Price promotion of organic foods and consumer demand

Existing studies have examined the demand elasticities for organic products only in select categories, and their results for consumers' sensitivity to price changes are inconsistent. Evidence regarding the effects of price promotions on the demand for organic foods vs non-organic foods is scarc...

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Veröffentlicht in:Renewable agriculture and food systems 2022-12, Vol.37 (6), p.618-623
Hauptverfasser: Chen, Danhong, Jaenicke, Edward C., Yan, Ji, Tian, Kun, Nayga, Rodolfo M.
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container_end_page 623
container_issue 6
container_start_page 618
container_title Renewable agriculture and food systems
container_volume 37
creator Chen, Danhong
Jaenicke, Edward C.
Yan, Ji
Tian, Kun
Nayga, Rodolfo M.
description Existing studies have examined the demand elasticities for organic products only in select categories, and their results for consumers' sensitivity to price changes are inconsistent. Evidence regarding the effects of price promotions on the demand for organic foods vs non-organic foods is scarce. This study aims to (1) examine the own-price elasticities of organic foods vs non-organic counterparts both with and without a promotion in a variety of product categories, and (2) investigate how the distinctive promotion effects between organic and non-organic counterparts depend on food category features. Using purchase data for 36 food categories from the 2015 Nielsen Consumer Panel, we find differential own-price elasticities for organic and non-organic foods, regardless of whether the product is purchased with a promotion. When the products are purchased with a promotion, we find stronger price promotion effects of organic virtues than non-organic virtues and weaker price promotion effects of organic vices than conventional vices. Price promotions of organic foods are more likely to induce health-conscious consumers to switch from conventional purchases to organic purchases in virtues.
doi_str_mv 10.1017/S1742170521000399
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source Cambridge University Press Journals Complete
subjects Beer
Categories
Consumers
Demand
Elasticity of demand
Food
Fruits
Literature reviews
Milk
Natural & organic foods
Nutrition
Price elasticity
U.S. Organic Agriculture: 30 years after the Organic Foods Production Act of 1990
Vegetables
Willingness to pay
title Price promotion of organic foods and consumer demand
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