Perceived Risk and Willingness-to-Pay for Different Organic Certification Levels in Thailand
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Abstract
There is an increasing demand for organic food, as consumers are becoming more health-conscious and concerned with food safety. This paper investigates how a firm’s size (small group of independent farmers versus large registered corporation) and certification levels (not certified, nationally certified, or internationally certified) affect Thai consumers' perceived risk and willingness to pay for these products. The data were collected from 196 Thai organic shoppers using a combination of interviews, questionnaires, and field experiments. The results show that both size and certification affect consumers’ perceived risk. In particular, respondents perceive higher risks of chemical contaminants in organic products produced by large firms. They also perceive higher risks in products that are not organically certified. However, the size and certification factors do not affect people’s willingness to pay. The study also found that consumers trust a small group of independent farmers rather than large corporate producers when products are claimed to be organic but are not certified. The results provide insights and recommendations for organic food producers concerning production and certification strategies.
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