Hostname: page-component-586b7cd67f-rdxmf Total loading time: 0 Render date: 2024-11-26T19:11:27.390Z Has data issue: false hasContentIssue false

Comparison of consumer perceptions and preference toward organic versus conventionally produced foods: A review and update of the literature

Published online by Cambridge University Press:  12 February 2007

Emmanuel K. Yiridoe*
Affiliation:
Department of Business and Social Sciences, Nova Scotia Agricultural College, Truro, Nova Scotia, B2N 5E3, Canada,.
Samuel Bonti-Ankomah
Affiliation:
Agri-Food Chain and Integrated Risk Management Analysis, Agriculture and Agri-Food Canada, Ottawa, Canada,.
Ralph C. Martin
Affiliation:
Organic Agriculture Centre of Canada and Department of Plant and Animal Sciences, Nova Scotia Agricultural College, PO Box 550, Truro, Nova Scotia, B2N 5E3, Canada,.
*
*Corresponding author: [email protected]

Abstract

Growing interest in organic agriculture has prompted numerous studies that compare various aspects of organic and conventionally produced foods. This paper provides a comprehensive evaluation of empirical studies comparing organic products and conventionally grown alternatives. The emphasis is on key organic consumer demand and marketing issues, including: (1) the implications of an economic definition of organically grown food for consumer demand; (2) attributes that shoppers consider most when comparing organic with conventionally grown products; (3) level and characteristics of consumer knowledge and awareness about organic food; (4) assessment methods and characteristics of organic consumer attitudes and preferences; (5) size of price premium and characteristics of consumers’ willingness-to-pay for organic products; and (6) profile of organic consumers. Overall, although there is some knowledge and awareness about organic products, consumers are not consistent in their interpretation of what is organic. Secondly, while consumers typically understand the broad issues about organic foods, many tend not to understand the complexities and niceties of organic farming practices and organic food quality attributes. Uncertainty regarding the true attributes of organic, and skepticism about organic labels, part of which stems from reported cases of (inadvertent) mislabeling, and product misrepresentation, and partly because of nonuniform organic standards and certification procedures, may hold some consumers back from purchasing organic. Thirdly, concern for human health and safety, which is a key factor that influences consumer preference for organic food, is consistent with observed deterioration in human health over time and, therefore, motivates consumers to buy organic food as insurance and/or investment in health. Fourthly, the proportion of consumers who are willing to pay a price premium for organic food decreases with premium level. On the other hand, premiums tend to increase with (combinations of) preferred attributes. In addition, demand tends to depend more on the price differential with respect to conventionally grown products, than on actual price. In contrast to sensitivity of demand to changes in price, income elasticity of demand for organic foods is generally small. Finally, it is important for policy analysts and researchers to note that organic fresh fruits and vegetables currently dominate the organic consumer's food basket. Furthermore, it is not clear whether frequent buyers consider particular organic products (e.g., organic meat) as normal goods, or if consumers consider such products as luxury goods.

Type
Research Article
Copyright
Copyright © Cambridge University Press 2005

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

1Gregory, N.G. 2000. Consumer concerns about food. Outlook on Agriculture 29(4): 251257CrossRefGoogle Scholar
2Grossman, M. 1972. On the concept of health capital and the demand for health. Journal of Political Economy 80(2): 223255CrossRefGoogle Scholar
3Schifferstein, H.N.J. and Oude-Ophuis, P.A.M. 1998. Health-related determinants of organic food consumption in the Netherlands. Food Quality and Preference 9(3): 119133CrossRefGoogle Scholar
4Harper, G.C. and Makatouni, A. 2002. Consumer perception of organic food production and farm animal welfare. British Food Journal 104(3/4/5): 287299CrossRefGoogle Scholar
5Hughes, D. 1995. Animal welfare: the consumer and the food industry. British Food Journal 97(10): 37CrossRefGoogle Scholar
6Grunert, S.C. and Juhl, H.J. 1995. Values, environmental attitudes and buying of organic foods. Journal of Economic Psychology 16(1): 6372CrossRefGoogle Scholar
7Wandel, M. and Bugge, A. 1997. Environmental concerns in consumer evaluation of food quality. Food Quality and Preferences 8(1): 1926CrossRefGoogle Scholar
8Davies, A., Titterington, A.J. and Cochrane, C. 1995. Who buys organic food? A profile of the purchasers of organic in Northern Ireland. British Food Journal 97(10): 1723Google Scholar
9Bourn, D. and Prescott, J. 2002. A comparison of the nutritional value, sensory qualities and food safety of organically and conventionally produced foods. Critical Reviews in Food Science and Nutrition 42(1): 134CrossRefGoogle ScholarPubMed
10Woese, K., Lange, D., Boess, C. and Bogl, K.W. 1997. A comparison of organically and conventionally grown foods—results of a review of the relevant literature. Journal of Science Food and Agriculture 74: 281293Google Scholar
11Food and Agricultural Organization. 1999. Organic agriculture [online]. Available at Web site http://www.fao.org/unfao/bodies/COAG/COAG15/X0075E.htm#P78_976 (verified 30 November 2004). Proceedings of the Fifteenth Session of the Committee on Agriculture, Food and Agricultural Organization of the United Nations, Rome.Google Scholar
12Klonsky, K. and Tourte, L. 1998. Organic agricultural production in the United States: Debates and directions. American Journal of Agricultural Economics 80(5): 11191124CrossRefGoogle Scholar
13Goldman, M.C. and Hylton, W. 1972. The Basic Book of Organically Grown Foods. Rodale Press, Emaus, PAGoogle Scholar
14Torjusen, H., Nyberg, A., and Wandel, M. 1999. Organic food: consumers' perceptions and dietary choices [online]. Available at Web site http://www.sifo.no/english/publications/environment/1999–05.htm (verified 30 November 2004). SIFO-Report No. 51999. Oslo, Norway.Google Scholar
15Vindigni, G., Janssen, M.A. and Jager, W. 2002. Organic food consumption: A multi-theoretical framework of consumer decision making. British Food Journal 104(8): 624642Google Scholar
16Nelson, P. 1970. Information and consumer behavior. Journal of Political Economy 78(2): 311329CrossRefGoogle Scholar
17Darby, M.R. and Karni, E. 1973. Free competition and the optimal amount of fraud. Journal of Law and Economics 16: 6788Google Scholar
18Giannakas, K. 2002. Information asymmetries and consumption decisions in organic food product markets. Canadian Journal of Agricultural Economics 50: 3550CrossRefGoogle Scholar
19Hansen, L.G. 2001. Modeling demand for organic products—Implications for the questionnaire [online]. Available at Web site http://www.akf.dk/organicfoods/papers/wp4-lgh.pdf (verified 30 August 2004). Working Paper 4. AKF, Danish Institute of Local Government Studies, Copenhagen, Denmark.Google Scholar
20Caswell, J.A. 2000. Valuing the benefits and costs of improved food safety and nutrition. Australian Journal of Agricultural and Resource Economics 42(4): 409424Google Scholar
21Lancaster, K.J. 1991. Modern Consumer Theory. Edward Elgar, EnglandGoogle Scholar
22Jolly, D.A., Schutz, G.H., Diaz-Knauf, K.V. and Johal, J. 1989. Organic foods: Consumer attitudes and use. Food Technology 43(11): 6065Google Scholar
23Beharrell, B. and MacFie, J.H. 1991. Consumer attitudes to organic foods. British Food Journal 93(2): 2530Google Scholar
24Goldman, B.J. and Clancy, K.L. 1991. A survey of organic produce purchases and related attitudes of food cooperative shoppers. American Journal of Alternative Agriculture 6(2): 8996Google Scholar
25Lin, B.H., Payson, S. and Wertz, J. 1986. Opinions of professional buyers toward organic produce: a case study of Mid-Atlantic market for fresh tomatoes. Agribusiness 12(1): 8997Google Scholar
26Jolly, D.A. and Norris, K. 1991. Marketing prospects for organic and pesticide-free produce. American Journal of Alternative Agriculture 6(4): 174179Google Scholar
27Sparling, E., Wilken, K., and McKenzie, J. 1992. Marketing fresh produce in Colorado supermarkets. Report to Colorado Department of Agriculture and USDA Federate State Marketing Improvement Program, Fort Collins, Colorado, USA.Google Scholar
28Estes, E.A., Herrera, J.E., and Bender, M. 1994. Organic produce sales within North Carolina: a survey of buyer options. Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, NC.Google Scholar
29The Parker 1996. Fresh Trends—A 1996 Profile of the Fresh Produce Consumer. Vance Publishing, Overland Park, KSGoogle Scholar
30Wolfson, J.L. and Shearer, G. 1981. Amino acid composition of grain protein of maize grown with and without pesticides and standard commercial fertilizers. Agronomy Journal 73: 611613Google Scholar
31Hansen, H. 1981. Comparison of chemical composition and taste of biodynamically and conventionally grown vegetables. Plant Foods Human Nutrition 30: 203211CrossRefGoogle Scholar
32Muller, K. and Hippe, J. 1987. Influence of differences in nutrition on important quality characteristics of some agricultural crops. Plant and Soil 100: 3545Google Scholar
33Pimpini, F., Giardini, L., Borin, M. and Gianquinto, G. 1992. Effects of poultry manure and mineral fertilizers on the quality of crops. Journal of Agricultural Science 118: 215221CrossRefGoogle Scholar
34Letourneau, D.K., Drinkwater, L.E. and Shennan, C. 1996. Effects of soil management on crop nitrogen and insect damage in organic versus conventional tomato fields. Agriculture, Ecosystems and Environment 57: 179187Google Scholar
35Schuphan, W. 1974. Nutritional value of crops as influenced by organic and inorganic fertilizer treatments. Plant Foods for Human Nutrition 23: 333358Google Scholar
36Petterson, B.D. 1977. A comparison between conventional and bio-dynamic farming systems as indicated by yield and quality. BioDynamics 124: 1927Google Scholar
37Clarke, R.P. and Merrow, S.B. 1979. Nutrient composition of tomatoes homegrown under different cultural procedures. Ecology of Food and Nutrition 8: 3746Google Scholar
38Hornick, S.B. 1992. Factors affecting the nutritional quality of crops. American Journal of Alternative Agriculture 7: 6368Google Scholar
39Meier-Ploeger, A., Duden, R. and Vogtmann, H. 1989. Quality of food plants grown with compost form biogenic waste. Agriculture, Ecosystems and Environment 27: 483491Google Scholar
40Tauxe, R., Kruse, H., Hedberg, C., Potter, M., Madden, J. and Wachsmuth, K. 1997. Microbial hazards and emerging issues associated with produce. A preliminary report to the National Advisory Committee on Microbiologic Criteria for Foods. Journal of Food Protection 60: 14001408CrossRefGoogle Scholar
41Schmidt, C.W. 1999. Safe food: an all-consuming issue. Environmental Health Perspectives 107: A144A149.CrossRefGoogle Scholar
42Lo, M. and Mathews, D. 2002. Results of routing testing of organic food for agrochemical residues. In Powell, J. (ed.). UK Organic Research 2002: Proceedings of the COR Conference, 26–28 March Aberystwyth, UK. p. 6164Google Scholar
43Hussein, H.S. 2000. On-farm factors can decrease risk of E. coli contamination. Feedstuffs 13: 1823Google Scholar
44MacEachern, D. 1990. Save Our Planet—750 Everyday Ways You Can Help Clean Up the Earth. Dell Publishing Company, New YorkGoogle Scholar
45Jolly, D.A. 1991. Determinants of organic horticultural products consumption based on a sample of California consumers. Acta Horticulturae 295: 141148CrossRefGoogle Scholar
46Hill, H. and Lynchehaun, F. 2002. Organic milk: Attitudes and consumption patterns. British Food Journal 104(7): 526542CrossRefGoogle Scholar
47Hutchins, R.K. and Greenhalgh, L.A. 1997. Organic confusion: Sustaining competitive advantage. British Food Journal 99(9): 336338Google Scholar
48Wolf, M.M. 2002. An analysis of the impact of price on consumer interest in organic grapes and a profile of organic purchasers. Paper presented at the American Agricultural Economics Association Annual Meeting, Long Beach, California, 2831 July.Google Scholar
49Fotopoulos, C. and Krystallis, A. 2002. Organic product avoidance: Reasons for rejection and potential buyers' identification in a countryside survey. British Food Journal 104(3):/4/5 233260CrossRefGoogle Scholar
50Øystein, S., Persillet, V., and Sylvander, B. 2001. The consumers' faithfulness and competence in regard to organic products: Comparison between France and Norway. Paper Presented at the 2002 IFOAM Conference, Vancouver, Canada.Google Scholar
51Chang, H. and Kinnucan, H.W. 1991. Advertising, information and product quality: the case of butter. American Journal of Agricultural Economics 73: 11951203Google Scholar
52Mathios, A.D. 1998. The importance of nutrition labeling and health claim regulation on product choice: An analysis of the cooking oils market. Agricultural and Resource Economics Review 27: 159168CrossRefGoogle Scholar
53Wessells, C.R., Johnston, R.J. and Donath, H. 1999. Assessing consumer preference for eco-labeled seafood: The influence of species, certifier and household attributes. American Journal of Agricultural Economics 81: 10841089Google Scholar
54Wang, Q., Halbrendt, C. and Webb, S. 1997. Consumer demand for organic food in China: Evidence from survey data. In Lockertz, W. (ed.). Agricultural Production and Nutrition. Conference Proceedings, Boston, MA, 19–21 March. Tufts University, Boston, MA. p. 187194Google Scholar
55Demeritt, L. 2002. All Things Organic 2002: A Look at the Organic Consumer. The Hartman Group, Bellevue, WA.Google Scholar
56Fishbein, M. and Ajzen, I. 1975. Belief, Attitude, Intention, and Behaviour: An Introduction to Theory and Research. J. Wiley & Sons, New York.Google Scholar
57Hay, J. 1989. The consumer's perspective on organic food. Canadian Institute of Food Science Technology Journal 22(2): 9599Google Scholar
58Ekelund, L. 1990. Vegetable consumption and consumer attitudes towards organically grown vegetables—the case of Sweden. Acta Horticulturae 259: 163172Google Scholar
59Baker, G.A. and Crosbie, P.J. 1993. Measuring food safety preferences: identifying consumer segments. Journal of Agricultural and Resource Economics 18: 277287Google Scholar
60Hack, M.D. 1993. Organically grown products: Perception, preferences and motives of Dutch consumers. Acta Horticulturae 340: 247253Google Scholar
61The Packer. 2001. Fresh Trends 2001: Understanding consumers and produce. [online]. Available at Web site: http://www.pma.com (verified July 2004). Produce Marketing Association Fresh Summit 2000 Workshop Summary.Google Scholar
62Werner, J. and Alvensleben, R.V. 1984. Consumer attitudes towards organic food in Germany. Acta Horticulturae 155: 221227CrossRefGoogle Scholar
63O'Donovan, P. and McCarthy, M. 2002. Irish consumer preference for organic meat. British Food Journal 104(3/4/5): 353370CrossRefGoogle Scholar
64Buzby, J.C. and Skees, J. 1994. Consumers want reduced exposure to pesticides in food. Food Review 17(2): 1922Google Scholar
65Aguirre, G.J.A. 2001. Marketing and consumption of organic products in Costa Rica. Working Paper No. 5. The School for Field Studies, Centre for Sustainable Development, Atenas, Costa Rica.Google Scholar
66Huang, C.L. 1996. Consumer preferences and attitudes towards organically grown produce. European Review of Agricultural Economics 23(3–4): 331342CrossRefGoogle Scholar
67Kyriakopoulos, K. and Oude-Ophuis, A.M. 1997. A pre-purchase model of consumer choice of biological foodstuff. Journal of International Food and Agribusiness Marketing 8: 3753Google Scholar
68The, Packer. 2002. Fresh trends 2002: Key findings of Packer's fresh trends report. [online]. Available at Web site http://www.bountyfresh.com/fresh_report4.htm (verified July 2004).Google Scholar
69Sandalidou, E., Baourakis, G. and Siskos, Y. 2002. Customers' perspectives on the quality of organic olive oil in Greece: A satisfaction evaluation approach. British Food Journal 104(3/4/5): 391406CrossRefGoogle Scholar
70Roddy, G., Cowan, C. and Hutchinson, G. 1996. Consumer attitudes and behaviour to organic foods in Ireland. Journal of International Consumer Marketing 9(2): 119Google Scholar
71Bailey, W.C. 1996. Comparative study of the willingness to pay for organic and irradiated meat products—An experimental design. NE-165 Working Paper Series, WP-48. Food Marketing Policy Center, University of Connecticut.Google Scholar
72Millock, K., Hansen, L.G., Wier, M., and Andersen, L.M. 2002. Willingness to pay for organic foods: A comparison between survey data and panel data from Denmark. [online]. Available at: http://www.akf.dk/organicfoods/conference/willingness.pdf (verified 6 December 2004). Proceedings of the Conference on Consumer Demand for Organic Foods, Denmark.Google Scholar
73Soler, F., Gil, J.M. and Sanchez, M. 2002. Consumers' acceptability of organic food in Spain: Results from an experimental auction market. British Food Journal 104(8): 670687Google Scholar
74Jolly, D.A. 1991. Differences between buyers and non-buyers of organic produce and willingness to pay organic price premiums. Journal of Agribusiness 9(1): 97111Google Scholar
75Ott, S.L. 1990. Supermarket shoppers' pesticide concerns and willingness to purchase certified pesticide residue-free fresh produce. Agribusiness 6(6): 5936023.0.CO;2-Z>CrossRefGoogle Scholar
76Turco, G. 2002. Organic food - an opportunity at who's expense? [online]. Available at http://www.rabobank.com/repository/far/farpublications.pdf (verified 6 December 2004). Industry Note, Food and Agribusiness Research. Rabobank International, Sydney, Australia.Google Scholar
77Kenanoğlu, Z., Karahan, Ö;. 2002. Policy implementations for organic agriculture in Turkey. British Food Journal 104(3):/4/5 300318Google Scholar
78Wier, M., Hansen, L.G., and Smed, S. 2001. Explaining demand for organic foods.Southampton,England.Google Scholar
79Van Ravenswaay, E. and Hoehn, J.P. 1991. Contingent valuation and food safety: the case of pesticide residues in food. Staff paper No. 91–13. Department of Agricultural Economics, Michigan State University, East Lansing, MI.Google Scholar
80Menghi, A. 1997. Consumer response to ecological milk in Sweden. Swedish Agricultural University, Uppsala, SwedenGoogle Scholar
81Bhaskaran, S. and Hardley, F. 2002. Buyer beliefs, attitudes and behaviour: foods with therapeutic claims. Journal of Consumer Marketing 19(7): 591606Google Scholar