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The diffusion of organic food products: toward a theory of adoption

Author

Listed:
  • Christopher J. Shanahan

    (Department of Agricultural, Environmental and Development Economics, The Ohio State University, 323 Ag Admin, 2120 Fyffe Road, Columbus, OH, 43210-1067)

  • Neal H. Hooker

    (Department of Agricultural, Environmental and Development Economics, The Ohio State University, 323 Ag Admin, 2120 Fyffe Road, Columbus, OH, 43210-1067)

  • Thomas L. Sporleder

    (Department of Agricultural, Environmental and Development Economics, The Ohio State University, 323 Ag Admin, 2120 Fyffe Road, Columbus, OH, 43210-1067)

Abstract

This study explores drivers influencing food processors' decisions to adopt organic practices and the constraints which may limit the availability of food products using the National Organic Program (NOP) organic seal as a marketing tool. A constrained diffusion model is applied to assess seal qualified adoption across food categories. A second model explores market forces that influence variations in the diffusion process. Results suggest that external factors, including new regulation, impact diffusion rates. Future adoption of organic practices will require enhanced informational and physical access for potential adopters. © 2008 Wiley Periodicals, Inc.

Suggested Citation

  • Christopher J. Shanahan & Neal H. Hooker & Thomas L. Sporleder, 2008. "The diffusion of organic food products: toward a theory of adoption," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 369-387.
  • Handle: RePEc:wly:agribz:v:24:y:2008:i:3:p:369-387
    DOI: 10.1002/agr.20164
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    File URL: http://hdl.handle.net/10.1002/agr.20164
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    References listed on IDEAS

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    1. Romeo, Anthony A, 1977. "The Rate of Imitation of a Capital-Embodied Process Innovation," Economica, London School of Economics and Political Science, vol. 44(173), pages 63-69, February.
    2. Batte, Marvin T. & Beaverson, Jeremy & Hooker, Neal H. & Haab, Timothy C., 2004. "Customer Willingness To Pay For Multi-Ingredient, Processed Organic Food Products," 2004 Annual meeting, August 1-4, Denver, CO 20194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Dipak Jain & Vijay Mahajan & Eitan Muller, 1991. "Innovation Diffusion in the Presence of Supply Restrictions," Marketing Science, INFORMS, vol. 10(1), pages 83-90.
    4. Hannan, Timothy H & McDowell, John M, 1984. "Market Concentration and the Diffusion of New Technology in the Banking Industry," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 686-691, November.
    5. Fernandez-Cornejo, Jorge & McBride, William D., 2002. "Adoption Of Bioengineered Crops," Agricultural Economics Reports 33957, United States Department of Agriculture, Economic Research Service.
    6. Dimitri, Carolyn & Greene, Catherine R., 2002. "Recent Growth Patterns In The U.S. Organic Foods Market," Agricultural Information Bulletins 33715, United States Department of Agriculture, Economic Research Service.
    7. Klonsky, Karen & Greene, Catherine R., 2005. "Widespread Adoption of Organic Agriculture in the US: Are Market-Driven Policies Enough?," 2005 Annual meeting, July 24-27, Providence, RI 19382, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Frank M. Bass, 1995. "Empirical Generalizations and Marketing Science: A Personal View," Marketing Science, INFORMS, vol. 14(3_supplem), pages 6-19.
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    Cited by:

    1. Xanat Vargas Meza & Han Woo Park, 2016. "Organic Products in Mexico and South Korea on Twitter," Journal of Business Ethics, Springer, vol. 135(3), pages 587-603, May.
    2. Hooker, Neal & Downs, Shauna, 2014. "Trans-Border Reformulation: US and Canadian Experiences with trans Fat," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 17(A).

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