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Type: Journal article
Title: The Environmental Benefits of Organic Wine: Exploring Consumer Willingness-to-Pay Premiums?
Author: Ogbeide, O.
Ford, C.
Stringer, R.
Citation: Journal of Food Products Marketing: innovations in food advertising, food promotion, food publicity, food sales promotion, 2015; 21(5):482-502
Publisher: Taylor and Francis
Issue Date: 2015
ISSN: 1045-4446
Statement of
Osadebamwen Anthony Ogbeide, Christopher Ford, Randy Stringer
Abstract: Consumers and the producers have shown interest in organics, but there exist gaps in their common interest. Producers require premiums for their products based on the peculiarity of their pro- duction circumstances and the perceived benefits inherent in their products. Predicting consumer willingness to pay a premium for the environmental benefits of organics (WTPe) is a challenge and is of interest in this study. The contingent valuation method was used to gather information on WTPe from a sample that yielded 2,099 surveys. The econometric test ordered probit regression and other analyses were carried out. On average, respondents indicated WTP 23% premium. The proposed hypotheses were tested, and all were accepted except social demographic variables that presented a mixed outcome. The results have implications for consumer sensitization and enlightenment programs of the wine indus- try, wine market segmentation, and government’s climate change policy. This study is exploratory and has presented a snapshot sce- nario. Confirmatory and longitudinal studies are recommended to validate this study’s outcomes.
Keywords: Organic; wine; consumer/customer; WTP; premium; environment
Rights: © Taylor & Francis Group, LLC
DOI: 10.1080/10454446.2013.856054
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