CONSUMERS’ WILLINGNESS TO PAY FOR ORGANIC FOOD PRODUCTS

Abstract

The aim of this article is to analyze the customers’ willingness to pay for organic food products in context of sustainable development of food markets. In order to attain this aim, the article clarifies the essence of the consumers’ willingness to pay and the main methods of estimating it. The following questions have been analyzed in the article: To what extent is the consumption of organic products overspread? How do the prices of organic products vary in different countries? What are the main factors that affect the consumers’ decisions to pay a certain price for organic food products? What are the marketing and sales techniques, that the organic food manufacturers can use? In order to answer these and other questions, the article presents the results of Bulgarian and foreign empirical research, marketing surveys of agencies and esteemed consulting companies, examples of affirmed practices, applied by some companies on the basis of consumers’ behavior and willingness to pay for organic food products. The research results show that the number of companies, engaged in the production of organic products, is growing, which can be explained by the increased consumer search as well as by the existence of government subsidies and new distribution channels. It was established that the prices of organic food products in the countries of Central and Eastern Europe are still significantly higher in comparison with the prices of the conventional alternatives, while the factors affecting the consumers’ willingness to pay for organic products remain almost unchanged.