Organic and Local Food Consumption: A Matter of Age? Empirical Evidence from the German Market

Authors

  • Julia Winterstein Catholic University of Eichstätt-Ingolstadt
  • André Habisch Catholic University of Eichstätt-Ingolstadt

Keywords:

Local foods, Organic foods, Age differences, Demographics, Willingness to pay

Abstract

Given the varied experiences and preferences in the course of different people’s lives, demographic factors could be an important factor in explaining consumer behaviour. In the literature, however, there is no common view concerning its capacity as a predictor of demand for organic products. Therefore, this article analyzes the willingness of consumers to pay for organic and local food depending on their age. Focusing on the product attributes of ‘Region of Origin,’ ‘Production Condition,’ and ‘Price’, it utilizes a choice-based conjoint analysis to assess the responses of 325 respondents from different age groups in Germany. A general preference for local as well as organic food was noted among all age groups. Thereby, slightly more people over or equal to 30 years perceived the (local) region of origin as well as organic production conditions as important. Younger people also seemed more price sensitive. Choice simulations, however, identified only minimal deviations in the WTP - indicating almost no differences among the age groups. Managerial implications for appropriate marketing and subsidy policy are deduced.

 

References

REFERENCES

Backhaus, K., Erichson, B., & Weiber, R. (2013). Fortgeschrittene multivariate Analysemethoden: Eine anwendungsorientierte Einführung (2., überarb. und erw. Auflage). Springer-Lehrbuch. Berlin: Springer Gabler.

Bech-Larsen, T., & Grunert, K. G. (2003). The perceived healthiness of functional foods. Appetite, 40(1), 9–14. https://doi.org/10.1016/S0195-6663(02)00171-X

Blackwell, R. D., D'Souza, C., Taghian, M., Miniard, P., & Engel, J. (2006). Consumer behaviour: An Asia Pacific approach (1st Edition). South Melbourne, Vic.: Thompson Learning Publishers.

BMEL (2017). Deutschlands liebstes Obst und Gemüse ist Zu gut für die Tonne! Retrieved from https://www.zugutfuerdietonne.de/service/presse/pressemitteilungen/deutschlands-liebstes-obst-und-gemuese-ist-zu-gut-fuer-die-tonne/

BMEL (2020). Ökobarometer 2019: Umfrage zum Konsum von Biolebensmitteln. Retrieved from https://www.bmel.de/SharedDocs/Downloads/Ernaehrung/oekobarometer2019.pdf?__blob=publicationFile

BMJV (2020). Verbraucherschutz. Junge Verbraucherpolitik. Retrieved from https://www.bmjv.de/DE/Verbraucherportal/Verbraucherinformation/JungeVerbraucherpolitik/JungeVerbraucherpolitik_node.html

Born, B., & Purcell, M. (2006). Avoiding the Local Trap. Journal of Planning Education and Research, 26(2), 195–207. https://doi.org/10.1177/0739456X06291389

Carpio, C. E., & Isengildina-Massa, O. (2009). Consumer willingness to pay for locally grown products: the case of South Carolina. Agribusiness, 25(3), 412–426. https://doi.org/ 10.1002/agr.20210

Chen, J., Lobo, A., & Rajendran, N. (2014). Drivers of organic food purchase intentions in mainland China - evaluating potential customers' attitudes, demographics and segmentation. International Journal of Consumer Studies, 38(4), 346–356. https://doi.org/10.1111/ ijcs.12095

Darby, K., Batte, M. T., Ernst, S., & Roe, B. (2008). Decomposing Local: A Conjoint Analysis of Locally Produced Foods. American Journal of Agricultural Economics, 90(2), 476–486. https://doi.org/10.1111/j.1467-8276.2007.01111.x

Dettmann, R. L., & Dimitri, C. (2007). Organic Consumers: A Demographic Portrayal of Organic Vegetable Consumption within the United States. https://doi.org/10.22004/ag.econ.7899

Diamantopoulos, A.,Schlegelmilch, B. B., Sinkovics, R. R., & Bohlen, G. M. (2003). Can socio-demographics still play a role in profiling green consumers? A review of the evidence and an empirical investigation. Journal of Business Research, 56(6), 465–480. https://doi.org/10.1016/S0148-2963(01)00241-7

FAO (2020). Organic Agriculture. Retrieved from http://www.fao.org/organicag/oa-faq/oa-faq6/en/

FiBL, & IFOAM (2020). The World of Organic Agriculture 2020. Retrieved from https://www.organic-world.net/ yearbook/yearbook-2020/pdf .html

Fotopoulos, C., & Krystallis, A. [Athanasios] (2002). Purchasing motives and profile of the Greek organic consumer: a countrywide survey. British Food Journal, 104(9), 730–765. https://doi.org/ 10.1108/00070700210443110

Fuchs, S., & Schwaiger, M. (2007). Disproportionate Samples in Hierarchical Bayes CBC Analysis. In R. Decker & H.-J. Lenz (Eds.), Studies in Classification, Data Analysis, and Knowledge Organization. Advances in Data Analysis (pp. 441–448). Berlin, Heidelberg: Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-540-70981-7_50

Govindasamy, R., & Italia, J. (1999). Predicting WILLINGNESS-TO-PAY A PREMIUM FOR ORGANICALLY GROWN FRESH PRODUCE. https://doi.org/10.22004/ag.econ.27385

HDE (2019). Umsatz mit Konsumgütern mit Aspekten der Nachhaltigkeit in Deutschland im Jahr 2018 (in Milliarden Euro). Retrieved from https://de.statista.com/statistik/daten/studie/1041929/umfrage/umsatz-mit-nachhaltigen-konsumguetern-in-deutschland/

Hempel, C., & Hamm, U. (2016). Local and/or organic: a study on consumer preferences for organic food and food from different origins. International Journal of Consumer Studies, 40(6), 732–741. https://doi.org/10.1111/ ijcs.12288

Jager, J., Putnick, D. L., & Bornstein, M. H. (2017). Ii. More THAN JUST CONVENIENT: The SCIENTIFIC MERITS OF HOMOGENEOUS CONVENIENCE SAMPLES. Monographs of the Society for Research in Child Development, 82(2), 13–30. https://doi.org/ 10.1111/mono.12296

Jolly, D. A. (1991). Differences between buyers and nonbuyers of organic produce and willingness to pay organic price premiums. Journal of Agribusiness, 9(1), 97–111.

Kezis, A. S.,Gwebu, T.,Peavey, S. R, & Cheng, H.‑T. (1998). A STUDY OF CONSUMERS AT A SMALL FARMERS' MARKET IN MAINE: Results FROM A 1995 SURVEY. https://doi.org/10.22004/ag.econ.27442

Kotler, P., & Armstrong, G. (2014). Principles of Marketing (17th edition, global edition, ISBN-13: 978-1292220178): Pearson. Retrieved from http://lib. myilibrary.com?id=1021483

Krystallis, A. [Athanassios], Fotopoulos, C., & Zotos, Y. [Yiorgos] (2006). Organic Consumers' Profile and Their Willingness to Pay (WTP) for Selected Organic Food Products in Greece. Journal of International Consumer Marketing, 19(1), 81–106. https://doi.org/10.1300/J046v19n01_05

Kumar, R. (2014). Impact of Demographic Factors on Consumer Behaviour - A Consumer Behaviour Survey in Himachal Pradesh. Global Journal of Enterprise Information System, 6(2), 35. https://doi.org/10.15595/gjeis/2014/v6i2/51844

Lea, E., & Worsley, T. (2005). Australians' organic food beliefs, demographics and values. British Food Journal, 107(11), 855–869. https://doi.org/10.1108/00070700510629797

Magnusson, M. K., Arvola, A., Koivisto Hursti, U. ‑ K., Åberg, L., & Sjödén, P.‑O. (2001). Attitudes towards organic foods among Swedish consumers. British Food Journal, 103(3), 209–227. https://doi.org/10.1108/00070700110386755

McCarthy, B., & Murphy, L. (2013). Who’s buying organic food and why? Political consumerism, demographic characteristics and motivations of consumers in North Queensland. Tourism & Management Studies, 9(1), 72–79.

Meyerding, S. G., & Merz, N. (2018). Consumer preferences for organic labels in Germany using the example of apples – Combining choice-based conjoint analysis and eye-tracking measurements. Journal of Cleaner Production, 181, 772–783. https://doi.org/10.1016/j.jclepro.2018.01.235

Myers, J. H. (1996). Segmentation and positioning for strategic marketing decisions. Chicago, Ill.: American Marketing Assoc.

Nguyen, H. V., Nguyen, C. H., & Hoang, T. T. B. (2019). Green consumption: Closing the intention-behavior gap. Sustainable Development, 27(1), 118–129. https://doi.org/10.1002/sd.1875

Omar, N. A., Nazri, M. A., Osman, L. H., & Ahmad, M. S. (2017). The effect of demographic factors on consumer intention to purchase organic products in the Klang Valley: An empirical study. Geografia-Malaysian Journal of Society and Space, 12(2), 68–82. Retrieved from https://core.ac.uk/download/pdf/77967146.pdf

Onozaka, Y., & McFadden, D. T. (2011). Does Local Labeling Complement or Compete with Other Sustainable Labels? A Conjoint Analysis of Direct and Joint Values for Fresh Produce Claim. American Journal of Agricultural Economics, 93(3), 693–706. https://doi.org/10.1093/ajae/aar005

Onyango, B. M., Hallman, W. K., & Bellows, A. C. (2007). Purchasing organic food in US food systems. British Food Journal, 109(5), 399–411. https://doi.org/10.1108/00070700710746803

Sawtooth Software, I. (2019a). CBC Tutorial and Example. Retrieved from https://www.sawtoothsoftware.com/help/lighthouse-studio/manual/cbctutorialandexample.html

Sawtooth Software, I. (2019b). Estimating Utilities with HB. Retrieved from https://www.sawtoothsoftware.com/help/lighthouse-studio/manual/

Tsakiridou, E., Boutsouki, C., Zotos, Y. [Yorgos], & Mattas, K. (2008). Attitudes and behaviour towards organic products: an exploratory study. International Journal of Retail & Distribution Management, 36(2), 158–175. https://doi.org/10.1108/09590550810853093

UN (2020). World Population Prospects 2019: Data Query. Retrieved from https://population.un.org/wpp/DataQuery/

USDA (2020a). Local Foods: Definition. Retrieved from https://www.nal.usda.gov/aglaw/local-foods#:~:text=Local%20 food%20is%20defined%20as,in%20a%20limited%20geographic%20area.

USDA (2020b). USDA Organic. Retrieved from https://www.usda.gov/topics/organic

Wang, Q., & Sun, J. (2003). Consumer Preference and Demand For Organic Food: Evidence From A Vermont Survey. Montreal, Canada: July 27-30, 2003. Conference Paper.

Wier, M., & Calverley, C. (2002). Market potential for organic foods in Europe. British Food Journal, 104(1), 45–62. https://doi.org/10.1108/00070700210418749

Yin, S., Wu, L., Du, L., & Chen, M. (2010). Consumers' purchase intention of organic food in China. Journal of the Science of Food and Agriculture, 90(8), 1361–1367. https://doi.org/10.1002/jsfa.3936

Zepeda, L., & Li, J. (2006). Who Buys Local Food? Journal of Food Distribution Research, 37(3), 1–11. https://doi.org/10.22004/ag.econ.7064

Downloads

Published

2021-01-30