Determination of the surplus that consumers are willing to pay for an organic wine

Abstract

The aim of this study was to estimate the premium price that Spanish consumers are willing to pay for an organic wine with respect to the price of a conventional wine with similar characteristics. To accomplish this aim, contingent valuation has been used, which permits using a survey and a direct estimation of the premium price that consumers are willing to pay. The question format used is dichotomous choice valuation with follow-up questioning. Statistical analysis was carried out using descriptive statistical analysis and logistic regression, in such a way that the estimation for both methods has been compared. The premium price has been estimated in three segments of consumers, according to their life style (healthy, concern about environment and concern about food/diet). The main findings show that consumers with a healthy life style are those willing to pay a higher price for an organic wine.