The Consumption of Fresh Organic Food: Premium Pricing and the Predictors of Willingness to Pay

ABSTRACT

The paper presents three studies. Study 1 identified the price charged by retailers for different types of organic produce, comparing the prices of organic and non-organic food. Studies 2 and 3 analyzed the predictors of the willingness to pay. Study 2 focused on the role of socioeconomic status, trust, health concerns, and environmental concerns. Study 3 tested the importance of the place of purchase and of labeling. The studies surveyed 917 consumers in total. The results showed that retailers charged a premium price for organic food. Most consumers are prepared to pay a premium of between 5% and 10%. Income and the presence of organic labeling are significant predictors of willingness to pay, while environmental concerns and the place of purchase are not. The results can contribute to the decision-making and the expansion of the studies about WTP for organic food in the Brazilian context, paving further studies.

KEYWORDS:

• Organic food
• willingness to pay
• retails
• consumer
• Brazil

Acknowledgments

The authors would like to thank the Conselho Nacional de Desenvolvimento Científico e Tecnológico – CNPq (Brazilian National Council for Scientific and Technological Development) for providing the research funds for this project.

Disclosure statement

No potential conflict of interest was reported by the authors.

Data availability statement

The data that support the findings of this study are available from the corresponding author, EAMW, upon reasonable request.

Additional information

Funding

The work was supported by the Conselho Nacional de Desenvolvimento Científico e Tecnológico – CNPq [422944/2016-5].