Predicting Willingness-to-Pay a Premium for Organically Grown Fresh Produce

Consumers were surveyed at various grocery retail establishments in New Jersey to provide opinions on organic produce. The objective of this study was to empirically evaluate which demographic characteristics cause consumers to be more likely to pay a premium to obtain organically grown produce. The results indicate that females, those with higher annual incomes, younger individuals, and those who usually or always purchase organic produce are all more likely to pay a premium for organic produce. The results also indicate that the likelihood of paying a premium for organic produce decreases with the number of individuals living in the household.