natural resource management (Measure 5) Axis 3: Rural diversification and quality of rural life Farm diversification and alternative activities in rural areas (Measure 6) Improvement of rural infrastructure and maintenance of rural heritage (Measure 7) Axis 4: Community-based local development strategies Support for local community development strategies (Measure 8) -6- . (vi) Creation of employment opportunities in rural areas. Undertake actions that overcome the bottlenecks that are holding back sustainable rural development in Kosovo. Sustainable rural development and improved quality of life (including infrastructure) through promotion of farming and other environmentally sustainable economic activities.(iii) Improved processing and marketing of agricultural produce. and II. (vii) Alignment of Kosovo’s agriculture with that of the EU. through increased efficiency and competitiveness.

mechanization and on most capital goods used in agriculture or agro-processing. Croatia. The following key actions were taken by government in order to achieve its objectives towards dairy sector: ‘’a 10-yearly strategy for livestock development. while there is no encouraging instrument (export subsidy) that induces Kosovo’s export. improving the breeding structure. Kosovo applies 10 percent customs duty on imports. p. Moldova. unfair competition from import. breed quality. Serbia. reproductive material in animal production. transport and distribution. p. lack of experience in processing and low marketing capacities due to small dairies’’ (Nushi and Selimi. free trade agreements. Kosovo’s dairy sector is still facing significant difficulties with regard to ‘’land availability. increasing livestock production. Due to an increase of milk consumption per capita. However. Macedonia. The expectations of ARDP for Kosovo’s dairy sector were to have a modern dairy industry. there was also an increased pressure in terms of competitiveness on the local market. high cost of milk production. lack of knowledge on new technology and marketing strategies. Actually. Member of CEFTA 2006: Kosovo.12). approval of Law on Livestock. Kosovo joined the Central European Free Trade Agreement (CEFTA). Albania. Presently. changes in fiscal policy. Montenegro. although several actions were taken by the government. flattening the customs entering price for imported products. Even though this trade agreement offered Kosovo the opportunity to be part of regional integration and EU association. by increasing the number of commercial farms with an average of 30 cows.11). an achievement of 100% ‘’A’’ grade milk quality. improving quality production and place exemption of customs tariffs and VAT for the livestock inputs’’(Nushi and Selimi. and increasing milk consumption from 170 to 190 litres/capita/year by the end of 2013. Bulgaria and Romania (from January 1st 2007 are member of EU-27). increasing the average of milk productivity up to 20/litres/cow/day. 2009. lowering imports. improving animal nutrition. 2009. U/A (Administrative Order) in proceeding.During the period 1999-2004. 4 -7- . fiscal rates were was 10% for the standard import duty and 15% Value Added Tax (VAT) for agriculture inputs. indirect subsidies are given to the sector in terms of zero VAT and zero import duty on agricultural inputs. In 2006. the agriculture sector in Kosovo does not benefit from direct subsidies by the government. This trade agreement resulted in market access at zero import duty for all participating countries. demand for milk at the end of 2013 was estimated at 28% higher than in 2005. The market created by CEFTA comprises nearly 30 million consumers and it was signed by ten countries4. Bosnia and Herzegovina. Except.

Increasing farm size through land consolidation. Therefore. -8- . wider assortment of the dairy produce. Nowadays marketing has broadened its concept. their attitudes. needs and demand for dairy products are considered to be key determinant factors for the efficiency of dairy. implementing an integrated quality management system through Good Manufacturing Practices (GMP) and Hazard Analysis Critical Control Points (HACCP). lack of information is an additional disadvantage upon the sales opportunities and the efficiency of dairies in Kosovo. among other significant problems that the dairy sector is facing. 2002). the market orientation of Kosovo’s dairy industry was to produce cheap bulk dairy commodities with a limited assortment.4 Problem Statement As highlighted in the above section. new management on the sales system. were seen as key actions to be taken in order to improve the competitiveness of the Kosovo dairy sector on the local and regional markets. However. Moreover. Significant economic changes after the last conflict had dramatically impacted consumers’ buying behaviour. an improved marketing information system. attitudes. the dairy industry in Kosovo lacks information on consumers’ buying behaviour and demand for dairy products level. the sector has passed through a very onerous period during the last decade. new market approaches such as improved product quality. decreasing interest rates for agricultural credits. were required for the local dairy processors to become a competitive on local and regional markets. a developing land market. there was an enormous increase of foreign competitors on the domestic dairy market. needs and demand for dairy products. Having information on consumers’ buying behaviour. their preferences. market segmentation. 1. and price differentiation. However. contemporary marketers include the study of transfer behaviour as well as transaction of consumer behaviour (Kotler. Thus. Previously. the dairy sector in Kosovo has performed well and seems to be one of the most promising agriculture sectors.

thus they deserve special attention (Kapsdorferová and Nagyová. curd. needs and wants for the dairy produce.5 Justification The consumers represent the last component within the food chain supply but they are set as a major player on the market. The study was carried out to determine factors that influence consumers’ buying behaviour. 2009). The following research questions were drawn in pursuit of the outlined objective: 1. Having an accurate analysis and good estimates of demand for dairy products helps projection of the future development of the dairy sector in Kosovo. It is thus very important to have good estimates of how the demand and household budget spent on dairy products reacts to demographic and socio-economic changes. their preferences. ‘’What. Moreover. no previous studies addressed the estimates of demand and household budget spent on dairy products with respect to demographic and socio-economic factors. there is no data available or comprehensive study devoted to the dairy consumption patterns in Kosovo (Nushi and Selimi. needs and wants towards dairy products. Therefore. 2005). helps businesses of this industry to improve and get the most rational way to meet the consumers’ needs. An understanding of the consumers’ buying behaviour and identifying the major forces influencing structural changes in their consumption patterns. Currently. makes the dairy market become more and more segmented as well as more complex. Where. How and When” do consumers buy milk and other dairy products such as yoghurt. attitudes. There is no study on how consumers’ buying behaviour reacts to demographic and socio-economic factors. 1. their preferences. Furthermore. fruit yoghurt. cream. cheese and butter? -9- . a study of consumers’ buying behaviour.1. needs and wants towards dairy products helps the dairy industry (local processors) in their plan projections and development of their marketing strategies. Who. analyses of changes in consumption patterns and consumption trends due to the changes of demographic and socioeconomic factors (particularly income changes) are very important and applicable for policy modelling purposes. Significant economic changes and continued evolution of consumers’ preferences.6 Objectives and Research questions The overall objective of this study was to assess the evolution of Kosovo consumers with regards to their new consumption patterns for dairy products. attitudes.

The following research questions were addressed in pursuit of this objective.10 - . What are the consumers’ preferences for the package size. What are the consumers’ attitudes toward product attributes such as brand.2. What is the average monthly expenditure for milk and other dairy products? . Do the consumers meet their needs for milk and six other dairy products with their current monthly income? The aim of this study was also to estimate how the demand and household budget spent on milk and six other dairy products react to demographic and socio-economic changes. new dairy products and innovation? 3. taste. packing. economic value. and country of origin? 4. country of origin. safety. nutritive content. What is the average monthly quantity purchased of milk and other dairy products? 2. 1.

only if they fully understand who of the family members is a leader and has direct influence on the buying decisions. occupation. perceptions. self-concept. It is thus very important for the marketers to identify the roles and influence of the family members in the purchase of products.174). THEORETICAL BACKGROUND 2. p. The buyer’s characteristics such as age.11 - . The consumer’s decisions in product and brand choices are greatly influenced by the income level. stage in the life cycle.1 Factors Influences Consumer Behaviour Cultural. lifestyle and values have a significant impact on the consumer behaviours and the buying decisions. . friends. stability. These distinctive buying patterns and preferences among social classes are significantly determined by occupation. age.CHAPTER II 2.175). 2006. Family is considered to be one of the most important consumer buying groups in the society (Tour and Henthorne. Such reference groups expose an individual to new behaviours and lifestyles. 2006). their influence can be substantial’’ (Kotler and Keller. personality. Consumers can shift up and down the social strata but the extent of this mobility depends much on how rigid the social stratification is in a given society (Kotler and Keller. Given that ‘’all human societies exhibit social stratification’’. and gender of people in the household. preferences and behaviours in a direct or indirect way are significantly influenced by reference groups (family. 2006. education etc. Among important influences on consumer buying behaviour (culture. wealth. 2006). social and personal factors are always considered to be the major forces influencing consumers’ buying behaviour (Kotler and Keller. An individual’s values. Marketers may accurately address their marketing messages. 2006). 2006). and often have an effect on their attitudes. and occupation (Kotler and Keller. income. and co-workers) to which they belong. An understanding of such factors helps businesses at tailoring products that meet consumers’ needs and wants. p. The consumption patterns and taste in food are often shaped by the family life cycle and the number. 1995). and social class) ‘’culture is the fundamental determinant of a person’s wants and behaviour’’ (Kotler and Keller. economic circumstances. products or brand choices (Kotler and Keller. p. ‘’In countries where parents live with grown up children. distinctive consumer buying behaviour and preferences exist as well among social classes (Kotler and Keller. subculture.177). 2006. neighbours.

The marketing and environmental stimuli are key enter points of understanding the consumer buying behaviours. Maslow’s theory explains why people are driven by particular needs at particular times (Maslow. safety. Based on the Maslow’s theory a person needs are in order of importance. p. are often used by the marketers for consumer analysis. and memory. According to Herzberg’s theory. Abraham Maslow. social. 1954). 2006). Freud’s theory supposes that an individual may not completely understand his/her motivations. learning. 2006). core values and life style. ‘’A need becomes a motive when it is aroused to a sufficient level of intensity’’ (Kotler and Keller. and preferences vary over the consumers’ lifetime. 2006. 2006).12 - . An individual has different needs. 1966). perception. self-concept. and personal. esteem. 2. starting from physiological. and self actualization needs. The crucial point of consumer behaviour is to understand what happens in the consumer’s consciousness between the arrival of outside stimuli (marketing and environmental) and the ultimate purchase decision (Kotler and Keller.personality. as psychological processes shaping his/her behaviour are mostly unconscious (Kotler and Keller. The consumers’ characteristics.184). and Frederic Hezberg. marketer’s task is first to avoid dissatisfiers factors and second to identify satisfiers or motivators of purchase in the market and then supply them (Kotler and Keller.2 The Stimulus model of the Consumer Behaviour Many theorists have addressed the issue of understanding the consumer behaviour in the decision buying processes and the purchase decisions. social. understanding their behaviours and develop marketing strategies. The best-known theories of human motivation such as Sigmund Freud. This is why successful marketers make an attempt to follow carefully trends and changes of the consumers’ characteristics. The consumer responses to the outside stimuli are mainly influenced by the psychological processes such as motivation. The consumer psychology combined with the consumer characteristics result in the buying decision process and the purchase decision. This theory was used by the marketers in understanding of how products fit into the consumer’s plan. 2006). buying behaviour. . and the consumer characteristics such as cultural. Herzberg’s theory distinguishes two-factor theory dissatisfiers and satisfiers factors (Herzberg. goal and life (Kotler and Keller. biogenic needs that arise from physiological tension and psychogenic needs that arise from psychological tension.

There are mainly five stages that the consumer passes through during the buying decision process: problem recognition. Stimulus-response model of the consumer behaviour Consumer Psychology Motivation Perception Learning Memory Marketing Stimuli Products Services Price Distribution Communications Other Stimuli Economic Technological Political Cultural Buying Decision Process Problem recognition Information search Evaluation of alternatives Purchase decision Post-purchase behaviour Purchase Decision Product choice Brand choice Dealer choice Purchase amount Purchase timing Payment method Consumer Characteristics Cultural Social Personal Source: Kotler and Keller (2006). information search.Figure 1. Figure 2 represents the five stages of the buying decision process. what. The consumer does not necessarily pass through all stages when he or she buys the product. . 2006). 2006). Other psychological processes such as motivation. where. 2006). when he or she recognizes a problem or need (Kotler and Keller. The starting point of the buying process is problem recognition. purchase decision. and post purchase behaviour. He or she may skip some stages if he or she already is familiar with the product (Kotler and Keller. and why” are used by marketers to understand reality and every facet of the consumer behaviour (Kotler and Keller.13 - . The information about the product is one of the prime determinants of consumer decision making. learning. when. evaluation of alternatives. how. The consumer starts buying. Key consumer behaviour questions such as “who. and memory have a significant impact in the consumer buying decisions. perception.

Figure 2.14 - . Stage model of the consumer buying process Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behaviour Source: Kotler and Keller (2006). .

. Taking into account that the system of civil registration was not up to date and there has not been any census taken since 1981. In 2008 food consumption per households living in urban areas was 2. Prishtina is the biggest region with 25.15 - . In terms of population size. 61% is between 15-64 years old.7% for males and up to 49. 2004). 2007). Kosovo is divided into 5 regions and 30 municipalities with 1466 settlements (Law on Territorial Structure.144 euro or 35% of the total consumption.5% of the total population. the total number of inhabitants was estimated to be 1.959. Traditionally more of the population of Kosovo lives in the rural areas than in urban areas.6%.2 % for the females. Statistical data on the level of education in 2007 has shown that more than 40% of the males and about 60% of the females had not completed upper secondary education.1 The Study Area Kosovo is situated in South-East Europe surrounded by Albania. Gjilan with 19. where 33% of the total population is less than 14 years old. with a total land area of 10. Referring to the latest registration conducted by Statistical Office of Kosovo (SOK) in 1981. Ministry of Public Services (MPS. Serbia and Montenegro. while only 6% of the population is over 65 years old. it is difficult to provide reliable figures for the population as a whole (Ministry of Public Services-MPS. METHODOLOGY 3. Macedonia. with proportion 55:45%. The unemployment rate in 2007 for the labour force in the 15-64 age groups was denoted 33. compared 2384 euro or 44% for those living in rural areas (MPS.CHAPTER III 3. Statistics of Living Standard in 2007 indicated that households living in rural areas as well those less educated had lower general food consumption than household living in urban areas. followed by Peja with 21%. Kosovo is considered to have the youngest population in Europe.6% and Mitrovica with 14. 2009a) states that for every 100 female births there are around 109 male births. 2009b).714.908 km2 and population density 193 people per km2. Prizren with 19.6%.

2 Sample Selection This section emphasizes the sampling principles and methods involved in selecting people (respondents) who would be asked questions by questionnaire. thus. Even though a sampling approach was less costly in terms of money and time. It is important to emphasize that this does not mean that this type of sampling can eliminate bias and sampling error completely. Bryman (2004) states that by selecting a stratified sample. Since the aim of this survey was to interview a sample drawn from the national population which was likely to be highly varied. Before getting to the fieldwork. sample size (n). It was impractical to examine each and every unit of the population. their attitudes. One of the most relevant and basic considerations in conducting a survey research by interview is the money and time consumed. One of the main reasons that we performed this type of sampling was that we wanted our sample to exhibit a proportional representation of the different strata of the population. The intention of this study was to gain an understanding of consumers’ behaviours. One way in which it was possible to deal with the problem of sampling error and to minimize the bias was to perform stratified random sampling. The stratified random sampling has been applied as a type of probability sample in selecting people who would be included in the sample. sampling was needed.16 - . A crucial criterion for the decision about the sample size was the level of standard error that we were prepared to tolerate in our findings. Considering this criterion we decided our sample size would be n = 385 (interviewees) out of 1. preferences and demands towards milk and dairy products.959. the standard error of the mean will be smaller since the variation between .3. there was a possibility of sampling error and bias. Another issue that is relevant to this survey relates to the choice of the sample size. The calculation of the sample size was performed using a sample size calculator with a 5% margin of error. 95 % level of confidence and 50% response distribution. It was important to ensure that our drawn sample and findings reflected the national population accurately. other considerations came to the fore as well.714 which was the total number of inhabitants in Kosovo. matters that concerned this survey were the definition of the population (N). According to Bryman (2004) stratified probability sampling keeps the sampling error in check better than non-probability sampling. type of sampling and formulation of the research instrument that suits the investigation of the topic. The total number of inhabitants in Kosovo was the targeted population from which we were interested to draw a sample.

age and gender of the respondents. The sample size of n = 385 respondents was first stratified among regions according to the number of inhabitants in each region. this type of sampling permits us to employ a test of statistical significance and draw inferences about the whole population from which the sample was drawn. The allocated number in each region was then stratified in terms of age and gender. In our case stratification of the sample size into the strata entailed a great deal of work since there was no available list on distribution of the population by age and gender. The stratification of the sample was done according to three criteria: region. The following figure illustrates the main stages involved in stratification of the sample units. the actual respondents deviated slighlty in terms of these two strata compared to the one that is shown in Fig. this method of sampling could be feasible and economically reasonable only when it is relatively easy to identify and allocate units within strata. Figure 3.Stratification of the sample size n = 385 Prishtina Age 18-30 Female 16 Male 16 Prizreni Age 18-30 Female 13 Mitrovica Age 18-30 Female 9 Male 9 Peja Age 18-30 Female 13 Gjilani Age 18-30 Female 12 Male 12 Male 13 Male 13 Age 31-40 Female 11 Male 11 Age 31-40 Female 9 Male 9 Age 31-40 Female 7 Male 7 Age 31-40 Female 10 Male 10 Age 31-40 Female 9 Male 9 Age 41-50 Female 10 Male 10 Age 41-50 Female 7 Male 8 Age 41-50 Female 6 Male 6 Age 41-50 Female 8 Male 8 Age 41-50 Female 7 Male 7 Age 51-60 Female 8 Over 60 Female 3 Total Female 48 Male 49 Male 4 Male 8 Age 51-60 Female 6 Over 60 Female 3 Total Female 38 Male 39 Male 3 Male 6 Age 51-60 Female 4 Over 60 Female 2 Total Female 28 Male 28 Male 2 Male 4 Age 51-60 Female 6 Over 60 Female 3 Total Female 40 Male 41 Male 3 Male 7 Age 51-60 Female 6 Over 60 Female 3 Total Female 37 Male 37 Male 3 Male 6 In spite of its advantages.17 - .3 (see Appendix A2 / Table 2). Moreover.strata is eliminated and the population will be better represented in the sample in terms of the stratification criteria used. . Due to that.

HH income and number of employed family members. A pre-test was conducted in order to ensure that survey questions and instrument as a whole functions well. The survey was conducted during the period of January-February in 2009. their attitudes toward product attributes. Interviews with the respondents were administered by researcher and trained field assistants.18 - . fruit yoghurt. The main reason for employing this method of interviewing was to provide exactly the same context of questioning to all interviewees. The advantages of this type of interviewing go further than this. number of children aged 14 years and younger. age.3 Data Collection In order to find out about the consumers’ behaviour. These questions give responses about whether the consumers prefer new dairy products (innovation). 2004). preferences and demand for milk and dairy products. The questionnaire also included retrospective questions on changes that had occurred over the previous year in consumers’ preferences towards milk and dairy products. the interviewees’ responses can then be aggregated. respondent’s monthly income. cheese and butter). cream. Respondents were therefore asked to state whether they fulfil their needs for those products by monthly income available.3. number of family members. The main . a structured questionnaire was developed and used for the collection of data. curd. level of education. preferences. the quantity consumed and expenditures for milk and dairy products (yoghurt. The data is on a monthly basis and provides information on consumers’ buying behaviour. Given that replies of the interviewees are in the response to identical interview inducements. The survey also provides data on respondents and households characteristics including sex. profession. In order to avoid overestimation of the market demand for milk and dairy products. their attitudes. what attracted them to start buying new dairy products and channels they used to become aware of the new dairy products. One advantage that is particularly significant is the reduction of error due to variation in the questions asked (Bryman. This method of interviewing also ensures greater accuracy and an easier way of processing the respondents’ answers. even those households who happen to have their own cows were included in the interviewing process. The data used in this study were obtained through direct interviews (face to face) with Kosovo consumers aged 18 years and older. Statistical Program for Social Sciences (SPSS) was employed for processing and analysing of data.

fruit . number of children below 14 years old.function with all the main effects is given as: logit [(Yi = 1)] = α + β1 Age + β2 Education + β3 HH size + β4 Children + β5 Employment + β6 HH income + β7p1 + β7r1 + β8r2 + β9r3 + β10r4 + β11e1 (1) Where. place as a factor with two indicator variables: Rural and urban. Consumers’ statements on the question as to whether they buy milk and other dairy products was defined as dependent variable Y (= 1 if the respondent buys milk and other dairy products and 0 if not). Yi indicates the exhibited preference of buying product i by jth respondent {1 = Yes. β1………. household (HH) size. The model of multiple linear functions was performed for those dependent variables measured on continuous scales. HH size. The model treats place. region. Peja. and HH income are treated as continuous-scale factors. r2. respondent’s employment as a factor with two indicator variables: Yes and no. The statement of the consumers is then estimated as a function of respondent’s age. respondent’s age. r3..intention of asking these questions was to find out whether Kosovo consumers belong to conservative or progressive consumers category with regard to dairy products. β11 are estimators coefficients. Y = 1 when the response outcome for each subject is a “success” and Y = 0 otherwise. employed members within the HH. There were. Similar models have been applied for the statement of the consumers on buying yoghurt. {r1. level of education. respondent’s education. r4} are indicator variables for the first four (of five) regions. region as a factor with five indicator variables: Prishtina. {e1} stands for the first indicator variable (of two) employment R. whereas. many dependent variables with binary responses that had to be evaluated for the effects of multiple independent variables on a dichotomous outcome. HH income. children below 14 years old. The logit. multiple linear function and binary logistic function have been used to relate the dependent variable(s) to the independent variables. 3. Prizren. number of employed members within the HH. and respondent’s employment as nominal-scale factors.19 - . For the variables with dichotomous responses the model of binary logit-function was categorized to take on two values. Mitrovica. {p1} is the indicator variable for the first (of two) places. α is intercept. 0 = No}. however.4 Model Specification Two associated statistical techniques. Gjilan.

number of children below 14 years old.. The same model has been used for the total expenditure on milk and other dairy products....yoghurt. Ch indicates number of children below 14 years old in the HHi. Qi is the quantity of product i purchased in litre/month in the HHi . De indicates education of the respondent i.. and the evaluation of product attributes with demographic and socioeconomic characteristics. . respondent’s income and education as a factor of gender. T is total expenditure on milk and six other dairy products in euro/month in the HHi.. b0 indicates the intercept. (i = 1………. Test of independence was performed to study whether there was dependency between the market places that consumers preferred to buy dairy products. Linear function equations are specified as follows: Q i = b0 + b1Ag + b2De + b3Hh + b4Ch + b5Me + b6In + Ui E i = b0 + b1Ag + b2De + b3Hh + b4Ch + b5Me + b6In + Ui T = b0 + b1Ag + b2De + b3Hh + b4Ch + b5Me + b6In + Ui where. HH income. cream. E (2) (3) (4) i is the expenditure on product i in euro/month in the HHi. Ag denotes age of the respondent i. the frequencies of buying dairy products... cheese and butter.b6 are estimated coefficients of the variable (s). Analysis of variance (ANOVA) has been used to find out whether there were significant differences between means of the HH size. Me stands for number of employed family members in the HHi. A full description of other variables with dichotomous outcome which are used as dependent variables and estimated with the same model and the same explanatory variables is presented in Table 8. number of employed family members. Other statistical models were employed in order to analyse the set of data obtained by the research study. b1.20 - . Hh stands for the HH size. In indicates average monthly income in the HHi. place and region.385). and Ui is a random error term. In the model of the multiple linear function the quantity of milk and other dairy products purchased by a household within a month is a function of respondent’s age and education... number of employed family members and HH income. curd. HH size. number of children aged 14 and younger.

21 - . while Tables 7. and 6 present a full description of all input variables that were accommodated into fitted models in the equation 2. .1 Variable Description and Measurement Tables 4. Dependent variables used in the estimation of the average quantity of the product i purchased in litre or kilogram in the HHi Dependent Variable Q Milk (l/month) Q Yoghurt (l/month) Q Fruit Yoghurt (kg/month) Q Cream (kg/month) Q Curd (kg/month) Q Cheese (kg/month) Q Butter (kg/month) Description of Variable Quantity of milk purchased in the HHi Quantity of yoghurt purchased in the HHi Quantity of fruit yoghurt purchased in the HHi Quantity of cream purchased in the HHi Quantity of curd purchased in the HHi Quantity of cheese purchased in the HHi Quantity of butter purchased in the HHi Note: Q indicates quantity of the product i.4. 3. Table 5. Table 4. and 4. 5. and 9 describe the variables used in equation 1. Dependent variables used in the estimation of the average monthly expenditures on the product i in euro per month in the HHi Dependent Variable E Milk (euro/month) E Yoghurt (euro/month) E Fruit yoghurt (euro/month) E Cream (euro/month) E Curd (euro/month) E Cheese (euro/month) E Butter (euro/month) E Total (euro/month) Description of variable Expenditures on milk in the HHi Expenditures on yoghurt in the HHi Expenditures on fruit yoghurt in the HHi Expenditures on cream in the HHi Expenditures on curd in the HHi Expenditures on cheese in the HHi Expenditures on butter in the HHi Expenditures on milk and dairy products in the HHi Note: E indicates expenditures on the product i.3. 8.

Dependent variables used in the estimation of the fitted model in the equation 1 Dependent Variable Fulfilment of the respondent’s needs Preferring domestic dairy products Preferring foreign dairy products Preferring new dairy products Buying new dairy products Description of Variable Y = 1 if the respondent fulfilled needs for the dairy products with his/her current monthly income and Y = 0 otherwise Y = 1 if the respondent preferred domestic dairy products and Y = 0 otherwise Y = 1 if the respondent preferred foreign dairy products and Y = 0 otherwise Y = 1 if the respondent preferred new dairy products and innovation and Y = 0 otherwise Y = 1 if the respondent during the last year started buying new dairy products and Y = 0 otherwise .Table 6. Independent variables used in the estimation of the quantity and the expenditures on milk and six other dairy products Independent Variable Age Education HH size Children Employment HH income Description of variable Respondent’s age given in years Respondent’s education given in years Number of members in the HHi Number of children in the HHi aged 14 and younger Number of employed members in the HHi Average monthly income in the HHi Note: HH monthly income is given in euro Table 7. Dependent variables used in the estimation of the fitted model in the equation 1 Dependent Variable Product Milk Yoghurt Fruit yoghurt Cream Curd Cheese Butter Description of Variable Exhibited statement on buying product i by jth respondent Y = 1 if the respondent buys milk and Y = 0 otherwise Y = 1 if the respondent buys yoghurt and Y = 0 otherwise Y = 1 if the respondent buys fruit yoghurt and Y = 0 otherwise Y = 1 if the respondent buys cream and Y = 0 otherwise Y = 1 if the respondent buys curd and Y = 0 otherwise Y = 1 if the respondent buys cheese and Y = 0 otherwise Y = 1 if the respondent buys butter and Y = 0 otherwise Table 8.22 - .

4 = Gjilan. 2. 2 = 201-400. 2 = 2-3. 2 = 31-40. preferences and demands for milk and other dairy products. Backward elimination procedure was used to select an optimal model that tends to have its fitted values closest to the true expected values. HH income and respondent’s income are given in euro 3. This method takes out terms successively. 2 = Secondary school. 3 and 4).23 - . 2 = 201-400. 4 = 51-60.4. the fitted model began with all explanatory variables presented in equation (1).2 Estimation Procedure In view of the fact that this study was designed to answer certain questions about consumers’ behaviour. Independent variables (factors) used in the estimation of the fitted model in the equation 1 Factor Place Region EmploymentR Indicator Variable 1 = Rural. The estimation procedure of the stated preference by consumers for buying milk and other dairy products began with a preliminary model presented in equation (1). 5 = more than 800 Note: Variable IncomeR indicates respondent’s income. several predictor variables have been included in the models (equation 1. 2 = Prizren. 4 = more than 600 1 = up to 2 members. and then the variable that produced the smallest decrease in residual variance was removed from the model. Backward elimination uses the . 5 = Mitrovica Respondent’s employment 1 = Yes. 2007). 3 = 5-6. 0 = No Table 10. With this algorithm. 2 = 2-3. 4 = 601-800. 3 = 41-50. 3 = 4 and more 1 = up to 200. 4 = more than 6 1 = 1 child in the HH.Table 9. The selection process of the fitted model becomes more complex as the number of explanatory variables increases. 3 = 4 and more 1 = 1 employed family member. Models with several explanatory variables often suffer from multicollinearity. making it seem that no one variable is significant when all the others are in the model (Agresti. until there are no variables remaining in the equation that could be removed without significantly increasing the residual variance. 3 = 401-600. 5 = older than 60 1 = Primary school. 3 = Peja. 3 = 401-600. 0 = Urban 1 = Prishtina. 2 = 3-4.3 = University 1= up to 200. Recoded variables used in the test of independence Variable Age Education IncomeR HH size Children Employment HH income Recoded Variable 1= 18-30.

Multiple linear functions in the equation 2. 3. tstatistics for testing individual regression coefficients). while Wald statistic was used in assessing the contribution of predictors.24 - . and 4 were judged by using the goodness of fit (R2) statistical tests of significance (F statistics for testing whether the fitted model reduced significantly residual variances. The coefficient of Cramer’s V was used for measuring the strength of association between two categorical variables. The validity of the fitted model in the equation 1 was checked by using log-likelihood statistic.incremental sum of squares as a measure of the increase in the residual sum of squares associated with removing the variable (Glantz and Slinker. 2001). . The next stage of the model selection checked the model fit. χ 2 Statistics has been carried out for testing the independence between variables.

Summary statistics of the household characteristics Household characteristics HH size Children Employment HH income IncomeR Education Minimum 1 1 1 60 40 3 Mean 6. It presents the estimated parameters obtained from the two types of functions: binary logistic and multiple linear functions. This section provides results of the pairwise comparisons among levels of gender.026 ± 26.74 12.21 2.17 2. The last section of this chapter presents tests of independence between the market places preferred by consumers.1. how and when” they buy milk and six other dairy produces.17 ± 0. Descriptive Statistics on the Household Characteristics Table 11 presents a summary statistics on the household characteristics according to demographic and socioeconomic indicators. place. and the evaluation of product features with demographic and socioeconomic characteristics.CHAPTER IV 4.15 Std. Basic statistics description is given to demonstrate the overall household characteristics.53 ± 13.10 ± 0.5 3. 4. The average sample scores given below were summarized for the whole country. Table 11. Error 27 13 8 3500 1500 20 ± 0.16 52. the frequencies.12 585.53 1.5 Maximum Std. Results and Discussion This chapter presents the results and analyses the set of data obtained from 385 surveyed respondents. where.29 ± 0. The chapter is structured as follows. To give a clear view and ease interpretation of the estimated coefficients.39 1. and region with regard to the household characteristics.51 219.25 - . estimation models are given successively for each dairy product. Deviation 3.79 281. Basic description is presented for some of the key consumer behaviour questions such as “what.04 Note: HH income and respondent’s income are given in euro per month . who.

Even though.750**.000). Concerning the average monthly income. rural households had significantly higher income than urban households (PANOVA = 0. place and region.41 euro). as well as engagement of women in the sectors which yield lower income caused the significant variation on the income levels between males and females.26 - . It was proved that these two variables.The overall household characteristics were further examined. Disparity on the unemployment rate. Hence.032).297). Highly significant variation was also found in the level of education (PANOVA = 0. Highly significant variations were marked also in the level of respondents education (PANOVA . with regard to the number of employed family members (PANOVA = 0. and the agricultural sector (MPS.003). 2009a) states that unemployment rate is much higher for women (55 %) than for men (39 %). Statistics of Living Standard in 2007 indicated that in Kosovo every tenth household lives by money sent abroad the country (remittances). This result clearly shows that women in Kosovo were less educated compared to men. The majority of employed women were engaged in education. The result in table 12 shows that there was significant variation between females and males in terms of the average monthly income (PANOVA = 0.75). Majority of them were young people coming from rural areas. than in rural areas (88. considering that the rural households had significantly more family members than the urban. approximately 18 to 20% of the Kosovo population emigrated at Western European countries. Publication given by (MPS. Rural households had significantly more family members than the urban households (PANOVA = 0. trade. were highly related with a Pearson’s correlation coefficient r = 0. where the proportion of females and males who had not completed upper secondary education was 40:60 %. insignificant variations were found in terms of the respondent’s average monthly income (PANOVA = 0. in terms of the family members. This result was expected.088). the household size and the number of children below 14 years old. However. insignificant variations were found between rural and urban households. It also corresponds with the statistical data on the level of education given by MPS (2007). But income per capita was still higher in urban areas (98. Study results showed that there were discrepancies between rural and urban households. there were significant differences in the average household incomes.016). During the period of 1990-99. 2009). health. Males had a tendency to generate higher income compared to females. the average number of children in the household below 14 years old was distinctly higher in rural households than in the urban (PANOVA = 0.003). remittances by emigrants can be considered as an influential factor in the variations of the average household incomes between rural and urban areas. Moreover. in order to find out whether there were significant variations of the average sample scores among the levels of gender.

3 3. Significant variations of the household size appeared to be important in explaining the variations of the number of children below 14 years old (PANOVA = 0.487 5.9 230.000). the first one had predominantly more children below 14 years old.4 11.474 649.272 X 243.581 2.001.4 2.057). Deviation IncomeR Education X Difference SD 229.178 0.161).943** SD 4.69 308.709 (F X . **P < 0.00 2.6 3.984 (R X . Respondents coming from rural areas had predispositions to be less educated than the respondents from urban areas.453 2. with regard to the number of employed family members (PANOVA = 0.639 2.080 549.= 0. The households from Peja region appeared to have fewer children than any other region.4 12.U X ) 2.019). Deviation HH size Children Employment HH income IncomeR Education X Difference SD 2. The insignificant variation between regions was obtained also in terms of the respondent’s monthly income (PANOVA = 0. The sample data showed highly significant variations on the average household size between the regions (PANOVA = 0. Pairwise comparison between rural and urban household Place Rural Urban Sample Mean / Std. Significant differences were observed between the Mitrovica and Prishtina.012*** 0.630 1. ***P < 0.M X ) -65* -0.593 2.01.009 1.218 673. Table 12.999 452. There were no significant variations between the levels of region.620 Note: Significance of variations is denoted as follows: *P < 0.2 11.005).229) and the respondent’s education (PANOVA = 0. A significant variation is found also between Prizren and Gjilan.005).05. Regions that had significantly more family members were predisposed to have more children below 14 years.9 247.4 -0.639** 0. The region of Peja differed significantly from Prishtina.3 188.138 124. Table 13.6 12.2 296.7* -49. The households from Mitrovica had significantly more family members than the households from Prishtina and Gjilan. Prizren and Mitrovica. The households from Prishtina and Prizren had significantly higher monthly income than the households from Peja and Gjilan. Pairwise comparison between females and males Gender Female Male Sample Mean / Std.430 . However.071 X 7.931** SD 199.27 - .4 2. highly significant variations were observed in the level of income (PANOVA = 0.

61 0.66 3.94 -0.54 0.8 -0.12 7.31 673 264 11.6 0. 0.82 ** (r5-r2) 0.88 494 315 12.74 1.02 1.12 -162.13 (r3-r1) -1.41 -0.71 -31. Deviation Reference Mean difference HH size Children Employment HH income IncomeR Education 6.68 ** (r5-r4) 1.42 -178.31 -51.08 -37.24 0.80 -0. P< 28 .67 5.31 0.96 2.13 -0.0 1. r4-Gjilan. r1-Prishtina.00 0. r3-Peja.05.8 0.2 232 213 3.2 51. r5-Mitrovica.10 0.7 1.4 2.3 -82.15 -34.9 2.5 4.001.08 6.11 548 232 12.99 Note: Given characters denote: r-region. P < 0.20 -0.0 460 263 12 3.48 2.23 710 315 12.14 * r4 (r5-r3) 2.097 -0.16 0.Table 14.19 -125 -31.288 0.84 0.10 1.20 -250 * r3 (r4-r2) -1.87 -0.1 1.8 427 270 2.39 0.5 3.1 *** r1 r2 SD r3 SD r4 SD r5 SD X X X X X SD r2 (r4-r1) -0.47 1.25 2.42 1.12 (r3-r2) -1.35 1.23 53.01 (r4-r3) 0.68 -0. r2-Prizren.74 2.2 625 176 3.41 -0.9 0.3 518 183 2.35 -215.24 587 230 3.1 1.01.6 r1 (r2-r1) 0.15 0. Significance of variations is denoted as follows: P < 0.385 0.16 -82.28 -212.27 -0.27 1. Pairwise comparison between regions Region Sample mean / Std.083 87.5 0.23 1.26 -0.3 -51.19 *** ** ** (r5-r1) 1.74 -0.4 -1.84 -0.86 0.4 5.9 2.5 1.94 2.55 -51.

On the other hand. Apart from this reason. (see Figure 4) only 13% of the respondents did not buy milk at all. This attitude was notably noticed among the old age group. about 79 % of the respondents stated that they regularly buy yoghurt. cheese and butter. curd. 2006 pp182-183). economic issue stand as the main influential factor on their attitudes towards this product. Out of 50% of the respondents who did not use to buy fruit yoghurt.4. It was realized that lower income households could not afford buying yoghurt direct from the market. the remaining percentage 13%. In fact the responses by this consumers group in terms of not buying fruit yoghurt were in some way intertwined by lack of preferences. where out of 21%. A cheaper alternative for this consumers group was buying fluid milk from farmers and process it into value-added products such as yoghurt. 23% of the respondents that did not use buying fruit yoghurt. With regard to the buying habits towards yoghurt and fruit yoghurt. who did not use to buy yoghurt 12% stressed the similar reason as those who did not use to buy milk. was scrutinized further and it was remarked that 90% of the respondents were from rural areas. Income was an additional influential factor affecting consumers buying behaviour. The proportion of the respondents who were positively responding to the question on buying fruit yoghurt was 50:50%. Hence. as most of them consider it as a children product. cream. more than 25% do not prefer and lack the habit of buying it. The sample included respondents who happened to own cows and it was the only reason stated in terms of the response of not buy milk. An attempt was made to come across the reasons for the proportion of the respondents who did not use to buy milk. Out of 385 surveyed respondents 87% proclaimed that they buy milk on a regular basis. fruit yoghurt. The same matter has accompanied other dairy produces. As 29 . Respondents were questioned whether they buy other dairy produces such as yoghurt. For the remaining proportion. it was clear that milk and other dairy produces stand as regular staple food to most of the Kosovo households.2 Descriptive Statistics on Consumer buying Behaviour Based on the information gathered from interviewed respondents. who predominantly own cows and this was the solely reason given by them for not buying milk. Consumer’s behaviour to product choice is greatly affected by economic circumstances and lifestyle pattern which is shaped by whether consumers are money-constrained or timeconstrained (Kotler and Keller. habits and no presence of children in the household. there were however other factors influencing consumers lifestyle and their behaviour to dairy products. no presence of children in the household was another indirect factor influencing the product choice.

Nowadays. 12%. To examine the role and influence of family members in the purchase of milk and other dairy products. and family members as the most influential primary reference group (Tour and Henthorne. while 7% was the proportion of the respondents that did not prefer buying this product. economic conditions and age. most of the Kosovo households consist of husband. which counted roughly 19%. The proportion of the respondents who buys cheese was similar to the one for milk (86%). Nearly 70% of the respondents claimed that they commonly buy cream. There was small a percentage (5%) that could not afford buying butter. an effort was also made to acquire the reasons given by the proportion of the respondents that did not use to buy cream. Involvement of husband and wife in the purchase of products varies by product category. The results of this study indicated that 99% of the respondents were consumers of cheese. cream. Consequently. There were few respondents that could not afford buying it. It was particularly marked that buying habits towards butter and cream differed by personal characteristics as age and geographic niches. Lack of preference towards this product was the main reason stated by the respondents. wife. curd. the given responses were interpreted and coded in order to be analyzed quantitatively. like ‘who buys’ and ‘who makes buying decisions’ on the dairy products choice. The family is incessantly considered as the most important consumer buying organization in society. 66% was the proportion of the respondents who buys curd. including respondent’s lifestyle. 1995). fruit yoghurt was considered as luxury product and predominantly unachievable given their current economic circumstances. cheese and butter which accounted roughly the same proportion for all of these produces. ‘’Wife has 30 . curd. children and often grandparents. The proportion of the respondents that use to buy butter was roughly as one for the fruit yoghurt. About 11% could not afford buying cream.a result of budgetary constraints on this consumers group. For the respondents who owned cows it still remained the sole reason for not buying milk. The proportion of the respondents that did not favoured buying butter was almost 32%. As it is previously cited. it is worth noting that an open ended question was asked and we ended up with diverse responses as the respondents answered in their own terms. The proportion of the respondents that did not use to buy curd was 34%. The study results have shown that the given main reasons for not buying above mentioned products were related to personal factors. cheese and butter. Respondents among urban households and young adults aged 18 to 40 appeared to buy less dairy products with lower content of fat. Before getting to the depiction of the given reasons. key consumer behaviour questions were asked. which accounted for 52%.

Moreover. Women. given that unemployment rate was statistically significant higher for the women than for men. it was particularly important to identify who among the family members contributes and makes the buying decision. The percentage of men accounted for 30%. Nearly 50% of the respondents stated that the wife is the one of the family members who usually decides what kind of milk and other dairy products should be purchased. deciders. influencers. which was higher than the proportion of women (21%). However. Men were disposed to be more active in the purchase of milk and dairy products compared to women. 2006 p 203). or users (Kotler and Keller. In the purchase decision task. In fact this result was not surprising.179). men had much more buying power and were mainly engaged as buyers of milk and other dairy products.usually acted as the family’s main purchasing agent for food items’’ (Kotler and Keller. Respondents’ answers in terms of buying milk and six other dairy products 100 90 80 70 60 50 40 30 20 10 0 Milk Yoghurt Fruit Yoghurt Cream Curd Cheese Butter Yes No To understand how the consumers make their buying decisions in connection with milk and other dairy products. for joint purchase (husband and wife) of milk and dairy products. respondents’ answers showed highest proportion 34%. family members can be initiators. Even though traditional purchasing roles are changing. had a tendency to be much more influencers and deciders in the purchasing decisions. About 20% of the respondents stressed that decisions were usually made 31 . income generating ability for the women was considerably less than for men. Figure 4. study result proved that men were buying substantially more than women. 2006. buyers. Considering different purchasing roles by the family members in the buying decisions. on the other hand. The remaining percentage indicates involvement of children in the purchase of milk and dairy products. p.

jointly by wife and husband. Frequencies of buying milk and other dairy products Butter Cheese Curd Cream Fruit Yoghurt Yoghurt Milk 0% Every day 20% Twice a week 40% Once a week 60% Twice a m onth 80% Once a m onth 100% 32 . when buying milk and other dairy products was captured by asking ‘where do you usually go when you buy milk and other dairy products’? As shown in Figure 5. The identification of the most frequented market place by consumers. Only 8% of the respondents stated that purchasing decisions towards kind of milk and other dairy products were taken by children. about 15%. Figure 5. The proportion of the respondents stating that husband makes buying decisions was smaller. it was revealed that the most frequented market place by consumers for milk and other dairy products was supermarket.Market places preferred by consumers when buying milk and other dairy produces Butter Cheese Curd Cream Fruit Yoghurt Yoghurt Milk 0% By farmer 20% Street vendor 40% Green market 60% 80% 100% Grocery store Supermarket Figure 6.

55.67 1. The obtained results indicated that the frequency of buying milk and other dairy products was related to freshness and durability of the products.34 3. as well as the HH size. particularly milk and yoghurt.53 7.79 ± 0.86 2. Std.55 Curd Kg/year 7. and butter were less frequently bought by the consumers. and the estimates are presented in Table 16.88 2. The other dairy products such as curd.Figure 6 shows that milk and yoghurt.08 Butter Kg/year 2. Table 15. per capita consumption for the various dairy products could be estimated. were the most frequent dairy products bought by the consumers. Deviation 29. The total average monthly expenditure on milk and other dairy products counted at 33 . The total average monthly expenditure by the HHs on milk and other dairy products was estimated to be 56.17 euro/month (Std.14 ± 0.51 2. However.0887 Std.27 Table 16 The annual average per capita consumption Product Milk Yoghurt l/year 20.43 ± 0.22 ± 0. given that the averages of purchased quantity by the HHs was already known.93 4.08 2. Summary statistics of the average quantity of milk and other dairy products purchased by the HHs Quantity of product i Q Milk (l/month) Q Yoghurt (l/month) Q Fruit Yoghurt (kg/month) Q Cream (kg/month) Q Curd (kg/month) Q Cheese (kg/month) Q Butter (kg/month) Minimum 3 2 1 1 1 1 1 Mean 26.44 Fruit yoghurt Kg/year 4.15 The averages of monthly expenditures by the HHs on milk and other dairy products are given in table 17. The research study did not provide directly per capita consumption of the various dairy products.18 ± 0. cheese. Error ± 0.64 Cheese Kg/year 9.51 2.30 10. followed by fruit yoghurt and cream.53 3. Table 15 provides the averages of monthly quantity of milk and six other dairy products purchased by the HHs. and yoghurt than for other products. Deviation 14.17 ± 0.39 Maximum 90 40 30 35 20 20 10 Std. Error ± 1.53 1.88 Cream Kg/year 4. cheese. The above figure illustrates that majority of the Kosovo consumers prefer more fresh dairy products.70 Quantity l/year 51.25). The monthly average expenditure was higher for milk.

85 6.31 Despite the seasonal variation on milk production. had less tendency to fulfil the demand for milk and other dairy products. Regarding the fulfilments of the consumers’ needs for milk and other dairy products.35 ± 0. Figure 7 shows that majority of the Kosovo consumers’ (64 %).02 5. The consumption of fruit yoghurt was less 34 . and butter.45 ± 0.88 6. It has been realized that the households who had more than five family members.44 4. and autumn months.6%.16 4.93 8. which is characterized by overproduction during the summer season. were from urban areas. consumed milk on a regular basis throughout the spring.9. Figure 9. Majority (72%) of the respondents who did not fulfil their demand for such products. Deviation 10. The consumption of yoghurt seemed to be quite stable during the spring. of the total average household monthly income.69 5. About 43% of the interviewed respondents stated that they did not fulfil their needs with the current monthly income. summer. This result was not surprising as the households in the urban areas had significantly lower income (PANOVA = 0.11 4.37 10. Concerning the seasonal consumption patterns on yoghurt. Figure 8 shows that the consumers tend to behave differently compared with the seasonal consumption patterns on milk.59 ± 0. roughly 57% of the respondents stressed that they manage to fulfil demand for milk and dairy products with their current monthly income.11 6. The consumption of milk appeared to be higher during the winter months. while its consumption was higher throughout the summer months.032) compared to the rural households.08 Maximum 60 40 36 70 30 50 40 Std.69 14.75 7. Table 17. 10. and 13 indicate that Kosovo consumers’ tend to behave in a seasonal manner with regard to the fruit yoghurt. and winter months. Within the proportion of the respondents who did not fulfil the needs (73%) were households who had lower monthly income (less than 400 euro). Summary statistics of the average expenditures on milk and other dairy products by the HHs Expenditures on product i E Milk (euro/month) E Yoghurt (euro/month) E Fruit yoghurt (euro/month) E Cream (euro/month) E Curd (euro/month) E Cheese (euro/month) E Butter (euro/month) Minimum 2 2 1 1 1 2 1 Mean 19.39 ± 0.30 Std.31 ± 0. Error ± 0.40 ± 0. autumn. cream. the demand for milk and other dairy products was quite stable throughout the year.

4 10.6 62.9 19.2 64.6 14.2 67 60 62. 2 is “when the respondent consumes product i on a regular basis”. Seasonal consumption patterns on milk 70 60 50 40 30 20 10 0 Spring Summer Milk Constant Autumn Winter 11.7 31. where 1 is “when the respondent consume less of the product i for a given season”.5 23.4 22.4 22.3 65.6 26.9 11. Regarding the seasonal consumption patterns on curd and cheese. with small increases during the spring and the summer months. The products with the higher content of fat such as cream and butter were prone to be consumed less throughout the year except of butter.7 61. Figure 7. Figure 8.throughout the year.6 61 Less More Note: The variable was measured on scale of 1 to 3.9 22. and 3 is “when the respondent consumes more the product i for given season”.3 3. Figure 11 and 12 show that consumption of these dairy products was quite stable throughout the year.2 2. its consumption tends to be higher during the winter months.9 35 . Seasonal consumption patterns on yoghurt 80 70 60 50 40 30 20 10 0 Spring Summer Yoghurt Less Constant More Autumn Winter 14.4 35.8 6.

7 44.9 23.6 38.6 24.9 35.9 36 .4 Fruit Yoghurt Less Constant More Figure 10. Seasonal consumption patterns on fruit yoghurt 40 35 30 25 20 15 10 5 0 Spring Summer Autumn Winter 12. Seasonal consumption patterns on cream 60 50 40 30 20 10 0 Spring Summer Cream Less Constant More Autumn Winter 23.8 10.6 30.6 12. Seasonal consumption patterns on curd 50 45 40 35 30 25 20 15 10 5 0 Spring Summer Curd Less Constant More Autumn Winter 20 21.6 44.5 7.6 2.7 21.1 15.4 15.6 42.3 48.6 15.7 2.6 21 19.4 39.4 14.4 15.6 16.Figure 9.6 24.4 44.8 22.2 18.9 42.4 Figure 11.6 8.2 11.8 36.

5 4. With respect to the consumers’ preference for the package size.4 62. Bigger packages were preferred for curd and cheese (3. 500.2 39 56. preferred a package size at 2 litres. 200.9 0. and brand appeared to be not very important.4 51.5 20 10 0 Spring Summer Less Constant Butter Autumn More Winter 5. and 180 gram were the most preferred for the fruit yoghurt.3 4. price and origin of the product were highly ranked by the consumers in the order of importance. taste.5 4. Seasonal consumption patterns on butter 70 60 50 40 30 19.7 64. and 200 gram. Figure 14 displays that nutritive content. the results have shown that majority (84%) of the respondents preferred a milk package size at 1 litre.3 35.9 Butter Concerning the consumers’ evaluation on product features.8 28. a small fraction (about 8%).7 Figure 13. 37 .6 28. product safety.6 57. wrapping.2 4.2 5. while the responses for the remaining proportion were quite diverse.3 65.5 0.8 32. followed by 500 ml which counted at 26%.1 59.Figure 12.4 6. Seasonal consumption patterns on cheese 70 60 50 40 30 20 10 0 Spring Summer Cheese Less Constant More Autumn Winter 4. The consumers’ preference towards package size for cream were 1000. A 1 litre package was the most preferred one for the yoghurt (60%). Package size.4 3. The packages from 250.

were the main product features motivating consumers to purchase foreign dairy products. The package. The consumer’s preference towards foreign dairy products was significantly dependent on the respondent’s location. and visual aspect. whereas butter packages from 500. national patriotism seemed to be another factor influencing consumers’ preference towards domestic dairy products. assortment. This would mean that the households with more family members. Figure 15 shows that television. had tendency to prefer bigger packages for curd. and newspapers. Figure 14. cheese. taste. consumers had a favourable bias towards domestic dairy products (78%). and 200 gram were the most preferred by interviewed respondents. safety. were the media most often used by the respondents to get information about the dairy products. The preference of the newspaper was positively related with the respondent’s 38 . and butter were positively related with the HH size. durability. 250. With respect to mass media preferences. and price were the main product features related to the consumers’ preference for purchase of the domestic dairy products. were from urban areas. and 1 kg). The evaluation of product features in order of importance Product origin Package size Wrapping Brand Price Product safety Taste Nutritive Content 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Unimportant Not very important Important Very important Regarding the preferences of domestic versus foreign dairy products. The preference towards media was significantly associated with the consumer’s education. cheese. It is important to note that preferences for the package size of curd.2. Based on the consumers’ view. Majority of the respondents who preferred foreign dairy products (82%). and butter. Quality. the purchase of domestic dairy products helps development of dairy industry and domestic economy in general. Apart from the product features above cited.

2 is “for the media rarely used”. they prefer dairy products that they were used to consume regularly.education. It means that a media category such as television and radio was most often used by the respondents who had less education. and price of the new dairy products. It has been realized that the respondents aged 18 to 40 had a tendency to prefer more new dairy products and innovation. Majority of the respondents (85%) did not start buying any new dairy product since the last year. The level of the mass media used by the respondents 70 60 50 40 30 20 10 0 Media most rarely Media rarely used Media often used Media most often used used New spapers Flyers Television Radio Note: The variable was measured on scale of 1 to 4. 39 . which means that newspapers tend to be preferred more by the respondents that had higher education. Milk. where 1 is “for the media most rarely used”. They were strongly motivated by curiosity. The respondents aged 60 and older were more conservative. It is important to note that milk and yoghurt are bought previously by the consumers. and 4 is “for the media most often used”. Figure 15. The supermarkets and television were the main sources of the information for the new dairy products. It was mostly a shift from one brand to another. It was a small fraction (15%) of the respondents who started buying new dairy products. The consumers’ habit for the new dairy products was significantly dependent on the HH monthly income. quality. 3 is “for the media often used”. The preferences toward television and radio were negatively associated with the respondent’s education. taste. and fruit yoghurt were the main dairy products that consumers started buying since the last year. The proportion of the respondents that did not prefer new dairy products and innovation was 59:41%. yoghurt.

Table 18.1 Binary Logistic linear Estimated Parameters These parameters are estimated by fitting models.519 Exp (B) 3.278 1.05.367 1.920*** -3.693 3. The next subsection (4.001 40 .001.431 0.631 0.431 0. 2005). Significant contribution of each independent variable to the model is denoted as follows: *P < 0.425 0.474 1.785 Exp (B) 50.346 0. The following subsection describes the parameters estimated by the logistic function for the outcome variable that is categorical with the dichotomy response. Table 19.01.550 0.208 -0.187 23.413 0. Relationship of whether the respondent i buys milk and the predictors included in the equation 1 Variable Constant Place (Rural) B 3. Exp (B) = Indicates the change in odds resulting from a unit change in the predictor.3. based on the predictors in the equation 1.001 SE 0.631 0.800 0.714 0.640*** 0.2) presents the parameters obtained by the multiple linear functions. The values of the parameters are estimated using maximum –likelihood estimation “which selects coefficients that make the observed values most likely to have occurred” (Filed.3.489 15.024 Note: B = Logistic regression coefficient.000 Wald 4. 4. Relationship of whether the respondent i buys yoghurt and the predictors included in the equation 1 Variable Constant Place (Rural) Region (Prishtina) Region (Prizren) Region (Peja) Region (Gjilan) HH income B 1.3 Model Estimation This section provides the parameters estimated by the two statistical techniques.400 2. Wald = Wald statistic (which has a special distribution known as the χ distribution).4. ***P < 0.438 -0.765 Wald 30.338 2.582 0.233* -1.747 0.731*** 2 SE 0. multiple linear function and binary logistic function. **P < 0. SE = Standard error.667 0.194 1.811 0.

107 1.729 Table 21.148 3.698 2.815 27.134 0.999 0.402 0.878 0.001* 0. Relationship of whether the respondent i buys fruit yoghurt and the predictors included in the equation 1 Variable Constant HH size IncomeR B 0.080 0.034 41 .001 0.000 10. Relationship of whether the respondent i buys cream and the predictors included in the equation 1 Variable B SE Wald Exp (B) Constant Place (Rural) Region (Prishtina) Region (Prizren) Region (Peja) Region (Gjilan) Age IncomeR HH size Employment -1.389 0.504 0.324 0.484 0.663 30.235*** 0.647 35.099 2.018 0.003 0.382 0.099 8.714 0.453 Table 22.204 Exp (B) 1.582 1.700*** -0.703 0.031 0.338 1.210 8.191 Wald 1.032 2.357 1.506*** -3.893 14.170** 0.006 0.704 0.857 2.024 -1.001 Table 23.183 0.477 33.725 -1.034 1.Table 20.994 4.693 -1.084 0.586 0. Relationship of whether the respondent i buys curd and the predictors included in the equation 1 Variable B SE Wald Exp (B) Constant Place (Rural) HH income 1.270 0.874 2.844 1.085 0.329 0.547** SE 0.057** -2.897** 1.408 -0.205 4.059 0.393*** 0. Relationship of whether the respondent i buys cheese and the predictors included in the equation 1 Variable B SE Wald Exp (B) Constant Place (Rural) 3.033 0.853 11.003* -0.445 0.359 0.829 0.

446** 0.599 0.247 1.367 Table 25.758 3.436 0.230 Wald 2. Relationship of whether the respondent i fulfils the demand for milk and dairy products and the predictors included in the equation 1 Variable Constant Place (Rural) IncomeR HH size Employment B -0.999 Table 27.074 7.939 13.544 0.020 0.589 0.544 0.000 Wald 0.480 4.245 0.075 0.098 2.055** 0.426 2.734 1.202 2.084 0.884 1.817 0.607 3.069 0.940 Table 26.500** 1.001 * SE 0.261** 0.074 7.020 0.872 5.869 12.417 Exp (B) 0.006*** -0.660 1.854 0.202 2.001* SE 0.416 0.002 0.006 0. Relationship of whether the respondent i buys butter and the predictors included in the equation 1 Variable B SE Wald Exp (B) Constant Place (Rural) -0.758 3.001 42 .770 1.663** SE 0.331 Exp (B) 0.734 -1.112 1.515 0.390 15.416 -0.446** -0.123 -0.107 8.946 1.307 8.172 0.245 0. Relationship of whether the respondent i prefers domestic dairy products and the predictors included in the equation 1 Variable Constant Place (Rural) Age HH size Employment HH income B -0.214*** 0.055** -0.817 0.069 0.131 0.Table 24.808 7.748 0.872 5.000 Wald 0.417 Exp (B) 2.235 0.808 7. Relationship of whether the respondent i prefers foreign dairy products and the predictors included in the equation 1 Variable Constant Place (Rural) Age HH size Employment HH income B 0.123 0.057 0.

**P < 0.044** 0.665 2.002 Wald 9.832 Exp (B) 0.789 Children) + (0. This interpretation is consistent only if the respondent’s age and the average monthly income in the HHi are held constant.897 0.009543 HH income) 3.05. Relationship of whether respondent i prefers new dairy products and the predictors included in the equation 1 Variable Constant Education B -2.298 0.068 Wald 6.Table 28. ***P < 0.2 Multiple linear Estimated Parameters Fluid milk The estimated quantity of milk consumed in litre/month in the HHi was: ˆ Q Milk (l/month) = 14.142litre/month.133 4.329** 0.340 0.111 6.097 1.742*** (R2 = 0. Relationship of whether respondent i started buying new dairy products last year and the predictors included in the equation 1 Variable Constant Education IncomeR B -4.352 + (0.161 Table 29. One child more in the HHi is expected to cause an increase in the fluid milk consumption by 1.732 4. fluid milk consumption increases by 0.996 4.01.482*** (5) Note: values in italics are t-statistics. significant variable in the model is denoted as follows: * P < 0.15) 1.149* SE 0.018 1.105 0. The estimated coefficients in the equation (5) indicated that there was positive relationship between the quantity of milk consumed in the HHi and the three predictors included in the model.142 Age) + (1.261* -0. This interpretation stands only if the number of children in the HHi and the average monthly income in the HHi are held constant.3.789 Exp (B) 0. The results suggest that given a year increase in the respondent’s age. The fitted model predicts 0.004 * SE 1.001.535* 4.789litre/month.009543litre/month 43 .

001.316 HH size) + (0. meaning that explained much more of the variability in the outcome than the HH size.001. 44 .958*** (6) Positive values of the estimated coefficients indicated that there was positive relationship between the quantity of yoghurt consumed in the HHi and two predictors HH size and HH income. though F ratio is 10. This interpretation is consistent only if the HH size is held constant. Yoghurt The estimated quantity of yoghurt consumed in litre/month in the HHi was: ˆ Q Yoghurt (l/month) = 4. for every additional euro in the HH monthly income.767*** (R2 = 0.587 and P < 0. compared to the respondent’s age and the number of children in the HHi.844. The magnitude of the t-statistics showed that the average monthly income in the HHi had greater contribution to the model. The consumption of yoghurt increases by 0.006767litre/month. if the HH size increases by one member. P < 0. Even though the fitted model produces a significant reduction in the residual variance.24) 2.increases in the fluid milk consumption. This interpretation is true only if the respondent’s age and the number of children in the HHi are held constant. for a one euro increase in the HH income.547 + (0.006767 HH income) 3. The magnitude of the t-statistics indicated that the HH income had greater contribution to the model.154* 5. F = 24. The R2 is only 15%.316litre/month increase in the consumption of yoghurt. the coefficient of determination (R2) is only 24%. indicating that the probability of obtaining the value of F by chance was very small. This interpretation is true only if the HH income is held constant. The fitted model in the equation (6) predicts 0.

458 HH size) + .834 2. if the respondent’s education increases by one year.010** 1. P < 0.40) (8) 45 .973 (R2 = 0. As it was expected. This interpretation is consistent only if other predictors in the equation are held constant.706 2.709kg/month.163 Education) + (0.441* (R2 = 0.2.001.Fruit Yoghurt The estimated equation for fruit yoghurt was: ˆ Q Fruit yoghurt (kg/month) = .255*** (0.662** + (0.910 + (0. This interpretation is consistent only if other predictors in the equation are held constant.363 + (0.3.163kg/moth increase in the quantity of fruit yoghurt consumption.30. One child more in the HHi increases fruit yoghurt consumption by 0. Although. There was a significant reduction in the residual variance. This interpretation is true only if other explanatory variables in the fitted model are held constant. The model predicts 0. Cream The estimated equation for cream was: ˆ Q Cream (kg/month) = . R2 = 0. with F = 12. This interpretation stands only if other predictors in the model are held invariable. the fitted model did not explained much of the variability in the outcome by the predictors.560.438 Employment) 1.001119kg/month increases in the fruit yoghurt consumption.30) (7) 1.2. the number of children below 14 years old in the HHi had much more impact than the other predictor variables included in the equation (7).167kg/month.167 HH size) + (0. for a one euro increase in the HH monthly income.001119 HH income) The best fitted model in the equation 7 predicted 0.3.722 6.709 Children) . The increase in the HH size by one member induces fruit yoghurt consumption by 0.113* 1.134 Education) + (0.

This interpretation is true only if other two predictors are held constant. The rate of cream consumption rises by 0. Curd The estimated quantity of curd consumed in kilogram/month in the HHi was: ˆ Q Curd (kg/month) = 0. This estimation is consistent only if two predictors’ education and employment are held constant. The fitted model predicts 0.237. if the respondent’s education increases by one year.520.001. with F = 10. The rate of cream consumption increases by 0.134kg/month. if the HH size increases by on member.458kg/month. the fit of the model produces a significant reduction in the residual variance.682** 2.40 and significant reduction in the residual variance F = 31. curd consumption increases by 0. P < 0.477 Employment) 0.191* (9) The estimated parameters in the equation (9) indicated that there was positive relationship between the quantity of curd consumed in the HHi and three explanatory variables included in the model. curd consumption increases by 0. P < 0. This interpretation is true only if HH size and number of employed members in the HHi are held constant. One more member employed in the HHi.001. The quality of the fit is considered as moderate. the coefficient of determination (R2) was only 19%.164 + (0. One more member in the HHi induces the cream consumption by 0. Although.357* 2. 46 .197 (R2 = 0.169kg/month increases in the curd consumption.19) 2. This interpretation stands only if HH size and number of employed members in the HHi are held constant.438kg/month.0466kg/month. Given a year increase in the respondent’s age. given a one more member employed in the HHi.The estimated parameters in the equation 8 showed that there was positive relationship between the quantity of cream consumed in the HHi and three explanatory variables.477kg/month.169 HH size) + (0. with R2 = 0. This interpretation is true only if the respondent’s age and the HH size are held invariable. This estimation is consistent only if the respondent’s age and number of employed family members are held constant.0466 Age) + (0.

655 + (0. if the number of employed members in the HHi increases by one. Given a year increase in the respondent’s age.467 Employment) 1.001. One more member in the HHi induces cheese consumption by 0.1.Cheese The estimated equation for cheese was: ˆ Q Cheese (kg/month) = 1.221 HH size) + (0. The model predicts an increase in the cheese consumption by 0. This estimation stands only if the respondent’s age and number of employed members in the HHi are held constant. Based on the magnitude of the t-statistics.855 (R2 = 0. This estimation is consistent only if the other two predictors HH size and employment are held invariable. it was clear that the HH size had greater impact and explained more the variability on the cheese consumption.205*** 2.286.26) 2.22) 3.432 Employment) . for every year increase in the respondent’s age.993** (10) Positive values of the estimated coefficients in the equation (10) showed that there was positive relationship between the predictors and the outcome.964*** (11) The fitted model in the equation (11) predicts 0. the number of employed members in the HHi had greater contribution to the model 47 .467 kg/month. P < 0. the fitted model explained only 26% of the variability in the cheese consumption. there was a significant reduction in the residual variance.545* 4. cheese consumption rises by 0.03069 kg/month increase in the butter consumption.153 + (0. Butter The estimated quantity of butter consumed in kilogram/month in the HHi was: ˆ Q Butter (kg/month) = .03274 kg/month.03274 Age) + (0.465 (R2 = 0. with F = 20. This interpretation is true only if other two predictors in the equation (10) are held invariable. From the magnitude of the t-statistics.03069 Age) + (0. Although. This estimation stands only if the number of employed members in the HHi is held constant.0.084** 4.221 kg/month.

One more member in the HHi increases the expenditures on yoghurt by 0.052 + (0.108* 4. if the average monthly income in the HHi rises by one euro. with F = 15. This estimation is consistent only if the HH size and average monthly income in the HHi are held constant. there was a significant reduction in the residual variance. The model predicts 0.584*** (13) Based on the fitted model in the equation (13) monthly expenditures on yoghurt in the HHi.327 Education) + (0.001.407 (R2 = 0. increase by 0.298 48 . P < 0. The variability in the butter consumption explained by the predictors was only 22%. with R2 = 0.11) 4.001 Expenditures on yoghurt The estimated expenditure on yoghurt in euro/month in the HHi was: ˆ E Yoghurt (euro/month) = 1.005043 HH income) 0. However. This interpretation is consistent only if the respondent’s age is held constant.11.007594 euro/month increases on the milk expenditures.327 euro/month given one year increase in the respondent’s education.911.810.298 HH size) + (0. Even though the quality of the fit is not very good.535*** (R2 = 0. the model produces a significant reduction in the residual variance. P < 0. Expenditures on milk The estimated expenditure on milk in euro/month in the HHi was: ˆ E Milk (euro/month) = 16.compared to the respondent’s age.789 2.19) 1. increases butter consumption by 0. F = 21.007594 HH income) 13.432 kg/month.513 + (0.670*** (12) Positive value of the estimated coefficient in the equation (12) indicates that there was positive relationship between the average monthly income in the HHi and monthly expenditures on milk. One more member employed in the HHi.

P < 0. Monthly expenditure in the HHi on fruit yoghurt is expected to increase by 0.1. This estimation is true only if the respondent’s education and the HH size are held constant. However. holding respondent’s education and HH income constant. the fitted model produced a significant reduction in the residual variance. P < 0.euro/month. with F = 22.138* 5. The expenditures on yoghurt increases by 0. holding number of children in the HHi and HH income constant.303 Education) + (1. given a one year increase in the education level of respondent i.563 2.616. per each euro increase in the HH income.472 Children) . One child more in the HHi increases expenditure on fruit yoghurt by 1. This interpretation is true only if the respondent’s education and the HH income are held constant.001. The magnitude of the t-statistics indicates that the HH income had the highest contribution to the fitted model.005043 euro/month given one additional euro in the HH income.996*** + (0. As it was expected the number of children in the HHi had significant contribution to the fitted model.003348.740.36) (14) 4.167 + (0. Expenditures on fruit yoghurt The estimated expenditure on fruit yoghurt in euro/month in the HHi was: ˆ E Fruit yoghurt (euro/month) = . 49 .001. The fitted model produces a significant reduction in the residual variance.066*** (R2 = 0. Even though. holding number of children in the HHi and respondent’s education constant.303 euro/month expenditure increase on fruit yoghurt in the HHi.003348 HH income) The fitted model in the equation (14) predicted 0. with F = 12.3.472 euro/month. The magnitude of the t-statistics showed that the average monthly income in the HHi had greater impact to the model compared to other predictors in the equation (13). the variability on monthly fruit yoghurt expenditures explained by the predictors was 36%.

957** (R2 = 0. This interpretation is true only if the respondent’s age and the HH size are held constant. This interpretation stands only if the HH size and the number of employed family members are held constant.3.193* 1.05923 Age) + (0.745** (15) The estimation results indicate that there was a positive relationship of HH monthly expenditures on cream consumption with the HH size and number of employed family members.950 euro/month.077. The fitted model produces a significant reduction in the residual variance. Expenditures on curd The estimated expenditure on curd in euro/month in the HHi was: ˆ E Curd (euro/month) = 1. One more member employed in the HHi increases monthly expenditures on cream consumption by 1.898*** 2.Expenditures on cream The estimated expenditure on cream in euro/month in the HHi was: ˆ E Cream (euro/month) = .797 euro/month increase on the curd expenditures if the number of employed family members increases by one.349 Employment) .2. with F =8. holding other predictors in the equation (16) constant. 50 .696 (R2 = 0. with F = 48.05923 euro/month increase on curd expenditure as the respondent’s age increases by one year.979. The fitted model produces a significant reduction in the residual variance.349 euro/month.797 Employment) 0.290 HH size) + (0.065 + (0.001. An increase of the HH size by one member increases HH monthly expenditures on cream consumption by 0. The model predicts 0. The expenditure on curd increases by 0.950 HH size) + (1.41) 5.290 euro/month if the HH size increases by one member.287 + (0. P < 0. holding the number of employed family members constant.990* (16) The fitted model in the equation (16) predicted 0. This interpretation is true only if HH size is held constant.001.15) 1. P < 0.852 2.

The fitted model produces a significant reduction in the residual variance.846 4. holding HH size and the number of children in the HHi constant. with F = 18. The expenditures on cheese decrease by 0. This interpretation stands only if respondent’s age is held constant.920 HH size) – (0.920 euro/month increase on the cheese expenditure if the HH size increases by one member.2. Expenditures on butter The estimated expenditure on butter in euro/month in the HHi was: ˆ E Butter (euro/month) = .941 Children) + (0.792.005169 euro/month increase on the cheese expenditure if the HH income increases by one euro. The fitted model produces a significant reduction in the residual variance.599 (R2 = 0. The magnitude of the t-statistics indicates that the number of employed family members had highly significant contribution to the fitted model.973 euro/month if the number of employed family members increases by one.005169 HH income) 6.28) 2. P < 0.175*** .09451euro/month increase on the butter expenditure if the respondent’s age increases by one year.1. with F = 21.001.611* 6.09451 Age) + (1.Expenditures on cheese The estimated expenditure on cheese in euro/month in the HHi was: ˆ E Cheese (euro/month) = 7. The expenditure on butter increases by 1.001.24) 4.941 euro/month if the number of children in the HHi increases by one. The model predicts 0. 51 .227*** (18) The model in the equation (18) predicts 0. P < 0.558.973 Employment) .1. holding number of children in the HHi and HH income constant. This interpretation is true only if the HH size and the HH income are held constant.273*** (R2 = 0.773 + (0.685*** (17) The fitted model in the equation (17) predicted 0.600 + (0. holding number of employed family members in the HHi constant.

The total monthly expenditures on milk and other dairy products increase by 1. holding other predictors in the equation (19) constant.291 euro/month increase in total monthly expenditures on milk and dairy products if the respondent’s age increases by one year. with F = 32.Total monthly expenditures on milk and other dairy products The estimated total monthly expenditure on milk and other dairy products in euro/month in the HHi was: ˆ T = 12.02090 HH income) 1. The fitted model produces a significant reduction in the residual variance.220 + (0. 52 .091 euro/month.091 Employment) + (0. The magnitude of the t-statistics indicates that the HH income had the highest contribution to the fitted model.944** 2. holding other predictors in the equation (19) constant.291 Age) + (1. The increase number of employed family members increases total monthly expenditures on milk and other dairy products by 6.02090 euro/month increase in the total monthly expenditures on milk and other dairy products if the HH income increases by one euro.823 (R2 = 0.051* 2.883** 4.757*** (19) The fitted model in the equation (19) predicted 0. This interpretation stands only if other predictors in the equation (19) are held constant.001. P < 0. The model predicts 0.691 euro/month if the HH size increases by one member.691 HH size) + (6. number of employed family members and the HH income constant.787. holding HH size.41) 2.

Product attributes such as quality.CHAPTER V 5. The consumer’s preference towards new dairy products and innovation was dependent on his/her 53 . The consumer’s preference towards the package size was positively associated with the HH size. Milk. The consumption of milk and butter was slightly higher during the winter months. durability. taste. Supermarkets and grocery stores were the most preferred market places by the consumers when buying milk and other dairy products. The country of origin influenced the consumers’ preferences towards locally produced dairy products. Respondent’s location had significant impact on the preferences of domestic versus foreign dairy products. assortment. safety. and price were the main features motivating consumers to purchase domestic dairy products. The consumers’ demand for milk and other dairy products was quite stable throughout the year. Women’s role in the decisions process was mainly as influencers and deciders of the product choice. Men had much more buying power compared to women. curd. yoghurt. Apart from product life. Smaller packages were predominantly more preferred for fruit yoghurt and butter. cream. The frequency of buying dairy products was associated with the durability of the product. other product features such as package. and cheese were the main dairy products consumed by majority of the Kosovo consumers. According to the consumers’ view. Conclusions The results of this study indicate that milk and other dairy products stand as regular staple food to most of the Kosovo households. yoghurt. Kosovo consumers preferred bigger packages for curd and cheese. Men’s role in the decisions process for milk and other dairy products was mainly as buyers. and the visual aspect were seen as disadvantage of the domestic compared to the foreign dairy products. Dairy products with the shorter shelf life such as milk. The consumer’s preference towards market place was significantly dependent on demographic and socioeconomic household characteristics (see Table 30). and fruit yoghurt were bought more frequently by the consumers compared to those with longer shelf life. while yoghurt and fruit yoghurt were more preferred during the summer season. Majority of the Kosovo consumers had favourable bias toward dairy products. other demographic and socioeconomic factors had significantly impact on the frequencies of buying milk and other dairy products (see Table 31).

and the origin of product were significantly dependent on demographic and socioeconomic factors (see Table 32). and monthly income. The household size was an important variable almost for all dairy products. price and the origin of dairy products were most highly ranked by the Kosovo consumers. cream. The effect of number of children in the household was highly significant in explaining the variation in milk and fruit yoghurt consumption. and curd. package size. brand. The probability of buying these dairy products decreases as the number of family members increases. Education was a positive determinant factor of whether respondents preferred new dairy products and innovation. yoghurt. suggesting a trend toward increased consumption of such products as the household income rises. cream. Income was a significant variable of whether respondents buy fruit yoghurt. curd. The consumers’ attitudes toward product features such as nutritive content. taste. The location of the respondents (rural or urban) was an important variable of whether the respondents buy milk and other dairy products. product safety. The study has proved that households with lower monthly income and more than five family members were less able to meet their needs for milk and other dairy products. Respondent’s location and age were important variables of whether respondents prefer domestic dairy products. yoghurt. The odds ratio for fulfilling the demand for milk and other dairy products decreases as the HH size increases. It suggests that an increased 54 .characteristics such as age. Respondent’s monthly income and number of employed family members were significant variables of whether respondents fulfil their demand for milk and other dairy products. It was also proved that number of family members employed had a significant positive effect of whether respondents buy cream. and quite significant for cream and cheese consumption. and cheese compared to the urban households. taste. Household size was a significant variable of whether respondents buy fruit yoghurt and cream. price. It was proved that rural households buy significantly less milk. The probability of preferring domestic dairy products increases as the respondent’s age increases. wrapping. Respondents from rural areas significantly preferred more domestic dairy products. and fruit yoghurt consumption. cream. Respondents with higher monthly income were more willing to try new dairy products that come to the market. The odds ratio of buying yoghurt. Among the product attributes nutritive content. The odds ratio of preferring domestic dairy products decreases as the HH size and HH income increases. The household income was a highly significant variable in explaining the variation on milk. product safety. and curd increases as the respondent’s and household’s income increase.

fruit yoghurt and cheese. and butter consumption. and butter consumption as the employment rate increases.69 euro/month.6% of the total average household monthly income.39 kg/month. An increase in the household size significantly increases household expenditures on yoghurt. and butter. cream. It suggests that increase of income will significantly increase expenditures on milk.17 euro/month or 9. Income was a highly significant variable in determining the household expenditures on milk. The number of family members employed was a significant variable in explaining the variation on curd.37 euro/month. yoghurt 10. cheese.number of children in the household will be a determining factor in the increasing demand for milk and fruit yoghurt. The average quantity of milk consumed by the HHs was estimated to be 26. and the butter 1. cheese.93 kg/month.51 kg/month. Respondent’s age was significant for curd. fruit yoghurt 2. curd.08 euro/month. The average quantity consumed by the HHs for the other dairy products was estimated as follows: yoghurt 10. curd 6. and cheese.11 euro/month. and the butter 5. cream 6. curd 3. cream 2. The estimation predicts an increase on the curd. cheese. cheese 4.85 euro/month.34 kg/month.5 l/month. and butter consumption. The total average monthly expenditure by the HHs on milk and other dairy products was estimated to be 56. 55 . Changes in the respondent’s age significantly affect curd.67 kg/month. fruit yoghurt 5. yoghurt. cheese.30 l/month.02 euro/month.69 euro/month. cheese 14. yoghurt. The average of monthly expenditures by the HHs on milk and other dairy products were estimated as follows: expenditures on milk 19. and fruit yoghurt.

44** 27.088 0.445 20.082 0.115 0.62* 0.219 33. Level of significance is denoted as follows: *P < 0.01.126 0.197 1.108 0.112 0.129 20.8*** Cramer’s V χ2 1.479 11.116 0.211 0.82* 8.747 28.208 0.223 0.082 0.309 0.Table 30.112 EmploymentR 0.178 0.003 0.187 0.749 * Cramer’s V χ2 0.23** 24.160 0.046 0.041* 24.082 1.30* 0. **P < 0.573 0.094 0.17 0.2** 0.1 ** Cramer’s V χ2 3.545 17.115 0.154 Note: Market place where consumer use to buy milk and other dairy products: by farmer.049 0.437 21.350 13.205 0.795 Cramer’s V χ2 8.138 0.202 0. Test of independence between the market places and demographic and socioeconomic characteristics Product Milk Yoghurt Fruit Yoghurt Variable Place Region Age Education Cream Curd Cheese Butter χ2 1.001.136 0.42* 6.001 8.73 13.18* 0.536 8.090 0.757 0.103 0.389 1.075 0. ***P < 0.102 0.806 IncomeR HH size Children Employment HH income 12.77* 0.7*** 41.289 5.149 0.901 37.50 Cramer’s V 0.3** 0.165 0.181 15. Cramer’s V measure the strength of association between two categorical variables.632 19.134 0.135 11.177 0.191 0.861 7.079 0.156 25.176 0. street vendor.42** Cramer’s V χ2 1.586* 18. green market.981 24.062 10. grocery store.7 * 17.089 0.663 17.188 0.331 23.097 0.148 2.718 14.117 0.7*** 5.081 12.193 19.18 0.199 0.002 0.098 0.423 17.163 15.902* 1.282 7.05.090 0.687* 1.139 0.096 0.805* 0. supermarket.161 0.154 0.612 13.167 0.720 10.163 0.612* 19.134 14.341 19.053 0.119 0.10 0.53 15.992 21.3** 5.76 39.196 30.171 0.49 13.139 0.905 16.144 0.76 5.073 0.55 30.150 0. 56 .065 0.307 4.190 0.159 3.50 19.741 Cramer’s V χ2 0.

105 0.683 23.143 0.20 0.172 0.922 6.135 0.169 0.4 ** Cramer’s V χ2 7.136 0.144 0.825 68.154 0.135 0.148 0.020 0.821 25.196 14.810 5.101 0.3 *** Cramer’s V χ2 0.096 0.8** 0. Test of independence between the frequencies of buying milk.108 0.917 4.174 0.208 13.106 0.01.643 23.126 0. once a week.571 3.029 6.7* 7.131 0.096 0.117 0.152 0.55 11.108 0.139 0.196 0.125 0.227 0.080 0. twice a week.001.672 14.74 EmploymentR 1.156 Note: Frequencies were given as follows: every day.144 0.147 0.183 0.116 0.093 0.096 15.181 0.094 0.862 14.786 3.069 0.100 12.593 4.268 8.05.691 9.822 9.234 0.163 0.082 0.227 0.36 42 * Cramer’ sV χ2 4.119 0.155 0.143 0.839 9.067 0. twice a month.150 0.126 0. dairy products and demographic and socioeconomic characteristics Product Milk Yoghurt Fruit Yoghurt Variable Place Region Age Education Cream Curd Cheese Butter χ2 6.529 8.Table 31.121 0.142 0.482 8.130 0.015 29.206 9.119 0.133 0.792 27.030 0.105 0.601 13.122 13.108 0.719 8.542 6.087 0.881 8.118 6.58** 21.088 11. once a month.207 13.113 0.875 20.998 0.110 4.22 7.026 4. 15.149 0.356 11.506 0.244* 13.189 32.872 7.185 0.240 0.697 22.144 0.125 23.785 12.422 2.755 32.60 4.678 Cramer’s V χ2 4.068 8.523 17.917 IncomeR HH size Children Employment HH income 0.641 13.076 15.833 * Cramer’s V χ2 10. ***P < 0.839 *** 13.091 0.144 0.064 0.541 15.112 0.729 * Cramer’s V χ2 8.511 13. **P < 57 .152 0. Level of significance is denoted as follows: *P < 0.160 0.978 42 *** Cramer’s V 0.134 0.

448 3.197 0. 3 is “important”.240 2.4* 0.108 0.108 0.094 1. ***P < 0. where 1 is “unimportant”.8** 0.3** 0.125 0.231 0. Test of independence between evaluation of product attributes and demographic and socioeconomic characteristics Product attribute Variable Place Region Age Education EmploymentR IncomeR HH size Children Employment HH income 1 2 3 4 5 6 7 8 χ2 5.12 0.108 0.80 29.12 0.19 10.080 0.80 4.110 0.133 0.26 5.082 0.4 16.001.31 0.0 16.104 0.715 14.077 0.309 16.82 1.086 0.5* 0.163 0. 7 = Package size.087 5.136 0.92 4.109 0. 4 = Prices.130 35*** 17. **P< 0.829 6.432 5.093 0.052 0.071 0.137 7.106 0.179 0.83 13.991 0.325 Cramer’ sV χ2 14 ** Cramer’s V χ2 7.035 0.091 0.7** 7.74 Cramer’s V χ2 0. 2 = Taste.102 14.155* 0.083 30.22 8.127 0.88 0.211 5.23 0.174 0.864 5.136 3.011 0.355 12.451 41.145 Note: The variable was measured in order of importance.087 0.103 0.161 0.108 0.043 0.188 0. on scale of 1 to 4.01.062 0.40 5.684 5. Level of significance is denoted as follows: * P< 0.147 13. 4 is “ very important”.6* 2.677 Cramer ’s V χ2 Cramer’s V χ2 4. 2 is “not very important”.078 9.058 19. 8 = Product origin.105 0.082 0.2 12.558 88*** 0.048 4.121 0.042 0.35 0.5*** 12.456 11.12 0.115 30.Table 32.3 13** 44*** 8.1** 0.084 2.8*** 3.094 0.345 36.457 10.0* 61*** 0.9 13.123 0.085 0.51 0.14 36*** 12.067 8.06 14.0 17.010 7.082 0.46 0.129 0.190 0.184 0.115 0.127 6. 5 = Brand.163 0.276 24.103 0. 6 = Wrapping.586 7.136 0.161 8.082 0.056 0.177 0.103 0.101 0.0*** Cramer’s V χ2 4.91 Cramer’s V 0. Numbers stand for 1= Nutritive content.382 13.5 23** 2.198 12.2 8.098 0. 58 .112 0. 3 = Product safety.085 0.146 0.572 4.33 0.8* 0.118 0.066 0.174 0.468 Cramer’s V χ2 6.040 0.840 7.177 7.29 4.05.435 3.094 0.

K. Pearson Education. (2005) Consumer behaviour at the Slovak dairy market. K. (2001) Applied Regression & Analysis of Variance. F. Thierry and Koopman-Iwerna. AGRIC. KCBS (2008) Dairy Market Assessment Study. Ph. and Nagyová. USAID. Z. Thousand Oaks. Slovak Republic. A. S. Contract No. Oxford University Press. (2004) Social Research Methods. 2005 (8): 362-368. ‘Quoted in:’ Kotler. Glantz. Slovak University of Agriculture. John Wiley & Sons. 51. Nitra. Inc. 141-142. R. Motivation and Satisfaction. ( 2005) Discovering Statistics Using SPSS. Kosovo Cluster and Business Support Project Kosovo. Kosovo. 2nd ed. pp. London. Inc. Bryman. 59 . New Jersey. Upper Saddle River. 2nd ed. McGraw-Hill. (1983) Putting the Last First. (2007) Agriculture Public Expenditure Review. 2nd ed. ECON. Chambers. Herzberg. 2nd ed. SAGE Publications Ltd. Inc. AFP-I-00-03-00030-00. B. New Jersey. Ľ. Kapsdorferová. F. Longman Inc. and Keller.LIST OF REFERENCES Agresti. 12th ed. United States of America. (2006) Marketing Management. 07458. Draft 2. (2007) An Introduction to Categorical Data Analysis. – CZECH. (1966) Work and the Nature of Man (Cleveland: William Collins). New York. A. New Delhi. TO #800. and Slinker. United States of America. Andy. Fock. University of Sussex.

Maslow. 12th ed. and Selimi.Kotler. Kosovo. New Jersey. 2. 07458. Agriculture and Environment Statistics. Pearson Education. and Keller. Ph. K. Ph. F. Inc. The Rural Development Context of Kosovo. Kosovo. M. ‘Quoted in:’ Kotler. Ministry of Agriculture Forestry and Rural Development. A. Ministry of Public Services. pp. Kotler. Kosovo. (1954) Motivation and Personality. Kosovo. Series 2. Upper Saddle River. (2006) Marketing Management. Harper and Row. New York. SOK. Ph. 60 . K. Upper Saddle River. Inc. 80-106. Nushi. (2003) Kosovo Green Book. Kosovo. 07458. (2009a) Women and Men in Kosovo. Chapter 1. (2009) An Assessment of the Competitiveness of the Dairy Food Chain in Kosovo. Ministry of Public Services. Ministry of Agriculture (2006) Agriculture and Rural Development Plan 2007-2013. Kosovo. SOK. AgriPolicy Enlargement Network for Agripolicy Analysis.Agriculture and Rural Sustainable Development Strategy in Kosovo (in Albanian). Kosovo. Pearson Education. New Jersey. Study 1. SOK. SOK. University of Phoenix. (2009b) Kosovo in Figures 2008. Ministry of Public Services. (2006) Marketing Management. MAFRD. (2007) Living Standard Statistics. 12th ed. (2006) Agriculture Household Survey 2005. and Millennium Edition. and Keller. (2002) Marketing Management. Ministry of Public Services. United States of America.

Oldham, P. Bajraktari, E. and Wittkowsky, A. (2006) Study of Competitiveness with Imports. The Kosovo Dairy Sector. Economic Policy Office EU Pillar – UNMIK Kosovo.

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APPENDIX
Appendix A1 / Questionnaire

No. of questionnaire ______ Date ______________ Phone no.______________ Place: _______________ Rural ____ Urban ____ Region_________________

Basic information about respondent Gender F_____ M______ Age ______ Formal education (in years) ______ Profession ________________ Employed Yes______ No_____ Average monthly income (per respondent) _________€ Number of family members_______ Number of children aged 14 and younger ________ Employed number of family members_______ Average family income per month ________ € 1. Do you or your family members buy milk or other dairy products? Response/Product Fluid Yoghurt Fruit Cream Curd milk yoghurt Yes No If no, due to ________________________________________

Cheese

Butter

If yes, 2. Who usually buys milk and other dairy products in your family? Man_____ Woman_____ Man & Woman_____ Children_____

3. Who decides what kind of dairy products to buy? Man____ Woman ______ Man & Woman ______ Children _____

4. Where do you usually buy milk and dairy products given in table below? Cream Curd Cheese Location/Product Fluid Yoghurt Fruit milk yoghurt By farmer Street vendor Green market Grocery store Supermarket Other

Butter

62

5. How often do you usually buy the following products? Fruit Cream Frequencies/Product Fluid Yoghurt milk yoghurt Every day Twice a week Once a week Twice a month Once a month

Curd Cheese Butter

6. What is the average of quantity purchased and expenditures within a month for the following products? Quantity in Kg, l, and expenditures in € / Product Monthly quantity purchased per product Monthly expenditures per product Fluid milk Yoghurt Fruit yoghurt Cream Curd Cheese Butter

7. Total monthly expenditure on milk and dairy products (within family) _______ € 8. Are you fulfilling demand for milk and other dairy products with monthly income available? Yes ______ No_______

9. Do you personally consume the following products? Response/product Fluid milk Yes No 10. If no, due to: Motive/product Do not like the taste Can not afford Due to allergy Other Yoghurt Fruit yoghurt Cream Curd Cheese Butter

Fluid milk

Yoghurt

Fruit yoghurt

Cream

Curd

Cheese

Butter

63

How do you appraise attributes given below to milk and other dairy products? Attribute/Appraisal Very important Important Not very important Unimportant Nutritive content Taste Product safety Price Brand Wrapping Package size Product origin Other 13. with 1 when you do not give attention to 5 when you give the highest attention)? a) Expired date _____ b) Product content (in package) _____ c) Producer name_____ d) Origin of the product______ e) Other______ 15. do you prefer and buy more? Domestic dairy products_____ Foreign dairy products_____ 64 . What is your preference for the package size for the following products? Package size / Product Package size in l/gr Fluid milk Yoghurt Fruit yoghurt Cream Curd Cheese Butter 14. how do you give attention on: (rank from 1 to 5. by 2 when you consume on a regular basis and by 3 when you consume more. As a consumer of the dairy products. Regarding seasonality. When you buy milk and other dairy products.11. when do you consume less/ on a regular basis/ or more the following products? Rank from 1 to 3: by 1 when you consume less. Yoghurt Fruit Cream Curd Cheese Butter Season/Product Fluid milk yoghurt Spring Summer Autumn Winter 12.

did you start buying any new dairy product which you did not buy it before? Yes_____ No_____ If yes. During the last year. What are the main reasons preferring/not preferring domestic/imported products? Origin of the product Domestic Imported Preferences Yes / No Yes / No (< Quality) or (> Quality) (<Safety) or (> Safety) (< Price) or (> Price) (< Packing) or (> Packing) (< Taste) or (> Taste) (< Durability) or (> Durability) (< Assortment) or (> Assortment) (<Visual aspect) or ( > Visual aspect) (<Advertisement) or( >Advertisement) Other 17.16. 20. with 1 for source most rarely used. Do you prefer new dairy products and innovation? Yes______ No_____ 19. 2 for source rarely used. How do you usually get information about dairy products (rank by 1 to 4. How did you get information about this new product? _____________________________________________________________________ 65 . What did you find attractive about this product? ____________________________________________________________________ 22. Which of the dairy products: __________________________________________ 21. 3 source often used and with 4 for source most often used? Newspapers____ Flyers_____ TV_______ Radio_____ Other_____ 18.

64M 46F. 9M 7F.8M 5F. 63M 46F. 13M 9F. 4M 6F. 4M 3F.Appendix A2 / Tables Table 1.16M 11F.13M 11F. 37M n=385 Note: Given characters F and M denote respondent’s gender: F for female and M for male Table 2. 39M 28F.31M Over 60 3F.11M 8F.6M Total 65F. 3M 2F.3M 16F. 11M 10F. 10M Prizreni 13F.3M Peja 14F. 6M Peja 13F.6M Prizreni 12F.27M 42F. 10M 8F.50M 40F. 39M 51 .50 Prishtina 16F.43M 30F.36M n=385 66 .3M 3F.60 Prishtina 16F. 12M 9F. 8M Gjilani 12F.11M 10F. 7M 6F.39M 38F. 16M 11F.6M 3F. 7M 8F. 6M 30F.15M Total 48F. 3M 3F.13M 6F.26M Over 60 3F.4M Mitrovica 9F. 8M Mitrovica 9F.7M Gjilani 14F. 46M 38F. 9M 6F. 10M 8F. 9M 7F.2M 4F. 7M 6F. 41M 37F.50 51 . 8M 6F. 2M 3F. 49M 38F.15M 10F. The feasibility stratification of the sample size Region / Age 18 – 30 31 – 40 41 .48M 34F.16M Total 48F.60 8F.2M 3F. 6M 4F. 13M 10F. 28M 40F.6M 5F. 9M 7F.6M 4F. 3M 14F.9M 8F. 9M 8F.8M 3F. The targeted stratification of the sample size Region / Age 18 – 30 31 – 40 41 .37M 25F. 7M Total 63F.

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