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Willingness to Pay in Food Retailing—An Empirical Study of Consumer Behaviour in the Context of the Proliferation of Organic Products

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European Retail Research

Part of the book series: European Retail Research ((ERR))

Abstract

The ongoing price competition in food retailing has intensified consumer price sensitivity. Nonetheless, in recent years the demand for generally higher-priced organic food has increased. But in relation to the prevailing habitual purchasing behaviour, a deeper understanding of consumer behaviour is necessary. Accordingly, we propose and test a comprehensive structural equation model that primarily addresses consumer willingness to pay (WTP) in food retailing. Extending on previous studies, multifaceted household panel data are used to simultaneously estimate relationships between socio-demographics, psychographics and actual purchasing behaviour. The results of this study show that consumers of organic food have a comparatively high WTP, and that their purchases can be attributed to the perceived importance of food naturalness and to environmental consciousness. However, consumer price consciousness remains a barrier to the purchase of organic food. In contrast, this barrier supports the success of conventional private labels, and thereby reduces the general WTP.

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Authors and Affiliations

  1. Faculty of Economics, Department of Business Administration, Chair of Marketing, University of Hagen, Universitätsstraße 11, 58097, Hagen, Germany

    Univ.-Prof. Dr. Rainer Olbrich, Dr. Michael Hundt (Academic Assistant) & Dr. Gundula Grewe (Academic Assistant)

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  1. Univ.-Prof. Dr. Rainer Olbrich
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  2. Dr. Michael Hundt
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Correspondence to Rainer Olbrich .

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Editors and Affiliations

  1. Institut für Marketing, Karl-Franzens-Universität Graz, Graz, Austria

    Thomas Foscht

  2. Chair for International Management, Universität Fribourg, Fribourg, Switzerland

    Dirk Morschett

  3. Forschungszentrum für Handelsmanagement, Universität St. Gallen, St. Gallen, Switzerland

    Thomas Rudolph

  4. Institut für Handel und Marketing, Wirtschaftsuniversität Wien, Wien, Austria

    Peter Schnedlitz

  5. Lehrstuhl für Marketing, Universität Siegen, Siegen, Germany

    Hanna Schramm-Klein

  6. Professur für Marketing und Handel, Universität Trier, Trier, Germany

    Bernhard Swoboda

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Olbrich, R., Hundt, M., Grewe, G. (2015). Willingness to Pay in Food Retailing—An Empirical Study of Consumer Behaviour in the Context of the Proliferation of Organic Products. In: Foscht, T., Morschett, D., Rudolph, T., Schnedlitz, P., Schramm-Klein, H., Swoboda, B. (eds) European Retail Research. European Retail Research. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-09603-8_4

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