Will consumers pay more for organic logo: an empirical study of organic products purchasing in Thailand

Abstract

This study aimed to investigate the relationship between the willingness to pay for the quality of agricultural products toward the logo of consumers in different regions of Thailand and explained an opportunity for organic products in future markets. 408 respondents from February – June 2019 were collected based on paper-based questionnaires that focused on consumers’ choices, recognition, and attitudes regarding safety and organic knowledge. Three hypotheses were in this study. A choice experiment logit model was used. The questions included socioeconomic, attitudes, preferences, perception of safety and organic products related to logo. The study showed respondents who understood in the concept of safety and organic agriculture and had information logo standards tended to purchase organic products. The organic logo has impacted the purchasing power of respondents. Consumers were willing to pay more for third-party certified logo products (Organic Thailand and IFOAM) rather than local logos (PGS). Satisfaction with marketing, quality standard, and prices did not increase consumers’ demand while they pay for higher prices based on their interest and understanding. Consumers were willing to trade off between trusted logos and a higher price. The supported knowledge on production and markets from public and private agencies were beneficial along the supply and demand chain and agricultural society. To enlarge the organic product markets in the future, these are not well-researched factors that impact third-party and local logos. There were several studies about the perception levels, interest, understanding, and knowledge of the respondents’ impact on the purchasing power of organic products in Thailand.