Factors Affecting Consumers Potential Willingness to Pay for Organic Food Products in Bangalore
Posted: 4 Mar 2019
Date Written: August 2017
As different countries have different standards for products to be certified as “organic”, there is no common definition of “organic”. With increased concern of food safety and health issues, consumers have started turning towards organic products. Consumers' interest in organic food has been due to growing demand for food free from pesticides and chemical residues. Organic food enhances a balance of human, nature and other living organisms. It reduces considerably the use of artificial preservatives and therefore maintains the originality of food. This reduces the surplus use of harmful ingredients and thereby tries ensuring health. This study attempts to gain knowledge about consumer attitude towards organic food product consumption and to see the purpose of choosing these products and whether they are willing to pay premium price for these products or choosing manufacturers brand with similar health benefits. In this report, analysis on the availability and prices of different organic products including vegetables, groceries and other personal care products has been done. The customers‟ willingness to pay premium price for organic food is studied by finding the factors affecting their decision making while purchasing these products.
Keywords: Organic, Potential Willingness, Organic Products, Chemical Residues, Originality of food
JEL Classification: M31
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