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Consumers’ willingness to pay for organic products in Thailand

Yaowarat Sriwaranun (Department of Agricultural Economics, Faculty of Agriculture, Khon Kaen University, Khon Kaen, Thailand)
Christopher Gan (Department of Accounting, Economics and Finance, Faculty of Commerce, Lincoln University, Christchurch, New Zealand)
Minsoo Lee (Economics and Research Department, Asian Development Bank, Manila, Philippines)
David A Cohen (Business Management, Law, and Marketing, Lincoln University, Christchurch, New Zealand)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 11 May 2015

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Abstract

Purpose

The purpose of this paper is to investigate factors affecting consumers’ willingness to pay (WTP) a premium for organics.

Design/methodology/approach

A self-administered questionnaire was used to collect data at five retail stores in metropolitan Bangkok. Exploratory factor analysis and the double-bound contingent valuation method were used for analysis.

Findings

Results indicate WTP premiums of 88, 51 and 51 per cent for kale, jasmine rice and pork, respectively. Analysis indicates that respondents are willing to pay a premium if they have already purchased organic products, have good health, strong ethical and environmental concerns, think that organic products provide greater quality and health benefits, and reside in the city. Respondents with children, however, are less likely to pay a premium for organic products. Analysis also indicates that the price premium hinders purchase.

Practical implications

Efforts should be made by policymakers, together with marketers and producers, to lower the price of organic products to attract more consumers.

Originality/value

To enlarge the organic market, one must understand consumers’ preferences for organic products and the premium they will pay for them. This is not well-researched. Though several studies have investigated consumers’ behaviour towards environmentally friendly products in Thailand, there is little research on WTP. This lack is a major impediment to the growth of organic consumption and the development of organic product markets.

Keywords

Citation

Sriwaranun, Y., Gan, C., Lee, M. and Cohen, D.A. (2015), "Consumers’ willingness to pay for organic products in Thailand", International Journal of Social Economics, Vol. 42 No. 5, pp. 480-510. https://doi.org/10.1108/IJSE-09-2013-0204

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited