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Discounting Spotted Apples: Investigating Consumers’ Willingness to Accept Cosmetic Damage in an Organic Product

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  • Yue, Chengyan
  • Alfnes, Frode
  • Jensen, Helen H.

Abstract

The 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 consumers’ 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 Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 41 (2009)
Issue (Month): 01 (April)
Pages:

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Handle: RePEc:ags:joaaec:48756

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: 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;

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References

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  1. Jill E. Hobbs & DeeVon Bailey & David L. Dickinson & Morteza Haghiri, 2005. "Traceability in the Canadian Red Meat Sector: Do Consumers Care?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 47-65, 03.
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Cited by:
  1. Frode Alfnes & Chengyan Yue & Helen H. Jensen, 2010. "Cognitive dissonance as a means of reducing hypothetical bias," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 37(2), pages 147-163, June.
  2. Marette, Stéphan & Messéan, Antoine & Millet, Guy, 2012. "Consumers’ willingness to pay for eco-friendly apples under different labels: Evidences from a lab experiment," Food Policy, Elsevier, vol. 37(2), pages 151-161.
  3. Strzok, Jesse L. & Huffman, Wallace E., 2012. "Willingness-to-Pay for Organic Food Products and Organic Purity: Experimental Evidence," Staff General Research Papers 35502, Iowa State University, Department of Economics.
  4. 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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