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Differences in WTP and Consumer Demand for Organic and Non-GM Fresh and Processed Foods

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Author Info

  • He, Na
  • Bernard, John C.

Abstract

Auction experiments were used to examine demand and premium differences between organic, non-GM (genetically modified), and conventional versions for two pairs of fresh and processed foods. Results showed processed foods had greater substitutability among the versions than fresh products. Conventional versions were the least price sensitive, while non-GM versions were the most sensitive. Significant premium differences were found between fresh and processed foods for sweet corn and tortilla chips, but not for potatoes and potato chips. Results from random effects models mirrored these findings. In general, the extent of premium differences between fresh and processed versions appears dependent on the food product.

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File URL: http://purl.umn.edu/117773
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Bibliographic Info

Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 40 (2011)
Issue (Month): 2 (August)
Pages:

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Handle: RePEc:ags:arerjl:117773

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Web page: http://www.narea.org/
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Related research

Keywords: auction experiments; willingness to pay; organic; non-GM; fresh; processed food; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Marketing;

References

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  1. John Bernard, 2005. "Evidence of affiliation of values in a repeated trial auction experiment," Applied Economics Letters, Taylor & Francis Journals, vol. 12(11), pages 687-691.
  2. Costa-Font, Montserrat & Gil, José M. & Traill, W. Bruce, 2008. "Consumer acceptance, valuation of and attitudes towards genetically modified food: Review and implications for food policy," Food Policy, Elsevier, vol. 33(2), pages 99-111, April.
  3. John C. Bernard & Daria J. Bernard, 2007. "What Is It About Organic Milk? An Experimental Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 826-836.
  4. Wolf, Marianne McGarry & Johnson, Bradey & Cochran, Kerry & Hamilton, Lynn L., 2002. "Consumer Attitudes Toward Organically Grown Lettuce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(01), March.
  5. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(01), April.
  6. Frode Alfnes & Kyrre Rickertsen, 2003. "European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 396-405.
  7. Lusk,Jayson L. & Shogren,Jason F., 2007. "Experimental Auctions," Cambridge Books, Cambridge University Press, number 9780521855167, October.
  8. Jin, Yanhong H. & Zilberman, David & Heiman, Amir, 2005. "Choosing Brands: Fresh Produce versus other Products," 2005 Annual meeting, July 24-27, Providence, RI 19192, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Bernard, John C. & Zhang, Chao & Gifford, Katie, 2006. "An Experimental Investigation of Consumer Willingness to Pay for Non-GM Foods When an Organic Option Is Present," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), October.
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