Consumers' willingness to pay for organic food

Abstract

Purpose -Seeks to provide answers to two questions: is willingness to pay (WTP) for organic products influenced by the same set of factors that affect purchasing of conventional foods? Does WTP for organic products vary according to different food categories? Design/methodology/approach -Purchasers were approached during their food shopping in retail chains in Athens in July 2003. Sample inclusion is based on real awareness of the term "organic". The questionnaire included in its first part a number of criteria that influence consumers when buying food. In the second part respondents were asked to indicate if any food products they buy were organic and to state how much more they were willing to pay. Information from the first part was analysed with factor analysis. With the help of t-value analysis, it was examined whether there is a statistically significant difference per product category between consumers who are willing to pay and consumers who are unwilling to pay in terms of the factors identified. Findings -Consumers' stated WTP and the type and magnitude of factors that affect it differ according to the organic food category. These factors include food quality and security, trust in the certification, and, for some products, brand name. Organoleptic characteristics, prices and consumers' socio-demographic profiles do not constitute determinants of organic WTP. Research limitations/implications -Organic types of some fresh as well as processed food products do not exist in the Greek market. Moreover, the large number of t-tests conducted might result in Type I error. Originality/value -Purchasing of organic food follows "basic-highest frequency", "basic-average frequency", and "non-basic" discrimination. The most frequently consumed organic products are some basic components of the Greek diet. Only the factors "quality and security" and "trust" play an important role in defining WTP for most organic food categories. Consumers' attitudes towards both organic and PDO/PGI certifications converge towards a perception of high quality food. Approximately 26 percent of the sample exhibited a U-shaped WTP trend for 14 out of 16 organic food categories in increments from 45 to 120 percent. All the above elements of originality are particularly valuable for organic food firms and policy/decision makers.

Kesediaan Membayar (Willingness to Pay) Konsumen terhadap Produk Sayur Organik di Pasar Modern Jakarta Selatan

“…Faktor-faktor utama lain antara lain meliputi kualitas dan keamanan pangan yang ditawarkan oleh produk pangan organik (Govindasamy & Italia, 1999). Salah satu alasan konsumen bersedia membayar lebih dari harga saat ini untuk memperoleh produk pangan organik adalah untuk memastikan kualitas produk tersebut (Krystallis & Chryssohoidis, 2005). Atribut produk sayur organik seperti rasa, tekstur dan kesegaran sayur menjadi salah satu faktor terbesar dalam mempengaruhi kesediaan membayar konsumen (Priambodo & Najib, 2014).…”

“…Hal tersebut dapat diakibatkan oleh harga selada organik yang tinggi, yaitu Rp 23.850. Hal ini sesuai dengan pendapat pendapat Krystallis & Chryssohoidis (2005) yang menyatakan bahwa nilai maksimum yang bersedia dikeluarkan konsumen bergantung dengan jenis dan harga produk pangan itu sendiri. Pada produk sawi organik, terdapat 10 orang responden yang bersedia membayar lebih tinggi dari harga saat ini.…”

“…Variabel jumlah anggota keluarga juga merupakan faktor yang tidak secara signifikan mempengaruhi kesediaan membayar konsumen untuk memperoleh produk sayur organik. Hal ini sejalan dengan pendapat Krystallis & Chryssohoidis (2005) yang menyatakan bahwa jumlah anggota keluarga dan keberadaan anak dalam rumah tangga tidak mempengaruhi frekuensi pembelian serta kesediaannya membayar premium untuk memperoleh produk pangan organik.…”

A Matter of Trust: How Trust Influence Organic Consumption

“…To maintain a profitable green production the producer is therefore dependent on a price premium. Consumers' willingness to pay such a premium is strongly, and in most instances entirely, dependent upon whether they have confidence in the ecolabel as a guarantee to the consumer that the commodity is produced in an environmentally friendly and sustainable way, complying with the production rules, (Krystallis & Chryssohoidis, 2005). Thøgersen (2000) also shows in a cross national survey of consumers in Germany, UK, Ireland and Italy that high level of confidence in an ecolabel has a positive effect on the level of attention that the label achieves from consumers.…”

Economising subsidies for green housing features: A stated preference approach

“…Pripravljenost potrošnikov za plačilo različnih zelenih ali okolju prijaznih izdelkov, kot so ekološko pridelana hrana, zelena elektrika ali leseni izdelki z okoljskim certifikatom, je bila do zdaj že podrobno raziskana (Blend in van Ravenswaay, 1999;Viosky idr., 1999;Roe idr., 2001;Krystallis in Chryssohoidis, 2005). Izsledki v literaturi kažejo, da se pripravljenost potrošni-kov za plačilo zelenih lastnosti razlikuje glede na vrsto izdelka.…”