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Does Price or Income Affect Organic Choice? Analysis of U.S. Fresh Produce Users

By Travis A. Smith, Chung L. Huang and Biing-Hwan Lin

Abstract

This study analyzes consumer purchasing behavior of organic fresh fruits and vegetables using the 2006 Nielsen Homescan panel. An ordered logit model was estimated to quantify the impacts of economic and socio-demographic factors on the probability of a household belonging to a specific organic user group—devoted, casual, or nonuser. Results suggest that price and income, to some extent, affect consumer purchases of organic produce. Additionally, the profile of an organic produce user is most likely to consist of an Hispanic household residing in the Western United States with children under 6 years old and a household head older than 54 years with at least a college degree.Nielsen Homescan data, ordered logit, organic fruits and vegetables, user groups, Agribusiness, Consumer/Household Economics, Crop Production/Industries, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, C25, D12, M31, Q11,

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