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Identifying Significant Characteristics of Organic Milk Consumers: A CART Analysis of an Artefactual Field Experiment

Author

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  • Liu, Zhuo
  • Kanter, Christopher
  • Messer, Kent D.
  • Kaiser, Harry M.
Abstract
The organic dairy category is one the fastest growing categories of organic production in the U.S. Organic milk consumers generally cite perceived health benefits and lower risk of food contamination, as well as perceived superior quality and low environmental impact of organic farming methods, as the major motivations for preference of organic over conventional milk. While the properties of organic milk that are valued by consumers are fairly well-known, there is more ambiguity regarding the demographic characteristics of the typical organic milk consumer. This research makes use of experimental data and utilizes a relatively novel non-parametric modeling approach, the CART analysis, in identifying how willingness to pay for organic milk varies with the demographic profile of experiment participants. A more traditional econometric approach utilizing a Tobit regression is also performed to compare the results of the two models. The study finds that perceived taste of organic milk and concern for the risk of consuming conventional milk are major factors that separate experiment participants into groups with high and low WTP for organic milk.

Suggested Citation

  • Liu, Zhuo & Kanter, Christopher & Messer, Kent D. & Kaiser, Harry M., 2011. "Identifying Significant Characteristics of Organic Milk Consumers: A CART Analysis of an Artefactual Field Experiment," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 104020, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:104020
    DOI: 10.22004/ag.econ.104020
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    References listed on IDEAS

    as
    1. Christopher Kanter & Kent D. Messer & Harry M. Kaiser, 2009. "Does Production Labeling Stigmatize Conventional Milk?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1097-1109.
    2. Kent D. Messer & Gregory L. Poe & William D. Schulze, 2013. "The value of private versus public risk and pure altruism: an experimental economics test," Applied Economics, Taylor & Francis Journals, vol. 45(9), pages 1089-1097, March.
    3. Irwin, Julie R, et al, 1998. "Payoff Dominance vs. Cognitive Transparency in Decision Making," Economic Inquiry, Western Economic Association International, vol. 36(2), pages 272-285, April.
    4. Robin Dillaway & Kent D. Messer & John C. Bernard & Harry M. Kaiser, 2011. "Do Consumer Responses to Media Food Safety Information Last?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 363-383.
    5. Messer, Kent D. & Poe, Gregory L. & Rondeau, Daniel & Schulze, William D. & Vossler, Christian A., 2010. "Social preferences and voting: An exploration using a novel preference revealing mechanism," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 308-317, April.
    6. Charles Noussair & StÈphane Robin & Bernard Ruffieux, 2004. "Do Consumers Really Refuse To Buy Genetically Modified Food?," Economic Journal, Royal Economic Society, vol. 114(492), pages 102-120, January.
    7. Zanoli, Raffaele & Naspetti, Simona, 2002. "Consumer motivations in the purchase of organic food. A means-end approach," MPRA Paper 32712, University Library of Munich, Germany.
    8. Katner, Christopher & Messer, Kent D. & Kaiser, Harry M., 2009. "AJAE Appendix: “Does Production Labeling Stigmatize Conventional Milk?”," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(4), pages 1-10, March.
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    Cited by:

    1. Bahar Aydın Can, 2023. "Turkish Consumers’ Perceptions of Organic Milk and the Factors Affecting Consumption: The Case of Kocaeli, Türkiye," Sustainability, MDPI, vol. 15(13), pages 1-15, June.
    2. Schroeter, Christiane & Nicholson, Charles F. & Meloy, Margaret G., 2016. "Consumer Valuation of Organic and Conventional Milk: Does Shelf Life Matter?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), pages 1-19, November.
    3. Li, Xianghong & Peterson, Hikaru Hanawa & Xia, Tian, 2012. "U.S. Consumer Demand for Organic Fluid Milk by Fat Content," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(1), pages 1-9, March.
    4. Krzysztof BORODAKO & Jadwiga BERBEKA & Michał RUDNICKI & Mariusz ŠAPCZYŃSKI, 2021. "Online Visibility and Knowledge-Intensive Business Services Performance: The Scope of Interrelatedness," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 157-173, August.
    5. Kecinski, Maik & Messer, Kent D. & Peo, Audrey J., 2018. "When Cleaning Too Much Pollution Can Be a Bad Thing: A Field Experiment of Consumer Demand for Oysters," Ecological Economics, Elsevier, vol. 146(C), pages 686-695.
    6. Ogundari, Kolawole, 2021. "A systematic review of statistical methods for estimating an education production function," MPRA Paper 105283, University Library of Munich, Germany.
    7. Robinson, Chadelle, . "Exploring the Hierarchy of Product Attributes in U.S. Pecan Consumption," Journal of Food Distribution Research, Food Distribution Research Society, vol. 51(2).
    8. Carla Rodriguez-Sanchez & Ricardo Sellers-Rubio, 2020. "Sustainability in the Beverage Industry: A Research Agenda from the Demand Side," Sustainability, MDPI, vol. 13(1), pages 1-10, December.

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