CONSUMERS' WILLINGNESS TO PAY MORE FOR ORGANIC FOOD IN CROATIA

Authors

  • Kristina Petljak University of Zagreb, Faculty of Economics & Business, Department of Trade
  • Ivana Štulec University of Zagreb, Faculty of Economics & Business, Department of Trade
  • Sanda Renko University of Zagreb, Faculty of Economics & Business, Department of Trade

Abstract

Taking into consideration growing concerns about conventional agricultural practices, food safety, human health, animal welfare and the environment, the main goal of this paper is to identify the predictors of consumers' willingness to buy organic food and to pay a premium price for it. The research was conducted on a representative sample of respondents in the Republic of Croatia, a growing organic food market, using a highly structured questionnaire. Research results indicate that respondents in Croatia perceive organic food as more expensive, healthier and tastier than conventional food; also, they believe that the origin of organic food is strictly controlled. The results of hierarchical regression analysis indicate that higher monthly household income predicts a greater willingness to pay (WTP) a higher price for organic food compared to conventional food. Also, perception of organic food as healthier and tastier than conventional food predicts a greater WTP a higher price for organic food compared to conventional products. It is expected that research results will be useful for food retailers in their market communication strategies towards further development and overall growth of the organic food market in Croatia. This research is one of its kind as it captures WTP a premium price for organic food and identifies the main factors influencing WTP a premium price for organic food on the growing Croatian market.

Keywords: Organic food, willingness to pay, premium price, consumer behaviour, survey research, Croatia

Author Biographies

Kristina Petljak, University of Zagreb, Faculty of Economics & Business, Department of Trade

Kristina Petljak, PhD is Assistant Professor at the Department of Trade, Faculty of Economics and Business in Zagreb, Croatia. She has a interdisciplinary background with a research focus on green supply chain management, food supply chain management, retail management, organic and fair trade food.

Ivana Štulec, University of Zagreb, Faculty of Economics & Business, Department of Trade

Ivana Stulec, PhD is an Assistant Professor at the Department of Trade, Faculty of Economics and Business in Zagreb, Croatia. Her research interests include econometric analysis of retail sales, weather effect on the supply chain, green supply chain management, consumer buying behaviour, e-commerce and commodity exchanges.

 

Sanda Renko, University of Zagreb, Faculty of Economics & Business, Department of Trade

Sanda Renko, PhD is a Professor at the Department of Trade, Faculty of Economics and Business in Zagreb, Croatia. Her research interests include retailing, wholesaling, category management, logistics, channels of distribution. She was the co-ordinator for FP7 EU Project "Food Consumer Science in the Balkans" and is co-ordinator for the bilateral project (Austria-Croatia) on the topic "Evaluating Corporate Social Responsibility (CSR) at the Point of Sale From the New Parents Perspective". 

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Published

2018-01-02

How to Cite

Petljak, K., Štulec, I., & Renko, S. (2018). CONSUMERS’ WILLINGNESS TO PAY MORE FOR ORGANIC FOOD IN CROATIA. Ekonomski vjesnik/Econviews - Review of Contemporary Business, Entrepreneurship and Economic Issues, 30(2), 441–455. Retrieved from https://hrcak.srce.hr/ojs/index.php/ekonomski-vjesnik/article/view/5316

Issue

Vol. 30 No. 2 (2017)

Section

PRELIMINARY COMMUNICATION

License

Upon acceptance of an article for publication in Ekonomski Vjesnik / Econviews – Review of Contemporary Entrepreneurship, Business, and Economic Issues, contributing authors automatically waive their copyright in favour of the journal. The journal reserves copyright of all papers published in it.