IDEAS home Printed from https://ideas.repec.org/a/ags/jlofdr/199045.html
   My bibliography  Save this article

Factors Affecting Consumers' Willingness to Pay for Certififed Organic Food Products in United Arab Emirates

Author

Listed:
  • Muhammad, Safdar
  • Fathelrahman, Eihab
  • Ullah, Rafi Ullah Tasbih

Abstract

Organic food consumption is increasing among United Arab Emirates (UAE) consumers in the last few years. This increase is due to high per capita income, more awareness on healthy food and the diverse population. Consumers are willing to pay higher prices for the certified organic food products. The objective of this paper is to examine consumers’ Willingness to Pay (WTP) for the organic food in UAE. Data was collected in UAE from 300 respondents. Regression model was used to identify major determinants of consumers WTP for the organic food. The results showed that majority of consumers responded positively when asked if they are willing to pay more for the organic food products. The age, nationality, education; household size and income were deciding factors for consumers to pay higher price for the organic food. These results will provide key information to organic food industry that will help to promote organic food markets in the UAE.

Suggested Citation

  • Muhammad, Safdar & Fathelrahman, Eihab & Ullah, Rafi Ullah Tasbih, 2015. "Factors Affecting Consumers' Willingness to Pay for Certififed Organic Food Products in United Arab Emirates," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(1), pages 1-9, March.
    • Handle: RePEc:ags:jlofdr:199045
    DOI: 10.22004/ag.econ.199045
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/199045/files/_6_%20Muhammad.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.199045?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. Wander Jager & Marco A. Janssen, 2002. "Stimulating diffusion of green products," Journal of Evolutionary Economics, Springer, vol. 12(3), pages 283-306.
    2. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    3. Sánchez, Mercedes & Grande, Ildefonso & Gil, José M. & Gracia, Azucena, 2001. "Diferencias entre los segmentos del mercado en la disposición a pagar por un alimento ecológico: valoración contingente y análisis conjunto," Revista Espanola de Estudios Agrosociales y Pesqueros, Ministerio de Medio Ambiente, Rural y Marino (formerly Ministry of Agriculture), issue 190, pages 1-24.
    4. 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.
    5. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
    6. Luanne Lohr, 1998. "Implications of Organic Certification for Market Structure and Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1125-1129.
    7. Wendy J. Umberger & Dillon M. Feuz & Chris R. Calkins & Karen Killinger-Mann, 2002. "U.S. consumer preference and willingness-to-pay for domestic corn-fed beef versus international grass-fed beef measured through an experimental auction," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 491-504.
    8. Julie Guthman, 2000. "Raising organic: An agro-ecological assessment of grower practices in California," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 17(3), pages 257-266, September.
    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. Kanokwan Chancharoenchai & Wuthiya Saraithong, 2022. "Sustainable Development of Cassava Value Chain through the Promotion of Locally Sourced Chips," Sustainability, MDPI, vol. 14(21), pages 1-18, November.
    2. Magdalena Śmiglak-Krajewska & Julia Wojciechowska-Solis, 2021. "Consumer versus Organic Products in the COVID-19 Pandemic: Opportunities and Barriers to Market Development," Energies, MDPI, vol. 14(17), pages 1-22, September.
    3. Vapa-Tankosic, Jelena & Ignjatijevic, Svetlana & Kranjac, Mirjana & Lekic, Snezana & Prodanovic, Radivoj, 2018. "Willingness to pay for organic products on the Serbian market," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    4. Raza, Syed Ali & Shah, Nida & Nisar, Wasay, 2019. "Consumer Buying Behavior of Organic Food with Respect to Health and Safety Concerns among Adolescents," MPRA Paper 93570, University Library of Munich, Germany.
    5. Guanghua Han & Xujin Pu & Bo Fan, 2017. "Sustainable Governance of Organic Food Production When Market Forecast Is Imprecise," Sustainability, MDPI, vol. 9(6), pages 1-20, June.
    6. Hinčica Vít & Řezanková Hana & Macias Klaudia & Schulzová Marie, 2024. "Perception of Natural Cosmetics Among Central European Consumers," Central European Economic Journal, Sciendo, vol. 11(58), pages 233-251.
    7. Hilario Becerril & Ignacio De los Rios, 2016. "Energy Efficiency Strategies for Ecological Greenhouses: Experiences from Murcia (Spain)," Energies, MDPI, vol. 9(11), pages 1-23, October.
    8. Safdar Muhammad & Eihab Fathelrahman & Rafi Ullah Tasbih Ullah, 2016. "The Significance of Consumer’s Awareness about Organic Food Products in the United Arab Emirates," Sustainability, MDPI, vol. 8(9), pages 1-12, August.
    9. repec:zib:zbseps:v:2:y:2022:2:1:p:44-52 is not listed on IDEAS
    10. 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.
    11. Tasnim Khan & Rana Ejaz Ali Khan & Sassee Bibi, 2018. "Willingness to Pay by the Farmers for Safer Use of Pesticides," Asian Development Policy Review, Asian Economic and Social Society, vol. 6(3), pages 169-177, September.
    12. Bogdan Chiripuci & Maria-Floriana Popescu & Marius Constantin, 2022. "The European Consumers' Preferences for Organic Food in the Context of the European Green Deal," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(60), pages 361-361, April.

    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. Rodríguez, Elsa Mirta M. & Lacaze, María Victoria & Lupín, Beatriz, 2007. "Willingness to pay for organic food in Argentina: evidence from a consumer survey," Nülan. Deposited Documents 1300, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    2. Adalja, Aaron & Hanson, James & Towe, Charles & Tselepidakis, Elina, 2015. "An Examination of Consumer Willingness to Pay for Local Products," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(3), pages 1-22, December.
    3. Abidoye, Babatunde O. & Bulut, Harun & Lawrence, John D. & Mennecke, Brian & Townsend, Anthony M., 2011. "U.S. Consumers’ Valuation of Quality Attributes in Beef Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(1), pages 1-12, February.
    4. Oerlemans, Leon A.G. & Chan, Kai-Ying & Volschenk, Jako, 2016. "Willingness to pay for green electricity: A review of the contingent valuation literature and its sources of error," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 875-885.
    5. Lizbeth Salgado-Beltrán & Joel Enrique Espejel-Blanco & Luis Felipe Beltrán-Morales, 2012. "Marketing Mix Influencing Organic Foods Purchase of Mexican Consumers," MIC 2012: Managing Transformation with Creativity; Proceedings of the 13th International Conference, Budapest, 22–24 November 2012 [Selected Papers],, University of Primorska, Faculty of Management Koper.
    6. repec:ags:afjare:225657 is not listed on IDEAS
    7. Darby, Kim & Batte, Marvin T. & Ernst, Stanley C. & Roe, Brian E., 2006. "Willingness to pay for locally produced foods: A customer intercept study of direct market and grocery store shoppers," 2006 Annual meeting, July 23-26, Long Beach, CA 21336, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Zepeda, Lydia & Griffith, Garry R. & Chang, Hui-Shung (Christie), 2004. "Issues and Research Needs of the Australian Organic Food Products Market," Working Papers 12924, University of New England, School of Economics.
    9. Biancamaria Torquati & Tiziano Tempesta & Daniel Vecchiato & Sonia Venanzi, 2018. "Tasty or Sustainable? The Effect of Product Sensory Experience on a Sustainable New Food Product: An Application of Discrete Choice Experiments on Chianina Tinned Beef," Sustainability, MDPI, vol. 10(8), pages 1-24, August.
    10. Vredin Johansson, Maria & Heldt, Tobias & Johansson, Per, 2006. "The effects of attitudes and personality traits on mode choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(6), pages 507-525, July.
    11. Sant'Anna, Ana Claudia & Bergtold, Jason & Shanoyan, Aleksan & Caldas, Marcellus & Granco, Gabriel, 2021. "Deal or No Deal? Analysis of Bioenergy Feedstock Contract Choice with Multiple Opt-out Options and Contract Attribute Substitutability," 2021 Conference, August 17-31, 2021, Virtual 315289, International Association of Agricultural Economists.
    12. Chavez, Daniel E. & Palma, Marco A. & Nayga, Rodolfo M. & Mjelde, James W., 2020. "Product availability in discrete choice experiments with private goods," Journal of choice modelling, Elsevier, vol. 36(C).
    13. Palma, Marco A. & Ness, Meghan L. & Anderson, David P., 2015. "Buying More than Taste? A Latent Class Analysis of Health and Prestige Determinants of Healthy Food," 2015 Conference (59th), February 10-13, 2015, Rotorua, New Zealand 202566, Australian Agricultural and Resource Economics Society.
    14. Luttmer, Erzo F. P. & Zeckhauser, Richard & Kousky, Carolyn, 2006. "Permits to Elicit Information," Working Paper Series rwp06-049, Harvard University, John F. Kennedy School of Government.
    15. Melanie Lefevre, 2011. "Willingness-to-pay for Local Milk-based Dairy Product in Senegal," CREPP Working Papers 1108, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
    16. Richard T. Carson & W. Michael Hanemann, & Raymond J. Kopp & Jon A. Krosnick & Robert C. Mitchell & Stanley Presser & Paul A. Rudd & V. Kerry Smith & Michael Conaway & Kerry Martin, 1997. "Temporal Reliability of Estimates from Contingent Valuation," Land Economics, University of Wisconsin Press, vol. 73(2), pages 151-163.
    17. Nick Hanley & Douglas MacMillan & Robert E. Wright & Craig Bullock & Ian Simpson & Dave Parsisson & Bob Crabtree, 1998. "Contingent Valuation Versus Choice Experiments: Estimating the Benefits of Environmentally Sensitive Areas in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(1), pages 1-15, March.
    18. Dow, W.H., 1995. "Welfare Impacts of Health Case User Fees : A Health- Valuation Approach to Analysis with Imperfect Markets," Papers 95-21, RAND - Labor and Population Program.
    19. John A. List, 2001. "Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards," American Economic Review, American Economic Association, vol. 91(5), pages 1498-1507, December.
    20. Wolfers, Justin & Stevenson, Betsey & Sacks, Dan, 2010. "Subjective Well-Being, Income, Economic Development and Growth," CEPR Discussion Papers 8048, C.E.P.R. Discussion Papers.
    21. Hajkowicz, Stefan, 2006. "Taking a closer look at multiple criteria analysis and economic evaluation," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139785, Australian Agricultural and Resource Economics Society.

    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:jlofdr:199045. 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/fdrssea.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.