Limits to growth in organic sales : price elasticity of consumer demand for organic food in Dutch supermarkets
Bunte, F.H.J. ; Galen, M.A. van; Kuiper, W.E. ; Bakker, J.H. - \ 2007
Den Haag : LEI (Report / LEI : Domain 7, Institutions, people and perceptions ) - ISBN 9789086151271 - 77
agrarische economie - biologische voedingsmiddelen - prijzen - verandering - vraag - vraagelasticiteit - vraagfunctie - consumentenprijzen - nederland - agricultural economics - organic foods - prices - change - demand - demand elasticities - demand functions - consumer prices - netherlands
This report determines how sensitive consumer demand for organic products is to changes in the prices of organic products. The report is based on the analysis of scanner data for supermarkets in ten Dutch communities. In the framework of the analysis, an experiment has been performed in which the prices of organic products have been reduced below current price levels. The report shows that consumer demand for organic food is sensitive to changes in consumer prices. However, for five out of eight products the sensitivity of consumer demand with respect to price declines when the price gap between organic and conventional food falls.