IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/107275.html
   My bibliography  Save this paper

Marketing organic foods through conventional retail outlets

Author

Listed:
  • Islam, Shahidul

Abstract

This study was designed to (1) understand consumer behavior for buying organic foods, (2) find out premium prices consumers pay for organic foods, and (3) identify reasons why consumers want to pay more for organic foods. A tri-partite information gathering process including review of literature, collection of retail price data and interviewing consumers for their WTP revealed that the magnitude of premium price for organic foods relative to their conventional counterparts varies by items, times, and grocery outlets, and most customers strongly agree that organic foods are healthier, chemical free, environmentally friendly, and better quality.

Suggested Citation

  • Islam, Shahidul, 2013. "Marketing organic foods through conventional retail outlets," MPRA Paper 107275, University Library of Munich, Germany, revised 2013.
    • Handle: RePEc:pra:mprapa:107275
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/107275/1/MPRA_paper_107275.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Batte, Marvin T. & Hooker, Neal H. & Haab, Timothy C. & Beaverson, Jeremy, 2007. "Putting their money where their mouths are: Consumer willingness to pay for multi-ingredient, processed organic food products," Food Policy, Elsevier, vol. 32(2), pages 145-159, April.
    2. Giovanni Pino & Alessandro M. Peluso & Gianluigi Guido, 2012. "Determinants of Regular and Occasional Consumers' Intentions to Buy Organic Food," Journal of Consumer Affairs, Wiley Blackwell, vol. 46(1), pages 157-169, March.
    3. Streff, Nicholas & Dobbs, Thomas L., 2004. "'Organic' and 'Conventional' Grain and Soybean Prices in the Northern Great Plains and Upper Midwest: 1995 through 2003," Research Reports 200401, South Dakota State University, Department of Economics.
    4. Gary D. Thompson, 1998. "Consumer Demand for Organic Foods: What We Know and What We Need to Know," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1113-1118.
    5. Roitner-Schobesberger, Birgit & Darnhofer, Ika & Somsook, Suthichai & Vogl, Christian R., 2008. "Consumer perceptions of organic foods in Bangkok, Thailand," Food Policy, Elsevier, vol. 33(2), pages 112-121, April.
    6. Stevens-Garmon, John & Huang, Chung L. & Lin, Biing-Hwan, 2007. "Organic Demand: A Profile of Consumers in the Fresh Produce Market," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 22(2), pages 1-8.
    7. John Cranfield & B. James Deaton & Shreenivas Shellikeri, 2009. "Evaluating Consumer Preferences for Organic Food Production Standards," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 99-117, March.
    8. Monier Sylvette & Hassan Daniel & Nichèle Véronique & Simioni Michel, 2009. "Organic Food Consumption Patterns," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(2), pages 1-25, December.
    9. Ming-Feng Hsieh & Paul D. Mitchell & Kyle W. Stiegert, 2009. "Potato demand in an increasingly organic marketplace," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 369-394.
    10. Sawyer, Erin N. & Kerr, William A. & Hobbs, Jill E., 2008. "Consumer preferences and the international harmonization of organic standards," Food Policy, Elsevier, vol. 33(6), pages 607-615, December.
    11. Rebecca Schröck, 2012. "The Organic Milk Market in Germany Is Maturing: A Demand System Analysis of Organic and Conventional Fresh Milk Segmented by Consumer Groups," Agribusiness, John Wiley & Sons, Ltd., vol. 28(3), pages 274-292, June.
    12. Briz, T. & Ward, R.W., 2009. "Consumer awareness of organic products in Spain: An application of multinominal logit models," Food Policy, Elsevier, vol. 34(3), pages 295-304, June.
    13. Tranter, R.B. & Bennett, R.M. & Costa, L. & Cowan, C. & Holt, G.C. & Jones, P.J. & Miele, M. & Sottomayor, M. & Vestergaard, J., 2009. "Consumers' willingness-to-pay for organic conversion-grade food: Evidence from five EU countries," Food Policy, Elsevier, vol. 34(3), pages 287-294, June.
    14. Stewart Lockie, 2006. "Capturing the Sustainability Agenda: Organic Foods and Media Discourses on Food Scares, Environment, Genetic Engineering, and Health," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 23(3), pages 313-323, October.
    15. Streff, Nicholas J. & Dobbs, Thomas L., 2004. "'Organic' And 'Conventional' Grain And Soybean Prices In The Northern Great Plains And Upper Midwest: 1995 Through 2003," Econ Pamphlets 32035, South Dakota State University, Department of Economics.
    16. Hassan, Daniel & Monier-Dilhan, Sylvette & Nichele, Veronique & Simioni, Michel, 2009. "Organic Food Consumption Patterns in France," 2009 Pre-Conference Workshop, August 16, 2009, Diet and Obesity: Role of Prices and Policies 53342, International Association of Agricultural Economists.
    17. Glaser, Lewrene K. & Thompson, Gary D., 2000. "Demand For Organic And Conventional Beverage Milk," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36346, Western Agricultural Economics Association.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jessica Aschemann-Witzel & Stephan Zielke, 2017. "Can't Buy Me Green? A Review of Consumer Perceptions of and Behavior Toward the Price of Organic Food," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(1), pages 211-251, March.
    2. Schroeck, Rebecca, 2011. "Wie sensibel reagieren deutsche Verbraucher auf Preisänderungen bei Bio-Eiern? Eine Nachfrageanalyse mit Haushaltspanel-Daten," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114492, German Association of Agricultural Economists (GEWISOLA).
    3. Schröckl, R., 2012. "Wie sensibel reagieren deutsche Verbraucher auf Preisänderungen bei Bio- Eiern? Eine Nachfrageanalyse mit Haushaltspanel-Daten," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 47, March.
    4. Schrock, Rebecca, 2010. "Determinants Of The Demand For Organic And Conventional Fresh Milk In Germany– An Econometric Analysis," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116387, European Association of Agricultural Economists.
    5. Raza, Syed Ali & Shah, Nida & Nisar, Wasay, 2019. "Consumer Buying Behavior of Organic Food with Respect to Health and Safety Concerns among Adolescents," MPRA Paper 93570, University Library of Munich, Germany.
    6. Hanna Lindström, 2022. "The Swedish consumer market for organic and conventional milk: A demand system analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 505-532, July.
    7. Akrout Houcine & Kaswengi Joseph, 2019. "Choosing Organic and Healthy Food in Times of Economic Uncertainty: Evidence from Panel Data Analysis in France," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(1), pages 1-13, May.
    8. Idda, Lorenzo & Madau, Fabio A. & Pulina, Pietro, 2008. "The Motivational Profile of Organic Food Consumers: a Survey of Specialized Stores Customers in Italy," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43946, European Association of Agricultural Economists.
    9. Lindström, Hanna, 2021. "The Swedish consumer market for organic and conventional milk: A demand system analysis," HFI Working Papers 21, Institute of Retail Economics (Handelns Forskningsinstitut).
    10. Michaelidou, Nina & Hassan, Louise M., 2010. "Modeling the factors affecting rural consumers' purchase of organic and free-range produce: A case study of consumers' from the Island of Arran in Scotland, UK," Food Policy, Elsevier, vol. 35(2), pages 130-139, April.
    11. Meyer, Andrew, 2015. "Does education increase pro-environmental behavior? Evidence from Europe," Ecological Economics, Elsevier, vol. 116(C), pages 108-121.
    12. Costa, Cristina Amaro da & Santos, José Lima, 2016. "Estimating the demand curve for sustainable use of pesticides from contingent-valuation data," Ecological Economics, Elsevier, vol. 127(C), pages 121-128.
    13. Schroeck, Rebecca, 2011. "A Demand System Analysis of Organic and Conventional Fresh Milk in Germany Segmented by Consumer Groups," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115995, European Association of Agricultural Economists.
    14. Lindström, Hanna, 2021. "The Swedish consumer market for organic and conventional milk: A demand system analysis," Umeå Economic Studies 998, Umeå University, Department of Economics.
    15. Hwang, Jiyoung & Chung, Jae-Eun, 2019. "What drives consumers to certain retailers for organic food purchase: The role of fit for consumers’ retail store preference," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 293-306.
    16. Lloyd J.S Baiyegunhi & Sikhumbuzo E Mashabane & Nonjabulo C Sambo, 2018. "Influence of Socio-Psychological Factors on Consumer Willingness to Pay (WTP) for Organic Food Products," Journal of Economics and Behavioral Studies, AMH International, vol. 10(5), pages 208-219.
    17. Sohae Eve Oh & Tomislav Vukina, 2018. "Substitutability between organic and conventional poultry products and organic price premiums," Economia agro-alimentare, FrancoAngeli Editore, vol. 20(1), pages 75-92.
    18. Dettmann, Rachael L., 2008. "Organic Produce: Who's Eating it? A Demographic Profile of Organic Produce Consumers," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6446, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Mathieu Lambotte & Stephane De Cara & Valentin Bellassen, 2020. "Once a quality-food consumer, always a quality-food consumer? Consumption patterns of organic, label rouge, and geographical indications in French scanner data," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 101(1), pages 147-172.
    20. Wong, Jonathan & Raghunathan, Uthra & Escalante, Cesar & Wolfe, Kent, 2010. "Consumer Premiums for Environmentally Friendly Grass-Fed and Organic Milk in the Southeast," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 28(1).

    More about this item

    Keywords

    Marketing; organic foods; retail prices; conventional stores;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:107275. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.