IDEAS home Printed from https://ideas.repec.org/a/ags/arerjl/117773.html
   My bibliography  Save this article

Differences in WTP and Consumer Demand for Organic and Non-GM Fresh and Processed Foods

Author

Listed:
  • He, Na
  • Bernard, John C.

Abstract

Auction experiments were used to examine demand and premium differences between organic, non-GM (genetically modified), and conventional versions for two pairs of fresh and processed foods. Results showed processed foods had greater substitutability among the versions than fresh products. Conventional versions were the least price sensitive, while non-GM versions were the most sensitive. Significant premium differences were found between fresh and processed foods for sweet corn and tortilla chips, but not for potatoes and potato chips. Results from random effects models mirrored these findings. In general, the extent of premium differences between fresh and processed versions appears dependent on the food product.

Suggested Citation

  • He, Na & Bernard, John C., 2011. "Differences in WTP and Consumer Demand for Organic and Non-GM Fresh and Processed Foods," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(2), pages 1-15, August.
    • Handle: RePEc:ags:arerjl:117773
    DOI: 10.22004/ag.econ.117773
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/117773/files/ARER%2040-2%20pp%20218-232%20He%20Bernard.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.117773?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yanhong H. Jin & David Zilberman & Amir Heiman, 2008. "Choosing Brands: Fresh Produce versus Other Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 463-475.
    2. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-17, April.
    3. Smith, Travis A. & Lin, Biing-Hwan & Huang, Chung L., 2008. "Organic Premiums of U.S. Fresh Produce," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37626, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    4. Lusk,Jayson L. & Shogren,Jason F., 2007. "Experimental Auctions," Cambridge Books, Cambridge University Press, number 9780521671248, September.
    5. Hallman, William K. & Aquino, Helen L., 2003. "Consumer Perceptions of Genetically Modified Food," 2003 Annual meeting, July 27-30, Montreal, Canada 22058, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Wolf, Marianne McGarry & Johnson, Bradey & Cochran, Kerry & Hamilton, Lynn L., 2002. "Consumer Attitudes Toward Organically Grown Lettuce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(1), pages 1-6, March.
    7. Loureiro, Maria L. & Hine, Susan E., 2002. "Discovering Niche Markets: A Comparison Of Consumer Willingness To Pay For Local (Colorado Grown), Organic, And Gmo-Free Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(3), pages 1-11, December.
    8. Michael Burton & Dan Rigby & Trevor Young, 2001. "Consumer attitudes to genetically modified organisms in food in the UK," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(4), pages 479-498, December.
    9. Bernard, John C. & Zhang, Chao & Gifford, Katie, 2006. "An Experimental Investigation of Consumer Willingness to Pay for Non-GM Foods When an Organic Option Is Present," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(2), pages 374-385, October.
    10. Frode Alfnes & Kyrre Rickertsen, 2003. "European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 396-405.
    11. Wolf, Marianne McGarry, 2002. "An Analysis Of The Impact Of Price On Consumer Purchase Interest In Organic Grapes And A Profile Of Organic Purchasers," 2002 Annual meeting, July 28-31, Long Beach, CA 19663, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. John C. Bernard & Daria J. Bernard, 2007. "What Is It About Organic Milk? An Experimental Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 826-836.
    13. John Bernard, 2005. "Evidence of affiliation of values in a repeated trial auction experiment," Applied Economics Letters, Taylor & Francis Journals, vol. 12(11), pages 687-691.
    14. Govindasamy, Ramu & Italia, John, 1999. "Predicting Willingness-To-Pay A Premium For Organically Grown Fresh Produce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(2), pages 1-10, July.
    15. Costa-Font, Montserrat & Gil, José M. & Traill, W. Bruce, 2008. "Consumer acceptance, valuation of and attitudes towards genetically modified food: Review and implications for food policy," Food Policy, Elsevier, vol. 33(2), pages 99-111, April.
    16. Louise Heslop, 2006. "If we label it, will they care? The effect of GM-ingredient labelling on consumer responses," Journal of Consumer Policy, Springer, vol. 29(2), pages 203-228, June.
    17. Bernard, John C. & Zhang, Chao & Gifford, Katie, 2006. "An Experimental Investigation of Consumer Willingness to Pay for Non-GM Foods When an Organic Option Is Present," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), pages 1-12, October.
    18. James O. Bukenya & Natasha R. Wright, 2007. "Determinants of consumer attitudes and purchase intentions with regard to genetically modified tomatoes," Agribusiness, John Wiley & Sons, Ltd., vol. 23(1), pages 117-130.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schott, Lenna & Bernard, John, 2015. "Comparing Consumer's WIllingness to Pay for Conventional, Non-Certified Organic and Organic Milk from Small and Large Farms," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-20, November.
    2. McFadden, Brandon R. & Malone, Trey, 2018. "How will mandatory labeling of genetically modified food nudge consumer decision-making?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 186-194.
    3. Connolly, Cristina & Stearns, Stacey, 2024. "Game-Based Learning in Extension Education: An Assessment of the Impact on Consumer Learning and Behavior," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 6(2), July.
    4. András István Kun & Marietta Kiss, 2021. "On the Mechanics of the Organic Label Effect: How Does Organic Labeling Change Consumer Evaluation of Food Products?," Sustainability, MDPI, vol. 13(3), pages 1-25, January.
    5. McFadden, Jonathan R. & Huffman, Wallace E., 2017. "Willingness-to-pay for natural, organic, and conventional foods: The effects of information and meaningful labels," Food Policy, Elsevier, vol. 68(C), pages 214-232.
    6. Martha A. Starr, 2015. "The Economics of Ethical Consumption," Working Papers 2015-01, American University, Department of Economics.
    7. Savchenko, Olesya M. & Kecinski, Maik & Li, Tongzhe & Messer, Kent D. & Xu, Huidong, 2018. "Fresh foods irrigated with recycled water: A framed field experiment on consumer responses," Food Policy, Elsevier, vol. 80(C), pages 103-112.
    8. Eva Tebbe & Korbinian von Blanckenburg, 2018. "Does willingness to pay increase with the number and strictness of sustainability labels?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 41-53, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carola Grebitus & Anne O. Peschel & Renée Shaw Hughner, 2018. "Voluntary food labeling: The additive effect of “free from” labels and region of origin," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 714-727, October.
    2. Celine Michaud & Daniel Llerena & Iragael Joly, 2013. "Willingness to pay for environmental attributes of non-food agricultural products: a real choice experiment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(2), pages 313-329, March.
    3. Bernard, John C. & Zhang, Chao & Gifford, Katie, 2006. "An Experimental Investigation of Consumer Willingness to Pay for Non-GM Foods When an Organic Option Is Present," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), pages 1-12, October.
    4. McFadden, Jonathan R. & Huffman, Wallace E., 2017. "Willingness-to-pay for natural, organic, and conventional foods: The effects of information and meaningful labels," Food Policy, Elsevier, vol. 68(C), pages 214-232.
    5. Dannenberg, Astrid, 2009. "The dispersion and development of consumer preferences for genetically modified food -- A meta-analysis," Ecological Economics, Elsevier, vol. 68(8-9), pages 2182-2192, June.
    6. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    7. Bernard Ruffieux & Anne Rozan & Stéphane Robin, 2008. "Mesurer les préférences du consommateur pour orienter les décisions des pouvoirs publics : l'apport de la méthode expérimentale," Économie et Prévision, Programme National Persée, vol. 182(1), pages 113-127.
    8. Eva Tebbe & Korbinian von Blanckenburg, 2018. "Does willingness to pay increase with the number and strictness of sustainability labels?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 41-53, January.
    9. Alfnes, Frode & Steine, Gro, 2005. "None-of-These Bias in Stated Choice Experiments," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24761, European Association of Agricultural Economists.
    10. Andreas Drichoutis & Phoebe Koundouri & Mavra Stithou, 2013. "A Laboratory Experiment for the Estimation of Health Risks: Policy Recommendations," DEOS Working Papers 1316, Athens University of Economics and Business.
    11. McFadden, Brandon R. & Malone, Trey, 2018. "How will mandatory labeling of genetically modified food nudge consumer decision-making?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 186-194.
    12. Hu, Yang & House, Lisa A. & Gao, Zhifeng, 2022. "How do consumers respond to labels for crispr (gene-editing)?," Food Policy, Elsevier, vol. 112(C).
    13. Kayode Ajewole & Elliott Dennis & Ted C. Schroeder & Jason Bergtold, 2021. "Relative valuation of food and non‐food risks with a comparison to actuarial values: A best–worst approach," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 927-943, November.
    14. Pesek, John D., Jr. & Bernard, John C. & Gupta, Meeta, 2011. "Consumer Interest in Environmentally Beneficial Chicken Feeds: Comparing High Available Phosphorus Corn and Other Varieties," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(4), pages 1-15, August.
    15. Peter Slade & Jeffrey D Michler & Anna Josephson, 2019. "Foreign Geographical Indications, Consumer Preferences, and the Domestic Market for Cheese," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 41(3), pages 370-390.
    16. Uddin, Azhar & Gallardo, R. Karina, 2021. "Consumers' willingness to pay for organic, clean label, and processed with a new food technology: an application to ready meals," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    17. Sara de Sio & Giulia Casu & Alessandra Zamagni & Paola Gremigni, 2024. "Product Characteristics and Emotions to Bridge the Intention-Behavior Gap in Green Food Purchasing," Sustainability, MDPI, vol. 16(17), pages 1-20, August.
    18. Dmitriy Volinskiy & Wiktor L. Adamowicz & Michele Veeman & Lorie Srivastava, 2009. "Does Choice Context Affect the Results from Incentive‐Compatible Experiments? The Case of Non‐GM and Country‐of‐Origin Premia in Canola Oil," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(2), pages 205-221, June.
    19. Schott, Lenna & Bernard, John, 2015. "Comparing Consumer's WIllingness to Pay for Conventional, Non-Certified Organic and Organic Milk from Small and Large Farms," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-20, November.
    20. Gifford, Katie & Bernard, John C. & Toensmeyer, Ulrich C. & Bacon, J. Richard, 2005. "An Experimental Investigation of Willingness to Pay for Non-GM and Organic Food Products," 2005 Annual meeting, July 24-27, Providence, RI 19385, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:arerjl:117773. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/nareaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.