Determination of the surplus that consumers are willing to pay for an organic wine.

By M. B. Mollá-Bauza, L. Martínez-Carrasco, Á. Martínez-Poveda, M. Perez. 2005

157 citations recorded by the source corpus.

The aim of this study was to estimate the premium price that Spanish consumers are willing to pay for an organic wine with respect to the price of a conventional wine with similar characteristics. To accomplish this aim, contingent valuation has been used, which permits using a survey and a direct estimation of the premium price that consumers are willing to pay. The question format used is dichotomous choice valuation with follow-up questioning. Statistical analysis was carried out using descriptive statistical analysis and logistic regression, in such a way that the estimation for both methods has been compared. The premium price has been estimated in three segments of consumers, according to their life style (healthy, concern about environment and concern about food/diet). The main findings show that consumers with a healthy life style are those willing to pay a higher price for an organic wine.

Subfields: Economics and Econometrics, Plant Science, Tourism, Leisure and Hospitality Management

View Paper: https://www.semanticscholar.org/paper/1445fd89b26d5968c5c91cfd90c75c6ab328c632

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Citations in the corpus

Consumer behavior and purchase intention for organic food: A review and research agenda (2017, background): “Additionally, Environmental concern is another crucial motivating factor and the primary reason for the formation of positive consumer attitude towards organic food (Brugarolas Mollá-Bauzá et al., 2005; Makatouni, 2002; Smith and Paladino, 2009; Valerian et al., 2011).”
Estimating the willingness to pay for a sustainable wine using a Heckit model (2016, background): “While only a few studies consider the three basic components of sustainability as a whole (e.g. Forbes et al., 2009), most previous research deals with environmental friendly wines (e.g. Brugarolas et al., 2005; Mann et al., 2012; Barber et al., 2009).”
Tasting green: An experimental design for investigating consumer perception of organic wine (2014, background): “Thus Brugarolas Mollá-Bauzá et al. (2005) discovered four years earlier that consumers are willing to pay higher prices for organic wine (between 16.29 per cent and 16.92 per cent).”