Abstract

This research was carried out in order to determine consumers’ perceptions, attitudes and willingness-to-pay
(WTP) towards food products with “No Added MSG” labeling. A total of 200 respondents within the area of
Klang Valley were interviewed using a close-ended questionnaire. The Contingent Valuation Method (CVM)
was used to determine the consumers’ WTP for the consumption of safer beef. A logit model was used to
estimate the premium that consumers are willing to pay for food products with “No Added MSG” labeling. The
results pointed out that majority of the consumers know and have read about or heard of Monosodium Glutamate
(MSG) and illnesses caused by MSG, but only a small portion of them have experienced these illnesses before.
Not all of the consumers have high awareness towards illnesses caused by MSG due to lack of information.
However, their perceptions and attitudes towards food products with “No added MSG” labeling were found to be
generally positive. Besides, the CV method which was used to determine and estimate consumers’ WTP towards
the food products mentioned by using logit model showed that the most important and significant actors that
influenced a consumers’ WTP are gender (female), household size, household income, family member with
children below the age of 12, price levels and education level (university). Results also revealed that respondents
were willing to pay a premium of about RM 0.43 for food products with “No added MSG” labeling. Based on
the study, it was found that the demand and consumption of “No Added MSG” is still high and increasing. This
current trend will certainly have effects on the present market. Hence, to ensure a better development of these
products, there is a need to formulate proper standards, policies and promotion programmes for these products
more efforts in research and development (R&D) are needed to improve the production technologies and food
safety systems for these “No Added MSG” food products.

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