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Disentangling Purchasing Motives from Socio-demographic Differences: The case of Organic Milk

Author

Listed:
  • Laura Mørch Andersen

    (Institute of Food and Resource Economics, University of Copenhagen)

Abstract

Using a unique data set where an unbalanced panel of more than 1,000 households have reported their purchases of groceries in great detail over a period of six months it is shown that consumption of organic milk increases significantly with level of education, urbanisation and income. Age and presence of children in the household have no significant effects. Combining the purchase data with a questionnaire about attitudes towards organic production issued to the same panel shows that 51 per cent believes that organic production has a positive effect on the environment and 41 per cent believes in a positive effect on their own health. The level of trust in organic products generally increases with level of education, urbanisation and income. Including perception of organic goods in the estimation therefore reduces the effects of these socio-demographics, and thereby demonstrates the strength of this type of data combination. It turns out that both trusts in effect on environment and on health increases the probability of choosing organic milk significantly. The effect of trust in health is more than twice as big as the effect of trust in environment.

Suggested Citation

  • Laura Mørch Andersen, 2010. "Disentangling Purchasing Motives from Socio-demographic Differences: The case of Organic Milk," IFRO Working Paper 2010/5, University of Copenhagen, Department of Food and Resource Economics.
    • Handle: RePEc:foi:wpaper:2010_05
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    File URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2010/WP_2010_05_purchasing_motives_organic_milk.pdf
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    Citations

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    Cited by:

    1. Goytom Abraha Kahsay & Laura Mørch Andersen & Lars Gårn Hansen, 2014. "Price reactions when consumers are concerned about pro-social reputation," IFRO Working Paper 2014/09, University of Copenhagen, Department of Food and Resource Economics.

    More about this item

    Keywords

    panel mixed multinomial logit; labelling; characteristics model; health; environment; organic;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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