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benefit indicate the products ability to meet basic needs, ii the sensory benefit feeling positive experiences resulting from sensory such as texture, flavor, aroma,
color, sharpness, etc, and iii symbolic benefit associated with improved self- image and self-esteem and a manifestation of the life style.
2. Relationship quality goods at a price
Agarwal and Teas 2001 developed a functional relationship between prices and value that consumer perceived by stating that the price has a function as
a hint of quality and monetary sacrifice. Price is seen as a consequence of the quality, because of the high quality products generally have higher production costs
and a tight competition will designate the high prices products but have a low quality. Higher quality goods will reduce usability risks that increase the value that
consumer perceived, which in turn increases the amount of consumption. However, just as the economics literature, price is a monetary sacrifice for
consumers. The monetary sacrifice along with the sacrifice of time that consumer spent to perform the selection of products will increase financial risk for
consumers, which in turn lowers the value that consumer perceived. According to Agarwal and Teas 2001, the perceived quality will reduce financial risks. Thus
the effect of price on value that consumer perceived is the end result of the effect of price on quality and sacrifice that consumer perceived.
3. Milled rice quality standards in Indonesia
Grain quality is multidimensional, including the physical characteristics that affect to the appearance and chemical characteristics that affect to the quality
of the cooking. Grain quality is determined by the variety, the conditions of production and harvesting, post harvest handling techniques, milling and
marketing. Quality rice has a general requirement the pest and disease free, free of moldy odor and other odor, free of bran, and are free of the harmful chemicals.
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4. Hedonic price function in food products
The hedonic pricing method is a useful approach to assess the relationship of price and quality of a product. This method is important to analyze the
relationship between the prices and the product characteristics. From this analysis it can be seen the implicit price of a characteristic by reduce the regression function
of the attributes of a product. In general, the price of an item depends on the inherent characteristics of the goods Rosen, 1974.
Rice hedonic price analysis shows different results of many country, although there are some similarities. In general, consumers in Indonesia, the
Philippines and Thailand provide a higher price for higher grain heads and less foreign matter. Indonesia and Thailand rice consumers provide a higher price on
rice that is more translucent, while the price of rice in the Philippines are not affected by the translucent. Related to color rice, Indonesian consumers give a
higher price at a more white rice, while prices in the Philippines and Thailand were not affected by color. The opposite occurs in the hedonic price of amylose content,
Indonesian consumers give a higher price on rice with a higher amylose content, while the Philippines and Thailand consumers on rice with lower amylose content
Damardjati and Oka, 1992; Abansi et al ., 1992; Sriswasdilek et al., 1992.
5. Determinant of consumer preference to food
In general, consumers food preference is influenced by socioeconomic factors, demographic factors, and factors awareness and consumer awareness of
nutrition. The study shows that income Rimal, 2002 and education level Rimal, 2002; Storstad and Bjorkhaug, 2003 has a positive effect on consumer preferences
on meatless meals. Rimal 2002 stated that households of different states have different preferences on meatless meals, while the demographic factor that
influences the consumer preference is the composition of the family. This study
