Analyzing the Determinants Affecting the Consumers' Attitude and Willingness to Pay Premium Price for Organic Milk.

Abstract

This study is intended to determine the factors affecting the consumer’s attitude and willingness to pay price premium for organic milk by analysing them using chi square test of independence and other simple descriptive method. The study reveals the result on the basis of both primary and secondary research. For this purpose, a survey of 155 respondents was conducted. SPSS software was used to get the results. According to the results, factors such as gender, annual income, prices offered, quality of organic milk and education had significant effects on consumers’ attitude. Overall, 58.1% of the respondents chose organic milk for their daily consumption. The average price willingness to pay was estimated to be 70-90 rupees per litre for organic milk. The results showed that insufficient availability, lack of knowledge and awareness and also the premium prices offered are all considered as the major pitfalls in the development of the organic market and consumption.