Consumers’ willingness to pay for organic products in Thailand

Abstract

We use hedonic prices and purchase quantities to consider what can be learned about household willingness to pay for baskets of organic products and how this varies across households. We use rich scanner data on food purchases by a large number of households to compute household speci…c lower and upper bounds on willingness to pay for various baskets of organic products. These bounds provide information about willingness to pay for organic without imposing restrictive assumptions on preferences. We show that the reasons households are willing to pay vary, with quality being the most important, health concerns coming second, and environmental concerns lagging far behind. We also show how these methods can be used for example by stores to provide robust upper bounds on the revenue implication of introducing a new line of organic products. JEL: D12, L11, L81, Q51, C81 Correspondence: rgri¢ th@ifs.org.uk, l.nesheim@ucl.ac.uk Acknowledgement: The authors would like to thank James Banks, Richard Blun-dell, Martin Browning, Ian Crawford, Andrew Leicester, Aviv Nevo, Ariel Pakes and Carol Propper for many helpful comments. Financial support from the ESRC through the ESRC Centre for the Microeconomic Analysis of Public Policy at IFS (CPP) and the ESRC Centre for Microdata Methods and Practice (CeMMAP) is gratefully acknowledged. All errors remain the responsibility of the authors.

Consumer’s Attitude and Willingness to Pay for Organic Rice

“…For example, the price of premium organic products in China was extremely high so that there were many consumers who were unable to afford it without ruling out other family essential needs (ThØgersen et al 2014). Young et al (2010), Wang (2007), Chen (2009), Sriwaranun et al (2015 and Xie et al(2015) agreed with Idaman et al(2012) by stating that price became the most important attribute so that it became the main obstacle for consumers in buying organic products.…”

Kesediaan Membayar (Willingness to Pay) Konsumen terhadap Produk Sayur Organik di Pasar Modern Jakarta Selatan

“…Masa depan pertanian organik bergantung pada permintaan dan kesediaan konsumen untuk membayar harga ekstra untuk memperoleh produk pangan organik. Dengan demikian, pendekatan yang berorientasi konsumen untuk memahami pasar produk pangan organik penting untuk dilakukan sebagai upaya mengelola pertanian organik dan produk pangan organik dengan lebih baik (Sriwaranun, Gan, Minsoo, & Cohen, 2015).…”

“…Hal ini sesuai dengan pendapat Sriwaranun, Gan, Minsoo, & Cohen (2015) yang menyatakan bahwa terdapat hubungan antara kesediaan konsumen membeli produk organik dengan harga yang lebih tinggi dengan pendapatan rumah tangga konsumen, dan hubungannya cenderung positif. Hubungan positif diinterpretasikan bahwa konsumen dengan jumlah pendapatan rumah tangga yang lebih tinggi memiliki kemungkinan yang lebih tinggi pula untuk bersedia membayar lebih tinggi dari harga saat ini.…”

Analyzing the impact of organic certification on product and sustainable attributes on the importance of organic food certification in Thailand: Mediating role of perceived benefits of organic food

“…The fourth hypothesis of this study was “the mediating role of PBOF between OCSA and IOC is positive and significant.” This hypothesis was accepted. According to the study of Slamet, Nakayasu, and Bai (), when the food provided by the companies is also from the sustainable attributes it adds a higher value to the product and the customers are more attracted when they come to know that the food they are eating is not only organic but also no environmental societal and economic factors have been harmed in the process of making the product (Sriwaranun, Gan, Lee, & Cohen, ). Such products are not only in demand by the local customers but it also gains the attention of international buyers.…”