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Not everybody prefers organic food: unobserved heterogeneity in U.S. consumers’ preference for organic apple and milk

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  • Seon-Woong Kim
  • B. Wade Brorsen
  • Jayson Lusk

Abstract

Despite organic food’s growing market share and the often-found premiums for organic foods in willingness-to-pay studies, the ultimate size of the organic food market remains unclear. Due to perceived taste, safety or appearance, some people may, in fact, not prefer organic. This study uses data from choice experiments to determine preference for organic versus conventional milk and apples. Using latent class and random parameter models, nontrivial shares (at least 33%) of consumers in both markets are not willing to pay a premium for organic. These results have implications for food marketers but also for economists modelling the organic food sector, which typically assume vertical differentiation.

Suggested Citation

  • Seon-Woong Kim & B. Wade Brorsen & Jayson Lusk, 2018. "Not everybody prefers organic food: unobserved heterogeneity in U.S. consumers’ preference for organic apple and milk," Applied Economics Letters, Taylor & Francis Journals, vol. 25(1), pages 9-14, January.
    • Handle: RePEc:taf:apeclt:v:25:y:2018:i:1:p:9-14
    DOI: 10.1080/13504851.2017.1290767
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    Cited by:

    1. Joseph Seong & Simone Valle de Souza & H. Christopher Peterson, 2023. "Seeds of Industry Sustainability: Consumer Attitudes towards Indoor Agriculture Benefits versus Its Advanced Technology," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    2. Erpeng Wang, 2023. "Revitalize Traditional Agriculture: Chinese Consumer Perception and Preference of “Modern” Organic and Sustainable Traditional Rice Products," Sustainability, MDPI, vol. 15(12), pages 1-12, June.
    3. András István Kun & Marietta Kiss, 2021. "On the Mechanics of the Organic Label Effect: How Does Organic Labeling Change Consumer Evaluation of Food Products?," Sustainability, MDPI, vol. 13(3), pages 1-25, January.

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