International Journal of Commerce & Business Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Consumers' Willingness to Pay (WTP) Premium Price for Organic Fruits and Vegetables (OFV) in Western Tamilnadu


Affiliations
1 Department of Forest Products and Utilization Forest Collage and Research Institute, METTUPALAYAM (T.N.), India
     

   Subscribe/Renew Journal


Organic food market of India is estimated of 1,000 crore which is growing 20-22 per cent, with about 95 per cent of the brands existing in top 10 metros and other tier II cities (Business Standard, 2012). There are variety of factors that can potentially influence consumers towards OFV consumption like concern for health, environmental protection and chemical residues in conventional food products, pesticides, nutritional concern, as well as improved taste and flavour in organic food products (Ngui et al., 2011). It is also important to understand how willing people are to pay premium price for organic products. The objective of the study is to identify the factors influence the consumer's Willingness to pay (WTP) premium price for Organic fruits and vegetables in Coimbatore city. Primary data were collected with the aid of pretested interview schedule from the selected 400 sample consumer by adopting "mall intercept survey method" (Phau and Teah, 2009). Percentage analysis and ordered logit model were used to analyze the data. Themajor share of the sample respondents were young, middle aged males, mostly educated and employed, with the annual income ranging from Rs. 2 lakhs to Rs. 5 lakhs. Income, awareness, knowledge and education had significantly influenced the consumers' willingness to pay more for organic fruits and vegetables.

Keywords

Consumers, Willingness to Pay, Fruits, Vegetables, Ordered Logit Model.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Davies, A., Titterington, A.J. and Cochrane, C. (1995). Who buys organic food? A profile of the purchasers of organic good in northern Ireland. British Food J., 97 (10) : 17–23.

  • Freeland-Graves, J. and Nitzke, S. (2002). Position of the American dietetic association: Total diet approach to communicating food and nutrition information. J. Am. Diet Assoc., 102 (1): 100-108.

  • Gokalp, Goktolga Z.and Kemal Esengun (2009). Determining the factors affecting the consumers’ willingness to pay higher prices for genetically unmodified products: Tomato Case Study in Turkey. British Food J., 111 (11) : 1188-1199.

  • Govindasamy, R. and Italia, J. (1999). Predicting willingnessto pay a premium for organically grown fresh produce. J. Food Distribut. Res., 30 (2) : 44–53.

  • Kuhar, A. and Juvancic, L. (2006). What determines integrated and organic fruit and vegetable consumption in Slovenia? The Jahrbuch der Österreichischen Gesellschaft für Agrarökonomie, 15 : 23-33.

  • Lin, B.H., Smith, T. and Huang, C.L. (2008). Organic premiums of US fresh produce. Renewable Ag. Food Syst., 23 (3) : 208–216.

  • Ngui, K.S., Voon, T.J. and Agrawal, A. (2011). Determinants of willingness to purchase organic food: An exploratory study using structural equation modeling. Internat. Food Agribusin. Mgmt. Rev., 14 (2): 103-120.

  • Phau, Ian and Teah, Min (2009). Devil wears (counterfeit) prada: A study of antecedents and outcomes of attitudes towards counterfeits of luxury brands. J.Consum. Mktg., 26 (1) : 15–27.

  • Roddy, G., Cowan, C.A. and Hutchinson, G. (1996). Consumer attitudes and behaviour to organic foods in Ireland. J. Internat. Consum. Mktg., 9 (2) : 41-63.

  • Business Standard (2012). http://www.business-standard.com/ india/news/indias-organic-foods-marketgrowing-at-over-20/183871/on.

  • Marketline (2012). http://store.marketline.com/Product/ global_organic_food?productid=MLIP 0853- 0005.


Abstract Views: 383

PDF Views: 0




  • Consumers' Willingness to Pay (WTP) Premium Price for Organic Fruits and Vegetables (OFV) in Western Tamilnadu

Abstract Views: 383  |  PDF Views: 0

Authors

P. Balaji
Department of Forest Products and Utilization Forest Collage and Research Institute, METTUPALAYAM (T.N.), India

Abstract


Organic food market of India is estimated of 1,000 crore which is growing 20-22 per cent, with about 95 per cent of the brands existing in top 10 metros and other tier II cities (Business Standard, 2012). There are variety of factors that can potentially influence consumers towards OFV consumption like concern for health, environmental protection and chemical residues in conventional food products, pesticides, nutritional concern, as well as improved taste and flavour in organic food products (Ngui et al., 2011). It is also important to understand how willing people are to pay premium price for organic products. The objective of the study is to identify the factors influence the consumer's Willingness to pay (WTP) premium price for Organic fruits and vegetables in Coimbatore city. Primary data were collected with the aid of pretested interview schedule from the selected 400 sample consumer by adopting "mall intercept survey method" (Phau and Teah, 2009). Percentage analysis and ordered logit model were used to analyze the data. Themajor share of the sample respondents were young, middle aged males, mostly educated and employed, with the annual income ranging from Rs. 2 lakhs to Rs. 5 lakhs. Income, awareness, knowledge and education had significantly influenced the consumers' willingness to pay more for organic fruits and vegetables.

Keywords


Consumers, Willingness to Pay, Fruits, Vegetables, Ordered Logit Model.

References