Differences between low-income and high-income buyers of organic milk and willingness to pay organic price premiums

Abstract

The demand for organic products has increased with the increase in individuals’ education and income levels, their sensitivity to the quality of the products, and their willingness to pay higher prices for natural and quality products. Confidence in organic products, caring about the health effects of organic products, and the ease of accessing them are among the factors that increase their consumption. Organic products are also perceived as natural products in Turkey. The awareness of questioning the certificates and logos of purchased organic products has not yet been formed. Those who do not know the legislation, such as the organic logo requirement, perceive all kinds of natural products obtained from rural areas as organic. In this study, 477 questionnaires from households were obtained in Bursa, the 4th largest city in Turkey. The study aimed to reveal organic milk and dairy products (OMDP) consumption perceptions, consumption status, and reasons for preference by participants’ income level. Consumers’ awareness and perceptions of OMDP, their OMDP consumption status, and the relationship between OMDP consumption and income level. The study also inquired whether consumers would be willing to pay more for OMDP and whether this willingness to pay was affected by income levels. Middle-income consumers consumed the most organic milk—consumers with high income purchased OMDP the least. However, in case of increased product awareness, half of the high-income consumers were willing to pay 30% more for OMDP. This research is a reliable, empirical field study to reveal Turkish OMDP consumers’ characteristics and contribute to the literature