Impact of price on consumption of organic food products: A pragmatic study

Roopashree B R; Dr. Rizwana.M

doi:10.46947/joaasr322021146

Authors

Roopashree B R Assistant Professor, Commerce & Management Department, Dayananda Sagar Business Academy, Bangalore
Dr. Rizwana.M Associate professor, Department of Management studies, M.S Ramaiah Institute of Technology, Bangalore

DOI:

https://doi.org/10.46947/joaasr322021146

Keywords:

Willingness to pay, organic product, conventional product, premium price

Abstract

Organic food product market is been growing consistently over a decade worldwide. Health
insecurity among consumers is the major factor that shifted consumers interest towards organic product
from conventional products. Irrespective of the growth, organic food market has grown as niche
market, in order to enter the main stream the biggest barrier is the price of the product. At this backdrop,
the present study aims to understand whether consumers are really keen to pay higher price for organic
products bearing in mind the various benefits of it. The essential data for the present study has been
gathered through primary source. A sample of 105 respondents were selected using convenience
sampling technique. A structured questionnaire had been used to determine respondents over all
opinion towards the pricing of organic food items. The study results revealed that customers inclination
to pay higher premium price for organic product is due to less chemical & fertilizers usage, health
benefit enjoyed, less environmental impact created and the quality maintained in the products.