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The Organic food price premium and its susceptibility to news media coverage: evidence from the US milk industry

Author

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  • Philip Garland Gayle
  • Jin Wang
  • Shengnan Fang

Abstract

This paper investigates the extent to which media coverage on organic dairy issues influences consumers’ willingness to pay (WTP) for the organic attribute of milk. We find that news with contents most often viewed as negative towards organic dairy are more powerful in decreasing consumers’ WTP for the organic attribute of milk compared to the positive WTP impact of news articles with contents most often viewed as positive towards organic dairy. Interestingly, consumers’ increasing exposure to organic dairy news that even take a neutral stance on the organic attribute also increases their WTP for the organic attribute.

Suggested Citation

  • Philip Garland Gayle & Jin Wang & Shengnan Fang, 2023. "The Organic food price premium and its susceptibility to news media coverage: evidence from the US milk industry," Applied Economics, Taylor & Francis Journals, vol. 55(28), pages 3296-3315, June.
    • Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3296-3315
    DOI: 10.1080/00036846.2022.2114990
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    Cited by:

    1. Smoluk-Sikorska, Joanna, 2023. "Price Relations of Organic and Conventional Fruit and Vegetables," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(4).
    2. repec:ags:aaea22:343575 is not listed on IDEAS
    3. Capps, Oral & Wang, Lingxiao, 2024. "U.S. Household Demand System Analysis for Dairy Milk Products and Plant-Based Milk Alternatives," 2024 Annual Meeting, July 28-30, New Orleans, LA 343575, Agricultural and Applied Economics Association.

    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

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