Consumer Willingness to Pay a Premium for Organic Fruit and Vegetable in Ghana

Owusu, Victor; Anifori, Michael Owusu

doi:10.22004/ag.econ.144649

Cited by 14 publications

(8 citation statements)

References 38 publications

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“…This was used because the decision to pay for organic beans was dichotomous and it has been employed in previous studies (Narine et al 2015;Oyawole et al 2016;Xu et al 2018). The explanatory variables in the model were selected based on previous studies on WTP (Falola 2014;Narine et al 2015;Owusu and Anifori 2013).…”

Section: Discussionmentioning

confidence: 99%

“…For example, older people may want to purchase organic products because they are cautious about what they eat for health reasons (Falola 2014). Globally, policymakers are more concerned about the production and consumption of organic products due to food safety and environmental quality (Owusu and Anifori 2013). The consumption of organic food could help prevent some health problems, such as cancer and allergic diseases, related to the consumption of conventional food (Owusu and Anifori 2013).…”

Section: Introductionmentioning

confidence: 99%

“…In order to formulate relevant policies on the consumption of organic beans, there is a need to assess consumers' willingness to pay (WTP) for such beans. However, studies on WTP for organic food has largely been focused on vegetables with no focus on beans (Ajibade et al 2017;Bhavsar et al 2018;Güney and Giraldo 2019;James et al 2019;Narine et al 2015;Owusu and Anifori 2013;Oyawole et al 2016;Phillip and Dipeolu 2010;Saleki et al 2019). The studies showed that consumers are aware of organic vegetables and are willing to pay for them.…”

Section: Introductionmentioning

confidence: 99%

“…The studies showed that consumers are aware of organic vegetables and are willing to pay for them. Furthermore, education, awareness, income and bid price have been reported to influence consumers' willingness to pay for organic vegetables (Adekunle et al 2016;Ajibade et al 2017;Owusu et al 2013;Oyawole et al 2016). But awareness and willingness to pay for organic beans has received little or no attention in the literature.…”

Section: Introductionmentioning

confidence: 99%

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Consumers’ willingness to pay for organic beans in southwest Nigeria: towards food safety

Falola

Mukaila

OYEYİNKA>

2023

Mediterranean Agricultural Sciences

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Minimizing the health dangers associated with consuming inorganic staple food crops due to residues from pesticide and herbicide usage is a reasonable pathway to ensure nutrition security. Therefore, an extensive knowledge of consumers’ interest in organic foods would be a useful complementary strategy to public health interventions. This study examines consumers’ willingness to pay for organic beans in southwest Nigeria. Primary data were collected from 180 shoppers of beans. The data were analysed with descriptive statistics and a logistic regression model. Consumers were willing to pay for organic beans if the premium was not more than ₦601.76 (USD 1.58) for 2 kg of organic beans. The significant factors influencing the consumers’ willingness to pay for organic beans were gender, access to food safety information, acquaintance with organic products, monthly income, and nutritional knowledge of the food planner. Meanwhile, taste/palatability, freshness, appearance, safety, nutritional value, hygiene, and environmental friendliness were highly ranked when buying beans compared to price and convenience. Therefore, any welfare programme involving the introduction of organic beans in Nigeria should ensure that the premium should not be greater than ₦601.76. Also, policies aimed at improving food safety, and nutritional knowledge should be put in place by the government.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Consumers’ willingness to pay for organic beans in southwest Nigeria: towards food safety

Falola

Mukaila

OYEYİNKA>

2023

Mediterranean Agricultural Sciences

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“…Recent research has investigated consumers' willingness to pay for several aspects and types of perishable food, such as organic food (G€ uney and Giraldo, 2019;Zhan et al, 2020), fair-trade food (Zerbini et al, 2019) or food with country-of-origin labelling (Loureiro and Umberger, 2003). Some studies furthermore indicate that there is a correlation between several fruit quality characteristics and consumers' willingness to pay (Owusu and Anifori, 2013;Gao et al, 2014). We contribute to this literature by investigating the effect of freshness on consumers' willingness to pay for strawberries.…”

Section: Introductionmentioning

confidence: 99%

Dynamic pricing of perishable food as a sustainable business model

Scholz

Kulko

2021

BFJ

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PurposeThe purpose of this paper is to (1) investigate the effect of freshness on consumers' willingness to pay, (2) derive static and dynamic pricing strategies and (3) compare the effect of these pricing strategies on a retailer's revenue and food waste. This investigation helps to reveal the potentials of dynamic pricing strategies for building more sustainable business models.Design/methodology/approachThe authors conduct an online experiment to measure consumers' willingness to pay for fresh and three-days’ old strawberries. The impact of freshness on willingness to pay is analysed using univariate tests and regression analysis. Pricing strategies are compared using a Monte Carlo simulation.FindingsThe results of this study show that freshness largely determines consumers' willingness to pay and price sensitivity. This renders dynamic pricing a promising strategy from an economic point of view. The results of the simulation study show that food waste can be reduced by up to 53.6% with a dynamic pricing instead of a static pricing strategy in the case that there are as many consumers as strawberry packages in the inventory. Revenue can be increased by up to 10% compared to a static pricing strategy based on fresh strawberries.Practical implicationsThis study suggests that food retailers can improve their revenue when switching from static to dynamic pricing. Furthermore, in most cases, food retailers can reduce food waste with a dynamic instead of a static-pricing strategy, which might help to improve their image through a more sustainable business model and attract additional consumers.Originality/valueThis study is the first to analyse the possibility of using food freshness to design a dynamic pricing strategy and to analyse the impact of such a pricing strategy on both, a retailer's revenue and a retailer's food waste.

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