Market segmentation and willingness to pay for organic products in Spain |
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| Institution: | 1. Unidad de Economia Agraria, Servicio de Investigación Agroalimentaria, Diputación General de Aragón, Apdo 727, 50080 Zaragoza, Spain;2. Universidad Pública de Navarra, Pamplona, Spain;1. Johnson Shoyama Graduate School of Public Policy, University of Saskatchewan, 101 Diefenbaker Place, Saskatoon, SK S7N 5B8, Canada;2. Department of Agricultural and Resource Economics, University of Saskatchewan, 51 Campus Drive (3D34.1), Saskatoon, S7N 5A8, Canada;1. Sustainable Environmental Systems Postgraduate Program, University of Vale do Taquari – Univates, 171 Avelino Tallini St., Universitário, 95900-000, Lajeado, RS, Brazil;2. Organizational Management Center, University of Vale do Taquari – Univates, 171 Avelino Tallini St., Universitário, 95900-000, Lajeado, RS, Brazil;3. Environment and Development Postgraduate Program, University of Vale do Taquari – Univates, 171 Avelino Tallini St., Universitário, 95900-000, Lajeado, RS, Brazil;1. Address 768, Jiayuguan West Road, State Key Laboratory of Grassland Agro-ecosystems College of Pastoral Agriculture Science and Technology, Lanzhou University, Lanzhou, 730020, China;2. College of Management and Economics, Northwest A&F University, Yangling, Xi''an, 712100, China |
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| Abstract: | 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. |
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