Organic wheat products and consumer choice: a market segmentation analysis

Abstract

This paper examines determinants of consumer interest in organic versions of wheat products by analyzing differences in selected factors among groups of consumers, distinguished by their likelihood of purchasing organic wheat products. The analysis is performed for bread and cookies to examine whether the findings are different for virtue and vice food categories. A consumer survey was conducted across the western United States in 2017. Latent class modeling is used to identify groups of “very likely,” “likely” and “unlikely” consumers of organic wheat products, based on preferences for organic wheat products and attitudes toward organics in general. Consumer preferences and willingness to pay (WTP) for organic foods depend on product type. Additionally, significant differences are found across consumer groups—regardless of product type—in the importance they place on labels and product characteristics, WTP, reasons for (not) purchasing organic products and consumption limitations. The group of organic consumers may be underrepresented in the sample. In addition, since actual behavior was not observed—respondents provided only stated preferences or responses to hypothetical questions—the results should be interpreted carefully. Few studies have examined preferences for organic wheat products across consumer groups. This study is also the first to examine the connection between wheat/gluten intolerance/avoidance and preference for organic versions of wheat products. Finally, this study adds to the limited literature on consumer preferences for organic virtue and vice food products.