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Does Price or Income Affect Organic Choice? Analysis of U.S. Fresh Produce Users

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

Abstract

This study analyzes consumer purchasing behavior of organic fresh fruits and vegetables using the 2006 Nielsen Homescan panel. An ordered logit model was estimated to quantify the impacts of economic and socio-demographic factors on the probability of a household belonging to a specific organic user group—devoted, casual, or nonuser. Results suggest that price and income, to some extent, affect consumer purchases of organic produce. Additionally, the profile of an organic produce user is most likely to consist of an Hispanic household residing in the Western United States with children under 6 years old and a household head older than 54 years with at least a college degree.

Suggested Citation

  • Smith, Travis A. & Huang, Chung L. & Lin, Biing-Hwan, 2009. "Does Price or Income Affect Organic Choice? Analysis of U.S. Fresh Produce Users," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(3), pages 1-14, December.
    • Handle: RePEc:ags:joaaec:56659
    DOI: 10.22004/ag.econ.56659
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    1. Gary D. Thompson, 1998. "Consumer Demand for Organic Foods: What We Know and What We Need to Know," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1113-1118.
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    Cited by:

    1. Hu, Wuyang & Woods, Timothy & Bastin, Sandra & Cox, Linda & You, Wen, 2011. "Assessing Consumer Willingness to Pay for Value-Added Blueberry Products Using a Payment Card Survey," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(2), pages 243-258, May.
    2. Ercan Yasar & Güray Akalin & Sinan Erdogan & Samuel Asumadu Sarkodie, 2022. "Trading Kuznets curve: empirical analysis for China," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(3), pages 741-768, August.
    3. Kasteridis, Panagiotis & Yen, Steven, 2012. "U.S. demand for organic and conventional vegetables: a Bayesian censored system approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(3), pages 1-21.
    4. Schroeck, Rebecca, 2011. "Wie sensibel reagieren deutsche Verbraucher auf Preisänderungen bei Bio-Eiern? Eine Nachfrageanalyse mit Haushaltspanel-Daten," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114492, German Association of Agricultural Economists (GEWISOLA).
    5. Schröckl, R., 2012. "Wie sensibel reagieren deutsche Verbraucher auf Preisänderungen bei Bio- Eiern? Eine Nachfrageanalyse mit Haushaltspanel-Daten," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 47, March.
    6. Schroeck, Rebecca, 2011. "A Demand System Analysis of Organic and Conventional Fresh Milk in Germany Segmented by Consumer Groups," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115995, European Association of Agricultural Economists.
    7. Jessica Aschemann-Witzel & Stephan Zielke, 2017. "Can't Buy Me Green? A Review of Consumer Perceptions of and Behavior Toward the Price of Organic Food," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(1), pages 211-251, March.
    8. Law, Jonathan M., 2020. "Organic and Conventional Milk Production Practices and Costs between 2005 and 2016: Comparisons and Contrasts by Farm Size, Region and Pasture Use," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304615, Agricultural and Applied Economics Association.
    9. Erik Nelson & John Fitzgerald & Nathan Tefft, 2019. "The distributional impact of a green payment policy for organic fruit," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-25, February.
    10. Campbell, Benjamin L. & Khachatryan, Hayk & Behe, Bridget K. & Dennis, Jennifer & Hall, Charles, 2014. "U.S. and Canadian Consumer Perception of Local and Organic Terminology," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(2), pages 1-20, May.
    11. Schrock, Rebecca, 2010. "Determinants Of The Demand For Organic And Conventional Fresh Milk In Germany– An Econometric Analysis," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116387, European Association of Agricultural Economists.
    12. Yoon, Sungeun & McFadden, Brandon, 2018. "Demand Elasticity of Organic Fruits and Vegetables by Income," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266610, Southern Agricultural Economics Association.
    13. Martina Mazzarolo & Giacomo Ferraro & Ilda Mannino & M. Bruna Zolin, 2019. "Attitude of European and Chinese consumers toward food products from IPM: results from a survey," Working Papers 2019: 08, Department of Economics, University of Venice "Ca' Foscari".
    14. Phani Kumar Chintakayala & William Young & Ralf Barkemeyer & Michelle A. Morris, 2018. "Breaking niche sustainable products into the mainstream: Organic milk and free‐range eggs," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 1039-1051, November.
    15. Grebitus, Carola & Dumortier, Jerome, 2013. "How much of the error term is explained by psychometric variables? The example of organic produce demand," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150193, Agricultural and Applied Economics Association.
    16. Jianhua Wang & Minmin Shen & Ziqiu Gao, 2018. "Research on the Irrational Behavior of Consumers’ Safe Consumption and Its Influencing Factors," IJERPH, MDPI, vol. 15(12), pages 1-13, December.
    17. Katharina Hauck & Gergely Szolnoki, 2020. "German Consumers’ Perceptions of Organic Wine—A Qualitative Approach," Sustainability, MDPI, vol. 12(18), pages 1-16, September.
    18. Nelson, Mack C. & Styles, Erika K. & Pattanaik, Nalini & Liu, Xuanli & Brown, James, 2015. "Georgia Farmers’ Perceptions of Production Barrier in Organic Vegetable and Fruit Agriculture," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196868, Southern Agricultural Economics Association.

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    More about this item

    Keywords

    Agribusiness; Consumer/Household Economics; Crop Production/Industries; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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