Consumer knowledge, consumption, and willingness to pay for organic tomatoes

Purpose - The purpose of this study is to analyze the levels of knowledge and consumption of organic tomatoes in Spain, and their influence in consumer willingness to pay for this type of food. Design/methodology/approach - The data used in this work come from a survey of 361 Spanish consumers. The paper analyzes the levels of consumption and the knowledge of organic foods, proposing a contingent valuation exercise for organic tomatoes. The Hanemann model is used to estimate the average and maximum willingness to pay for this product. A multivariate logit model was calculated, with different starting prices and variables derived from a cluster analysis of consumers. Findings - Three distinct groups of consumers were identified, and their willingness to pay for organic tomatoes was modeled using contingent valuation. The results clearly show a generalized lack of knowledge of organic products and the confusion caused by the proliferation of labels. A clear relationship was also observed between consumers' levels of knowledge and consumption of organic foods and their willingness to pay a premium for these products. This confirms the interest shown by policy makers in promoting education and information aimed at developing the domestic market. Originality/value - This paper shows an interesting approach, as research on the influence of knowledge and consumption of organic food on consumers' willingness to pay for this product is scarce, and even more if one considers the local character of many of these studies. As the premium of organic food is one of the main constraints to the growth of this sector, results may be relevant both for producers and planners.