MARKET SEGMENTATION AND WILLINGNESS TO PAY FOR ORGANIC PRODUCTS IN SPAIN

By J. Gil, A. Gracia, Mercedes Sánchez-Apellaniz García. 2000

649 citations recorded by the source corpus.

In recent years, consumer concerns on environmental and health issues related to food products have increased and, as a result, the demand for organically grown production has grown. Higher costs of production and retailer margins generate a gap between real prices and those that consumers are willing to pay for organic food. In this article, consumer willingness to pay for organic food in two Spanish regions is analyzed. Markets in both regions are segmented considering consumers lifestyles. Results indicate that consumers concerned about healthy diet and environmental degradation are the most likely to buy organic food, and are willing to pay a high premium. Organic attributes are easily identified in perishable products as the premium consumers would pay for organic meat, fruits, and vegetables is higher.

Subfields: Economics and Econometrics, Marketing, Plant Science

View Paper: https://www.semanticscholar.org/paper/f1aad9b3a952e0369d73a3ff76d689917110174c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Marketing

In Plant Science

Citations in the corpus

Consumer behavior and purchase intention for organic food: A review and research agenda (2017, background): “We know that as the supply of organic food decreases, so does the demand (Gil et al., 2000).”
Effects of feeding system on carcass and non-carcass composition of Churra Tensina light lambs (2008, background): “, 2001) is stimulating market interest in extensive systems (Gil et al., 2000).”
Determination of the surplus that consumers are willing to pay for an organic wine. (2005, neutral): “In Spain, a study conducted by Gil et al. (2000) showed that consumers who are concerned about a healthy diet and environmental deterioration are more willing to purchase organic foods and more willing to pay a higher price.”
What Motivates Consumers to Buy Organic Food: Comparison of Croatia, Bosnia Herzegovina, and Slovenia (2010, positive): “…of organic food, and prices of organic food products (Brown et al., 2009, Cicia, Del, Giudice, & Scarpa, 2002, O’Donovan & McCarthy, 2002, Hill & Lynchehaun, 2002, Magnusson, Arvola, Koivisto Hursi, Åberg, & Sjödén, 2001, Gil et al., 2000, Gendall, Betterridge, & Bailey, 1999, Pearson, 2001).”
Factors Influencing Consumers’ Willingness to Pay for Organic Fruits and Vegetables: Empirical Evidence from a Consumer Survey in India (2017, positive): “Higher prices and product shortage in the supermarkets should be mentioned amid the most relevant obstacles (Gil et al., 2000).”
Food quality and safety: consumer perception and demand (2005, positive): “In those cases where market transaction data are either not accessible or non-existent, because we are dealing with hypothetical improvements of quality or safety, contingent valuation (e.g. Boccaletti and Nardella, 2000; Gil et al., 2000; Maruyama and Kikuchi, 2004), experimental auctions (Hoffman ”