Consumer’s Willingness to Pay a Premium for Organic Fruits in China: A Double-Hurdle Analysis

Abstract

The aim of the paper was to assess how consumers evaluate organic labeled fruits and to what extent they are willing to pay a premium for fresh fruits with organic labels. A double-hurdle model is applied to data obtained by interviewing 407 fresh fruit consumers in nine Chinese cities. Willingness-to-pay a premium was modeled as a function of a series of demographic, socio-economic variables, plus fruit attributes, perceptions of fruit safety, and risk attitudes. Results indicate that the most important factors influencing willingness to pay a premium involved positive attitudes toward organic label, attention to fruit safety, the perception of importance of fruit attributes. Moreover, the more income consumers earn, the more likely they would be willing to pay a premium for organic fresh fruits. The recorded consumer interest in safety and quality of fresh fruits reveals that a promising market for organic fruits could be developed by an adequate knowledge on organic label and an effective market monitoring system.

Generational Differences toward Organic Food Behavior: Insights from Five Generational Cohorts

“…For example, Pham et al [131] found that with respect to organic food, affordability issues do exist for young Vietnamese consumers since organic food has a high cost, which in turn prevented purchase. Similarly, the findings of other researches have made evident the positive relation that stands between income and organic product purchase, and vice versa [132,133]. During the 11-year economic crisis that has severely affected the country, Greeks have faced excessive cut-offs in their income, they have been heavily taxed, and their purchasing power condensed dramatically [134].…”

Factors Forming the Consumers’ Willingness to Pay a Price Premium for Ecological Goods in Ukraine

“…According to Wang et al [ 40 , 41 , 42 ], studies have shown that age, income, education, regional difference, and attitude towards certified traceability systems were significant factors affecting consumers’ attitudes towards a price premium for certified food.…”

The Factors Affecting Household Electricity Saving Behavior: A Study in Vietnam

“…The individual's environmental behavior is determined by his personal ethical standards and social ethical standards [28]. The more personal ethical standards will motivate the individual to engage in environmental behavior and vice versa, when an individual has a low personal moral standard, it will hinder environmental behavior [29]. In this study, it is reasonable to predict that residents with high personal moral norm will feel more responsible for saving electricity compared to others.…”