Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-22T18:01:37.808Z Has data issue: false hasContentIssue false
  • English
  • Français

Differences in WTP and Consumer Demand for Organic and Non-GM Fresh and Processed Foods

Published online by Cambridge University Press:  15 September 2016

Na He  and
John C. Bernard
Na He
Affiliation:
Retail Credit Management of HSBC North America in Mettawa, Illinois
John C. Bernard
Affiliation:
Department of Food and Resource Economics at the University of Delaware in Newark, Delaware
Get access

Abstract

Auction experiments were used to examine demand and premium differences between organic, non-OM (genetically modified), and conventional versions for two pairs of fresh and processed foods. Results showed processed foods had greater substitutability among the versions than fresh products. Conventional versions were the least price sensitive, while non-OM versions were the most sensitive. Significant premium differences were found between fresh and processed foods for sweet com and tortilla chips, but not for potatoes and potato chips. Results from random effects models mirrored these findings. In general, the extent of premium differences between fresh and processed versions appears dependent on the food product.

Keywords

auction experimentswillingness to payorganicnon-GMfreshprocessed food
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 40 , Issue 2 , August 2011 , pp. 218 - 232
Copyright
Copyright © 2011 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alfnes, F., and Rickertsen, K. 2003. “European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets.” American Journal of Agricultural Economics 85(2): 396–405.Google Scholar
Bernard, J.C. 2005. “Evidence of Affiliation of Values in a Repeated Trial Auction Experiment.” Applied Economics Letters 12(11): 687–691.Google Scholar
Bernard, J.C., and Bernard, D.J. 2009. “What Is It about Organic Milk? An Experimental Analysis.” American Journal of Agricultural Economics 91(3): 826–836.Google Scholar
Bernard, J.C., Zhang, C., and Gifford, K. 2006. “An Experimental Investigation of Consumer Willingness to Pay for Non-GM Foods when an Organic Option is Present.” Agricultural and Resource Economics Review 35(2): 374–385.Google Scholar
Bukenya, O.J., and Wright, N.R. 2007. “Determinants of Consumer Attitudes & Purchase Intentions with Regard to Genetically Modified Tomatoes.” Agribusiness 23(1): 117–130.CrossRefGoogle Scholar
Burton, M., Rigby, D., Young, T., and James, S. 2001. “Consumer Attitudes to Genetically Modified Organisms in Food in the UK.” European Review of Agriculture Economics 28(4): 479–498.Google Scholar
Costa-Font, M., Gil, J.M., and Traill, W.B. 2008. “Consumer Acceptance, Valuation of and Attitude towards Genetically Modified Food: Review and Implications for Food Policy.” Food Policy 33(2): 99–111.Google Scholar
Govindasamy, R., and Italia, J. 1999. “Predicting Willingness-to-Pay a Premium for Organically Grown Fresh Produce.” Journal of Food Distribution Research 30(2): 44–53.Google Scholar
Greene, W.H. 2000. Econometric Analysis, Fourth Edition. New Jersey: Prentice-Hall, Inc.Google Scholar
Greene, W.H. 2007. LIMDEP Version 9 Manual. New York: Econometric Software, Inc.Google Scholar
Harrison, G.W., Harstad, R.M., and Rutström, E.E. 2004. “Experimental Methods and Elicitation of Values.” Experimental Economics 7(2): 123–140.Google Scholar
Heslop, A.L. 2006. “If We Label it, Will They Care? The Effect of GM-Ingredient Labelling on Consumer Responses.” Journal of Consumer Policy 29(2): 203–228.CrossRefGoogle Scholar
Jin, Y.H., Zilberman, D., and Heiman, A. 2008. “Choosing Brands: Fresh Produce versus Other Products.” American Journal of Agricultural Economics 90(2): 463–475.Google Scholar
Krystallis, A., and Chryssohoidis, G. 2005. “Consumers' Willingness to Pay for Organic Food—Factors that Affect It and Variation per Organic Product Type.” British Food Journal 107(5): 320–343.Google Scholar
Krystallis, A., Fotopoulos, C., and Zotos, Y. 2006. “Organic Consumers' Profile and Their Willingness to Pay (WTP) for Selected Organic Food Products in Greece.” Journal of International Consumer Marketing 19(1): 81–106.CrossRefGoogle Scholar
Lin, B.H., Smith, T.A., and Huang, C.L. 2008. “Organic Premiums of U.S. Fresh Produce.” Renewable Agriculture and Food Systems 23(3): 208–216.Google Scholar
Lin, B.H., Yen, S.T., and Huang, C.L. 2008. “Demand for Organic and Conventional Fresh Fruits.” Paper presented at the 2008 annual meeting of the Agricultural & Applied Economics Association, Orlando, FL.Google Scholar
Loureiro, L.M., and Hine, S. 2002. “Discovering Niche Markets: A Comparison of Consumer Willingness to Pay for Local (Colorado Grown), Organic, and GMO-Free Products.” Journal of Agricultural and Applied Economics 34(3): 477–487.CrossRefGoogle Scholar
Lusk, J.L., Jamal, M., Kurlander, L., Roucan, M., and Taulman, L. 2005. “A Meta-Analysis of Genetically Modified Food Valuation Studies.” Journal of Agricultural and Resource Economics 30(1): 28–44.Google Scholar
Lusk, J.L., and Schroeder, T.C. 2006. “Auction Bids and Shopping Choices.” Advances in Economic Analysis and Policy 6(1): 1–37.Google Scholar
Lusk, J.L., and Shogren, J. 2007. Experimental Auctions: Methods and Applications in Economic and Marketing Research. New York: Cambridge University Press.Google Scholar
Onyango, B., Ferdaus, H., Hallman, W., Schilling, B., and Adelajan, A. 2003. “Public Perceptions of Food Biotechnology: Uncovering Factors Driving Consumer Acceptance of Genetically Modified Food.” Journal of Food Distribution Research 34: 37–42.Google Scholar
Organic Trade Association. 2006. Organic Trade Association's 2006 Manufacturer's Survey. Survey results reported by the Nutrition Business Journal. Greenfield, MA.Google Scholar
SAS Institute Inc. 2003. SAS OnlineDoc® 9.1. North Carolina: SAS Institute Inc.Google Scholar
United States Department of Agriculture (USDA). 2006. “Vegetables and Melons Situation and Outlook Yearbook – Summary.” Available at http://www.ers.usda.gov/publications/vgs/2006/07Jul/VGS2006s.txt (accessed July 2007).Google Scholar
Vickrey, W. 1961. “Counterspeculation, Auctions and Competitive Sealed Tenders.” Journal of Finance 16(1): 8–37.Google Scholar
Wolf, M.M. 2002 “An Analysis of the Impact of Price on Consumer Interest in Organic Grapes and a Profile of Organic Purchases.” Paper presented at the 2002 annual meeting of the Agricultural & Applied Economics Association, Long Beach, CA.Google Scholar
Wolf, M.M., Bradey, J., Kerry, C., and Lynn, H. 2002. “Consumer Attitudes toward Organically Grown Lettuce.” Journal of Food Distribution Research 33(1): 155–160.Google Scholar
Wooldridge, J.M. 2002. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: The MIT Press.Google Scholar
Wooldridge, J.M. 2006. Introductory Econometrics (3rd edition). Ohio: Thomson South-Western. Google Scholar
Yiridoe, E.K., Bonti-Ankomah, S., and Martin, R.C. 2005. “Comparison of Consumer Perceptions and Preference toward Organic versus Conventionally Produced Foods: A Review and Update of the Literature.” Renewable Agriculture and Food Systems 20(4): 193–205.Google Scholar