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Analysis of Consumer Preferences and Willingness-To-Pay for Organic Food Products in Germany

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  • Illichmann, Rebecca
  • Abdulai, Awudu

Abstract

This study employs a choice experiment approach to investigate consumers’ preferences and WTP for organic food products. We use mixed logit models to examine preference heterogeneity. The results revealed significant heterogeneity in preferences for organic apples, milk, and beef product attributes among consumers. The willingness-to-pay (WTP) results obtained from mixed logit indicate gender-specific differences for the examined products of this study. Female respondents have a higher WTP for apple attributes, while higher WTP values for milk and beef attributes are observed for male respondents.

Suggested Citation

  • Illichmann, Rebecca & Abdulai, Awudu, 2013. "Analysis of Consumer Preferences and Willingness-To-Pay for Organic Food Products in Germany," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156100, German Association of Agricultural Economists (GEWISOLA).
  • Handle: RePEc:ags:gewi13:156100
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    References listed on IDEAS

    as
    1. Zhifeng Gao & Ted C. Schroeder, 2007. "Effects of Label Information on Consumer Willingness-to-Pay for Food Attributes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 795-809.
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    3. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
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    6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, March.
    7. Sackett, Hillary M. & Shupp, Robert S. & Tonsor, Glynn T., 2012. "Discrete Choice Modeling of Consumer Preferences for Sustainably Produced Steak and Apples," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123517, Agricultural and Applied Economics Association.
    8. Ulrich Enneking, 2004. "Willingness-to-pay for safety improvements in the German meat sector: the case of the Q&S label," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(2), pages 205-223, June.
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    12. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
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    More about this item

    Keywords

    Organic farming; choice experiment; preference heterogeneity; mixed logit; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;

    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

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