Willingness to pay for quality: Case of milk and egg demand in Antalya

In this study, the consumers? willingness to pay price premium for organic milk and eggs regarding conventional counterparts are estimated. The data used in the study were obtained via face to face consumer survey with randomly selected 225 individuals who shopped food from the chain-stores (Kipa, Ozdilek, Migros and Real) selling organic milk and eggs in Antalya city centre between December 2011 and January 2012.According to the survey results, the ratios of respondents who considered the food as unsafe, less safe and medium-safe are 16.4%, 34.7%, and 34.2% respectively. The percentages of the consumers who think that the price differences are too high between conventional and organic milk and egg are 64%. On the other hand, 45.8% of the participants consider that off-season fruit and vegetables are unhealthy due to chemical residues and hormones. Moreover, 52.4% of the respondents think that imported beef is not safe in terms of health. In addition, 55% of the consumers are aware of organic products and they know organic production methods. According to the survey results, respectively 20.4% and 22% of household purchase organic milk and eggs. In addition, 26.7% of the respondent replied to the question as yes whether they would pay any price premium for organic products. People who agreed to pay extra for organic products said that they would pay 22.5% additional price for organic milk and 24.15% additional price for organic eggs.The conjoint analysis results show that consumers? willingness to pay price premiums are 1.65TL (90%) for organic milk and 0.39TL (96%) for organic eggs. The values obtained from Logistic Regression Model indicate that willingness to pay price premiums are 1.827TL (100%) for organic milk and 0.406TL (102%) organic eggs. According to the results of factor analysis, around two-thirds of the variation of the consumer preferences are explained by three different variables which are named as price, quality and advertisement-product factors.