Does Price or Income Affect Organic Choice? Analysis of U.S. Fresh Produce Users

By Travis A. Smith, Chung L. Huang, B. Lin. Journal of Agricultural and Applied Economics, 2009

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This study analyzes consumer purchasing behavior of organic fresh fruits and vegetables using the 2006 Nielsen Homescan panel. An ordered logit model was estimated to quantify the impacts of economic and socio-demographic factors on the probability of a household belonging to a specific organic user group—devoted, casual, or nonuser. Results suggest that price and income, to some extent, affect consumer purchases of organic produce. Additionally, the profile of an organic produce user is most likely to consist of an Hispanic household residing in the Western United States with children under 6 years old and a household head older than 54 years with at least a college degree.

Subfields: Economics and Econometrics, Marketing, Plant Science

View Paper: https://www.semanticscholar.org/paper/816c142e6d87f747d3aa0660515239e0fc1bf0ce