Price Policy for Organic Food: a Neo-institutional Approach

Abstract: Price premiums are recognized as a central barrier for the diffusion of organic food. On average, the consumer has to pay about 50 % more for organic food than for comparable products. This is also true for large retailers although considerable economies of scale could be expected. Against this background the following article analyzes pricing strategies of supermarkets. It appears evident that higher prices of organic food reflect higher costs of production and lower output, but primarily this is due to inefficient structures in processing and marketing. Furthermore, the pressures of competition in the market are low; price reductions and bargain sales are avoided by competitors. If the premium prices are compared with the results of market research, a large discrepancy between the willingness to pay for organic food and actual prices will be found. By means of a conjoint analysis the managerial inefficiencies of this pricing policy can be proven. Finally, the paper gives theoreti.... https://www.tib-op.org/ojs/index.php/gjae/article/view/1491

Location
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource
Language
Englisch

Bibliographic citation
Price Policy for Organic Food: a Neo-institutional Approach ; volume:50 ; number:7 ; year:2001
Agrarwirtschaft ; 50, Heft 7 (2001)

Creator
Spiller, Achim

DOI
10.52825/gjae.v50i7.1491
URN
urn:nbn:de:101:1-2409251053071.925670157186
Rights
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
15.08.2025, 7:19 AM CEST

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Associated

  • Spiller, Achim

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