Employing a dichotomous choice model to assess Willingness to Pay (WTP) for organically produced products
Journal
Journal of Food Products Marketing
Date Issued
August 14, 2006
DOI
10.1300/J038v12n03_05
Abstract
This study employs a dichotomous choice model to identify the socio-economic characteristics and attitudes that influence consumers' willingness to pay (WTP) a premium for organically produced products (OPP). Considering consumers' growing interest in quality and safety of food, the study attempts to identify consumers level of awareness on OPP, the intention to buy OPP and the WTP a higher price for OPP. Results highlight consumers awareness and intention, revealing useful information for the development of OPP market. The estimated maximum WTP indicates that consumers are willing to pay a substantial extra price to purchase OPP. Finally, WTP seems to be affected by certain consumer attitudes and socio-economic factors. © 2006 by The Haworth Press, Inc. All rights reserved.