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How Much are Consumers Paying for Organic Baby Food?

Author

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

Abstract

Using retail purchase data, price premiums and discounts associated with household demographics, market factors, and product attributes (focusing on the organic attribute for strained baby food) are estimated using a hedonic pricing model. Results suggest that the organic premium ranges from about 12 to 49 percent in 2004 and from 30 to 52 percent in 2006. Tests for significant changes relative to product attributes show that while the price of conventional baby food has stayed relatively the same, the premium for organic baby food has increased.

Suggested Citation

  • Smith, Travis A. & Huang, Chung L. & Lin, Biing-Hwan, 2009. "How Much are Consumers Paying for Organic Baby Food?," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46748, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saeana:46748
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    File URL: http://purl.umn.edu/46748
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    References listed on IDEAS

    as
    1. Gary D. Thompson & Julia Kidwell, 1998. "Explaining the Choice of Organic Produce: Cosmetic Defects, Prices, and Consumer Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 277-287.
    2. 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.
    3. Maguire, Kelly B. & Owens, Nicole N. & Simon, Nathalie B., 2004. "The Price Premium for Organic Babyfood: A Hedonic Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
    4. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    5. Harris, J. Michael, 1997. "Consumers Pay a Premium for Organic Baby Foods," Food Review: The Magazine of Food Economics, United States Department of Agriculture, Economic Research Service, vol. 20(2).
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    More about this item

    Keywords

    organic baby food; hedonic price; market factors; product attributes; Nielsen Homescan; organic premium; Consumer/Household Economics; Demand and Price Analysis;

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