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Predicting Willingness-To-Pay A Premium For Organically Grown Fresh Produce

Author

Listed:
  • Govindasamy, Ramu
  • Italia, John

Abstract

Consumers were surveyed at various grocery retail establishments in New Jersey to provide opinions on organic produce. The objective of this study was to empirically evaluate which demographic characteristics cause consumers to be more likely to pay a premium to obtain organically grown produce. The results indicate that females, those with higher annual incomes, younger individuals, and those who usually or always purchase organic produce are all more likely to pay a premium for organic produce. The results also indicate that the likelihood of paying a premium for organic produce decreases with the number of individuals living in the household.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:jlofdr:27385
    DOI: 10.22004/ag.econ.27385
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    File URL: http://ageconsearch.umn.edu/record/27385/files/30020044.pdf
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    References listed on IDEAS

    as
    1. Govindasamy, Ramu & Italia, John & Liptak, Clare, 1997. "Quality of Agricultural Produce: Consumer Preferences and Perceptions," P Series 36739, Rutgers University, Department of Agricultural, Food and Resource Economics.
    2. Buzby, Jean C. & Ready, Richard C. & Skees, Jerry R., 1995. "Contingent Valuation In Food Policy Analysis: A Case Study Of A Pesticide-Residue Risk Reduction," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-13, December.
    3. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-10, December.
    4. Groff, Andrew J. & Kreider, Craig Robert & Toensmeyer, Ulrich C., 1993. "Analysis Of The Delaware Market For Organically Grown Produce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 24(1), pages 1-9, February.
    5. Jordan, Jeffrey L. & Elnagheeb, Abdelmoneim H., 1991. "Public Perceptions Of Food Safety," Journal of Food Distribution Research, Food Distribution Research Society, vol. 22(3), pages 1-10, September.
    6. Robert D. Weaver & David J. Evans & A. E. Luloff, 1992. "Pesticide use in tomato production: Consumer concerns and willingness-to-pay," Agribusiness, John Wiley & Sons, Ltd., vol. 8(2), pages 131-142.
    7. Estes, Edmund A. & Smith, V. Kerry, 1996. "Price, Quality, And Pesticide Related Health Risk Considerations In Fruit And Vegetable Purchases: An Hedonic Analysis Of Tucson, Arizona Supermarkets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(3), pages 1-18, October.
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    Keywords

    Consumer/Household Economics;

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