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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 WTP for organic food products. We use mixed logit models to examine preference heterogeneity. The results revealed significant heterogeneity in preferences for organic apples, milk, and beef product attributes among consumers. The willingness-to-pay (WTP) results obtained from mixed logit indicate gender-specific differences for the examined products of this study. Female respondents have a higher WTP for apple attributes, while higher WTP values for milk and beef attributes are observed for male respondents.

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Bibliographic Info

Paper provided by German Association of Agricultural Economists (GEWISOLA) in its series 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 with number 156100.

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Date of creation: 2013
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Handle: RePEc:ags:gewi13:156100

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Keywords: Organic farming; choice experiment; preference heterogeneity; mixed logit; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;

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  1. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-74, June.
  2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, November.
  3. Morten Raun M�rkbak & Tove Christensen & Dorte Gyrd-Hansen & S�ren B�ye Olsen, 2011. "Is embedding entailed in consumer valuation of food safety characteristics?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(4), pages 587-607, October.
  4. Hensher,David A. & Rose,John M. & Greene,William H., 2005. "Applied Choice Analysis," Cambridge Books, Cambridge University Press, number 9780521844260, November.
  5. Ulrich Enneking, 2004. "Willingness-to-pay for safety improvements in the German meat sector: the case of the Q&S label," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(2), pages 205-223, June.
  6. Zhifeng Gao & Ted C. Schroeder, 2007. "Effects of Label Information on Consumer Willingness-to-Pay for Food Attributes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 795-809.
  7. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-40, September.
  8. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  9. Morkbak, Morten Raun & Christensen, Tove & Gyrd-Hansen, Dorte E. & Olsen, Soren Boye, 2009. "Is Embedding Entailed in Consumer Valuation of Food Safety Characteristics?," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58099, European Association of Agricultural Economists.
  10. Ladenburg, Jacob & Olsen, Søren Bøye, 2008. "Gender-specific starting point bias in choice experiments: Evidence from an empirical study," Journal of Environmental Economics and Management, Elsevier, vol. 56(3), pages 275-285, November.
  11. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
  12. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
  13. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
  14. Gregory L. Poe & Kelly L. Giraud & John B. Loomis, 2005. "Computational Methods for Measuring the Difference of Empirical Distributions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 353-365.
  15. Sackett, Hillary M. & Shupp, Robert S. & Tonsor, Glynn T., 2012. "Discrete Choice Modeling of Consumer Preferences for Sustainably Produced Steak and Apples," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123517, Agricultural and Applied Economics Association.
  16. Eckel, Catherine C. & Grossman, Philip J., 2008. "Differences in the Economic Decisions of Men and Women: Experimental Evidence," Handbook of Experimental Economics Results, Elsevier.
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