Consumer Willingness to Pay a Premium for the Health Benefits of Organic Wine Osadebamwen Anthony Ogbeide, Randy Stringer & Christopher Ford (2015). Consumer Willingness to Pay a Premium for the Health Benefits of Organic Wine, Mayfair Journal of Agribusiness Management 1(1), 1-23
Abstract
Concerns about human health are evidently considered in the food and wine market and information at the domain of consumers has led them to become conscious of organic product as an alternative to the conventional products. However the exact behaviours of consumers towards the health benefits of organic wine are not clear. The primary objective of the study is to determine which factors affect the consumers’ decision to pay a premium for the health benefits of organic wine. An online survey of respondents was carried out across the states and territories of Australia. The results show that on average, respondents were willing to pay $2.30 premium for the health benefit. The behavioural factors were tested using the ordered probit model and all of them except for two were significant to influence willingness to pay for the health benefit of organic wine. The social demographic variables presented a mixed outcome. These outcomes have implications for the wine industry and government health policy. This study was exploratory and had presented a snapshot scenario. Longitudinal study is recommended for future research.
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