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Identifying significant characteristics of organic milk consumers: a CART analysis of an artefactual field experiment

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  • Zhuo Liu
  • Christopher A. Kanter
  • Kent D. Messer
  • Harry M. Kaiser

Abstract

The organic dairy category is one of the fastest growing categories of organic foods in the US. Organic milk consumers generally cite perceived health benefits and lower risk of food contamination, as well as perceived superior quality and environmental sustainability of organic farming methods, as the major motivations for preference of organic over conventional milk. While the attributes of organic milk that are valued by consumers are fairly well-known, more ambiguity exists regarding the demographic characteristics of the typical organic milk consumer. This research makes use of experimental data from 148 adult participants and use a Classification and Regression Tree (CART) analysis, a nonparametric modelling approach, to identify how Willingness-to-Pay (WTP) for organic milk varies with the demographic profile of experiment participants. The study finds that perceived taste of organic milk, concern for the risk of consuming conventional milk, being a primary shopper, and the quantity of milk consumed are the major factors that separate experiment participants into groups with high and low WTP for organic milk.

Suggested Citation

  • Zhuo Liu & Christopher A. Kanter & Kent D. Messer & Harry M. Kaiser, 2013. "Identifying significant characteristics of organic milk consumers: a CART analysis of an artefactual field experiment," Applied Economics, Taylor & Francis Journals, vol. 45(21), pages 3110-3121, July.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3110-3121
    DOI: 10.1080/00036846.2012.699189
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    1. Christopher Kanter & Kent D. Messer & Harry M. Kaiser, 2009. "Does Production Labeling Stigmatize Conventional Milk?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1097-1109.
    2. Messer, Kent D. & Poe, Gregory L. & Rondeau, Daniel & Schulze, William D. & Vossler, Christian A., 2010. "Social preferences and voting: An exploration using a novel preference revealing mechanism," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 308-317, April.
    3. Zanoli, Raffaele & Naspetti, Simona, 2002. "Consumer motivations in the purchase of organic food. A means-end approach," MPRA Paper 32712, University Library of Munich, Germany.
    4. Kent D. Messer & Gregory L. Poe & William D. Schulze, 2013. "The value of private versus public risk and pure altruism: an experimental economics test," Applied Economics, Taylor & Francis Journals, vol. 45(9), pages 1089-1097, March.
    5. Irwin, Julie R, et al, 1998. "Payoff Dominance vs. Cognitive Transparency in Decision Making," Economic Inquiry, Western Economic Association International, vol. 36(2), pages 272-285, April.
    6. Robin Dillaway & Kent D. Messer & John C. Bernard & Harry M. Kaiser, 2011. "Do Consumer Responses to Media Food Safety Information Last?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 363-383.
    7. Charles Noussair & StÈphane Robin & Bernard Ruffieux, 2004. "Do Consumers Really Refuse To Buy Genetically Modified Food?," Economic Journal, Royal Economic Society, vol. 114(492), pages 102-120, January.
    8. Katner, Christopher & Messer, Kent D. & Kaiser, Harry M., 2009. "AJAE Appendix: “Does Production Labeling Stigmatize Conventional Milk?”," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(4), pages 1-10, March.
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    2. Kecinski, Maik & Messer, Kent D. & Peo, Audrey J., 2018. "When Cleaning Too Much Pollution Can Be a Bad Thing: A Field Experiment of Consumer Demand for Oysters," Ecological Economics, Elsevier, vol. 146(C), pages 686-695.
    3. Robinson, Chadelle, . "Exploring the Hierarchy of Product Attributes in U.S. Pecan Consumption," Journal of Food Distribution Research, Food Distribution Research Society, vol. 51(2).
    4. Carla Rodriguez-Sanchez & Ricardo Sellers-Rubio, 2020. "Sustainability in the Beverage Industry: A Research Agenda from the Demand Side," Sustainability, MDPI, vol. 13(1), pages 1-10, December.
    5. Li, Xianghong & Peterson, Hikaru Hanawa & Xia, Tian, 2012. "U.S. Consumer Demand for Organic Fluid Milk by Fat Content," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(1), pages 1-9, March.
    6. Bahar Aydın Can, 2023. "Turkish Consumers’ Perceptions of Organic Milk and the Factors Affecting Consumption: The Case of Kocaeli, Türkiye," Sustainability, MDPI, vol. 15(13), pages 1-15, June.
    7. Ogundari, Kolawole, 2021. "A systematic review of statistical methods for estimating an education production function," MPRA Paper 105283, University Library of Munich, Germany.
    8. Schroeter, Christiane & Nicholson, Charles F. & Meloy, Margaret G., 2016. "Consumer Valuation of Organic and Conventional Milk: Does Shelf Life Matter?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), pages 1-19, November.

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