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Splitting consumer's willingness to pay premium price for organic products over main purchase motivations

  • Cicia, Gianni
  • Del Giudice, Teresa
  • Ramunno, Ilaria
  • Tagliafierro, Carolina

Recently, Italian agriculture has been widely characterised by the increasing number of farms and land converting to organic farming. In the slow process of shifting from a "niche" to a broader consumption in the organic products market deep differences between conventional and organic production, distribution and consumption became evident. In such a context, the consumer's behaviour about organic products analysis transpires to be complex as it involves either social - economic and psychographic characteristics. In order to address this issue a research has been carried out in two steps: in the first one, a qualitative analysis step, 45 consumer s of organic products were interviewed by phone using laddering techniques; then, in the second quantitative step, data from a 203 consumer s sample, representative of a region of South of Italy, was analysed by means of a multinomial logit. The research main innovative aspect resides in the two- step approach (qualitative - quantitative analysis), that enabled researchers to identify and quantify the environmental and hygienic component importance in consumer preferences on organic products.

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Paper provided by European Association of Agricultural Economists in its series 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece with number 10057.

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Date of creation: 2006
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Handle: RePEc:ags:eaae98:10057
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  1. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
  2. Scarpa Riccardo & Del Giudice Teresa, 2004. "Market Segmentation via Mixed Logit: Extra-Virgin Olive Oil in Urban Italy," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(1), pages 1-20, August.
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