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Analysis of Consumer Preferences and Willingness-to-Pay for Organic Food Products in Germany

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  • Illichmann, Rebecca
  • Abdulai, Awudu

Abstract

This study employs a choice experiment approach to investigate consumers’ preferences and willingness-to-pay (WTP) for organic food products. We use mixed logit and latent class models to examine preference heterogeneity. The results revealed significant heterogeneity in preferences for organic apples, milk, and beef product attributes among consumers. The WTP results obtained from mixed logit indicate gender-specific differences for the examined products of this study. Female respondents have a significant higher WTP for apple attributes, while significant higher WTP values for beef attributes are observed for male respondents. The findings of the latent class models indicate that consumers’ trust tend to influence their preferences for organic food products.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150980.

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Date of creation: 2013
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Handle: RePEc:ags:aaea13:150980

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Keywords: Organic farming; choice experiment; preference heterogeneity; mixed logit; latent class model; Environmental Economics and Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Research Methods/ Statistical Methods; C25; D12;

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