Consumers' Perception of Risks, Awareness of Products and Willingness to Pay: A Case Study of Organic Milk

Based on survey data from Ji’nan city and some other cities in Shandong province, this paper conducted a research on consumers' perception degree of the food safety risk, and the awareness degree about organic food. Then taking organic milk as an example, the factors affecting the customers’ buy willingness to pay for organic milk were analyzed by bivariate logistic model and the willingness to pay was also calculated. The results show that the consumers’ food safety risk perception degree is high, and the awareness about organic food is low. The consumers’ age, level of education, whether the family has children below 12 years old, whether the family has a man (woman) older than 60 years, health situation self-evaluation, organic food cognition and food safety risk perception have significant effect on customers’ willingness to pay organic food. According to the calculation, the consumers were willing to pay a price premium of 60% for organic milk above ordinary milk.

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Asian Agricultural Research, Volume 06, Issue 01
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 Record created 2017-04-01, last modified 2018-01-22

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