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Is price the main purchasing barrier for organic products? – Analysis of the willingness to pay for organic food and consumers’ buying behaviour
Project
Project code: 2806OE119
Contract period: 01.04.2007
- 31.03.2009
Budget: 60,941 Euro
Purpose of research: Applied research
According to several surveys on consumer behaviour in the last two decades price is the main purchasing barrier for organic products. However, taking into account that price knowledge of consumers is generally low with regard to food products and that the subjective price perception of consumers is influenced by many factors and does not need to be in accordance to the objective reality, some doubts are indicated that price is really the dominant purchasing barrier. As there are no research results on the real buying behaviour of organic food consumers related to their willingness to pay for organic products, the central aim of the study is to investigate if there is a relation between consumers' knowledge of organic food prices, their willingness to pay, their buying behaviour and their socio-demographical background. For the empirical analysis a combination of a consumer survey and a disguised consumer observation is planned. 600 organic food purchasers will be surveyed and observed in organic food shops as well as in conventional supermarkets. Before consumers enter the shop they will be asked in a face-to-face-interview which organic products they intend to buy, which prices they expect (price knowledge) and which maximum prices they would accept for the particular products (price limits for willingness to buy). The stated limits will then be compared with the actual prices in the particular shops. If the stated limit for a certain product is below the store price a second person being in the store will observe if the respondent buys the product or not (disguised human observation). The analysis of consumers' willingness to pay for different organic products will be conducted taking the socio-demographical background of consumers into account. The results will be used to further develop a view of a demand orientated price management for organic food in different store types, as organic food shops and conventional supermarkets.
Section overview
Subjects
- Market Analysis/Marketing Strategy
- Organic Farming
Framework programme
Federal Organic Farming Scheme and other forms of sustainable agriculture (BÖLN)
