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results also showed that consumer concerns on food content of a destructive nature cholesterol for instance has more influence on consumer preference than the
concern for the useful content of the food vitamins for example.
6. Consumer demand for food
Demand function is a relationship between the amount of goods that consumers are willing to buy at a particular price range by maintaining other
factors are fixed Tomek and Robinson, 1990. In general, consumer demand for goods or services are determined by several important factors, i.e. the average
income, population size, price and availability of similar items, individual tastes and some special factors Samuelson and Nordhaus, 1992. Income is a major
factor determining demand. Agbola 2003 found that an increase in income will increase the demand for meat and fish, grains, dairy products, fruits, vegetables and
other foods with different proportions. A similar thing happened on the demand of grain products, fruits and vegetables, dairy products, meat and alternatives, and
other food in Canada Ricciuto et al., 2006 and also the demand for meat in Malaysia Baharumshah and Muhamed, 1993.
D. Hypothesis
The hypothesis of the study is stated as follows. 1.
Factors which determine consumer preferences included the perceptions of organic farming, organic rice purity, environmental concern, family income and
the location of the consumer. All of these factors have positive influence on consumer preferences.
2. The price of organic rice is influenced by grain heads, grain color, chalky grain,
brown grain, foreign matter, texture, aromas, volume of cooked rice, sweetness, and shelf life.
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3. Structure of the hedonic price function is difference between production centers
and centers of marketing. 3.a. Organic rice prices of centers of marketing is higher than in the central of
production. 3.b. Hedonic price function area of centers of marketing is more sensitive due to
the changes in the characteristics than in the centers of production. 4.
Consumer demand for organic rice is affected by own price, the price of non- organic rice, family income, education of housewife, familial reference, collegial
reference, neighborhood reference, and consumer preference. 5.
Structure of consumer demand function for organic rice is difference among the consumers of production centers and the consumer of the marketing centers.
5.a. Organic rice demand in marketing centers is higher than in production centers.
5.b. Organic rice demand in marketing centers is more sensitive due to the changes in the price of organic rice, the price of non-organic rice, family
income than in production centers.
E. Research Methods
The sample size was a number of 61 organic rice consumers of Sragen, 59 consumers of Surakarta and 69 consumers of Semarang. Sample of consumers in
each region are taken by convenience method Malhotra, 2004, i.e. customers of organic rice retail outlet. In this study, respondents were taken from organic rice
buyers of retail outlet that were willing to be the respondent. Survey of consumers conducted by distributing questionnaires to be filled out by the respondents at the
point of purchase after shopping or filled in the consumers home. To test the hypothesis 1 conducted an analysis to determine the factors
that influence consumer preference. To analyze the factors that influence consumer
