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Durham Research Online
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Price promotion of organic foods and consumer demand

Chen, D. and Jaenicke, E. C. and Yan, J. and Tian, K. and Nayga, R. M. (2021) 'Price promotion of organic foods and consumer demand.', Renewable Agriculture and Food Systems .

Abstract

Existing studies have examined the demand elasticities for organic products only in select categories, and their results for consumers' sensitivity to price changes are inconsistent. Evidence regarding the effects of price promotions on the demand for organic foods vs non-organic foods is scarce. This study aims to (1) examine the own-price elasticities of organic foods vs non-organic counterparts both with and without a promotion in a variety of product categories, and (2) investigate how the distinctive promotion effects between organic and non-organic counterparts depend on food category features. Using purchase data for 36 food categories from the 2015 Nielsen Consumer Panel, we find differential own-price elasticities for organic and non-organic foods, regardless of whether the product is purchased with a promotion. When the products are purchased with a promotion, we find stronger price promotion effects of organic virtues than non-organic virtues and weaker price promotion effects of organic vices than conventional vices. Price promotions of organic foods are more likely to induce health-conscious consumers to switch from conventional purchases to organic purchases in virtues.

Item Type:Article
Full text:(AM) Accepted Manuscript
Available under License - Creative Commons Attribution Non-commercial No Derivatives 4.0.
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Status:Peer-reviewed
Publisher Web site:https://doi.org/10.1017/S1742170521000399
Publisher statement:This article has been published in a revised form in Renewable Agriculture and Food Systems, https://doi.org/10.1017/S1742170521000399. This version is published under a Creative Commons CC-BY-NC-ND. No commercial re-distribution or re-use allowed. Derivative works cannot be distributed. © The Author(s), 2021. Published by Cambridge University Press
Date accepted:06 August 2021
Date deposited:28 January 2022
Date of first online publication:11 September 2021
Date first made open access:11 March 2022

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