Research Methods KESIMPULAN DAN PENERAPAN A.

170 2002, the results of this study are also not able to reveal the role of consumer concerns in the agricultural environment on consumer preferences, but it is believed that this factor has an important role. Hedonic analysis of the organic rice showed that grain head, chalky grain, texture, and sweetness are the factors that affected to the price of organic rice. Result of this study supports to the previous research conducted in Indonesia, Philippines, and Thailand that consumers give a higher price for rice with higher number of grains head and less number of foreign matter Damardjati and Oka, 1992; Abansi et al., 1992; Sriswasdilek et al., 1992. Result of this study proves that a higher valuation of head grain of organic rice grain, texture and sweetness of organic rice let a higher price. This occurs because the grain head, texture and sweetness are expected characteristics. The results also found that the increase in chalky grain let a lower price, because chalky grain is an unexpected characteristic. The structure of hedonic price function in Surakarta is difference to Sragen due to the variable of grain head, chalky grain, texture, sweetness, and intercept. The structure of hedonic price function in Semarang is difference to Sragen due to the variable of chalky grain, sweetness, and intercept. Demand function analysis shows that the price of organic rice, the familial reference, collegial reference, neighborhood reference and consumer preference are factors that significantly affect to the demand for organic rice. Organic rice price has a positive effect on demand, suggests that consumer uses price as an indication of quality. This result is consistent with the theory developed by Agarwal and Teas 2001 which states that an increase in prices caused by the quality will lead to increase the demand. 171

G. Conclusion and Application

1. Conclusion

a. Perceptions of organic farming, organic rice purity and family income are factors that influence to consumer preference towards organic rice. Consumers of Surakarta and Semarang have an higher preference than the consumers of Sragen. b. Organic rice that is sold to Sragen, Surakarta and Semarang is assessed as having a good quality by consumer due to the number of grains head, less chalky grain, brown grain and foreign matter. Due to the quality of the cooked rice, the organic rice is assessed as having good characteristic of texture and shelf life. Increase in the number of grains head, texture and sweetness lead to increase the price of organic rice, while a decrease in the number of chalky grain lead to increase the price of organic rice. c. Structure of the hedonic price function in Sragen is difference to Surakarta and Semarang. Price response to the changes in head grain of Surakarta consumers is higher than Sragen, but to the change of chalky grain, texture and sweetness is lower. Price response to the change of chalky grain and sweetness of Semarang consumer is lower than Sragen. Price of organic rice in Surakarta and Semarang is higher than in Sragen at the same quality level. d. Most consumers meet the family need of rice with organic rice, and some others with a mixture of organic and non-organic rice. Consumers tend to buy over and over on the same of type of rice, the amount and the place of purchase. e. Organic rice demand increase along to the increase on price due to the increase on the quality of organic rice. Higher levels of education lead to increase the demand for organic rice in Surakarta, but not in Sragen, Semarang, total. Consumer demand for organic rice which has a familial reference, collegial