GMO Turfgrass Introduction to the Market: Acceptance and Market Simulations for Connecticut Consumers

Abstract

Using conjoint analysis and market simulations, the impact of the introduction of certified genetically modified organism (GMO)-free; GMO-free, not certified; and nonlabeled turfgrass was examined for Connecticut consumers. We categorized consumers into five distinct segments according to their preferences. The largest segment consisted of 38% of respondents (multifaceted), whereas the smallest consisted of 8% of respondents (extremely price sensitive). For most consumers GMO labeling was not a major driver for purchasing decisions, accounting for only 11% of purchasing decisions. However, holding all factors constant except GMO labeling and price, 66% of the market preferred a noncertified GMO-free label, with a significant number of consumers willing to pay for the certified GMO-free label. Based on market simulations, the noncertified GMO-free-labeled seed would maximize revenue at a 60% premium whereas the certified GMO-free label maximizes revenue when there is no premium.

Keywords

• certified gmo free
• conjoint analysis
• gmo free