On the 23rd of February, LMBS, welcomed guest lecture Rachel Griffith, from the Institute for Fiscal Studies (IFS) to discuss household of organic products.
Rachael is currently a professor of Economics at University Central London, and a Deputy Research Director of the Institute for Fiscal Studies.
IFS is an independent research institute which provides an economic analysis, in order to create effective economical performance, with a specific interest in entry conditions, competition, innovation and productivity.
Using research gathered by the TNS market research firm, from 17,162 households in November 2003 to November 2004, Rachel made a economical observation into how much more households were willing to pay for organic products over the same product which is non organic.
Research showed that in the whole of the UK from Nov 2003-Nov 2004, the to
tal household expenditure on food was £37 billion, of which 22% or £535 million were on Organic products. In order to gain an understanding into the purchasing characteristics of organic foods, the attitudes and beliefs of Organic products were placed into three categories; Health, Environment and Quality.
By placing them into these three categories an understanding into how much more consumers were willing to pay for a organic product was made.
Organic products are considered to be of a "higher quality" with households willing to pay £9.83 more, "Healthier" with households willing to pay up to £6.61 more and "More Environmentally friendly" with households willing to pay £1.61 more for a organic over non organic products.
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