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Price on the Organic Food Market

Author

Listed:
  • George Atanasoaie

    (“Ioan Bojor” Technological High School, Reghin, Romania)

Abstract

The main objective of this paper is to present prices on PAE market (PAE- organic foods market). Prices are analyzed in terms of importance and the main factors that contribute to their establishment (quality of products, distribution channels, certification and eco-labeling system, customer segments and market development stage). This paper is based on the investigation of secondary sources, of specialized literature related to PAE consumers. The paper shows that are used three strategic options of prices: prices with high rigidity located in a low or high level and fluctuating prices, characterized by variations on short periods of time. Price is a very important barrier to market development but this importance can be mitigated through appropriate communication policies with the market, which are essential especially for markets in early stages of development.

Suggested Citation

  • George Atanasoaie, 2012. "Price on the Organic Food Market," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(4), pages 5-16.
    • Handle: RePEc:pet:annals:v:12:y:2012:i:4:p:5-16
    as

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    References listed on IDEAS

    as
    1. Batte, Marvin T. & Hooker, Neal H. & Haab, Timothy C. & Beaverson, Jeremy, 2007. "Putting their money where their mouths are: Consumer willingness to pay for multi-ingredient, processed organic food products," Food Policy, Elsevier, vol. 32(2), pages 145-159, April.
    2. Hellberg-Bahr, Anneke & Pfeuffer, Martin & Spiller, Achim & Brümmer, Bernhard, 2011. "Using Price Rigidities to Explain Pricing Strategies in the Organic Milk Chain," 2011 International European Forum, February 14-18, 2011, Innsbruck-Igls, Austria 122003, International European Forum on System Dynamics and Innovation in Food Networks.
    3. Camelia Burja & Vasile Burja, 2008. "The Analysis of the Green Produce Consumer’s Behaviour in Romania," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 8(1), pages 33-40.
    4. Katrin, Millock & Hansen, Lars Gårn, 2002. "Willingness to Pay for Organic Foods: A Comparison between Survey Data and Panel Data from Denmark," MPRA Paper 47588, University Library of Munich, Germany.
    5. Gil, Jose Maria & Gracia, Azucena & Sanchez Garcia, Mercedes, 2000. "Market Segmentation And Willingness To Pay For Organic Products In Spain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(2), pages 1-20.
    6. Briz, T. & Ward, R.W., 2009. "Consumer awareness of organic products in Spain: An application of multinominal logit models," Food Policy, Elsevier, vol. 34(3), pages 295-304, June.
    7. Rachel Griffith & Lars Nesheim, 2008. "Household willingness to pay for organic products," CeMMAP working papers CWP18/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    ecological food products (organic); price; consumers; market;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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