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Analysis of Consumer Preferences and Willingness-to-Pay for Organic Food Products in Germany

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  • Illichmann, Rebecca
  • Abdulai, Awudu

Abstract

This study employs a choice experiment approach to investigate consumers’ preferences and willingness-to-pay (WTP) for organic food products. We use mixed logit and latent class models to examine preference heterogeneity. The results revealed significant heterogeneity in preferences for organic apples, milk, and beef product attributes among consumers. The WTP results obtained from mixed logit indicate gender-specific differences for the examined products of this study. Female respondents have a significant higher WTP for apple attributes, while significant higher WTP values for beef attributes are observed for male respondents. The findings of the latent class models indicate that consumers’ trust tend to influence their preferences for organic food products.

Suggested Citation

  • Illichmann, Rebecca & Abdulai, Awudu, 2013. "Analysis of Consumer Preferences and Willingness-to-Pay for Organic Food Products in Germany," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150980, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150980
    DOI: 10.22004/ag.econ.150980
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    1. Markova-Nenova, Nonka & Wätzold, Frank, 2017. "Fairness to dairy cows or fairness to farmers: What counts more in the preferences of conventional milk buyers for ethical attributes of milk?," MPRA Paper 83066, University Library of Munich, Germany.
    2. Iryna Printezis & Carola Grebitus & Stefan Hirsch, 2019. "The price is right!? A meta-regression analysis on willingness to pay for local food," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    3. Paweł Bryła, 2021. "The Impact of Consumer Schwartz Values and Regulatory Focus on the Willingness to Pay a Price Premium for Domestic Food Products: Gender Differences," Energies, MDPI, vol. 14(19), pages 1-15, September.
    4. Markova-Nenova, Nonka & Wätzold, Frank, 2018. "Fair to the cow or fair to the farmer? The preferences of conventional milk buyers for ethical attributes of milk," Land Use Policy, Elsevier, vol. 79(C), pages 223-239.
    5. Janina Knuck & Sebastian Hess, 2023. "Who buys regional fresh milk brands? An analysis of German household data," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 473-493, March.

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    More about this item

    Keywords

    Environmental Economics and Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Research Methods/ Statistical Methods;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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