Econometrics analysis of consumers’ willingness to purchase organic fruits and vegetables in Kathmandu Valley, Nepal

Abstract

The number of people interested in environment-friendly products and becoming health-conscious has increased. The tendency of consumers to buy organic fruits and vegetables is growing gradually. Nonetheless, the number of people consuming organic fruits and vegetables is low in the case of Nepal due to the higher price of organic products. As a response to the problem, a study was conducted among 159 people who were randomly surveyed consumers of Kathmandu Valley to determine the various factors affecting the willingness of consumers to pay for organic fruits and vegetables. We used general linear regression model was applied to determine the consumers’ willingness to purchase organic vegetables and fruits. The analysis shows that 46 percent of consumers are willing to pay up to 24 percent for conventional products. The study found that the factors like Income, and Education were significant factors in determining the willingness of consumers to purchase organic vegetables and fruits. Consumers' health awareness is critical in determining the attitude, intention, and frequency of purchasing organic vegetables and fruits However, this study shows that in underdeveloped nations like Nepal, health issues and environmental issues are not significant factors in consuming organic products, whereas higher income plays a significant role in purchasing organic products