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Description
Keywords:
Willingness to pay, attitude of consumers, organic food in Iran.
Introduction
There is a growing global interest in organically produced foods, fueled by concerns about residual toxins and chemicals, as well as worries regarding food-related disorders and diseases. Additionally, increased awareness of the environmental and health impacts of intensive farming practices contributes to this trend. In Iran, despite the absence of established infrastructures, there is a gradual emergence of a preference for organically produced products among consumers, influenced by factors such as consumer recognition and education (Haghjou et al., 2013; Bagher et al., 2018).
The literature on the consumption aspect of organic food systems emphasizes the importance of consumer awareness and attitudes towards organic products (Paul & Rana, 2012; Kumar & Ali, 2011), as well as the significance of product labeling (Janssen & Hamm, 2012), in determining consumer willingness to pay (Katt & Meixner, 2020).
Despite the rapid growth of the global organic products market, the organic market in Iran has remained relatively underdeveloped (Willer et al., 2023). Therefore, there is a need to address this issue to better understand the key factors that can contribute to its development.
Objective
The current study seeks to explore the demographic and attitudinal factors that may influence consumers' willingness to pay for organic products. Additionally, it aims to identify the key factors perceived by consumers as crucial for the development of the organic food sector.
Method
This study adopts a mixed-methods approach, combining quantitative and qualitative methodologies through the use of surveys administered via questionnaires and interviews conducted with consumers at vegetable markets. Respondents were selected from vegetable markets in the central cities of various provinces, chosen based on their potential for organic and natural food production in the agricultural sector. The selection criteria included individuals who regularly shop for their household and have autonomy in making decisions about food consumption.
The research was conducted in six provinces of Iran identified as having significant potential for organic foods. The sample size comprised 460 questionnaires distributed among respondents at vegetable markets, with 454 complete responses suitable for data analysis using SPSS. The sample was stratified into six provinces for analysis.
Table 1- Distribution of samples among the cities
Stratum Number of questionnaire
Tehran 143
Mashhad 107
Shiraz 82
Kerman 53
Kermanshah 35
Gorgan 34
Findings
Almost literature about organic consumption studies socio-demographic variables as an important factor in inform about healthy and organic food and willingness to pay for it among people. The following table is a profile of demographic characteristics of the sample.
Table 2- The profile of demographic characteristics of the respondents
Characteristic Subsets Total Frequency Total Percentage
Gender Female 330 72.7
Male 124 27.3
Age (years old) Less than 25 72 15.9
26-35 164 36.1
36- 45 116 25.6
46-55 67 14.8
Over 55 35 7.7
Education level Illiterate and primary school 62 13.7
High school diploma and post diploma 223 49.1
Bachelor 107 23.6
Master’s degree, Doctorate and Ph.D. 62 13.6
Job Housewife 223 49.1
Other jobs 231 50.9
Household size 1-2 Persons 70 15.4
3-4 Persons 254 55.9
5-7 Persons 124 27.3
Over 8 Persons 6 1.3
Household Income groups 4 (The lowest) 73 16.1
3 153 33.7
2 150 33.0
1 (The highest) 78 17.2
0
Number of children below 15 years old 1 172 37.9
2 109 24.0
3 and more 13 2.9
Table 3 presents the percentage by which consumers are willing to pay a higher price for organic food compared to conventional ones in different provinces of Iran.
Table 3- The higher price percent which consumers are willing to pay to buy organic food than conventional ones
Frequency Percent Valid Percent Cumulative Percent
0% 29 6.4 6.4 6.4
1-24% 145 31.9 31.9 38.3
25-49% 153 33.7 33.7 72.0
50-74% 72 15.9 15.9 87.9
75-99% 38 8.4 8.4 96.3
100% 14 3.1 3.1 99.3
2-3 times more expensive 3 .7 .7 100.0
Total 454 100.0 100.0
To forecast consumers' willingness to pay, we employed multiple regression analysis in SPSS, employing the stepwise method. The outcomes revealed an R value of 81.3 and an R-square value of 66.1, indicating that the independent variables account for 66 percent of the variance in the dependent variable (i.e., the percentage by which consumers are willing to pay more for natural food compared to conventional ones), with an adjusted R-square of 65.3. Additionally, to gauge consumer attitudes toward food consumption, we developed several scales based on the literature review, including attitudes toward food specifics, concerns about food, chemicals in food products, and natural foods.
Through six steps, SPSS identified significant variables and eliminated others, culminating in the following regression function based on the B coefficients:
WTP= 1.95+ 0.001HI- 0.092ATN-0.040 ATC+0.112Edu+0.151 N.Ch- 0.07 Prov.
Which:
HI= Household income
ATN= Attitudes toward natural foods
ATC= Attitudes toward chemicals in food products
Edu. = Education
N.Ch. = Number of children under 15 years old in the household
Prov. = Province
Conclusion
In summary, this study highlights that consumers' willingness to pay more for organic foods is positively influenced by their awareness of food health benefits and higher income levels. Moreover, the region where consumers reside significantly impacts their willingness to pay for such products in Iran.
Furthermore, the findings from the second part of the study, which involved open-ended questions about factors influencing the purchase of organic products, underscore the importance of establishing designated organic markets within cities and implementing a government-endorsed organic products label, according to consumers.
