Discounting Spotted Apples: Investigating Consumersâ€™ Willingness to Accept Cosmetic Damage in an Organic Product
AbstractThe appearance of organic produce is often less than perfect because of limited methods of avoiding plant diseases. We combine hypothetical and real auction mechanisms to investigate how cosmetic damage affects consumersâ€™ willingness to pay for apples. We find that 75% of the participants are willing to pay more for organic than for conventional apples given identical appearance. However, at the first sight of any imperfection in the appearance of the organic apples, this segment is significantly reduced. Furthermore, the cosmetic damage has a larger impact on the willingness to pay for organic apples than for conventional apples.
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Bibliographic InfoArticle provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.
Volume (Year): 41 (2009)
Issue (Month): 01 (April)
appearance; apples; experimental auctions; organic; willingness to pay; Agribusiness; Crop Production/Industries; Demand and Price Analysis; Research and Development/Tech Change/Emerging Technologies; D12; Q13;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Khachatryan, Hayk & Behe, Bridget K. & Campbell, Benjamin L. & Hall, Charles & Dennis, Jennifer H., 2013. "Does Eye Tracking Reveal More About the Effects of Buying Impulsiveness on the Green Industry Consumer Choice Behavior?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150333, Agricultural and Applied Economics Association.
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