Exploring the role of transaction costs in the intensity of organic food consumption in Brazil

Abstract

PurposeOrganic food has additional quality attributes compared to those found in conventional food, such as environmental responsibility and health benefits. Information about these attributes is scarce and complex, the assortment of organic foods is deficient and there are fewer places that sell this kind of food. These factors increase the uncertainty and the transaction costs (TCs) for potential organic fresh fruit and vegetable (FFV) consumers. This paper aims to show the influence of these costs on the intensity of organic FFV consumption, particularly among high-income consumers.Design/methodology/approachThe empirical strategy was based on a survey, and data were collected by administering a structured online questionnaire among residents of the Brazilian Federal District. Organic food consumption was decomposed into three different intensity categories. Data analysis was based on two logistic models, a multinomial regression and an ordered regression, where perceived economic value and different dimensions of TCs were the main independent variables, and the intensity of organic food consumption was the dependent variable.FindingsThe results show that organic food consumers are not a homogeneous group, and that perceived economic value and the TCs associated with searching for marketplaces, inadequate product assortment and distrust in health benefits and in organic authenticity are important inhibitors of organic FFV consumption and help explain the intensity of consumption.Originality/valueThis study innovates, as it takes a post-purchase approach, examines different groups based on the intensity of their consumption of organic FFV and focuses on perceived economic value and TCs as important explanations of the intensity of organic FFV consumption.

Organic food and obesity: factors influencing actual purchase of organic food in COVID-19 pandemic with moderating role of organic food availability

“…The price is covered under economic value and literature states that price is significantly related to customers' intention to purchase organic food (Suh et al, 2015). The price might not be a barrier to buying organic food (Cechin et al, 2021). Besides, when the customers believe that organic food gives benefits, then customers plan to purchase that food (Massey et al, 2018).…”

“…From an economic value perspective, researchers reveal that price significantly changes the intention of customers to purchase organic food (Suh et al, 2015). The price might not be a barrier to purchasing organic food (Cechin et al, 2021). Moreover, when consumers Purchase of organic food think that organic food provides benefits (Massey et al, 2018), they are willing to purchase organic food (Janssen and Hamm, 2012).…”

A influência da música no consumo dos alimentos

“…Em menos de uma década, o número de produtores orgânicos registrados no Brasil triplicou. Entretanto, os sistemas de produção orgânica do Brasil representam apenas 0,4% da área agrícola do país, totalizando 1,1 milhão de ha ocorrendo um déficit do lado da oferta e, consequentemente o aumento dos preços tem sido uma das principais reclamações dos consumidores interessados nesses produtos, juntamente com a dificuldade de acesso a esses alimentos (Cechin, et al, 2021).…”

Transaction costs economics and geographical indications: a systematic analysis of the literature

“…As will be seen, studies that relate TCE and GI are at an embryonic stage, although there are synergies between economic theory and aspects of origin. Studies that correlate such topics are recent, with studies that use TCE to explain aspects of food origin, whether these aspects of country of origin (Vo et al, 2016), organic stamps (Cechin et al, 2021) and fair-trade stamps (Arana Coronado et al, 2018;Nilsson & Vulovic, 2019).…”