Limits to Growth in Organic Sales

Bunte, F.H.J.; Galen, M.A. van; Kuiper, W.E.; Tacken, G.M.L.

doi:10.1007/s10645-010-9152-3

Cited by 31 publications

(19 citation statements)

References 6 publications

(4 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Their work showed a small impact of prices on demand because price elasticities are estimated with marginal price variations that are much lower than the price gap between organic and conventional products. Their results were in line with the work of Bunte et al (2010) who demonstrated that consumer demand for organic products in Netherlands does not changes when the price gap between organic and conventional products is deliberately reduced. These authors show that the reduction of organic price for some products, like organic milk, potatoes and rice do not shift demand much.…”

Section: Valuation Of Pesticide Reductionsupporting

confidence: 88%

Food Safety, Market Organization, Trade and Development

Hammoudi¹,

Grazia²,

Surry³

et al. 2015

View full text Add to dashboard Cite

Section: Valuation Of Pesticide Reductionsupporting

confidence: 88%

Food Safety, Market Organization, Trade and Development

Hammoudi¹,

Grazia²,

Surry³

et al. 2015

View full text Add to dashboard Cite

“…Although Bezawada and Pauwels () state that all organic consumer groups are somewhat price sensitive, they find that these consumers are nevertheless different, in that they react more to “enduring” actions, such as changes in assortment or regular price levels, but less so to promotional activities. An in‐store pricing experiment from 2006 in the Netherlands reveals that “consumer demand for organic food is sensitive to price changes when the price gap is high” (Bunte et al , 10).…”

Section: Results and Conclusion Per Research Questionmentioning

confidence: 99%

Can't Buy Me Green? A Review of Consumer Perceptions of and Behavior Toward the Price of Organic Food

Aschemann‐Witzel¹,

Zielke²

2015

Journal of Consumer Affairs

315

193

View full text Add to dashboard Cite

Support for organic farming is a promising policy for improving sustainability in the food sector. Further consumer demand, however, is hindered by high prices. We review research from 2000 to 2014 on the role of perceived price, income, price knowledge, willingness to pay, and reactions to price changes on organic food. We find that price is the major perceived barrier to purchase. Income is only a partial explanatory factor and is superseded by psychographic variables. Willingness to pay a premium is around 30% (ranging from 0% to 105%) and depends on consumer segments and product category. Price knowledge is vague, and organic consumers' price sensitivity is relatively lower than that of occasional or nonorganic consumers. The results suggest that further market differentiation in terms of organic consumer segments and food categories is necessary. Furthermore, we discuss detailed implications for public policy and practice and present a future research agenda.

show abstract

“…A London-area study found own-price elasticities for organic fruit and vegetables were approximately three times higher than for conventional ones (Fourmouzi et al 2012; also see Kasteridis and Yen 2012 for similar US results from 2006). An estimate of Dutch consumers' price elasticity of demand for several vegetables found the expected negative signs but never found elastic demand (Bunte et al 2010). Using data from a large retail chain in the northeastern US, Bezawada and Pauwels (2013) also found that organic products have greater own-price elasticity than conventional products.…”

Section: Previous Price Elasticity Estimatesmentioning

confidence: 98%

US Household Demand for Organic Fruit

et al. 2017

View full text Add to dashboard Cite

We estimate US household monthly elasticities of demand for some of the more popular organic fruits. To our knowledge, this is the first US-wide, multi-year analysis of price and income elasticities for various organic fruits. We calculate elasticities of demand for lowincome, middle class, and rich income bracket households using three estimation techniques: two econometric methods and one machine learning method (least absolute shrinkage and selection operator (LASSO)). Demand estimates are based on Nielsen scanner data from approximately 60,000 households collected from 2011 to 2013. Generally, we find that ownprice conditional and unconditional elasticities of demand for organic fruits are negative. Unconditional elasticity magnitudes tend to be largest in the representative middle-class household. Income elasticities of demand measurements are inconsistent and often statistically insignificant. This finding is consistent with the survey literature finding that many consumers Page 2 of 84 buy organic food for mostly moral or ethical reasons. We run two policy experiments: a 10% subsidy of organic fruits, and a 10% tax on conventional fruits. Our hypothetical policies engender a stronger reaction among the general public than habitual buyers of organic fruit; unconditional purchase and expenditure elasticities are generally larger than conditional purchase and expenditure elasticities. Finally, we find that elasticities measured with the LASSO technique are not radically different than those measured with econometric methods. The most noticeable difference between the two analytical techniques is that LASSO is more likely to find price and income elasticities of demand that indistinguishable from zero, both substantively and statistically.

show abstract

Limits to Growth in Organic Sales

Cited by 31 publications

References 6 publications

Food Safety, Market Organization, Trade and Development

Food Safety, Market Organization, Trade and Development

Can't Buy Me Green? A Review of Consumer Perceptions of and Behavior Toward the Price of Organic Food

US Household Demand for Organic Fruit

Contact Info

Product

Resources

About