CONSUMER PERCEPTION AND WILLINGNESS-TO-PAY FOR FUNCTIONAL DAIRY PRODUCTS: A2 MILK AND PROBIOTIC YOGURT.

Abstract

Functional dairy foods such as A2 milk and probiotic yogurt are fast-growing segments of the Indian dairy sector yet evidence on consumer awareness, preference drivers, willingness to pay and adoption barriers is limited outside metropolitan markets. This study surveyed 275 consumers with a through structured interview schedule by using the purposive sampling technique from major retail stores, dairy parlours and unregulated milk societies. Awareness was high for A2 milk (100%), functional dairy products (74.2%) and probiotic yogurt (69.8%), and was associated with age, gender and education (p < 0.05) but not occupation or income. Factor analysis extracted five reliable factors (alpha = 0.940); Value for Money and Sensory and Health Quality were the strongest predictors in regression (R2 = 0.449, p < 0.001), while brand trust and promotion were non-significant. Conjoint analysis showed willingness to pay a premium of Rs 85.15 for a popular brand and Rs 6.24 for fruit-flavoured yogurt over plain Greek yogurt. Garrett's ranking identified high price and low awareness of health benefits as the foremost constraints, with price reduction and awareness campaigns as preferred remedies. Findings indicate latent demand constrained by price and information, guiding pricing and communication strategy in this market.