The research on organic sector in Slovenia (Slabe et al., 2010) includes also a rather detailed analysis of price premiums for organic food products at the retail level in major marketing channels. The price scan was performed in two periods (June and October 2009) in order to reflect the difference of the season. In total 65 products pairs of organic and conventional categories were included and prices were scanned in four outlet types (farmers' market, specialised shops, conventional retailers, discount retailers). In total almost thousand entries were obtained through the price scan. The price premiums for organic products were calculated with the reference to the conventional counterpart. The organic price premiums

neighbour Austria per capita consumption was 104 EUR in 2009 with 6% organic share of food market. However, Austria is one of the leading countries in the world with regards to per capita consumption as well as share of the total food market. Higher per capita consumption and food expenditure share is found only in Denmark with 139 EUR and 7.2% respectively. If the data about the organic market are compared with the other new EU member states, Slovenia ranks the highest both in per capita consumption and share of the organic food in the total food market. Consumers in Estonia are the nearest by both indicators, since they spent 8.8 EUR on organic food which represents 1% of their total food spending. In Czech Republic per capita consumption was 7 EUR with 0.7% expenditure share, in Hungary 3 EUR and 0,3% respectively., whereas in Poland consumers spent on average 1.3 EUR on organic food annually, which is 0,1% of food budget. (Kilher et al., 2011).

The organic market in Slovenia has been growing at an annual rate between 10-15% the period between 2005 and 2009. The largest growth was in the category of fresh vegetables and fruits. The study revealed that the majority of the organic food and beverages sales are done through retail shop of different categories. It is estimated that more than 84% of Slovenian organic turnover is covered by these intermediaries. Direct selling on farm has 11% share while direct selling on the specialised farmers markets amounts to almost 5%. When the origin of organic products was estimated the study revealed that less than 5% of sales in retail channel is from Slovenia and respectively direct selling on farms or farmers markets is comprised of only domestic produce. The imports are mainly from the EU countries (Austria and Germany).

Table 2. The structure of Slovenian organic food market by the sales channel, 2009. Source (Slabe et al., 2010)

Around 80% of the organic products of the domestic origin (both fresh and processed) was sold directly by the farmers. Approximately 2/3 of that value was created through the onfarm sales while the rest was realised through the organic farmers' markets. In the marketing season 2009-10, there were 13 organic farmers' markets in different cities of Slovenia operating once a week. The largest organic market was in Ljubljana with 26 vendors of which 2 were artisanal organic processors and the rest were farmers with fresh products. The organic farmers markets in other towns are somewhat smaller usually with between five to ten vendors. The organic market coordinators and the vending farmers perceived a growing interest of consumers in the last three to five years for the organic food. Also the interviews in the prevailing marketing channel for organic food and beverages in Slovenia, namely the retail shops, indicated a high level of consumers' demand for domestic

neighbour Austria per capita consumption was 104 EUR in 2009 with 6% organic share of food market. However, Austria is one of the leading countries in the world with regards to per capita consumption as well as share of the total food market. Higher per capita consumption and food expenditure share is found only in Denmark with 139 EUR and 7.2% respectively. If the data about the organic market are compared with the other new EU member states, Slovenia ranks the highest both in per capita consumption and share of the organic food in the total food market. Consumers in Estonia are the nearest by both indicators, since they spent 8.8 EUR on organic food which represents 1% of their total food spending. In Czech Republic per capita consumption was 7 EUR with 0.7% expenditure share, in Hungary 3 EUR and 0,3% respectively., whereas in Poland consumers spent on average 1.3 EUR on organic food annually, which is 0,1% of food budget. (Kilher et al.,

The organic market in Slovenia has been growing at an annual rate between 10-15% the period between 2005 and 2009. The largest growth was in the category of fresh vegetables and fruits. The study revealed that the majority of the organic food and beverages sales are done through retail shop of different categories. It is estimated that more than 84% of Slovenian organic turnover is covered by these intermediaries. Direct selling on farm has 11% share while direct selling on the specialised farmers markets amounts to almost 5%. When the origin of organic products was estimated the study revealed that less than 5% of sales in retail channel is from Slovenia and respectively direct selling on farms or farmers markets is comprised of only domestic produce. The imports are mainly from the EU

> value *(in mio EUR)*

On-farm 3.8 11.0 100 Organic farmers' markets 1.7 4.9 100

Table 2. The structure of Slovenian organic food market by the sales channel, 2009. Source

Around 80% of the organic products of the domestic origin (both fresh and processed) was sold directly by the farmers. Approximately 2/3 of that value was created through the onfarm sales while the rest was realised through the organic farmers' markets. In the marketing season 2009-10, there were 13 organic farmers' markets in different cities of Slovenia operating once a week. The largest organic market was in Ljubljana with 26 vendors of which 2 were artisanal organic processors and the rest were farmers with fresh products. The organic farmers markets in other towns are somewhat smaller usually with between five to ten vendors. The organic market coordinators and the vending farmers perceived a growing interest of consumers in the last three to five years for the organic food. Also the interviews in the prevailing marketing channel for organic food and beverages in Slovenia, namely the retail shops, indicated a high level of consumers' demand for domestic

Channels share

Share of domestic *(in %)*

*(in %)*

29.0 84.1 < 5

2011).

*specialised)*

(Slabe et al., 2010)

countries (Austria and Germany).

Retail shops *(conventional, discount,*

**Sales channel** Market

Total 34.5 100

organic products. This was supported by the observations at the outlets where many retailers explicitly indicated the organic products of domestic origin. The interviewed retailers also stated that they are interested in meeting consumers' demands for domestic organic products but are hampered by inadequate supply, both regarding the quantities and the range. Also low level of business professionalism for many producers was mentioned, in particular inappropriate preparation of the products, lack of reliability, absence of producers' organisations and sometimes also unrealistic price expectations. When the issue of low presence of domestic organic food in retail supply channel was presented to the organic farmers, they saw the main obstacles in their insufficient production capacity which is related mostly to the small farm size. Certainly, an important disincentive is also lower profitability of channelling the products through the intermediaries. Many farmers stated that direct selling is by far the most preferable marketing channel for organic food. The research has also identified several new forms of organic food sales within its duration (2008-2010), such as box schemes in both forms as direct and indirect sales. Furthermore, a institutions similar to Community Supported Agriculture was established. There has been also a significant increase of the number of registered enterprises involved in the trade of organic food products and also new local organic farmers' markets emerged. It can be assumed that the new selling channels and forms of direct sales is a response of innovative and proactive farmers to the consumers' demand. Contemporary food consumers require innovative selling methods with upgraded service. The farmers that are able to adequately answer to these needs will acquire premium market positions and sustainable competitiveness. For example in the case of box schemes, the farmer obliges himself to supply consumers with products in the agreed amount and frequency, while the consumers subscribe for the whole season and usually pay an agreed average yearly fee. The benefit is on both sides. The consumers have an assurance regarding the production methods and they normally pay less for the same amount of produce which is fresh and locally produced. The farmer, on the other side reduces risk of insufficient demand, but more importantly the actual marketing activity is minimised and the farmer can focus primarily on production.

#### **2.3 Organic food price premiums**

Organic food production is determined with lower yields when compared to conventional farming and therefore the price differential is an important purchasing barrier for majority of consumers. On the other side the price premium affects the organic farmers' profitability and therefore business attractiveness. There is only limited information available on prices for organic products in the EU (European Commission, 2005). However, as a general rule, organic products receive a higher price than conventional products, but prices diverge depending on the market and on the product.

The research on organic sector in Slovenia (Slabe et al., 2010) includes also a rather detailed analysis of price premiums for organic food products at the retail level in major marketing channels. The price scan was performed in two periods (June and October 2009) in order to reflect the difference of the season. In total 65 products pairs of organic and conventional categories were included and prices were scanned in four outlet types (farmers' market, specialised shops, conventional retailers, discount retailers). In total almost thousand entries were obtained through the price scan. The price premiums for organic products were calculated with the reference to the conventional counterpart. The organic price premiums

Determinants of Purchasing Behaviour for Organic and

most appropriate food aggregates.

**fruits and vegetables**

model (Pindyck and Rubinfeld, 1991).

regression:

**3.1 The research objectives and methodology**

questionnaire can be divided into the following sections: - general dietary patterns and lifestyle determination; - overall fruit and vegetable purchasing behaviour; - household's fruit and vegetable self-sufficiency level; - acquaintance, believes and perception of OIFV and

Integrated Fruits and Vegetables: The Case of the Post Socialist Economy 27

and middle size beekeepers as natural product, often labelled with the national quality

It can be concluded that the price premiums for organic food were in general highest for fresh products (fruit and vegetables) and less for processed ones. Seemingly, consumers perceive guaranteed free from harmful substances in combination with fresh as the key attributes where they are willing to pay more and organic fruits and vegetables are therefore

When the aggregated price premiums for organic food in Slovenia were compared across the marketing channels it was revealed the highest are in the conventional retail chains (136%), following by the discount retailers (104) and specialty shops (100%). The price premiums on the organic farmers' markets were found to be the lowest at 78%. In general the quality of agricultural produce sold at the Slovenian markets (not only organic ones) is considerably higher than the quality in supermarkets and consequently the prices are also higher. Therefore, it is somehow surprising that the price premiums for organic food on the markets were the lowest. Some explanation can be found in the fact that virtually all the organic fresh products in retail are sold pre-packed, which adds considerable costs to the final price, since neither conventional nor organic fresh products at the farmers' markets are packed. However, the relatively high price premiums and its large variation are confirming the fact that the Slovenian organic food market is in immature and it is expected with its further expansion and development the premiums will eventually diminish which will

mark. Therefore it is difficult to realise a higher price differential for organic honey.

stimulate consumer demand, but will turn away marginal and inefficient producers.

**3. Consumer study on the purchasing behaviour for organic and integrated**

There are insufficient studies on organic consumers in Slovenia, therefore the presented research aimed at elucidation and quantification of the impact of various determinants influencing purchasing behaviour of organic and integrated fruit and vegetables consumers. A country-wide survey has been conducted on a representative sample of 1027 households. Beside the socio-demographic identification of the respondents, the main part of the

On the basis of the acquired data a consumer behaviour model of qualitative choice a (Pindyck and Rubinfeld, 1991) has been developed. Focus of the empirical scrutiny was given to identify determinants that influence purchase frequency of the OIFV. Methodology selection was directed by the ability for adequate incorporation of the ordinal nature of data describing purchasing behaviour of OIFV. The model that satisfactorily fulfils the criterion falls within the group of models of qualitative choice - more specifically the ordinal probit

Following Greene (1997), the ordered probit model can be specified, as built around a latent

are the percent increase over conventional prices and are calculated by subtracting the conventional price from the organic price and dividing the difference by the conventional price. Than the price premiums were aggregated by the product groups and marketing channels by simple arithmetic mean.

The average price premium estimated for the organic food products in Slovenia for the year 2009 was 87% with large variations between product groups and distribution channels. On average the price premium for the aggregate "oils and fats" was 146%, following by "vegetables" (104%) and "fruits" (88%). For some of these products we are able to compare their individual price premiums with the EU15 estimates from the year 2002 (European Commission, 2005). Potato, for example reached 143% price premium in Slovenia, whereas in EU15 has ranged from 30% in Ireland to 170% in Greece. For apples the range of price premiums in EU15 was even more extreme from 37% in Sweden to 283% in Portugal, whereas in Slovenia it was 131% despite rather considerable domestic supply. Organic dairy products were priced on average at 73% higher than conventional substitutes, whereas on EU15 average the consumer price premium for organic milk was about 50%, with extremes in Greece (129%), Portugal (124%) and Italy (117%).

Fig. 1. Price premiums for organic food and beverages in Slovenia (2009)

For eggs the price premium was relatively low (42%), which is probably affected the fact that this sector is highly developed and efficient, but also proximity of the Austrian egg producers and their attempts to enter the Slovenian market. Price premium for eggs in Austria are at 25%, whereas in Denmark it is only 17% (European Commission, 2005). Again price premiums were high in Greece (231%), Spain (208%), Portugal (136%) and Italy (121%). The lowest price premium was found for organic honey which was on average 32% more expensive than its conventional substitute. Honey quality and hence the prices are relatively high in Slovenia and average consumers perceive conventional honey produced by small

are the percent increase over conventional prices and are calculated by subtracting the conventional price from the organic price and dividing the difference by the conventional price. Than the price premiums were aggregated by the product groups and marketing

The average price premium estimated for the organic food products in Slovenia for the year 2009 was 87% with large variations between product groups and distribution channels. On average the price premium for the aggregate "oils and fats" was 146%, following by "vegetables" (104%) and "fruits" (88%). For some of these products we are able to compare their individual price premiums with the EU15 estimates from the year 2002 (European Commission, 2005). Potato, for example reached 143% price premium in Slovenia, whereas in EU15 has ranged from 30% in Ireland to 170% in Greece. For apples the range of price premiums in EU15 was even more extreme from 37% in Sweden to 283% in Portugal, whereas in Slovenia it was 131% despite rather considerable domestic supply. Organic dairy products were priced on average at 73% higher than conventional substitutes, whereas on EU15 average the consumer price premium for organic milk was about 50%, with extremes

channels by simple arithmetic mean.

in Greece (129%), Portugal (124%) and Italy (117%).

Fig. 1. Price premiums for organic food and beverages in Slovenia (2009)

TOTAL

Fruits

Eggs

Honney

Beverages

Oils and fats

Vegetables

Dairy products

Cereals and bakery products

For eggs the price premium was relatively low (42%), which is probably affected the fact that this sector is highly developed and efficient, but also proximity of the Austrian egg producers and their attempts to enter the Slovenian market. Price premium for eggs in Austria are at 25%, whereas in Denmark it is only 17% (European Commission, 2005). Again price premiums were high in Greece (231%), Spain (208%), Portugal (136%) and Italy (121%). The lowest price premium was found for organic honey which was on average 32% more expensive than its conventional substitute. Honey quality and hence the prices are relatively high in Slovenia and average consumers perceive conventional honey produced by small

*87*

0 20 40 60 80 100 120 140 160

*88*

*58*

*42*

*52*

*32*

*73*

*104*

*146*

and middle size beekeepers as natural product, often labelled with the national quality mark. Therefore it is difficult to realise a higher price differential for organic honey.

It can be concluded that the price premiums for organic food were in general highest for fresh products (fruit and vegetables) and less for processed ones. Seemingly, consumers perceive guaranteed free from harmful substances in combination with fresh as the key attributes where they are willing to pay more and organic fruits and vegetables are therefore most appropriate food aggregates.

When the aggregated price premiums for organic food in Slovenia were compared across the marketing channels it was revealed the highest are in the conventional retail chains (136%), following by the discount retailers (104) and specialty shops (100%). The price premiums on the organic farmers' markets were found to be the lowest at 78%. In general the quality of agricultural produce sold at the Slovenian markets (not only organic ones) is considerably higher than the quality in supermarkets and consequently the prices are also higher. Therefore, it is somehow surprising that the price premiums for organic food on the markets were the lowest. Some explanation can be found in the fact that virtually all the organic fresh products in retail are sold pre-packed, which adds considerable costs to the final price, since neither conventional nor organic fresh products at the farmers' markets are packed. However, the relatively high price premiums and its large variation are confirming the fact that the Slovenian organic food market is in immature and it is expected with its further expansion and development the premiums will eventually diminish which will stimulate consumer demand, but will turn away marginal and inefficient producers.

#### **3. Consumer study on the purchasing behaviour for organic and integrated fruits and vegetables**

#### **3.1 The research objectives and methodology**

There are insufficient studies on organic consumers in Slovenia, therefore the presented research aimed at elucidation and quantification of the impact of various determinants influencing purchasing behaviour of organic and integrated fruit and vegetables consumers. A country-wide survey has been conducted on a representative sample of 1027 households. Beside the socio-demographic identification of the respondents, the main part of the questionnaire can be divided into the following sections:

On the basis of the acquired data a consumer behaviour model of qualitative choice a (Pindyck and Rubinfeld, 1991) has been developed. Focus of the empirical scrutiny was given to identify determinants that influence purchase frequency of the OIFV. Methodology selection was directed by the ability for adequate incorporation of the ordinal nature of data describing purchasing behaviour of OIFV. The model that satisfactorily fulfils the criterion falls within the group of models of qualitative choice - more specifically the ordinal probit model (Pindyck and Rubinfeld, 1991).

Following Greene (1997), the ordered probit model can be specified, as built around a latent regression:

$$y\_i^\* = \mathcal{J}^\prime x\_i + \varepsilon \tag{1}$$

Determinants of Purchasing Behaviour for Organic and

responses as for one product category only.

calories" (0.7%).

Less than once a

More than once a

month

week

presented in the Table 3 below.

**Purchase frequency** Number of

Total observations 933\* 100.00

observations

*\* Non-responses or 'I don't know' responses were omitted from the analysis*

of respondents buy this product few times a month.

not consider themselves as price sensitive.

more than half of the total consumption.

Integrated Fruits and Vegetables: The Case of the Post Socialist Economy 29

categories and perceive them as synonyms. That's why we have treated the frequency

In total replies were categorised into 48 standardised answers and the highest frequency (37.1%) was attributed to association related to "healthy food". With 23.4% follows the category "free from harmful substances" where replies like: chemical free, pesticide free and alike were aggregated. Direct associations regarding the production practice rank third with 21.7% of replies. Surprisingly low share of replies was associated with "environment" (1.7%) and better quality (1.5%). The highest frequency among the wrong associations went to "low

Dependent variable in the consumer choice model was formed on the basis of the question where respondents were asked to evaluate (self reporting) purchase frequency of organic and integrated fruit and vegetable (OIFV). Responses were coded in an ordinal scale as

(%)

225 24.12 52.09 1

104 11.15 100.00 4

As suggested from the survey results Slovenian consumers assert rather a high purchase frequency for OIFV, since almost one third of them buy this category of produce at least once a week. Roughly the same share of respondents (28%) is non-buyers of OIFV and one quarter of them are sporadic buyers with purchasing fewer than once a month. About 17%

Table 4 aggregates variables employed in the evaluated consumer choice model, which gives us some further insights to the topic. The finding that Slovenian consumers relate attributes of health as the main association with OIFV is confirmed with the highest rank from the likert test followed by the environmental attribute. Interesting finding comes from the question regarding the price of OIFV that ranks on last position. It seems Slovenes do

When asked to compare general appearance and taste of OIFV with the "ordinary", produce respondents evaluate the appearance to be less likely better than taste. However, the "level

Perception regarding the availability of the studied categories of fruit and vegetables in the most frequently used retail shop is inclined towards the answer "insufficient"; however again high standard deviation is observed. On the other hand, dependency between the origin of food and quality has been reported as highly important. As might be expected from the general characteristic of Slovenian rural economy the level of households' selfsupply with fruit and vegetables is rather high since only 37% of respondents purchase

Cumulative frequency

Dependent variable (PURCHAS)

Frequency (%)

Never 261 27.97 27.97 0

1-3 times a month 162 17.36 69.45 2 Once a week 181 19.40 88.85 3

Table 3. Purchase frequency for organic and integrated fruit and vegetables

of disagreement" among respondents (standard deviation) is also higher.

where *yi \** is an unobserved frequency of quality fruits and vegetables purchase, *β'* is the vector of unknown parameters and *xi* is a vector of explanatory variables (which may be continuous or discrete) denoting attributes influencing purchasing behaviour of respondent and *ε* is the independently and identically normally distributed error term. The ordered probit model tests the null hypothesis H0: *β'k* = 0 for every explanatory variable denoting that the independent variable *k* does not have an effect in explaining changes in the probability of *yi.*

Results from our survey provide information on the respondents' purchase frequency of organic and integrated fruit and vegetable which is ordinal with five categories. While *yi \** is unobserved, respondents actually report their purchase decisions by selecting one of the five categories. Values for *yi* are 0 through 4, where 0 represents no purchase of organic and integrated fruit and vegetables and 4 represents 2-3 weekly purchases of such produce.

The analysis builds from the following hypotheses:

The results of ordered probit models were interpreted by using the partial change or marginal effects on the probability of ordinal outcome. Estimation of the empirical model was conducted by using the LIMDEP software (Greene, 1999). In doing so, the independent variables - other than the one being examined - were held constant at their mean values. The calculation of quasi-elasticities is based on the results of marginal effects, i.e. partial derivatives of the probability function *(Y)*. Like "standard" elasticity coefficients, quasielasticity coefficients can be interpreted as the percentage impact of a unit change of an explanatory variable on the probability of the observed outcome.

#### **3.2 Results and discussion**

Before turning to the results from the consumer choice model, this section starts with some general results about the perception of organic and integrated fruit and vegetables by Slovenian consumers grasped from the survey.

Despite a rather short period of organic and integrated production presence in Slovenia and no explicit marketing activities the survey results show that consumers' awareness is generally high. As expected the highest rate of recall has been achieved for the term "bio" that is an equivalent for "organic" in Slovenian language. As much as 94.4% of respondents have associated these expressions with fruit and vegetable. More than two thirds relate the phrase "ecological" with food, whereas only 38% of the respondents were acquainted with the term "integrated".

An open ended question was prepared to acquire basic associations of the respondents with the analysed categories of fruit and vegetables. Results show a rather high degree of responds homogeneity, since the three most frequent replies represent more than 80%. Associations are positive and generally indicate correct basic understanding. However, results show that the respondents do not distinguish among the organic and integrated

vector of unknown parameters and *xi* is a vector of explanatory variables (which may be continuous or discrete) denoting attributes influencing purchasing behaviour of respondent and *ε* is the independently and identically normally distributed error term. The ordered probit model tests the null hypothesis H0: *β'k* = 0 for every explanatory variable denoting that the independent variable *k* does not have an effect in explaining changes in the

Results from our survey provide information on the respondents' purchase frequency of organic and integrated fruit and vegetable which is ordinal with five categories. While *yi*

unobserved, respondents actually report their purchase decisions by selecting one of the five categories. Values for *yi* are 0 through 4, where 0 represents no purchase of organic and integrated fruit and vegetables and 4 represents 2-3 weekly purchases of such produce.

i. consumers of OIFV in Slovenia are mostly influenced by the qualitative characteristics

iii. the main motivator to prefer integrated and organic fruit and vegetable to conventional

iv. important quality characteristics to consumers are nutritive value, freshness, flavour or

The results of ordered probit models were interpreted by using the partial change or marginal effects on the probability of ordinal outcome. Estimation of the empirical model was conducted by using the LIMDEP software (Greene, 1999). In doing so, the independent variables - other than the one being examined - were held constant at their mean values. The calculation of quasi-elasticities is based on the results of marginal effects, i.e. partial derivatives of the probability function *(Y)*. Like "standard" elasticity coefficients, quasielasticity coefficients can be interpreted as the percentage impact of a unit change of an

Before turning to the results from the consumer choice model, this section starts with some general results about the perception of organic and integrated fruit and vegetables by

Despite a rather short period of organic and integrated production presence in Slovenia and no explicit marketing activities the survey results show that consumers' awareness is generally high. As expected the highest rate of recall has been achieved for the term "bio" that is an equivalent for "organic" in Slovenian language. As much as 94.4% of respondents have associated these expressions with fruit and vegetable. More than two thirds relate the phrase "ecological" with food, whereas only 38% of the respondents were acquainted with

An open ended question was prepared to acquire basic associations of the respondents with the analysed categories of fruit and vegetables. Results show a rather high degree of responds homogeneity, since the three most frequent replies represent more than 80%. Associations are positive and generally indicate correct basic understanding. However, results show that the respondents do not distinguish among the organic and integrated

ii. barrier to purchase (demotivator) for OIFV organic are price and availability;

explanatory variable on the probability of the observed outcome.

*\** is an unobserved frequency of quality fruits and vegetables purchase, *β'* is the

(1)

*\** is

\* ' *i i y x*

where *yi*

probability of *yi.*

The analysis builds from the following hypotheses:

and not by the price premium;

taste and general appearance.

is superior quality;

**3.2 Results and discussion**

the term "integrated".

Slovenian consumers grasped from the survey.

categories and perceive them as synonyms. That's why we have treated the frequency responses as for one product category only.

In total replies were categorised into 48 standardised answers and the highest frequency (37.1%) was attributed to association related to "healthy food". With 23.4% follows the category "free from harmful substances" where replies like: chemical free, pesticide free and alike were aggregated. Direct associations regarding the production practice rank third with 21.7% of replies. Surprisingly low share of replies was associated with "environment" (1.7%) and better quality (1.5%). The highest frequency among the wrong associations went to "low calories" (0.7%).

Dependent variable in the consumer choice model was formed on the basis of the question where respondents were asked to evaluate (self reporting) purchase frequency of organic and integrated fruit and vegetable (OIFV). Responses were coded in an ordinal scale as presented in the Table 3 below.

*\* Non-responses or 'I don't know' responses were omitted from the analysis*

Table 3. Purchase frequency for organic and integrated fruit and vegetables

As suggested from the survey results Slovenian consumers assert rather a high purchase frequency for OIFV, since almost one third of them buy this category of produce at least once a week. Roughly the same share of respondents (28%) is non-buyers of OIFV and one quarter of them are sporadic buyers with purchasing fewer than once a month. About 17% of respondents buy this product few times a month.

Table 4 aggregates variables employed in the evaluated consumer choice model, which gives us some further insights to the topic. The finding that Slovenian consumers relate attributes of health as the main association with OIFV is confirmed with the highest rank from the likert test followed by the environmental attribute. Interesting finding comes from the question regarding the price of OIFV that ranks on last position. It seems Slovenes do not consider themselves as price sensitive.

When asked to compare general appearance and taste of OIFV with the "ordinary", produce respondents evaluate the appearance to be less likely better than taste. However, the "level of disagreement" among respondents (standard deviation) is also higher.

Perception regarding the availability of the studied categories of fruit and vegetables in the most frequently used retail shop is inclined towards the answer "insufficient"; however again high standard deviation is observed. On the other hand, dependency between the origin of food and quality has been reported as highly important. As might be expected from the general characteristic of Slovenian rural economy the level of households' selfsupply with fruit and vegetables is rather high since only 37% of respondents purchase more than half of the total consumption.

Determinants of Purchasing Behaviour for Organic and

*Explanatory variable Ordered probit of*

Households' yearly

Environmental concern:

Health concern: OIFV

Price consciousness:

Visual attractiveness of

Taste of OIFV deemed

Availability of OIFV by

More than 50% of F&V

At least one meal daily

Perceived linkages between origin and

quality

LR test

2 (d. freedom.)

Integrated Fruits and Vegetables: The Case of the Post Socialist Economy 31

Constant -4.29 -4.20 1.306 0.406 -0.181 -0.773

income 0.30 3.84 -0.092 -0.029 0.013 0.054

OIFV not harmful -0.08 -2.40 0.025 0.008 -0.003 -0.015

considered healthier 0.10 2.63 -0.030 -0.009 0.004 0.018

OIFV too expensive -0.02 -0.67 0.006 0.002 -0.001 -0.003

OIFV 0.10 3.82 -0.031 -0.010 0.004 0.018

better 0.09 2.88 -0.026 -0.008 0.004 0.015

frequently used retailers 0.13 6.00 -0.038 -0.012 0.005 0.023

purchased 0.14 1.67 -0.043 -0.013 0.006 0.025

cooked by themselves -0.09 -1.08 0.028 0.008 -0.004 -0.016

Residence in rural area -0.18 -2.11 0.056 0.017 -0.008 -0.033 Log likelihood function -1155.27 / / / / /

LRI 0.049 / / / / /

Results show that the income status of consumers considerably determines purchasing frequency for organic and integrated fruit and vegetable. As has been expected, purchasing frequency significantly increases with higher household disposable incomes; however the estimated marginal effects reveal non-linear patterns for this variable. A high quasielasticity coefficient for non-buyers (Y=0) ranking to 0.66 suggests that low income level very likely determines no purchasing of organic and integrated fruit and vegetables. Also

Restricted log likelihood -1215.00 / / / /

119.49

Table 5. Results of the consumer choice model

*purchasing behaviour Marginal effects for various outcomes*

*Coefficient t-statistic Prob(Y=0) Prob(Y=1) Prob(Y=2) Prob(Y=3)*

(11) / / / / /

Table 4. Definition of explanatory variables and descriptive statistics of data used in the model

Table 5 presents the parameter estimates from the ordered probit model of consumer choice for organic and integrated fruit and vegetables in Slovenia.

Based on the results of a likelihood ratio test (Pindyck and Rubinfeld, 1991) the model is statistically significant at 99% or above. The results of the χ2 test reveal that the differences between the model coefficients are statistically significant. However, the value of the likelihood ratio index (LRI) goodness-of-fit coefficient (Greene, 1997) is rather low (0.049), which implies that the model explains only a part of the variance within the dataset. However, the main purpose of this empirical work was not to maximise probability function but to evaluate impact of some attitudinal variables on purchase frequency. Rather low LRI values were also expected due to the fact the survey dataset comprised only rather general determinants influencing households' purchasing behaviour. For higher degree of explanatory capacity of the model clearer definition of determinants is needed in the future work.

No. of observations 933 261 225 162 181 104

**Y = 0** average (st. dev.)

> 12.09 (0.52)

> 5.85 (1.66)

> 5.88 (1.55)

> 5.77 (1.59)

> 4.40 (1.68)

> 5.17 (1.56)

> 3.52 (2.01)

> 5.99 (1.39)

> 0.23 (0.42)

> 0.50 (0.50)

> 0.60 (0.49)

**Y = 1** average (st. dev.)

> 12.29 (0.54)

> 5.80 (1.53)

> 6.00 (1.30)

> 5.68 (1.41)

> 4.41 (1.48)

> 5.05 (1.59)

> 3.62 (1.89)

> 5.74 (1.46)

> 0.29 (0.45)

> 0.44 (0.50)

> 0.48 (0.50)

**Y = 2** average (st. dev.)

> 12.30 (0.52)

> 5.88 (1.68)

> 6.25 (1.21)

> 5.62 (1.61)

> 4.78 (1.62)

> 5.46 (1.46)

> 4.12 (1.82)

> 5.82 (1.31)

> 0.47 (0.50)

> 0.60 (0.49)

> 0.63 (0.48)

**Y = 3**  average (st. dev.)

> 12.30 (0.48)

> 5.80 (1.44)

> 6.15 (1.25)

> 5.61 (1.60)

> 4.98 (1.54)

> 5.56 (1.40)

> 4.36 (1.70)

> 6.04 (1.10)

> 0.44 (0.50)

> 0.60 (0.49)

> 0.73 (0.45)

**Y = 4**  average (st. dev.)

> 12.30 (0.47)

> 5.98 (1.48)

> 6.22 (1.32)

> 5.72 (1.56)

> 5.38 (1.59)

> 5.83 (1.31)

> 4.85 (1.77)

> 6.10 (1.33)

> 0.48 (0.50)

> 0.63 (0.48)

> 0.54 (0.50)

**Total** average (st. dev.)

(0.52)

(1.56)

(1.35)

(1.55)

4.71 (1.62)

(1.51)

(1.91)

5.92 (1.33)

(0.48)

(0.50)

(0.48)

capacity of the model clearer definition of determinants is needed in the future work.

Table 4. Definition of explanatory variables and descriptive statistics of data used in the

Table 5 presents the parameter estimates from the ordered probit model of consumer choice

Based on the results of a likelihood ratio test (Pindyck and Rubinfeld, 1991) the model is statistically significant at 99% or above. The results of the χ2 test reveal that the differences between the model coefficients are statistically significant. However, the value of the likelihood ratio index (LRI) goodness-of-fit coefficient (Greene, 1997) is rather low (0.049), which implies that the model explains only a part of the variance within the dataset. However, the main purpose of this empirical work was not to maximise probability function but to evaluate impact of some attitudinal variables on purchase frequency. Rather low LRI values were also expected due to the fact the survey dataset comprised only rather general determinants influencing households' purchasing behaviour. For higher degree of explanatory

*INC\_LN* 12.24

*ENVIR* 5.84

*HLTH* 6.07

*PRICE* 5.68

*RETAIL* 3.99

*COOK* 0.57

*VISUA L*

*ORIG\_ Q*

for organic and integrated fruit and vegetables in Slovenia.

better (likert scale, 1-7) *TASTE* 5.35

purchased (0=N; 1=Y) *BUYER* 0.37

(0=N; 1=Y) *RURAL* 0.63

Logarithmic transformation of households' annual

Environmental attribute OIFV prod. environment friendly (likert scale, 1-7)

Health attribute: OIFV considered healthier (likert scale, 1-7)

Price attribute: OIFV are

Visual attractiveness of OIFV (likert scale, 1-7)

Taste of OIFV deemed

Availability of OIFV by frequently used retailers (likert scale, 1-7)

Perceived linkages between origin and

(likert scale, 1-7)

More than 50% of F&V

At least one meal daily cooked by themselves

Residence in rural area

quality

(0=N; 1=Y)

model

too expensive (likert scale, 1-7)

income

Table 5. Results of the consumer choice model

Results show that the income status of consumers considerably determines purchasing frequency for organic and integrated fruit and vegetable. As has been expected, purchasing frequency significantly increases with higher household disposable incomes; however the estimated marginal effects reveal non-linear patterns for this variable. A high quasielasticity coefficient for non-buyers (Y=0) ranking to 0.66 suggests that low income level very likely determines no purchasing of organic and integrated fruit and vegetables. Also

Determinants of Purchasing Behaviour for Organic and

decrease, however with low quasi elasticity.

**4. Conclusion**

Integrated Fruits and Vegetables: The Case of the Post Socialist Economy 33

The level of self-sufficiency showed to be rather high for Slovenian households; however, result from the model doesn't confirm the expected inverse relations. The fact that households buy more than a half of fruits and vegetables does not have a statistically significant effect on frequency of purchase of organic and integrated fruit and vegetable. Similar holds for dietary habits of households. Results from the model confirm that meal preparation is not significantly related with higher probability to purchase organic or integrated fruit and vegetables. Consumers which prepare at least one main meal within the household a day might be named as "traditional eaters" and they are not necessary the main purchasers of organic and integrated fruit and vegetable. Reversely; marginal effects suggest that for this group of respondents the probability for frequent purchase (outcome Y=3)

Results for the last variable suggest that consumers from rural areas are generally less likely to buy organic and integrated fruit and vegetables. This might be related either to the problem of availability for these produces in rural area, insufficient awareness of consumers

The organic food market in Slovenia started to develop sporadically immediately at the beginning of the period of economic transition, whereas the adequate certification system evolved several years later with first farmers being certified before the year 2000. Since then the both sides of the market are on rather sharp increase however, the supply side has some deficiencies. Namely, the area under the organic farming is increasing and number of farmers likewise, but is this is not sufficient to satisfy demand. Mainly due to the phenomenon of passive organic farmers, especially within the animal husbandry sector that are not marketing their produce into the organic sales channels. The organic farming area growth is actually mainly within the pastures and grassland categories and the farmers' main motivation to enter the organic farming is additional budgetary transfer without actual intention to be active in marketing organic products. Therefore, domestic production is relatively stagnant and Slovenian consumers can thus hardly obtain organic products of Slovenian origin in the massive food distribution channels, where the growing demand is mainly satisfied with imported products. It is therefore understandable that the involved organic food consumers prefer to purchase directly from the farmers, even if this is related with higher transaction costs, such as driving to the farm or visiting the farmers' market, etc. However, beside the assurance that the purchased products are fresh and local, also the prices and price premiums are lower when purchasing directly. In terms of per-capita spending on organic food and share of organic food expenditure in total food budged Slovenia with 17 EUR and 1% respectively ranks in the upper middle stratum of the EU27, where all new member states shows much lower values. This might indicate that the Slovenian organic food market is in the progressive stage of development however the results from the price scan and margin evaluation prove the opposite. Price premium for organic products in Slovenia are comparatively high (87%) with great variation between the product categories, where the fresh products (particularly fruits and vegetables) tends to have highest price margins. It is worth to notice, that when the price margins were analysed by the sales channels the lowest figures were found for direct selling either on farm or farmers' markets, whereas the margins were by far the highest in the conventional retail chains. This somehow controversial with the fact that only about 15% of the total Slovenian

but partially also to the household self-supply with fruit and vegetable.

the marginal effects revealed for this variable clearly suggest that higher frequency of purchase is closely related with households' disposable incomes (and vice versa). The corresponding quasi-elasticity for a consumer group that purchase such produce on a regular basis (once a week or more) is considerably lower (0.39), and therefore the intensity of the relation is smaller.

The model results with respect to the stated environmental concern reveal that respondents not considering production of organic or integrated fruit and vegetable as environment friendly (or they are indifferent to environmental aspects of production) are more likely to be among non-buyers. It however has to be further noted that the impact of environmental concerns on purchasing behaviour is significant, but not explicit. However, the highest relation is found for the non-buyer group (0.08). Rather inconclusive results regarding environmental concern might be further explained with low association between organic and integrated production practices and implications on environment by the Slovenian consumers.

If a respondent perceives organic and integrated fruit and vegetables being healthier than conventional products the probability (and frequency) of actual purchase is significantly higher. On the contrary, persons not considering quality products as healthier are more likely to be among non-buyers (quasi elasticity 0.10).

According to the model results, price consciousness has no significant impact on purchase of quality fruits and vegetables. Interestingly, non significant coefficient suggests that price of higher quality products is not a decisive element of purchasing behaviour. Purchasers are likely to continue buying such products notwithstanding higher prices. Surely, these results should not be considered a basis for an ultimate conclusion about low consumer price sensitivity for organic and integrated fruit and vegetables in Slovenia. Some additional and more sophisticated measuring approaches should be employed to confirm these indications. However, it is confirmed by the model results that consumers consider the visual

attractiveness (appeal) of fruits and vegetables when they make purchasing decision. Consumers which believe that visual appealing of organic or integrated fruit and vegetables is not satisfying (worst than conventional), are less likely to buy these categories of produce. The highest quasi-elasticity is 0.02, which is again linked with decision not to purchase and therefore, and for that group of consumers the impact of visual attractiveness on purchase frequency is rather low.

Taste appears to significantly affect the consumer preferences to purchase fruit and vegetables from organic or integrated production systems. Model results show that consumers perceiving these categories of fruits and vegetables as having superior taste comparing the conventional ones are more likely to be among buyers.

It can be further examined, however that the consumers do not relate quality of fruits and vegetables with their micro-origin. The coefficient estimating this determinant is insignificant and therefore based on this results potentials for "local supply" marketing strategy, turned to be less appropriate.

Market for organic fruit and vegetable in Slovenia might still be considered as insufficiently developed. Situation for integrated produce is slightly better; however awareness of consumers is very low for this category. Therefore it has been expected, that availability of such products at "my retailer" has significant role on the consumer purchasing behaviour. Model results clearly confirm these expectations and favour strong emphasis on distribution strategy.

The level of self-sufficiency showed to be rather high for Slovenian households; however, result from the model doesn't confirm the expected inverse relations. The fact that households buy more than a half of fruits and vegetables does not have a statistically significant effect on frequency of purchase of organic and integrated fruit and vegetable.

Similar holds for dietary habits of households. Results from the model confirm that meal preparation is not significantly related with higher probability to purchase organic or integrated fruit and vegetables. Consumers which prepare at least one main meal within the household a day might be named as "traditional eaters" and they are not necessary the main purchasers of organic and integrated fruit and vegetable. Reversely; marginal effects suggest that for this group of respondents the probability for frequent purchase (outcome Y=3) decrease, however with low quasi elasticity.

Results for the last variable suggest that consumers from rural areas are generally less likely to buy organic and integrated fruit and vegetables. This might be related either to the problem of availability for these produces in rural area, insufficient awareness of consumers but partially also to the household self-supply with fruit and vegetable.

### **4. Conclusion**

32 Organic Food and Agriculture – New Trends and Developments in the Social Sciences

the marginal effects revealed for this variable clearly suggest that higher frequency of purchase is closely related with households' disposable incomes (and vice versa). The corresponding quasi-elasticity for a consumer group that purchase such produce on a regular basis (once a week or more) is considerably lower (0.39), and therefore the intensity

The model results with respect to the stated environmental concern reveal that respondents not considering production of organic or integrated fruit and vegetable as environment friendly (or they are indifferent to environmental aspects of production) are more likely to be among non-buyers. It however has to be further noted that the impact of environmental concerns on purchasing behaviour is significant, but not explicit. However, the highest relation is found for the non-buyer group (0.08). Rather inconclusive results regarding environmental concern might be further explained with low association between organic and integrated production practices and implications on environment by the Slovenian

If a respondent perceives organic and integrated fruit and vegetables being healthier than conventional products the probability (and frequency) of actual purchase is significantly higher. On the contrary, persons not considering quality products as healthier are more

According to the model results, price consciousness has no significant impact on purchase of quality fruits and vegetables. Interestingly, non significant coefficient suggests that price of higher quality products is not a decisive element of purchasing behaviour. Purchasers are likely to continue buying such products notwithstanding higher prices. Surely, these results should not be considered a basis for an ultimate conclusion about low consumer price sensitivity for organic and integrated fruit and vegetables in Slovenia. Some additional and more sophisticated measuring approaches should be employed to confirm these indications. However, it is confirmed by the model results that consumers consider the visual attractiveness (appeal) of fruits and vegetables when they make purchasing decision. Consumers which believe that visual appealing of organic or integrated fruit and vegetables is not satisfying (worst than conventional), are less likely to buy these categories of produce. The highest quasi-elasticity is 0.02, which is again linked with decision not to purchase and therefore, and for that group of consumers the impact of visual attractiveness on purchase

Taste appears to significantly affect the consumer preferences to purchase fruit and vegetables from organic or integrated production systems. Model results show that consumers perceiving these categories of fruits and vegetables as having superior taste

It can be further examined, however that the consumers do not relate quality of fruits and vegetables with their micro-origin. The coefficient estimating this determinant is insignificant and therefore based on this results potentials for "local supply" marketing

Market for organic fruit and vegetable in Slovenia might still be considered as insufficiently developed. Situation for integrated produce is slightly better; however awareness of consumers is very low for this category. Therefore it has been expected, that availability of such products at "my retailer" has significant role on the consumer purchasing behaviour. Model results clearly confirm these expectations and favour strong emphasis on distribution

comparing the conventional ones are more likely to be among buyers.

of the relation is smaller.

frequency is rather low.

strategy.

strategy, turned to be less appropriate.

likely to be among non-buyers (quasi elasticity 0.10).

consumers.

The organic food market in Slovenia started to develop sporadically immediately at the beginning of the period of economic transition, whereas the adequate certification system evolved several years later with first farmers being certified before the year 2000. Since then the both sides of the market are on rather sharp increase however, the supply side has some deficiencies. Namely, the area under the organic farming is increasing and number of farmers likewise, but is this is not sufficient to satisfy demand. Mainly due to the phenomenon of passive organic farmers, especially within the animal husbandry sector that are not marketing their produce into the organic sales channels. The organic farming area growth is actually mainly within the pastures and grassland categories and the farmers' main motivation to enter the organic farming is additional budgetary transfer without actual intention to be active in marketing organic products. Therefore, domestic production is relatively stagnant and Slovenian consumers can thus hardly obtain organic products of Slovenian origin in the massive food distribution channels, where the growing demand is mainly satisfied with imported products. It is therefore understandable that the involved organic food consumers prefer to purchase directly from the farmers, even if this is related with higher transaction costs, such as driving to the farm or visiting the farmers' market, etc. However, beside the assurance that the purchased products are fresh and local, also the prices and price premiums are lower when purchasing directly. In terms of per-capita spending on organic food and share of organic food expenditure in total food budged Slovenia with 17 EUR and 1% respectively ranks in the upper middle stratum of the EU27, where all new member states shows much lower values. This might indicate that the Slovenian organic food market is in the progressive stage of development however the results from the price scan and margin evaluation prove the opposite. Price premium for organic products in Slovenia are comparatively high (87%) with great variation between the product categories, where the fresh products (particularly fruits and vegetables) tends to have highest price margins. It is worth to notice, that when the price margins were analysed by the sales channels the lowest figures were found for direct selling either on farm or farmers' markets, whereas the margins were by far the highest in the conventional retail chains. This somehow controversial with the fact that only about 15% of the total Slovenian

Determinants of Purchasing Behaviour for Organic and

integrated produce.

297-310, (ISSN: 1559-2448.

90, ISSN: 0007-070X.

ISSN 1464-3618.

**5. References**

Integrated Fruits and Vegetables: The Case of the Post Socialist Economy 35

"sacrifice" superior visual attractiveness for the organic and integrated category, but the taste should be better. This might be a useful guideline for business development strategies. Relation between environmental concern and organic or integrated fruit and vegetable is significant but rather inconclusive. Marginal effect are positive for non buyers, whereas for frequent buyers are negative. These results are accordant with conclusion about low association between environment and organic and integrated production. Insignificant relation has been evaluated for meal preparation patterns, however they are rather explanatory. Probability of being frequent buyer of organic or integrated fruit and vegetable increases with the fact that a respondent is only sporadically cooks meals at home. Traditional eating patterns are not a characteristic of aware and affluent consumers. They do increase the share of food consumed away from home and are also disposed to modern food

The contribution adds towards a better understanding of demand for organic and integrated fruit and vegetable in emerging markets. Despite this, additional research would be needed to understand sufficiently such a complex processes as food choice. In this respect, it would be interesting to study in greater detail consumers' attitudes by different distribution channels and strategies for organic and integrated fruit and vegetables. This would help to prioritise specific attributes and to evaluate price sensitivity of consumers for organic and

Achilleas, K., & Anastasios, S. (2008). Marketing aspects of quality assurance systems: The organic food sector case. *British Food Journal,* 110 (8), pp. 829-839; ISSN: 0007-070X. Batte, M.T., Hooker, N.H., Haab, T.C. & Beaverson, J. (2007). Putting their money where

organic food products. *Food Policy*, 32 (2), pp. 145-159, ISSN: 0306-9192. Bellows A. C., Onyango, B., Diamond, A. & Hallman W.K. (2008). Understanding consumer

*agricultural and food industrial organization.* 6 (1), pp. 1-28, ISSN: 1542-0485. Boccaletti, S. & Nardella, M. (2000). Consumer's willing to pay for pesticide-free fruit and

Botonaki, A., Polymeros, K., Tsakiridou, E. & Mattas, K. (2006). The role of food quality

Canavari, M., Nocella, G. & Scarpa, R. (2005). Stated willingness-to pay for organic fruit and

European Commission (2005) *Organic farming in the European Union. Facts and figures*.

*Journal of Food Products Marketing*, 11(3), pp. 107-134, ISSN 1045-4446. Connor, J.M. (1994). Northern America as a precursor of changes in Western European food

their mouths are: consumer willingness to pay for multi-ingredient, processed

interest in organics: production values vs. purchasing behavior. *Journal of*

vegetable in Italy. *International Food and Agribusiness Management Review*, (3), pp.

certification on consumers' food choices adequate marketing strategy for the effective promotion of certified food products. *British Food Journal*, 108 (2), pp. 77-

pesticide ban-an evaluation using both web-based and face-to face interviewing.

purchasing patterns. *European Review of Agricultural Economics*, 11 (2), pp. 155-173,

European commission, DG Agriculture and rural development. Available at:

categories where organic and integrated produce surely can be classified.

organic food turnover is realised through direct selling, the remaining share goes to different formats of retail.

An interesting conclusion regarding the attitudes and perception of organic and integrated fruit and vegetable among Slovenian consumers is that they do not associate these categories with environmental dimension. The most frequent association in this respect is health ("organic or integrated is healthy") and free from harmful substances, whereas less than two percent of respondents relate to positive impacts on environment. Implication from this finding is that much wider promotional and educational activities regarding organic and integrated fruit and vegetable is needed in Slovenia. Especially awareness for integrated production is very low (only 38% of respondents relate this term with food) despite the fact that the actual production of such fruit in Slovenia is considerable high especially for staple fruit such as apples and pears.

When the factors that might affect frequency of organic and integrated fruit and vegetable consumption in Slovenia were evaluated we firstly found that almost one third of responded reported they buy this category of produce at least once a week. However, roughly the same share of respondents (28%) falls within the group of non-buyers. Surely, using the self reporting method for purchase frequency of a sub-group of product that is not clearly defined (or homogeneously perceived) might lead to over evaluation. However, very low share of incorrect associations (e.g. low calories) and high frequency of non-specific association (healthy and free of harmful ingredients) might indicate that consumers attribute "organic or integrated" category uncritically. They "believe" they purchase this category of fruit or vegetable if the produce fulfils some general stereotypes e.g. produced within extensive orchard. This conclusion again supports already identified need for more effective promotion and consumer education.

The ordinal probit model was constructed using purchase frequency for organic and integrated fruit and vegetables as dependent variable and 11 selected qualitative determinants as independent variables. Results of the model are statistically significant whereas the goodness-of-fit indicator (LRI) is rather low. However; at this stage of the research even with low explanatory capabilities for variance, the model gives valuable insight into the organic and integrated fruit and vegetable purchasing behaviour of Slovenian population.

The most significant impact on purchase frequency has availability of organic and integrated fruit and vegetables in the shop where respondents make majority of their shopping. Clearly, the importance of product availability favours effective distribution activities. As it can be observed on the Slovenian market, the emerging trends of direct purchase (e.g. farmers' market, on farm buying, box schemes) and attempts of the retail chains to explicitly communicate their local fruit and vegetables sourcing (ethnocentrism, and/or low food miles) confirm this conclusion.

Model confirms important inverse implication of disposable household income on purchase frequency, where beside the affordability effect (these category of produce is more expensive) also education and awareness might influence the result. The two basic criteria of quality – taste and visual attractiveness have both significant effects on the frequency of purchase. If consumers perceive organic and integrated fruit and vegetables as superior in terms of taste and visual appeal, probability of a more frequent purchase is higher (it has however to be noted that quasi elasticity for both determinants is low). Nevertheless, descriptive results of the survey suggest that consumers claim they are often prepared to "sacrifice" superior visual attractiveness for the organic and integrated category, but the taste should be better. This might be a useful guideline for business development strategies. Relation between environmental concern and organic or integrated fruit and vegetable is significant but rather inconclusive. Marginal effect are positive for non buyers, whereas for frequent buyers are negative. These results are accordant with conclusion about low association between environment and organic and integrated production. Insignificant relation has been evaluated for meal preparation patterns, however they are rather explanatory. Probability of being frequent buyer of organic or integrated fruit and vegetable increases with the fact that a respondent is only sporadically cooks meals at home. Traditional eating patterns are not a characteristic of aware and affluent consumers. They do increase the share of food consumed away from home and are also disposed to modern food categories where organic and integrated produce surely can be classified.

The contribution adds towards a better understanding of demand for organic and integrated fruit and vegetable in emerging markets. Despite this, additional research would be needed to understand sufficiently such a complex processes as food choice. In this respect, it would be interesting to study in greater detail consumers' attitudes by different distribution channels and strategies for organic and integrated fruit and vegetables. This would help to prioritise specific attributes and to evaluate price sensitivity of consumers for organic and integrated produce.

#### **5. References**

34 Organic Food and Agriculture – New Trends and Developments in the Social Sciences

organic food turnover is realised through direct selling, the remaining share goes to

An interesting conclusion regarding the attitudes and perception of organic and integrated fruit and vegetable among Slovenian consumers is that they do not associate these categories with environmental dimension. The most frequent association in this respect is health ("organic or integrated is healthy") and free from harmful substances, whereas less than two percent of respondents relate to positive impacts on environment. Implication from this finding is that much wider promotional and educational activities regarding organic and integrated fruit and vegetable is needed in Slovenia. Especially awareness for integrated production is very low (only 38% of respondents relate this term with food) despite the fact that the actual production of such fruit in Slovenia is considerable high

When the factors that might affect frequency of organic and integrated fruit and vegetable consumption in Slovenia were evaluated we firstly found that almost one third of responded reported they buy this category of produce at least once a week. However, roughly the same share of respondents (28%) falls within the group of non-buyers. Surely, using the self reporting method for purchase frequency of a sub-group of product that is not clearly defined (or homogeneously perceived) might lead to over evaluation. However, very low share of incorrect associations (e.g. low calories) and high frequency of non-specific association (healthy and free of harmful ingredients) might indicate that consumers attribute "organic or integrated" category uncritically. They "believe" they purchase this category of fruit or vegetable if the produce fulfils some general stereotypes e.g. produced within extensive orchard. This conclusion again supports already identified need for more effective

The ordinal probit model was constructed using purchase frequency for organic and integrated fruit and vegetables as dependent variable and 11 selected qualitative determinants as independent variables. Results of the model are statistically significant whereas the goodness-of-fit indicator (LRI) is rather low. However; at this stage of the research even with low explanatory capabilities for variance, the model gives valuable insight into the organic and integrated fruit and vegetable purchasing behaviour of

The most significant impact on purchase frequency has availability of organic and integrated fruit and vegetables in the shop where respondents make majority of their shopping. Clearly, the importance of product availability favours effective distribution activities. As it can be observed on the Slovenian market, the emerging trends of direct purchase (e.g. farmers' market, on farm buying, box schemes) and attempts of the retail chains to explicitly communicate their local fruit and vegetables sourcing (ethnocentrism,

Model confirms important inverse implication of disposable household income on purchase frequency, where beside the affordability effect (these category of produce is more expensive) also education and awareness might influence the result. The two basic criteria of quality – taste and visual attractiveness have both significant effects on the frequency of purchase. If consumers perceive organic and integrated fruit and vegetables as superior in terms of taste and visual appeal, probability of a more frequent purchase is higher (it has however to be noted that quasi elasticity for both determinants is low). Nevertheless, descriptive results of the survey suggest that consumers claim they are often prepared to

different formats of retail.

especially for staple fruit such as apples and pears.

promotion and consumer education.

and/or low food miles) confirm this conclusion.

Slovenian population.

Determinants of Purchasing Behaviour for Organic and

32(5), pp. 725-743, ISSN: 0305-750X.

consumer research, 150 p, ISBN 82-7063-394-1.

*Economics*, 80, pp. 277-287, ISSN 1467-8276.

*Ethics*, 19, pp. 169-194, ISSN: 1573-322X.

*Journal*, 104 (1), pp. 45-62, ISSN: 0007-070X.

Publishing. pp. 257-271, ISBN:<PHONE_NUMBER>517.

9789264101517.

133, ISSN: 0950-3293.

603, ISSN: 0167-4870.

99-5.

0514-09.

1467-8276..

Integrated Fruits and Vegetables: The Case of the Post Socialist Economy 37

OECD. (2003). *Organic Agriculture: Sustainability, Markets and Policies*. Paris: OECD

Pindyck, R.S. & Rubinfeld, D.L. (1991). *Econometric models and economic forecasts* (3rd international edition). New York: McGraw-Hill Inc, 436 p, ISBN-10:<PHONE_NUMBER>. Raynolds, L. T. (2004). The Globalization of organic agro-food networks. *World Development.*

Sahota, A. (2008). The Global Market for Organic Food and Drink. In: Willer, H., Yussefi-

Schifferstein, H.N.J. & Oude Ophuis, P.A.M. (1998). Health-related determinants of organic

Slabe, A. (2002). *Organic Farming in Slovenia*. Frick: FiBL. Available at: http://www.organiceurope.net/country\_reports/ slovenia/ default.asp [Accessed 19.12.2008]. Slabe, A., Kuhar, A., Juvančič, L., Tratar-Supan, A.-L., Lampič, B., Pohar, J., Gorečan, M.,

Torjusen, H., Sangstad, L., O'Doherty-Jensen, K., & Kjærnes, U. (2004). *European consumers'*

Thøgersen, J. & Ölander, F. (2002). Human values and the emergence of a sustainable

Thompson G.D. & Kidwell J. (1998). Explaining the choice of organic produce: cosmetic

Thompson, G.D. (1998). Consumer demand for organic foods: what we know and what we

Underhill S.E. & Figueroa E.E. (1996). Consumer preferences for non-conventionally grown

Viaene, J., Verbeke, W. & Gellynck, X. (2000). Quality perception of vegetables by Belgian

Vermeir I. & Verbeke, W. (2006). Sustainable Food Consumption: Exploring the Consumer

Weaver R.D., Evans D.J. & Luloff A.E. (1992). Pesticide use in tomato production: consumer concerns and willingness-to-pay. *Agribusiness*, 8, pp. 131-142, ISSN: 1520-6297. Wier M. & Calverley C. (2002). Market potential for organic foods in Europe. *British Food*

Wier, M., Hansen, L.G., Andersen, L.M. & Millock, K. (2003). Consumer preferences for

produce. *Journal of Food Distribution Research*, 27, pp. 56-66.

consumers. *Acta Horticulturae*. 524,pp.89-96, ISSN 0567-7572.

(Organisation for Economic Cooperation and Development), 408 p, ISBN:

Menzler, M., & Sorensen, N. eds. *The world of organic agriculture: Statistics and emerging trends 2008*. Bonn: IFOAM and Frick: FiBL, pp. 53-57, ISBN 978-3-934055-

food consumption in The Netherlands. *Food Quality and Preference*, 9 (3), pp. 119-

Kodelja, U. (2010). Analysis of the status and potentials for the growth of organic products in the light of achieving the goals of the APOF. Final report, Proj. no. V4-

*conceptions of organic food: A review of available research*. Oslo, National institute for

consumption pattern: A panel study. *Journal of Economic Psychology*, 23(5), pp. 605-

defects, prices, and consumer preferences. *American Journal of Agricultural*

need to know. *American Journal of Agricultural Economics*, 80, pp. 1113-1118, , ISSN

"Attitude – Behavioral Intention" Gap. *Journal of Agricultural and Environmental*

organic foods. In: *Organic agriculture: Sustainability, markets and policies*. CABI

http://ec.europa.eu/agriculture/organic/files/eu-policy/data-statistics/facts\_ en. pdf [Accessed 10.07.2011]

Eurostat. (2007). *Organic farming in the EU*. Eurostat News Release 80/2007, Statistical Office

Halberg, N., Alroe, H., Knudsen, M. T. & Kristensen, E. S. eds., (2006). *Global development of organic agriculture: Challenges and promises*. CABI Publishing, ISBN-10:<PHONE_NUMBER>. Govindasamy, R. & Italia, J. (1999). Predicting willingness-to-pay a premium for organically

Greene, W.H. (1997). *Econometric analysis*. 3rd ed. New Jersey, London: Prentice Hall

Greene W.H. (1999). *Limdep version 7.0: User's manual*. New York: Econometric Software Inc. Grunert, S.C. & Juhl, H.J. (1995). Values, environmental attitudes and buying of organic foods. *Journal of Economic Psychology*, 16(1), pp.39-62, ISSN: 0167-4870. Hamm, U., Gronefeld, F., & Halpin, D. (2002). *Analysis of the European market for organic food -*

Kihlberg, I. & Risvik, E. (2007). Consumers of organic foods – value segments and liking of

Kilcher, L., Willer, H., Huber, B., Frieden, C., Schmutz, R. & Schmid, O. (2011): *The Organic*

Krystallis, A. & Chryssohoidis, G. (2005). Consumers' willingness to pay for organic food:

Lambert N. (2001). Food choice, photochemicals and cancer prevention. In Lynn, F. J., Einar,

*consumers' food choice.* Springer –Verlag, pp. 131-151, ISBN-10:<PHONE_NUMBER>. Loureiro, M.L., McCluskey, J.J. & Mittelhammer, R.C. (2001). Assessing consumer

Latacz-Lohmann, U. & Foster, C. (1997). From Niche to mainstream strategies for the

MAFF. (2006). *Akcijski načrt razvoja ekološkega kmetijstva v Sloveniji do leta 2015*. Ljubljana:

MAFF. (2011). *Analiza stanja ekološkega kmetijstva v Sloveniji*. Ljubljana: MAFF (Ministry of the

Italy. *British Food Journal*, 110 (9), pp. 929-947, ISSN: 0007-070X.

*resource economics*, 26 (2), pp. 404-416, ISSN 0162-1912.

Aberystwyth: University of Wales, 157 p, ISBN 0-9543279-4-7.

bread. *Food quality and preference*. 18, pp. 471-481, ISSN: 0950-3293.

pdf [Accessed 10.07.2011]

International, ISBN O-471-53233-9.

(5), pp. 320 – 343, ISSN: 0007-070X.

275-282, ISSN: 0007-070X.

p, ISBN 961-6299-73-5.

B00063FLIW.

978-3-03736-186-3.

of The European Communities, ISSN 1977-0316.

http://ec.europa.eu/agriculture/organic/files/eu-policy/data-statistics/facts\_ en.

grown fresh produce. *Journal of Food Distribution Research*, 30, pp. 44-53, ASIN:

*Organic Marketing Initiatives and Rural Development (OMIaRD) Volume 1.*

*Market in Europe*: 3rd edition May 2011, SIPPO, Zurich and FiBL,Frick, 184 p, ISBN

Factors that affect it and variation per organic product type. *British Food Journal,* 107

R., & Schifferstein, H., eds. *Food, people and society. A European perspective of*

preferences for organic, eco-labeled, and regular apples. *Journal of agricultural and*

marketing of organic food in Germany and the UK. *British Food Journal*, 99 (8), pp.

MAFF (Ministry of the Republic of Slovenia of Agriculture, Forestry and Food), 72

Republic of Slovenia of Agriculture, Forestry and Food). Available at: http://www.mkgp.gov.si/si/o\_ministrstvu/direktorati/direktorat\_za\_kmetijstvo /starasektor\_za\_sonaravno\_kmetijstvo/oddelek\_za\_kmetijstvo\_in\_okolje/kmetijsk o\_okoljska\_placila/ekolosko\_kmetovanje/ekolosko\_kmetijstvo\_dejstva\_in\_podatki /7\_analiza\_stanja\_ekoloskega\_kmetijstva\_v\_sloveniji/ [Accessed 10.07.2011]. de Magistris, T. & Gracia, A. (2008). The decision to buy organic food products in Southern

**3**

*Norway*

Christian A. Klöckner

**Should I Buy Organic Food? A Psychological**

The individual consumer – although placed at the end of the production chain – plays an important role in establishing and developing the market for organic food. It is the final purchase in a supermarket, in a health-food shop or on a farmers' market that creates the demand that eventually sustains organic agriculture. Purchasing food is by no means a simple decision. It can be split into a series of interlaced decisions such as: When do I do my food shopping (e.g., after work, on a Saturday, under time pressure or not)? Where do I go (e.g., local supermarket, hypermarket, health-food store, farmers' market)? How much money do I want to or can I afford to spend? Which classes of products do I want to purchase? Within each class: what is the specific produce I purchase? Decisions made earlier in this chain impact the context of decisions made later. If for example a decision for shopping in a supermarket instead of a health-food store is made the variety of produces is different which impacts the produces that are taken into consideration. If food shopping is done under time pressure, time invested to make decisions is dramatically reduced and mental shortcuts or routines take control. Furthermore, the decision process might be non-

Psychological research has produced a large number of studies that allow insight into the complexities of this decision making process. It has been shown that consumers' purchase decisions at a given point in time and in a specific context are determined by a variety of psychological and contextual factors and their interactions. Some of them will be reviewed in this chapter. Based on previous research the following aspects will be discussed: How do values, attitudes and concerns for health or the environment impact the purchase of organic food? How do visibility, availability and perception of prices contribute? What is the role of trust? How can environmental and health psychological models contribute to understanding organic food purchase? How are organic food labels perceived and used in decision making? Finally, an integrated framework model will be suggested in the last

**2. General motives to buy organic food: Values, concerns and attitudes**

One tradition in psychological research on the purchase of organic food produce focuses on identifying general motivations that may lead to favouring organic agriculture and eventually preferring the organic over the conventionally produced alternative when

linear, jumping back and forth between some of the aforementioned levels.

section before drawing conclusions for future research.

**1. Introduction**

**Perspective on Purchase Decisions**

*Norwegian University of Science and Technology*

## **Should I Buy Organic Food? A Psychological Perspective on Purchase Decisions**

Christian A. Klöckner

*Norwegian University of Science and Technology Norway*

#### **1. Introduction**

38 Organic Food and Agriculture – New Trends and Developments in the Social Sciences

Willer, H., Yussefi, M. & Sorensen, N. Eds. (2008). *The World of Organic Agriculture - Statistics*

Yiridoe, E.K., Bonti-Ankomah, S. & Martin, R.C. (2005). Comparison of consumer's

perception towards organic versus conventionally produced foods: a review and update of the literature. *Renewable Agriculture and Food System*, 20(4), pp. 193-205,

*and Emerging Trends*. IFOAM, ISBN 978-3-934055-99-5.

ISSN: 1742-1705.

The individual consumer – although placed at the end of the production chain – plays an important role in establishing and developing the market for organic food. It is the final purchase in a supermarket, in a health-food shop or on a farmers' market that creates the demand that eventually sustains organic agriculture. Purchasing food is by no means a simple decision. It can be split into a series of interlaced decisions such as: When do I do my food shopping (e.g., after work, on a Saturday, under time pressure or not)? Where do I go (e.g., local supermarket, hypermarket, health-food store, farmers' market)? How much money do I want to or can I afford to spend? Which classes of products do I want to purchase? Within each class: what is the specific produce I purchase? Decisions made earlier in this chain impact the context of decisions made later. If for example a decision for shopping in a supermarket instead of a health-food store is made the variety of produces is different which impacts the produces that are taken into consideration. If food shopping is done under time pressure, time invested to make decisions is dramatically reduced and mental shortcuts or routines take control. Furthermore, the decision process might be nonlinear, jumping back and forth between some of the aforementioned levels.

Psychological research has produced a large number of studies that allow insight into the complexities of this decision making process. It has been shown that consumers' purchase decisions at a given point in time and in a specific context are determined by a variety of psychological and contextual factors and their interactions. Some of them will be reviewed in this chapter. Based on previous research the following aspects will be discussed: How do values, attitudes and concerns for health or the environment impact the purchase of organic food? How do visibility, availability and perception of prices contribute? What is the role of trust? How can environmental and health psychological models contribute to understanding organic food purchase? How are organic food labels perceived and used in decision making? Finally, an integrated framework model will be suggested in the last section before drawing conclusions for future research.

#### **2. General motives to buy organic food: Values, concerns and attitudes**

One tradition in psychological research on the purchase of organic food produce focuses on identifying general motivations that may lead to favouring organic agriculture and eventually preferring the organic over the conventionally produced alternative when

Should I Buy Organic Food? A Psychological Perspective on Purchase Decisions 41

part of a universalistic value orientation. What is interesting here is that preference for organic food can be attributed to two very different, almost opposed value orientations. In a similar approach Baker et al. (2004) compared a sample of German with a sample of UK citizens in another qualitative study and identified health/enjoyment, belief in nature, and animal welfare as the most prominent value orientations driving organic food consumption in Germany, whereas in the UK health/enjoyment/achievement and respect for others/workers emerged as the dominant value orientations, interestingly omitting nature totally. Again the interesting finding is that organic food consumption can have motivations

Two conclusions can be drawn from the analysis of the relations between values and organic food choice: (a) the relation is usually rather weak and indirect, mediated by other variables such as beliefs and attitudes, (b) different, sometimes even opposing value orientations are potentially motivating organic food choice. Some people prefer organic food because they value their health and believe in positive health effects of organic food (value dimension: security), some people prefer organic food, because they want to protect nature, animals, or workers (value dimension: universalism), some prefer organic food because of

Eagly and Chaiken (1993) define *attitudes* as "*a psychological tendency that is expressed by evaluating a particular entity with some degree of favour or disfavour* (page 1)". This definition names three key features of an attitude: (a) it is linked to an entity (an object, a person or a behaviour), (b) it includes a general evaluation of this entity as desirable or not, and (c) is a psychological predisposition that might or might not be expressed in certain behaviours. Fishbein and Ajzen (1975) conceive of attitudes as the general summation of all activated beliefs about the attitude object, with beliefs being the likelihood of a certain outcome of a course of action times its evaluation. Attitudes are in contrast to values connected to specific

Already in the previous section attitudes were introduced as potential mediators between very general value orientations and consumption of organic food or at least the intention to do that. A lot of papers have analysed the relation between attitudes and purchase of organic food, the most interesting are outlining what the most important positive and negative beliefs about organic food and conventional alternatives are that constitute the attitude. A short summary will be given in the remainder of this section. Storstad and Bjørkhaug (2003) analysed attitudes among farmers and consumers in Norway and found that attitudes consisting of pro-environmental beliefs were the only psychological variable positively influencing the purchase of organic food. Pro-animal welfare attitudes were not important, basically because in the case of Norway also conventional agriculture has the image of being animal friendly (Nygård & Storstad, 1998). In a study with inhabitants on a small Scottish island Michaelidou and Hassan (2008) were able to show that the link between positive attitudes towards organic food and the intention to buy it was strong. Furthermore, they found that concerns for food safety, health consciousness and an ethical self-identity were components that significantly contributed to this attitude. Based on data from a national survey Onyango et al. (2007) identified the following food attributes as the most important components of a pro-organic food attitude in the US: (a) naturalness, (b) vegetarian-vegan, (c) production location, (d) familiarity (negative impact). De Magistris

that stem from very different basic value orientations in the Schwartz system.

hedonistic motives (e.g., better taste).

objects and therefor much less general and transsituational.

**2.2 Attitudes**

making a decision. This research tradition has its roots in value and attitude psychology and assumes that value orientations and attitudes are important determinants of people's behaviour. Before analysing their impact on the purchase of organic food in more detail, the three core concepts of this section shall be defined and distinguished from each other in the first paragraph of each subsection.

#### **2.1 Values**

One of the most basic psychological concepts is a *value*. Schwartz (1994) defines values as "*desirable transsituational goals, varying in importance, that serve as guiding principles in the life of a person or other social entity* (page 21)". This definition outlines four important features that characterize values: (a) they define what is morally desirable to achieve for a person, (b) they are allocated on a very general level which makes them applicable across situation, (c) they may vary in importance between different cultures, people or situations, and (d) they motivate behaviour because they guide goal-setting and choice of action. Schwartz (1992) furthermore suggested a categorization of ten basic value orientations (power, achievement, hedonism, stimulation, self-direction, universalism, benevolence, conformity, tradition, security) which has been widely adapted in cross-national studies as well as in various behavioural domains.

Grunert and Juhl (1995) applied the Schwartz value inventory in a study on Danish school teachers to determine the relation between basic value orientations, general environmental attitudes and organic food consumption. They were able to show that value orientations that fall into universalism were most characterizing for what they called "teachers with green attitudes", but also self-direction, stimulation and hedonism to a smaller degree. In a second step they demonstrated that "green" teachers much more likely occasional or regular buyers of organic food. Dreezens et al. (2005) used Schwartz' value system to analyse the relation between beliefs about organic food, attitudes towards organic food and basic value orientations. They found a positive relation between positive attitudes towards organic food and universalism and a negative with power. Furthermore, they could show that this relation is only indirect, mediated by beliefs about organic food (e.g., agreeing that organic food is good for the environment, tastes better, is healthier, etc.). The effects were of a moderate size. In a similar survey conducted with a population sample in Australia Lea and Worsley (2005) found that self-transcendence values – especially personally valuing nature, the environment and equality – were positively related to holding positive beliefs about organic food. However, the relation found was fairly weak. In a Norwegian survey Honkanen et al. (2006) found on the other hand a rather strong relation between the ecological shade of ethical food choice motives and a positive attitude towards organic food which eventually impacted the intention to buy organic food positively. Weak or no relations were found between political motives or religious motives and pro-organic attitudes.

In a qualitative study Makatouni (2002) analysed the value orientations that were relevant for preferring a variety of organic produce over their conventionally produced counterparts in a sample of British parents of 4-12 year old children. The most relevant value embraced was preserving health of themselves and their families, but also protecting the environment and animal welfare were values important to people that preferred organic food alternatives. Health protection would fall under the security value in the Schwartz system, animal welfare and protection of the environment would in Schwartz' understanding be part of a universalistic value orientation. What is interesting here is that preference for organic food can be attributed to two very different, almost opposed value orientations. In a similar approach Baker et al. (2004) compared a sample of German with a sample of UK citizens in another qualitative study and identified health/enjoyment, belief in nature, and animal welfare as the most prominent value orientations driving organic food consumption in Germany, whereas in the UK health/enjoyment/achievement and respect for others/workers emerged as the dominant value orientations, interestingly omitting nature totally. Again the interesting finding is that organic food consumption can have motivations that stem from very different basic value orientations in the Schwartz system.

Two conclusions can be drawn from the analysis of the relations between values and organic food choice: (a) the relation is usually rather weak and indirect, mediated by other variables such as beliefs and attitudes, (b) different, sometimes even opposing value orientations are potentially motivating organic food choice. Some people prefer organic food because they value their health and believe in positive health effects of organic food (value dimension: security), some people prefer organic food, because they want to protect nature, animals, or workers (value dimension: universalism), some prefer organic food because of hedonistic motives (e.g., better taste).

#### **2.2 Attitudes**

40 Organic Food and Agriculture – New Trends and Developments in the Social Sciences

making a decision. This research tradition has its roots in value and attitude psychology and assumes that value orientations and attitudes are important determinants of people's behaviour. Before analysing their impact on the purchase of organic food in more detail, the three core concepts of this section shall be defined and distinguished from each other in the

One of the most basic psychological concepts is a *value*. Schwartz (1994) defines values as "*desirable transsituational goals, varying in importance, that serve as guiding principles in the life of a person or other social entity* (page 21)". This definition outlines four important features that characterize values: (a) they define what is morally desirable to achieve for a person, (b) they are allocated on a very general level which makes them applicable across situation, (c) they may vary in importance between different cultures, people or situations, and (d) they motivate behaviour because they guide goal-setting and choice of action. Schwartz (1992) furthermore suggested a categorization of ten basic value orientations (power, achievement, hedonism, stimulation, self-direction, universalism, benevolence, conformity, tradition, security) which has been widely adapted in cross-national studies as well as in various

Grunert and Juhl (1995) applied the Schwartz value inventory in a study on Danish school teachers to determine the relation between basic value orientations, general environmental attitudes and organic food consumption. They were able to show that value orientations that fall into universalism were most characterizing for what they called "teachers with green attitudes", but also self-direction, stimulation and hedonism to a smaller degree. In a second step they demonstrated that "green" teachers much more likely occasional or regular buyers of organic food. Dreezens et al. (2005) used Schwartz' value system to analyse the relation between beliefs about organic food, attitudes towards organic food and basic value orientations. They found a positive relation between positive attitudes towards organic food and universalism and a negative with power. Furthermore, they could show that this relation is only indirect, mediated by beliefs about organic food (e.g., agreeing that organic food is good for the environment, tastes better, is healthier, etc.). The effects were of a moderate size. In a similar survey conducted with a population sample in Australia Lea and Worsley (2005) found that self-transcendence values – especially personally valuing nature, the environment and equality – were positively related to holding positive beliefs about organic food. However, the relation found was fairly weak. In a Norwegian survey Honkanen et al. (2006) found on the other hand a rather strong relation between the ecological shade of ethical food choice motives and a positive attitude towards organic food which eventually impacted the intention to buy organic food positively. Weak or no relations were found between political motives or religious motives and pro-organic

In a qualitative study Makatouni (2002) analysed the value orientations that were relevant for preferring a variety of organic produce over their conventionally produced counterparts in a sample of British parents of 4-12 year old children. The most relevant value embraced was preserving health of themselves and their families, but also protecting the environment and animal welfare were values important to people that preferred organic food alternatives. Health protection would fall under the security value in the Schwartz system, animal welfare and protection of the environment would in Schwartz' understanding be

first paragraph of each subsection.

**2.1 Values**

behavioural domains.

attitudes.

Eagly and Chaiken (1993) define *attitudes* as "*a psychological tendency that is expressed by evaluating a particular entity with some degree of favour or disfavour* (page 1)". This definition names three key features of an attitude: (a) it is linked to an entity (an object, a person or a behaviour), (b) it includes a general evaluation of this entity as desirable or not, and (c) is a psychological predisposition that might or might not be expressed in certain behaviours. Fishbein and Ajzen (1975) conceive of attitudes as the general summation of all activated beliefs about the attitude object, with beliefs being the likelihood of a certain outcome of a course of action times its evaluation. Attitudes are in contrast to values connected to specific objects and therefor much less general and transsituational.

Already in the previous section attitudes were introduced as potential mediators between very general value orientations and consumption of organic food or at least the intention to do that. A lot of papers have analysed the relation between attitudes and purchase of organic food, the most interesting are outlining what the most important positive and negative beliefs about organic food and conventional alternatives are that constitute the attitude. A short summary will be given in the remainder of this section. Storstad and Bjørkhaug (2003) analysed attitudes among farmers and consumers in Norway and found that attitudes consisting of pro-environmental beliefs were the only psychological variable positively influencing the purchase of organic food. Pro-animal welfare attitudes were not important, basically because in the case of Norway also conventional agriculture has the image of being animal friendly (Nygård & Storstad, 1998). In a study with inhabitants on a small Scottish island Michaelidou and Hassan (2008) were able to show that the link between positive attitudes towards organic food and the intention to buy it was strong. Furthermore, they found that concerns for food safety, health consciousness and an ethical self-identity were components that significantly contributed to this attitude. Based on data from a national survey Onyango et al. (2007) identified the following food attributes as the most important components of a pro-organic food attitude in the US: (a) naturalness, (b) vegetarian-vegan, (c) production location, (d) familiarity (negative impact). De Magistris

Should I Buy Organic Food?  This attitude-behaviour gap that has been described in many behavioural domains has been attributed both to variables mediating between attitudes and behaviour and variables moderating this relation (Armitage & Christian, 2003). The first line of reasoning refers to that attitudes may not be a direct predictor of purchase behaviour but only have an indirect effect via other more proximal variables. The second line of reasoning refers to the assumption that other variables might impact the strength of the relation between attitudes and behaviour. Both aspects lead to more complex models that will be

Finally, *concern* is a less clearly defined construct. In the medical and health context concern has been described as a worry expressed by a patient or a strong negative emotion (Schofield, Green, & Creed, 2008). With respect to other people concern has also been understood as expressing sympathy and compassion for less fortunate others (Fox, 2006), a concept that might also be generalized to non-human creatures or the environment in general. What characterizes concern is therefore an emotional reaction to anticipated negative effects either for oneself or for other people which potentially leads to tendencies to

Although concern for health, food safety, the environment, animal welfare or agricultural workers have been discussed in section 2.2 already and although there is a certain overlap it makes sense to look into concern for health and food safety as these two motivators of purchasing organic food might function differently from the others discussed before. Health concerns connected to conventional food are the most relevant motivator to buy organic food (Hughner et al., 2003). Magnusson et al. (2003) found that health concerns are more important than environmental concerns. Padel and Foster (2005) outline that this is especially the case for people with children. Specifically, the absence of chemicals like artificial fertilizers or pesticides, growth hormones or antibiotics etc. in organic agriculture and thereby avoiding possible negative health effects have been named as motivators (e.g., Schifferstein & Ophuis, 1998; Ott, 1990). Furthermore, that organic food is free from genetic modification is another motivator with a connection to health concern (Baker et al., 2004; Makatouni, 2002). However, Verdurme et al. (2002) were able to show that not all people who purchase organic food are opposing genetically modified food. Makatouni (2002) also found that fear of animal diseases or food scandals associated with the conventional food industry may have an impact. What makes separating health and food safety concerns, which is an emotional reaction to a perceived health threat, from the other beliefs about organic food attractive is that this opens for applying health psychological models to the

purchase of organic food. This will be pursued further in section 6.

**3. Situational impacts and their subjective representation: Availability,**

It is not surprising that situational conditions like availability, visibility or the price of organic food relative to conventional alternatives has an impact on purchase decisions. In this section their impact will be analysed in more detail, with a special focus on their subjective representation, because objective accessibility or price differences are not

debated in section 5.

act against the negative impact.

**visibility, and price**

**2.3 Concern**

and Gracia (2008) conclude in a study based on a survey in southern Italy that beliefs about positive outcomes for health and environment are the most important facets of a pro-organic food attitude and that this attitude is positively impacted by available information on the organic food market.

The aforementioned studies are just a small sample of the available literature on attitudes towards organic food. What becomes clear is that pro-organic attitudes are multi-faceted and many different beliefs contribute. Building on a literature review published by Hughner et al. (2007) figure 1 summarizes the most important beliefs that have been connected to organic food in previous studies and that contribute to forming an attitude towards organic food (e.g., Hughner et al., 2007; Storstad & Bjørkhaug, 2003; Michaelidou & Hassan, 2008; Onyango et al., 2007; De Magistris & Gracia, 2008; Schifferstein & Ophuis, 1998; Özcelik & Ucar, 2008; Padel & Foster, 2005).

Fig. 1. Beliefs connected to organic food

In figure 1 the beliefs that have been previously found have been arranged into four groups: (a) personal benefits a person ascribes to the consumption of organic food, (b) societal benefits the person ascribes to organic agriculture, (c) personal losses that a person ascribes to the consumption of organic food, and (d) societal losses associated with organic agriculture. All of those aspects are subjective beliefs, which means it is irrelevant if the assumptions underlying them can be supported by scientific findings or not. Usually, anticipated personal benefits and losses are more relevant for behavioural choice than societal benefits and losses, but a strong universalist value orientation (see section 2.1) makes societal benefits more salient. Furthermore, strongly felt moral obligations to protect the environment have been shown to reduce the importance of negative beliefs like the ones subsumed under "personal losses" in figure 1 (Klöckner & Ohms, 2009).

 This attitude-behaviour gap that has been described in many behavioural domains has been attributed both to variables mediating between attitudes and behaviour and variables moderating this relation (Armitage & Christian, 2003). The first line of reasoning refers to that attitudes may not be a direct predictor of purchase behaviour but only have an indirect effect via other more proximal variables. The second line of reasoning refers to the assumption that other variables might impact the strength of the relation between attitudes and behaviour. Both aspects lead to more complex models that will be debated in section 5.

#### **2.3 Concern**

42 Organic Food and Agriculture – New Trends and Developments in the Social Sciences

and Gracia (2008) conclude in a study based on a survey in southern Italy that beliefs about positive outcomes for health and environment are the most important facets of a pro-organic food attitude and that this attitude is positively impacted by available information on the

The aforementioned studies are just a small sample of the available literature on attitudes towards organic food. What becomes clear is that pro-organic attitudes are multi-faceted and many different beliefs contribute. Building on a literature review published by Hughner et al. (2007) figure 1 summarizes the most important beliefs that have been connected to organic food in previous studies and that contribute to forming an attitude towards organic food (e.g., Hughner et al., 2007; Storstad & Bjørkhaug, 2003; Michaelidou & Hassan, 2008; Onyango et al., 2007; De Magistris & Gracia, 2008; Schifferstein & Ophuis, 1998; Özcelik &

personal benefit personal loss

more expensive sensory defects limited availability and variability conflicts with brand loyalty to conventional produce

lower efficiency

slowing down technological progress

organic food / organic agriculture

In figure 1 the beliefs that have been previously found have been arranged into four groups: (a) personal benefits a person ascribes to the consumption of organic food, (b) societal benefits the person ascribes to organic agriculture, (c) personal losses that a person ascribes to the consumption of organic food, and (d) societal losses associated with organic agriculture. All of those aspects are subjective beliefs, which means it is irrelevant if the assumptions underlying them can be supported by scientific findings or not. Usually, anticipated personal benefits and losses are more relevant for behavioural choice than societal benefits and losses, but a strong universalist value orientation (see section 2.1) makes societal benefits more salient. Furthermore, strongly felt moral obligations to protect the environment have been shown to reduce the importance of negative beliefs like the ones

societal benefit societal loss

subsumed under "personal losses" in figure 1 (Klöckner & Ohms, 2009).

organic food market.

Ucar, 2008; Padel & Foster, 2005).

healthier/more nutritious safer, free from chemicals or contaminations

better taste, higher quality

expresses wealth or a post-materialistic lifestyle, is fashionable

environmentally friendly

animal friendly

worker friendly

supporting local economy

Fig. 1. Beliefs connected to organic food

Finally, *concern* is a less clearly defined construct. In the medical and health context concern has been described as a worry expressed by a patient or a strong negative emotion (Schofield, Green, & Creed, 2008). With respect to other people concern has also been understood as expressing sympathy and compassion for less fortunate others (Fox, 2006), a concept that might also be generalized to non-human creatures or the environment in general. What characterizes concern is therefore an emotional reaction to anticipated negative effects either for oneself or for other people which potentially leads to tendencies to act against the negative impact.

Although concern for health, food safety, the environment, animal welfare or agricultural workers have been discussed in section 2.2 already and although there is a certain overlap it makes sense to look into concern for health and food safety as these two motivators of purchasing organic food might function differently from the others discussed before. Health concerns connected to conventional food are the most relevant motivator to buy organic food (Hughner et al., 2003). Magnusson et al. (2003) found that health concerns are more important than environmental concerns. Padel and Foster (2005) outline that this is especially the case for people with children. Specifically, the absence of chemicals like artificial fertilizers or pesticides, growth hormones or antibiotics etc. in organic agriculture and thereby avoiding possible negative health effects have been named as motivators (e.g., Schifferstein & Ophuis, 1998; Ott, 1990). Furthermore, that organic food is free from genetic modification is another motivator with a connection to health concern (Baker et al., 2004; Makatouni, 2002). However, Verdurme et al. (2002) were able to show that not all people who purchase organic food are opposing genetically modified food. Makatouni (2002) also found that fear of animal diseases or food scandals associated with the conventional food industry may have an impact. What makes separating health and food safety concerns, which is an emotional reaction to a perceived health threat, from the other beliefs about organic food attractive is that this opens for applying health psychological models to the purchase of organic food. This will be pursued further in section 6.

#### **3. Situational impacts and their subjective representation: Availability, visibility, and price**

It is not surprising that situational conditions like availability, visibility or the price of organic food relative to conventional alternatives has an impact on purchase decisions. In this section their impact will be analysed in more detail, with a special focus on their subjective representation, because objective accessibility or price differences are not

Should I Buy Organic Food? A Psychological Perspective on Purchase Decisions 45

Documented effects of shelf placement on product choice in a supermarket can also be used to increase sales of organic products. The more shelf space an item receives the more likely is it that it is selected (Desment & Renaudin, 1998; Dreze et al., 1994). In the supermarket the shelf space is usually distributed in strong disfavour of organically produced products. A position on eye or hand level also has a strong positive effect on sales numbers (Campo & Gijsbrechts, 2005). Items presented earlier on the shelf as well as near focal items (items highly preferred) also tend to have higher likelihoods of being sold (Simonson and Winer, 1992). Such effects are especially relevant, when the customers are under time pressure or are not motivated to engage in the shopping decision (e.g., after work shopping). Interestingly the effect of shelf-placement has been under-researched when it comes to organic food. One of the very few exceptions is a very comprehensive study by van Nierop et al. (2010). They found the best market share of organic products when they were presented in the middle of the shelf space and at eye level. They furthermore found that placing all organic food products in one corner of the supermarket does not increase sales but sorting the whole product category by brand (organic as well as conventional) does.

Many studies found that higher prices for organic produce are the main barrier named by customers when asked why they do not buy organic (see Hughner et al, 2007, for a review). The relation is, however, more complex than it appears at first glance. When asked, if they are willing to pay a premium for organically grown food, consumers usually state that they are (Batte et al., 2007). Interestingly, the amount people state they are willing to pay as a premium is in many food categories lower than the actual premium (Millock et al., 2002) and this might not be a coincidence: Stating to be willing to pay a premium but at the same time naming an amount for the acceptable premium that lies below the actual premium is a very convenient way to both keep a clear conscience ("I am willing to financially support organic farming…") and continue not buying ("… but the actual premium is too high"). Soler et al. (2002) however present an alternative explanation: Based on results from their experimental study they assume that the decision to pay a premium is two-fold, first a decision is made, if a premium should be paid or not. About 70% of their participants were willing to pay a premium. This decision is more determined by attitudes towards environment and food safety. Then a second decision is made on the amount of the premium that is acceptable. This decision is more determined by socio-economic variables. Factors that have been shown to impact willingness to pay for organic products are a perceived added value with respect to food quality and security as well as trust in the producers and marketing chain (Krystallis & Chryssohoidis, 2005). Furthermore, willingness to pay increases with strong pro-environmental attitudes and young children in the household (Soler et al., 2002). They found that willingness to pay for an organic product is higher if a reference price for a conventional product is named and if information about the

Interestingly, having to pay a premium on organic food is not only a barrier to purchase but also has a positive effect on the perception of the quality: Hill and Lynchehaun (2002) found that consumers used the price difference to infer that organic products both have better quality and taste. Also Cicia et al. (2002) demonstrated that customers used the price as a proxy to determine the quality of organic olive oil. Too low prices on organic olive oil were

organic alternative is given orally (as opposed to written).

associated with it being of poor quality or not even truly organic.

**3.3 Price**

necessarily in accordance with subjective representations people have of them – and it are the latter that impact the decision.

#### **3.1 Availability**

In their overview paper Hughner et al. (2007) identified perceived lack of availability of organic food and inconvenience associated with the purchase process as one of the main barriers to organic food purchase. In a qualitative study with Italian customers by Zanoli and Naspetti (2002), people associated organic products as difficult to find. Padel and Foster (2005) found similar results in a UK sample and concluded that people reacted negatively to limited choice options (compared to conventional alternatives) and higher effort that needs to be put into buying organic food (e.g., additionally entering a health food store). In an unpublished interview pilot-study with Norwegian customers, limited accessibility of a full range of products in the organic food sector was named as the main barrier (Klöckner, 2008). In an analysis conducted with Turkish customers, availability of organic products was a better predictor of purchase frequency than anticipated environmental benefits (Ergin & Ozsacmaci, 2011). The most important predictor was trust (see section 4), followed by health considerations, availability and environmental benefits.

In a comparative review of organic food consumption in different European countries Thøgersen (2010) presents evidence for that the percentage of organic food consumption in a country is a function of influences from four different domain: political regulations (laws & subsidies), politically motivated marked development (certification, labelling, information campaigns), the demand side in the market (values, environmental concern, food culture, income level, etc.) and the supply side in the market. This last factor clearly reflects that in order to sustain a functioning organic food market opportunities for the customer have to be created and convenient distribution channels have to be used to make organic products available at the point in time and space where the food purchase decision is made. Not coincidentally sales increased in many countries substantially after the big supermarket chains entered the organic food market (Aschemann et al., 2007), which is most likely the combined outcome of increased availability and marketing activities. Thøgersen (2010) argues that consumers' attitudes, values and norms and the like are only relevant for a purchase decision within a decisional space defined by the opportunities the supply side creates, which makes availability and easy access to one of the key features in increasing organic food consumption. Very few customers are willing to go the extra mile to buy an organic product.

#### **3.2 Visibility and shelf-placement**

The impact of visibility, placement on the shelf and shelf space of organic produce compared to their conventional alternatives may be regarded as a sub-phenomenon of the aforementioned availability discussion, but analysing their effects in more detail gives some additional insights. Hjelmar (2010) for example differentiated availability and visibility as two different factors and found that visibility was especially relevant for occasional buyers of organic food that did not plan to buy organic when entering the supermarket. For them being confronted with a presentation of organic produce that cannot be overlooked made the difference. Presentation at eye level, right next to the conventional alternative was what this segment of the customers reacted positively to.

Documented effects of shelf placement on product choice in a supermarket can also be used to increase sales of organic products. The more shelf space an item receives the more likely is it that it is selected (Desment & Renaudin, 1998; Dreze et al., 1994). In the supermarket the shelf space is usually distributed in strong disfavour of organically produced products. A position on eye or hand level also has a strong positive effect on sales numbers (Campo & Gijsbrechts, 2005). Items presented earlier on the shelf as well as near focal items (items highly preferred) also tend to have higher likelihoods of being sold (Simonson and Winer, 1992). Such effects are especially relevant, when the customers are under time pressure or are not motivated to engage in the shopping decision (e.g., after work shopping). Interestingly the effect of shelf-placement has been under-researched when it comes to organic food. One of the very few exceptions is a very comprehensive study by van Nierop et al. (2010). They found the best market share of organic products when they were presented in the middle of the shelf space and at eye level. They furthermore found that placing all organic food products in one corner of the supermarket does not increase sales but sorting the whole product category by brand (organic as well as conventional) does.

#### **3.3 Price**

44 Organic Food and Agriculture – New Trends and Developments in the Social Sciences

necessarily in accordance with subjective representations people have of them – and it are

In their overview paper Hughner et al. (2007) identified perceived lack of availability of organic food and inconvenience associated with the purchase process as one of the main barriers to organic food purchase. In a qualitative study with Italian customers by Zanoli and Naspetti (2002), people associated organic products as difficult to find. Padel and Foster (2005) found similar results in a UK sample and concluded that people reacted negatively to limited choice options (compared to conventional alternatives) and higher effort that needs to be put into buying organic food (e.g., additionally entering a health food store). In an unpublished interview pilot-study with Norwegian customers, limited accessibility of a full range of products in the organic food sector was named as the main barrier (Klöckner, 2008). In an analysis conducted with Turkish customers, availability of organic products was a better predictor of purchase frequency than anticipated environmental benefits (Ergin & Ozsacmaci, 2011). The most important predictor was trust (see section 4), followed by health

In a comparative review of organic food consumption in different European countries Thøgersen (2010) presents evidence for that the percentage of organic food consumption in a country is a function of influences from four different domain: political regulations (laws & subsidies), politically motivated marked development (certification, labelling, information campaigns), the demand side in the market (values, environmental concern, food culture, income level, etc.) and the supply side in the market. This last factor clearly reflects that in order to sustain a functioning organic food market opportunities for the customer have to be created and convenient distribution channels have to be used to make organic products available at the point in time and space where the food purchase decision is made. Not coincidentally sales increased in many countries substantially after the big supermarket chains entered the organic food market (Aschemann et al., 2007), which is most likely the combined outcome of increased availability and marketing activities. Thøgersen (2010) argues that consumers' attitudes, values and norms and the like are only relevant for a purchase decision within a decisional space defined by the opportunities the supply side creates, which makes availability and easy access to one of the key features in increasing organic food consumption. Very few customers are willing to go the extra mile to buy an

The impact of visibility, placement on the shelf and shelf space of organic produce compared to their conventional alternatives may be regarded as a sub-phenomenon of the aforementioned availability discussion, but analysing their effects in more detail gives some additional insights. Hjelmar (2010) for example differentiated availability and visibility as two different factors and found that visibility was especially relevant for occasional buyers of organic food that did not plan to buy organic when entering the supermarket. For them being confronted with a presentation of organic produce that cannot be overlooked made the difference. Presentation at eye level, right next to the conventional alternative was what

the latter that impact the decision.

considerations, availability and environmental benefits.

**3.1 Availability**

organic product.

**3.2 Visibility and shelf-placement**

this segment of the customers reacted positively to.

Many studies found that higher prices for organic produce are the main barrier named by customers when asked why they do not buy organic (see Hughner et al, 2007, for a review). The relation is, however, more complex than it appears at first glance. When asked, if they are willing to pay a premium for organically grown food, consumers usually state that they are (Batte et al., 2007). Interestingly, the amount people state they are willing to pay as a premium is in many food categories lower than the actual premium (Millock et al., 2002) and this might not be a coincidence: Stating to be willing to pay a premium but at the same time naming an amount for the acceptable premium that lies below the actual premium is a very convenient way to both keep a clear conscience ("I am willing to financially support organic farming…") and continue not buying ("… but the actual premium is too high"). Soler et al. (2002) however present an alternative explanation: Based on results from their experimental study they assume that the decision to pay a premium is two-fold, first a decision is made, if a premium should be paid or not. About 70% of their participants were willing to pay a premium. This decision is more determined by attitudes towards environment and food safety. Then a second decision is made on the amount of the premium that is acceptable. This decision is more determined by socio-economic variables.

Factors that have been shown to impact willingness to pay for organic products are a perceived added value with respect to food quality and security as well as trust in the producers and marketing chain (Krystallis & Chryssohoidis, 2005). Furthermore, willingness to pay increases with strong pro-environmental attitudes and young children in the household (Soler et al., 2002). They found that willingness to pay for an organic product is higher if a reference price for a conventional product is named and if information about the organic alternative is given orally (as opposed to written).

Interestingly, having to pay a premium on organic food is not only a barrier to purchase but also has a positive effect on the perception of the quality: Hill and Lynchehaun (2002) found that consumers used the price difference to infer that organic products both have better quality and taste. Also Cicia et al. (2002) demonstrated that customers used the price as a proxy to determine the quality of organic olive oil. Too low prices on organic olive oil were associated with it being of poor quality or not even truly organic.

Should I Buy Organic Food? A Psychological Perspective on Purchase Decisions 47

customers have in their private label organic product series which eventually impacts also brand loyalty. Essoussi and Zahaf (2009) also found that organic food produced within your own country is trusted more than imported organic food. Truninger (2006) used in depth interviews to identify small size of the shop, personal bonding with the owner or personnel, feeling of belonging to one community with shared values and interests with the producer or vendor as determinants of trust. Furthermore, authenticity of organic food is validated by the appearance of the product: Fruits and vegetables should for example not be too big, too shiny, have small holes or bugs to be perceived as authentically organic. These findings put an interesting ambiguity on the appearance factor of organic food: on the one hand customers name sensory defects as barrier towards purchase of organic food (Hugher et al., 2007), on the other hand are exactly these sensory defects used as indicators of authenticity by other people. Maybe, the difference lies in the market segment: occasional buyers of organic fruits and vegetables in supermarkets expect the same visual appearance from organic than from conventional products, whereas more frequent buyers of organic food get

**5. Models of environmental behaviour applied to organic food purchase**

how the models have been used with respect to organic food purchase.

Social psychological behaviour models have contributed significantly to understanding environmentally relevant behaviour, its determinants and entry points for interventions to change behaviour. The two models most prominently used in environmental psychology today are the theory of planned behaviour (Ajzen, 1991) and the norm-activation theory (Schwartz & Howard, 1981). The two following sections outline their main assumptions and