Date of Graduation
Master of Science in Agriculture
College of Agriculture
consumer choice, willingness-to-pay, gmo free, organic, antibiotic free, production choice
Agricultural Economics | Food Studies
Production choice is often viewed as driven by the resources and methods known to the producers. However, recent discussions focus on the other factors leading to production choice such as consumer preference, measured by factors such as willingness to pay (Tait, Saunders, Guenther, and Rutherford, 2016). This study evaluates the role of diet preference and age in driving a consumer’s willingness to pay for food produced with specific method. The data analyzed are from the 2016 U.S. Lifestyles of Health and Sustainability (LOHAS) Consumer survey. A total of 1042 individuals were asked whether they were willing to pay 10% more for food/beverage products which have the following characteristics: GMO Free, USDA Certified Organic, and Antibiotic-Free Meat production methods. The study found consumers who do not eat red meat or have diet with less meat are more likely to be willing to pay 10% more for all three production methods. There are also indications that younger millennials are more likely to pay more for both GMO free and Antibiotic free products, while the Silent and Baby Boomer generations are less likely to pay more for these labels. Similarly, non-white consumers are willing to pay more for organic food products.
© Amanda P. Wecker
Wecker, Amanda P., "Alternative Production Practices and the Role of Consumer Choice: Willingness-to-Pay Analyses" (2020). MSU Graduate Theses. 3515.