Abstract:
This study determines the consumers’ willingness to
pay for organic milk in Tehran by
using Contingent Valuation Method and Single Bounde
d Dichotomous Choice
questionnaire. Logit regression model was used to e
valuate the effect of explanatory
variables on willingness to pay and the model param
eters were estimated by using
maximum likelihood approach. For this purpose, 450
questionnaires were completed in
the city by respondents who had independent income
in 2012. Shazam, SPSS, and Maple
softwares were used to obtain the results. Accordin
g to the results, variables such as
income, family’s illness history, age, educational
level, distance to the shopping center,
apprising respondents, organic milk quality, and th
e offered price had a significant effect
on consumers' willingness to pay for organic milk.
Overall, 80.3% of the respondents
were willing to buy organic milk. The average of co
nsumers' willingness to pay was
estimated at 28,600 Rials per liter of organic milk
. The results showed this product to be
important for people; and this point can help produ
cers, planners, and managers for
further development of this product.
Keywords
: Contingent valuation method, Logit model, Milk co
nsumption
,
Single bounded
dichotomous choice
