Factors affecting willingness to pay premium prices for socially responsible food products: Evidence from Indian consumers

Abstract

The motive of this study is to identify the factors influencing the willingness to pay (WTP) a premium price for socially responsible food products (SRFPs) in India. This study is based on primary survey of 398 respondents. Descriptive statistics and factor analysis have been used for data analysis. Further, logistic regression was used to examine the factors affecting the WTP a premium price for SRFPs. Results demonstrate that respondents of higher age are more likely to pay premium prices for SRFPs. Male consumers are two times more likely to have higher WTP for SRFPs. WTP a premium price is significantly influenced by the consumers' reference group, pro-environmental intention, and concern for the animals. Gender, age, consumers' reference group, pro-environmental intention, and concern for the animals determine WTP premium prices for SRFPs. There are relatively very limited researches on this topic in emerging economies including India, where the adoption of socially responsible products is in early stage. The practical implications of this study are to help in increasing the sales of the SRFPs and producers to develop appropriate policy design.