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How Much are Consumers Paying for Organic Baby Food?

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Author Info

  • Smith, Travis A.
  • Huang, Chung L.
  • Lin, Biing-Hwan

Abstract

Using retail purchase data, price premiums and discounts associated with household demographics, market factors, and product attributes (focusing on the organic attribute for strained baby food) are estimated using a hedonic pricing model. Results suggest that the organic premium ranges from about 12 to 49 percent in 2004 and from 30 to 52 percent in 2006. Tests for significant changes relative to product attributes show that while the price of conventional baby food has stayed relatively the same, the premium for organic baby food has increased.

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File URL: http://purl.umn.edu/46748
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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46748.

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Date of creation: 2009
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Handle: RePEc:ags:saeana:46748

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

Keywords: organic baby food; hedonic price; market factors; product attributes; Nielsen Homescan; organic premium; Consumer/Household Economics; Demand and Price Analysis;

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  1. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
  2. Dimitri, Carolyn & Greene, Catherine R., 2002. "Recent Growth Patterns In The U.S. Organic Foods Market," Agricultural Information Bulletins 33715, United States Department of Agriculture, Economic Research Service.
  3. Maguire, Kelly B. & Owens, Nicole N. & Simon, Nathalie B., 2004. "The Price Premium for Organic Babyfood: A Hedonic Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
  4. Gary D. Thompson & Julia Kidwell, 1998. "Explaining the Choice of Organic Produce: Cosmetic Defects, Prices, and Consumer Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 277-287.
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