Whose salad is organic? An attribute segmentation perspective-evidence from Albania

Abstract

Organic agriculture remains a black box attribute when considering consumer behaviour and preferences in developing countries. This is due partially to a lack of awareness about such products in addition to a lack of trust in relation to the certification bodies responsible. Meanwhile, increasing demand for these products comes as a result of food intolerance and hygiene safety issues. Through this framework it is crucial to clarify the concept from the consumer perspective. The objective of this paper is to understand consumer perceptions regarding organic attributes and identify the characteristics considered by consumers when buying organic products. The relative importance index shows the sensitivity of Albanian consumers in relation to the organic attribute, mainly in fruit and vegetables. Through the Contingent Valuation Method it is estimated that the consumer will pay an average premium of 27.7% for organic vegetables and 28.3% for organic fruit. The segmentation approach indicates that consumers linking organic attributes with health expressed a high willingness to pay for organic products. However, the majority use price as the main indicator of the quality of the product they consume; a higher price meaning an organic product. This conclusion is important in developing countries where consumers display low trust in food safety mechanisms and institutions.