Determinants of A Customer’s Willingness to Pay (WTP) for Organic Fruits and Vegetables: An Empirical Study in the Bangkok Metropolitan Area

Abstract

Many people have become more interested in environmental products, paying more attention to their health and sanitation. The popularity of organic fruits and vegetables are increasing gradually and soon will become one of the top choices for people’s consumption. However, the consumption of organic food is not as widespread as it should be in Thailand because the prices are unstable and usually more expensive than conventional food. This project’s objective is to identify the factors affecting the willingness to pay (WTP) for organic fruits and vegetables in Bangkok and its metropolitan area by using the Contingent Valuation Method (CVM). Binary logistic regression and multiple regression are employed to determine the significant factors. Descriptive results from a willing to pay premium group indicate that the typical amount (median value) that they are willing to pay is up to 60 percent over the non-organic price. Recommendations are also discussed.