Knowledge and willingness to pay for organic food in Spain: Evidence from experimental auctions

Abstract

The aim of this paper is to analyse the main determinants of consumers' knowledge and their willingness to pay for organic food products. Moreover, the relationship between knowledge and buying behaviour is explored. Virgin olive oil is taken as an example. Data was generated by way of an experimental auction carried out in two cities in northeast Spain. A three-equation model is estimated: 1) Consumer knowledge; 2) the decision to pay a premium for organic olive oil; and 3) how much premium consumers are willing to pay. Results indicate that socio-economic variables are main determinants of consumer knowledge, and that consumer attitude, lifestyle and knowledge all influence the decision to pay a premium for organic olive oil.

Profit or principles: Why do restaurants serve organic food?

“…When consumers choose organic food, they are more interested in the health benefits than with the impacts of farming practices on the environment (Chang and Zepeda, 2004;Gil and Soler, 2006;Lohr, 2001). Health is the most important motive for consuming organic food, because organic food is considered healthier than conventional food (Grankvist and Biel, 2001;Makatouni, 2002;Radman, 2005;Zanoli and Naspetti, 2002).…”

Improvement of business performance in restaurants using innovation strategies

“…Ovaj podatak govori u prilog tome da je sve više potrošača koji su spremni da plate više u zamenu za proizvod koji je zdrastveno-bezbedan i hemijski netretiran (Gagić i sar., 2012). Kada potrošači biraju organski gajene namirnice, oni to rade više zbog zdrastvenih koristi nego zbog uticaja ovog načina gajenja poljoprivrednih proizvoda na životnu sredinu (Gil, Soler, 2006). Dakle, održavanje zdravlja je najvažniji motiv kod konzumiranja ovih namirnica jer se smatra da su organski gajene namirnice zdravije u odnosu na one iz konvencionalne proizvodnje (Chakrabarti, baisya, 2007).…”

Marketing Organic and Conventional Potatoes in Germany

“…For example, Gil and Soler (2006) examined the relationship between knowledge and buying behavior, taking virgin olive oil in the Spanish market as an example. They used an experimental auction finding that socioeconomic variables are the main determinants of consumer knowledge.…”