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Pricing Disparities: When is it worth Paying a Price Premium for Organic versus Conventional Food? (pp. 29-52) $100.00
Authors:  (Kim Sheehan, University of Oregon and Charles Deitz, University of Oregon)
Abstract:
In this chapter, we examine how consumers define the term organic
and their willingness to pay for organic apples and hamburger. In general,
consumers have limited knowledge on the actual meaning of the term
organic as it applies to both produce and meat. At the same time,
consumers’ knowledge of the appropriate premiums that are expected for
these items is relatively close to reported market costs (albeit somewhat
higher for apples and lower for hamburger, which could be attributed to
geography and seasonality). The increased likelihood of both a past
purchase and a future purchase were positively related with the
anticipated premium. 


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Pricing Disparities: When is it worth Paying a Price Premium for Organic versus Conventional Food? (pp. 29-52)