WILLINGNESS TO PAY AND FRAMING EFFECT: EVIDENCE FROM ORGANIC TOMATOES

Abstract

This study investigates the framing effect on the willingness to pay (WTP) for the consumption of organic foods, particularly organic tomatoes. In addition, we evaluated how other variables, such as the respondent's socioeconomic characteristics, as well as their organic consumption pattern and their perceptions about organic foods, impacted the WTP for organic tomatoes. Results are based on data from an online survey applied to 434 consumers and on estimates of regression models for the expected WTP with and without control for the selection of people willing to pay a price premium for organic tomatoes. Two framing effects are tested – one with positive information about organic tomatoes and a second with negative information about a conventional product. While both types of framing had significant effects, negative framing played a more important role in the willingness to pay for organic tomatoes. Results also highlighted how other variables, such as income, positive perception about organic products and production, and environmental and health concerns, impacted the WTP for organic tomatoes.

Keywords

• willingness to pay
• framing effect
• organic food
• organic food consumption