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Customer Willingness To Pay For Multi-Ingredient, Processed Organic Food Products

Author

Listed:
  • Batte, Marvin T.
  • Beaverson, Jeremy
  • Hooker, Neal H.
  • Haab, Timothy C.

Abstract

This is a report of a customer intercept survey of customers in seven central Ohio grocery stores. Six were conventional stores of a national grocery chain (Traditional Grocery); of these, two were suburban , two were city central, and two were in predominately rural locations. The seventh store was a health/whole foods store (Specialty Grocery). The survey addressed customer willingness to pay for alternative levels of organic content in breakfast cereals, customer purchase patterns for organic foods, and customer opinions about the benefits of organic and other food characteristics. Forty-two percent of traditional grocery shoppers reported purchases of organic foods, the majority purchasing at least twice monthly. Shoppers in the specialty grocery were much more likely to purchase organic foods (92 percent). Consumers indicated a willingness to pay higher prices for processed foods with organic content. This willingness to pay varied with income and demographic characteristics of the households. Specialty grocery shoppers were more likely to purchase organic foods than their traditional grocery counterparts, and had a greater willingness to pay for these products.

Suggested Citation

  • Batte, Marvin T. & Beaverson, Jeremy & Hooker, Neal H. & Haab, Timothy C., 2004. "Customer Willingness To Pay For Multi-Ingredient, Processed Organic Food Products," 2004 Annual meeting, August 1-4, Denver, CO 20194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20194
    DOI: 10.22004/ag.econ.20194
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    Citations

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    Cited by:

    1. Haghiri, Morteza, 2011. "Consumer Perceptions of Environmentally Friendly Products in New Foundland and Labrador," Journal of Food Distribution Research, Food Distribution Research Society, vol. 42(2), pages 1-11, July.
    2. STATON, John L & HOOKER, Neal H & SALNIKOVA, Ekaterina, 2011. "A Comparison of Process and Ingredient Claims on US and EU Foods," Romanian Distribution Committee Magazine, Romanian Distribution Committee, vol. 2(1), pages 02-12, June.
    3. Christopher J. Shanahan & Neal H. Hooker & Thomas L. Sporleder, 2008. "The diffusion of organic food products: toward a theory of adoption," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 369-387.
    4. Animashaun, Jubril Olayinka & Williams, F.E. & Toye, A.A., 2013. "Towards Validating Moringa’s Nutraceutical Benefits: An Examination of Consumers’ Perspectives vis-à-vis Health Benefits Efficacy and Willingness to Pay," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(2), pages 1-11, June.
    5. Innocent, Kwagala, 2018. "Consumer Acceptance And Willingness To Pay For Shelf Life Extended Fresh Cassava Roots In Uganda: Case Of Kampala District," Research Theses 276439, Collaborative Masters Program in Agricultural and Applied Economics.

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