Nothing Special   »   [go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/p/ags/gewi13/156100.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    DOI: 10.22004/ag.econ.156100
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/156100/files/B3-Illichmann-Analysis_c.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.156100?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Enneking, Ulrich, 2003. "Die Analyse von Lebensmittelpräferenzen mit Hilfe von Discrete-Choice-Modellen am Beispiel ökologisch produzierter Wurstwaren," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 52(05), pages 1-14.
    2. Ladenburg, Jacob & Olsen, Søren Bøye, 2008. "Gender-specific starting point bias in choice experiments: Evidence from an empirical study," Journal of Environmental Economics and Management, Elsevier, vol. 56(3), pages 275-285, November.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, September.
    4. 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 123517, Agricultural and Applied Economics Association.
    5. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    6. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    7. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
    8. Eckel, Catherine C. & Grossman, Philip J., 2008. "Differences in the Economic Decisions of Men and Women: Experimental Evidence," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 57, pages 509-519, Elsevier.
    9. Michael Burton & Dan Rigby & Trevor Young, 2001. "Consumer attitudes to genetically modified organisms in food in the UK," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(4), pages 479-498, December.
    10. Morten Raun Mørkbak & Tove Christensen & Dorte Gyrd-Hansen & Søren Bøye Olsen, 2011. "Is embedding entailed in consumer valuation of food safety characteristics?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(4), pages 587-607, October.
    11. 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.
    12. 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.
    13. Gregory L. Poe & Kelly L. Giraud & John B. Loomis, 2005. "Computational Methods for Measuring the Difference of Empirical Distributions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 353-365.
    14. 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, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(2), pages 205-223, June.
    15. Gregory L. Poe & Eric K. Severance-Lossin & Michael P. Welsh, 1994. "Measuring the Difference (X — Y) of Simulated Distributions: A Convolutions Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 904-915.
    16. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    17. Jayson L. Lusk & F. Bailey Norwood, 2005. "Effect of Experimental Design on Choice-Based Conjoint Valuation Estimates," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 771-785.
    18. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    19. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paweł Bryła, 2021. "The Impact of Consumer Schwartz Values and Regulatory Focus on the Willingness to Pay a Price Premium for Domestic Food Products: Gender Differences," Energies, MDPI, vol. 14(19), pages 1-15, September.
    2. Janina Knuck & Sebastian Hess, 2023. "Who buys regional fresh milk brands? An analysis of German household data," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 473-493, March.
    3. Markova-Nenova, Nonka & Wätzold, Frank, 2017. "Fairness to dairy cows or fairness to farmers: What counts more in the preferences of conventional milk buyers for ethical attributes of milk?," MPRA Paper 83066, University Library of Munich, Germany.
    4. Iryna Printezis & Carola Grebitus & Stefan Hirsch, 2019. "The price is right!? A meta-regression analysis on willingness to pay for local food," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    5. Markova-Nenova, Nonka & Wätzold, Frank, 2018. "Fair to the cow or fair to the farmer? The preferences of conventional milk buyers for ethical attributes of milk," Land Use Policy, Elsevier, vol. 79(C), pages 223-239.

    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. Tonsor, Glynn T. & Olynk, Nicole & Wolf, Christopher, 2009. "Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(3), pages 713-730, December.
    2. Svenningsen, Lea S. & Jacobsen, Jette Bredahl, 2018. "Testing the effect of changes in elicitation format, payment vehicle and bid range on the hypothetical bias for moral goods," Journal of choice modelling, Elsevier, vol. 29(C), pages 17-32.
    3. Rombach, Meike & Widmar, Nicole Olynk & Byrd, Elizabeth & Bitsch, Vera, 2018. "Do all roses smell equally sweet? Willingness to pay for flower attributes in specialized retail settings by German consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 91-99.
    4. Wongprawmas, Rungsaran & Canavari, Maurizio, 2017. "Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand," Food Policy, Elsevier, vol. 69(C), pages 25-34.
    5. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    6. Giacomo Pallante & Adam Drucker, 2014. "Niche Markets for Agrobiodiversity Conservation: Preference and Scale Heterogeneity Effects on Nepalese Consumers’ WTP for Finger Millet Products," SEEDS Working Papers 1414, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised May 2014.
    7. Kragt, Marit Ellen & Bennett, Jeffrey W., 2011. "Using choice experiments to value catchment and estuary health in Tasmania with individual preference heterogeneity," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(2), pages 1-21.
    8. Daniele Moro & Mario Veneziani & Paolo Sckokai & Elena Castellari, 2015. "Consumer Willingness to Pay for Catechin‐enriched Yogurt: Evidence from a Stated Choice Experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 243-258, April.
    9. Alfnes, Frode & Steine, Gro, 2005. "None-of-These Bias in Stated Choice Experiments," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24761, European Association of Agricultural Economists.
    10. Sckokai, Paolo & Veneziani, Mario & Moro, Daniele & Castellari, Elena, 2014. "Consumer willingness to pay for food safety: the case of mycotoxins in milk," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(1), pages 1-19, April.
    11. Anastassiadis, Friederike & Liebe, Ulf & Musshoff, Oliver, 2012. "Finanzielle Flexibilität In Landwirtschaftlichen Investitionsentscheidungen: Ein Discrete Choice Experiment," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137142, German Association of Agricultural Economists (GEWISOLA).
    12. Hoyos Ramos, David, 2010. "Using discrete choice experiments for environmental valuation," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    13. Kar H. Lim & Wuyang Hu, 2016. "How Local Is Local? A Reflection on Canadian Local Food Labeling Policy from Consumer Preference," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 71-88, March.
    14. Anastassiadis, F. & Liebe, U. & Mußhoff, O., 2013. "Finanzielle Flexibilität in landwirtschaftlichen Investitionsentscheidungen: Ein Discrete Experiment," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48, March.
    15. Wongprawmas, Rungsaran & Canavari, Maurizio, 2015. "Heterogeneity in consumer preferences for food safety lavel in Thailand," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202744, European Association of Agricultural Economists.
    16. Canessa, Carolin & Venus, Terese & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Farmers’ preferences over alternative AECS designs. Do the ecological conditions influence the willingness to accept result-based contracts?," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334508, Agricultural Economics Society - AES.
    17. Glynn T. Tonsor & Ted C. Schroeder & Joost M. E. Pennings & James Mintert, 2009. "Consumer Valuations of Beef Steak Food Safety Enhancement in Canada, Japan, Mexico, and the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(3), pages 395-416, September.
    18. Wang, Shuxian & Wu, Linhai & Zhu, Dian & Wang, Hongsha & Xu, Lingling, 2014. "Chinese consumers’ preferences and willingness to pay for traceable food attributes: The case of pork," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 165639, Agricultural and Applied Economics Association.
    19. Helen Scarborough & Jeff Bennett, 2012. "Cost–Benefit Analysis and Distributional Preferences," Books, Edward Elgar Publishing, number 14376.

    More about this item

    Keywords

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:gewi13:156100. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gewisea.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.