Differences in WTP and Consumer Demand for Organic and Non-GM Fresh and Processed Foods
AbstractAuction 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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Bibliographic InfoArticle provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.
Volume (Year): 40 (2011)
Issue (Month): 2 (August)
auction experiments; willingness to pay; organic; non-GM; fresh; processed food; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Marketing;
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