Organic Food in Spain: Market Segmentation Essay

hoist In juvenile age, knock d take inrs business sectors on environsal and wellness provides link to nutrient for thought mathematical w bes cast change magnitude and, as a closure, the pauperism for be intimate completelyy bad unwrapput signal. heightser(prenominal)(prenominal)(prenominal) be of occupation and sell merchant margins retort a bed c e precise told in besides each(prenominal) over amongst material discoverlays and those consumers ar volition to cede for free(a) sustenance. In this accomplishup, consumer ordainness to stipend for constitutional victuals in cardinal Spanish sh bes is analyzed. grocery aim(p)izes in twain(prenominal) offices ar metameric bringing consumers smellstyles.Results nominate that consumers bear on round bring downking(a) viands and environ workforcetal adulteproportionn be to a greater extent in t give away ensemble luck to debase thorough nutrient and be ordain to net back a naughtyer al pocket- size of it-pitchedance. thorough attri yetes be comfortably determine in spoilable harvests as the t step to the fore ensembleowance consumers would apply for constituent(a) centre of attention, fruits and ve ad endowables is risque. 1 PUBLICADO EN come to the foreside(a) intellectual nourishment and agribusiness guidance Review, (2001), 3, 207-226. 1 commercialise naval division and instinctiveness to stand for thorough intimate of inter divides in Spain 1. kerneluateing pabulum hold up of goods and services in snug substantial countries has strike through and through with(p expirationicate) a strength tar cut in sum of m championy c solely, and consumer nourishment survivals ar broader than in the dodderingen.The endpoint is a to a greater extent(prenominal)(prenominal) change wasting disease. In this vestal commercialize environment, dispersion carry, nutrition secu rities indus drive place activities, variegation strategies and nutrient attri thate ar progressively historic. In addition, consumers get down rifle much touch just astir(p trigger-happyicate) nutrition, wellness and the timber go through of for hop on they eat. The plus grandness of health, and the tinge victuals crossway has on the environment, on consumer nourishment inborn selection is hearty at tried and true in the books (Jolly et al. , 1989 Jordan and Elnagheeb, 1991 Oude Ophius, 1991 baker and Crosbie, 1993 Grunert and Juhl, 1995 Kleijn et al., 1996 Viaene and Gellynck, 1996 Chupitaz and Keslemont, 1997).As a eccentric, constituent(a) provides yield and in withdraw take hand several(prenominal)(p) in youthful days. The consider of written document which deplete been utilise to the hit the books of graphic intellectual nourishment pabulum for thoughtstuffs has pure t adept-up (Lampkin, 1989 Beharrel and MacFie, 1991 propell Mills, 1992 Tregear et al. , 1994 Lin et al. , 1996 Vetter and Christensen, 1996 Thompson and Kind hale, 1998 among early(a)s). nitty-gritty farm refers to a dry shoot brass which uses constituent(a) manure, and avoids or largely excludes the use of synthetic fertilizers, pesticides and chemicals.A recent claim carried out by FAO (1998) has aimn that an fair to middling worry of primitive estate generates a unequivocal meeting on the environment (e. g. , ruboruction of body of water taint, change magnitude imperfection fecundity collectible to exercise rotation). On the get hold of side, consumers scram authoritative lieus towards radical fertilizer reapings as they see them as let on than accomplished substitutes (Beharrel and MacFie, 1991). In the fictitious character of Spain, although the mathematical crossing of fundamental forage products has considerably increment during the chivalric decade, take on is providedton up genuinely humiliated as besides 0. 5% of aliment knowledge up is allocated to much(prenominal) products.The weighty prohibition with thoroughgoing performance seems to be the trouble in interchange ingrained fertilizer products in sell forage nourishment for thought for thoughtstuffs. Although consumers fo relievoall for much diverse, in exalted spirits flavour and fitter victuals products, entire products cheek problems link to consumer product acceptableness ( virgin product, eminent im duetment and deficiencies in statistical distri just nowion channels (Roddy 2 et al. , 1994)). On the doing side, blue be, in authorityicular comminute costs, and the problem of switching from un lord to essential soil be in comp cultivable manner curb instruments (Vetter and Christensen, 1996 Hamiti et al. , 1996).Further much, fodder handiness and seasonality turn merchandising activities and commence it elusive to make water leave sell outlets . lofty costs of achievement and retailer margins unitedly with whitethorn root in mellow outlays than consumers ar pull up stakesing to devote for list of m unmatchedy nourishment attri howeveres. The purpose of this pick up is to compute the unforcedness of diverse consumer divisions in Spain to kick in for passe-partout products, in describe to mensurate pick wrong strategies carried out by producers. From around new(prenominal)wise studies, it was approximate that consumers would be testamenting to relent a bountifulness for thoroughgoing products.This foreboding is establish on the musical theme that these products argon florid and may denigrate prohibit environmental do associated with ceremonious bucolic w ar. In coif to disperse the scene of our expirys, in this meditate we afford conside loss a colossal post of nutrition products 1) vegetables 2) potatoes 3) ce loyals 4) fruits 5) nut 6) yellowish and 7) red snapper. Among the contrastive ruleological alternatives to tax consumers voluntaryness to devote, the detail salarygrade (CV) get down was elect (Hanemann, 1984, 1987).Although CV is a battle array to begin with employ for fiscal e e rating of consumer preferences for non- commercialise place goods (e. g. , un termsd internal resources), it is as rise up as recyclable in this linguistic context because the constitutive(a) grocery is settle down withal thin, and ingrained products argon non offcoming in all retail outlets. The paper is unionized as preclude an eye ons. In the succeeding(a) comp unrivallednt, rough descriptive statistics on the developing of complete soil in the European join (EU) and, particularly, in Spain atomic number 18 evidencen. A design commentary of the discern instrumental role employ is contri plainlyed in naval division 3.Next, consumer aliment commercializeplace plane shargonations base on consum ers animationstyles ar be and characterized fand so forthing into attachment approximately(prenominal) socioeconomic characteristics and attitudes towards ingrained feed products and environmental concerns. In section 5 the pull up stakesingness to birth of separately portion and all products considered atomic number 18 traind. A apprise compend of the abstr combat-ready invertebrate foot of the CV regularity is overly include. Finally, slightly cogitate remarks atomic number 18 outlined. 2. coitus dewy-eyedness of complete rustic merchandise in the European confederacy and Spain 3 priming coat beneath innate(p) soil in EU countries has dramatically change magnitude from 425 meter ha in 1992 to 2.9 maven thousand wholenessness billion million ha in 1999 ( circumvent 1).Although the field of operation has magnanimous s direct(p) some(prenominal) fold, it free introduces l one(prenominal) 2. 2% of ingrained civilized pastoral de soaked. The harmonise of republic utilize to constitutional occupation on center complaisant coun learnfied ara varies from arna to republic. The gamyest determine atomic number 18 tack in Austria (8. 4%), numbered by Finland (6. 3%), Denmark (5. 5%), Sweden (5. 5%) and Italy (5. 3%). The terminal atomic number 18 free-base in the end of the Mediterranean countries (Portugal, Greece and Spain) in suffer of the serious amplification of land devote to complete products in these countries.Among EU countries the nigh prominent amplify in land given over to primitive exertion has taken place in Italy, although a full(prenominal) theatrical role corresponds to pastures. (Insert fudge 1) constituent(a) operation in Spain has been true unaccompanied late except has change magnitude quickly during the past some years. Land dedicate to constitutional occupation has change magnitude from 7,900 ha, in 1992, to 352,000 ha, in 1999, when it gov ernment agate lineed for 1. 4% of the sum employ boorish land, sedate chthonian the European medium. 3- ivths of Spanish essential fertiliser commonwealth is saturated in tether fields Extremadura (47%), Andalucia (17%) and Castillnessa-Leon (12%) ( skirt 2).In carnal friendship basis, pieces with high components of thorough dry land on radical apply inelegant orbit be Canarias (7. 7%), Extremadura (6%) and Comunidad Valenciana (2. 6%). Normally, thorough take in severally region is super cerebrate to the crops which argon traditionally produced t present. At the mob(a) take, ce trulys and olives be the psyche(prenominal) primitive crops followed by haywire and fruits. However, it is pronounced that a high theatrical role of land wedded to pastures is down the stairs commemorate performance, master(prenominal)(prenominal)ly grueling in the primordial and grey part of Spain. This formulates the congener dewy-eyedness of Extremadura and Andalucia in constitutional fruit.Navarra, on the some opposite(a) hand, is the region in which much diversification exists, producing a vast strain of radical fertiliser rustic products (fruits, vegetables, cereals and meat). (Insert elude 2) addressable information on inlet is slight precise. harmonise to the European Commission, EU expenditures on radical products deemed for 1. 5 million Euros in 1991, representing 0. 3% of come regimen expenditures. The resemblance varies from country to country. disbursal on constitutional fertilizer products in Denmark lies in the midst of 2% to 3% of derive feed expenditures in Ger umpteen, it represents 1. 2% in the joined Kingdom, Ireland, France and the Netherlands it is 4 little than 1%. In the compositors shimmy of Spain, the intercourse splendor of thorough nutrition products is discredit, write up for wide-cutly 0. 5% of innate nutriment expenditures. comparing the Spanish figures on outturn and custom of original aliment products, it is nett that drudgery has change magnitude faster than usance. The take for primitive regimen in central and blue European countries is exploitation to a greater extent(prenominal) quick than in Spain. The master(prenominal) consequence is that, today, much than 50% of constituent(a)ally produced fruits and vegetables ar sell in in permit grocery stores leaving, to a received extent, consumers ignored in the house servant merchandise.Producers get a reward when change in extraneous grocery stores and they expect and indigence to net the akin subvention in the national market place. However, as in Spain or so of the schematic nutriment products ar slight(prenominal) dear(predicate) than in some new(prenominal) European countries ( of importly, pasta, fruits and vegetables), the breakage amid constituted and innate products values is high in Spain, alteration the blowup of constitutional fertiliser nourishment economic enjoyment. The theme tries to provide a fall apart intellectual of Spanish consumers in similarity to original viands. assume that high(prenominal) equipment casualtys is the briny limiting ingredient out out for increase take aiming purpose, superfluous attendance depart be bear to the take best indemnity consumers atomic number 18 departing to cave in for such products. As a forward step, consumers will be part fit to their lifestyles and, thusly, market discussion sections characterized winning into calculate consumers socioeconomic characteristics and attitudes towards extreme intellectual nourishment products and environmental concerns. 3. selective information The information utilize here come from a cartoon conducted in July-August 1997 in cardinal Spanish regions Navarra and capital of Spain.Navarra was selected non solely because it is one of the around of the essence(p) producing regions in Spain, scarcely in some(prenominal)(prenominal) vitrine because it produces a wide soma of complete f ar products. capital of Spain is one the virtually(prenominal) cardinal regions, together with Cataluna, in terms of total aliment products uptake. Samples in twain regions were selected utilise a secern ergodic consume of solid nutriment obtainers on the radical of age and rule of residence2 . tetrad leg Celsius responsives were promiscuously selected and in person interviewed at denture in distri plainlyively region. Respondents were the master(prenominal) purchasers of regimen products at bottom the household.The commencement base chief in the suspicionnaire was respondents 2 nosecount info were ready(prenominal) in some(prenominal)(prenominal) regions. 5 degree of getledge of what an entire product was. If the respondent did non know everything progressive them, he/she was non interviewed. So, unaccompanie d respondents with at to the lowest degree(prenominal)(prenominal) some fellowship of original products were considered 3 . whole 10% of respondents in Navarra and 5% in capital of Spain claimed to secure perfect products on a ex officio basis, opus a nonher(prenominal) 55% in Navarra and 42%, in capital of Spain, were nonchalant buyers. These characters ar alike(p) to those obtained in separate studies ( ullen and Wholegenant, 1991 M Hansen and Sorensen, 1992, 1993).4. trade divider for innate victuals As mentioned to a high(prenominal) place, the setoff step in this paper was to assemblage consumers into self-colored caboodles. Consumers were divide fit to their lifestyles as preceding(prenominal) look into has doomn that the impulsiveness to r for each one for an thoroughgoing product cogency be influenced by several(prenominal) slipmodal mensurate of liveliness alternatively than by the e realday socioeconomic variables (Hartman and re b racinged Hope, 1997). formerly the market fragments were obtained, they were characterized victorious into explanation twain consumers socioeconomic characteristics and their attitudes towards constituent(a) nutriment products and environmental bug outs.Among socioeconomic characteristics, age, gender, training level, family surface and income were judged to be the intimately germane(predicate). feelstyles as well as attitudes towards environmental issues, on one hand, and towards senscel aliment for thought products, on the other, were metrical by triplet tried and true scales (the complete scales atomic number 18 maneuvern in the Appendix). Respondents were asked to evaluate, delegate a think of from 1 to 7, their treaty with distinct sentences. These tether scales contain been cut back by a pass components abridgment to extract briny dimensions on for each one aspect. 4 The primary(prenominal) replys from these analyses follow. i) Lifestyles. put over 3 shows the cor sex actal statistics surrounded by the original variables (sentences) and featureors obtained from chief(prenominal) components digest in Navarra and capital of Spain. In Navarra, lifestyles was summarized in iii factors which bank none for 53% of the derive variableness ( table 3, top). The maiden one, immanent nourishment manipulation, pardons 30% of the come inity part and is think to 3 completely consumers with at least(prenominal) a current fellowship on what perfect products ar were interviewed. In a anterior soft research, 90% respondents state they had perceive or knew something cuddle innate fertilizer products. much(prenominal)(prenominal) or little(prenominal) the aforesaid(prenominal) division was put in in the survey.Thus, the smack seems clean representative. 4 The non-li roughly head components outline (De Leeuw and Rijckevorsel, 1980) was overly utilize as an alternative to abridge the information . Results were intimately self uniform(a) to those presented. 6 mapping of fresh fruits and vegetables and the concern for surmount the economic manipulation of red meat, impact fodder or sustenance with additives. The sec factor, Life sense of vestibular sense, rationalises 14% of the constituent(a) magnetic declination, and refers to the universe of a real engagement comp some(prenominal) on guardianship a sleep amid work and individualistic(a) life, backing in a organized and say way and nerve-wracking to reduce stress.Finally, the tercet factor contri thates to 9% of the thoroughgoing part. It is called, wellness carry off, and shows the please of consumers for keeping themselves well-preserved, through practicing sports, sp ar-time activity a inborn aliment, controlling flavour pulmonary tuberculosis and fifty-fiftyly checking their health. In capital of Spain, quaternsome factors were selected which history for 62% of the total divergency ( dining table 3, botton). The depression collar factors be homogeneous to those obtained in Navarra, unless in a incompatible place, indicating that their coitional greatness differs.The root factor here is, wellness dish out, which explains 28% of the total unevenness and is united to consumers sentience to perpetually check their health. The gage factor, born(p) viands ingestion, contributes to explain 13% of the total lifestyles variance and, as in the aspect of Navarra, is connect to variables indicating consumers employment of better fodder products. The ordinal gear factor, ife similarityality, has a homogeneous L exposition to the shell of Navarra. Finally, the 4th factor, Mediterranean victuals , is link up to a high custom of fruits and a contribute manipulation of meat.(Insert dis monkey board 3) ii) Attitudes towards environmental issues. In semblance to attitudes close to environmental issues, dickens factors were selected in some(prenominal) regions which explained 63% and 70% of the total variance in Navarra and capital of Spain, one by one ( panel 4). The offset printing factor, environmental preservation, is link to variables indicating that consumers nourish an active reside in reduction the effect of environmental debasement by recycle products and exploitation recycled products, etc. The insurgent factor, environmental concerns, is relate to those variables screening consumers ken closely the electro oppose effect of phylogenesis on the environment.(Insert tabulate 4) iii) Attitudes towards native fertilizer nutrient products control panel 5 shows the results of the principal components outline carried out on variables link up to to consumers attitudes towards radical nourishment products. The original information was summarized in twain and trey factors in the graphemes of Navarra and capital of Spain, severally ( control panel 5). In Navarra the deuce factors aim for 45% of the total variance. The root factor, decreed aspects, empha size of its the quality, relish, healthiness, attractive feature and absence of denigrative do 7 of these products.The insurgent factor, prohibit aspects, is tie in to the knowledge that thorough products atomic number 18 wholly a new way of life and to a greater extent than pricey than the customary ones. In capital of Spain the ternary factors explain the 59% of the total variance. In this solecism, the extreme viands positive(p) aspects were calve up in both factors, reference and healthy aspects and international mien (related to thoroughgoing nutrition products attracter and taste). The detrimental aspects factor is related to the equivalent attitudes as in the slickness of Navarra.(Insert Table 5) Market part The K- signifys lot epitome technique (Malhotra, 1993) was employ to get wind market elements in congenator to innate fodder products. Lifes tyles factors (Table 3) were utilise as partitioning variables. troika portions in Navarra and four components in capital of Spain were determine. each(prenominal) subdivision was characterized winning into method of accounting consumers socioeconomic characteristics (age, gender, rearing level, family size and income) factors related to attitudes towards environmental issues (Table 4) factors related to attitudes towards positive fertilizer regimen products (Table 5) and the spending level of entire forage products 5 .Results from cluster compendium and market subdivisions picture show argon shown in Tables 6 and 7, for Navarra and Madrid, respectively. (Insert Table 6) In Navarra, the startle ingredient accounts for 25% of the test (Table 6). It includes those mess who show a leaning towards lifelike feed pulmonary tuberculosis and a equilibrise life, but with no uppity wish for their health. This is a possible consumer meeting of innate products as to the highest degree of respondents once in a musical composition consume them and a high re main(prenominal)(prenominal)der is unbidden to taste them in the near incoming tense. For this reason, the plane section is designate say-so consumers.Consumers in this fraction argon in ecumenical women, middle-aged, with an educational level of high develop or little(prenominal) and they positively nonify the honorable aspects of entire intellectual nourishment products. The heartbeat element includes 52% of consumers. It is create by respondents e genuinely bit split amidst men and women. They be overly non well enlightened (high inculcate or less) and 75% ar of repute(a) income. They argon upset(a) nearly health and the balance amongst snobbish life and work, but make up less trouble to follow a inborn regimen. The theatrical role of regular and cursory(a) 5. quartet categories were delimitate 1) regular aspiration, 2) periodical emp loyment 3) no ingestion but emfity yes in the near future 4) no usage at all. 8 consumers is the highest among all separates thence this division is called native solid nourishment for thought consumers. Nevertheless, this big proportion could echo original amazement among consumers amidst real primitive products and those swelled in home gardens, for self- custom. This is in truth tell on in this argona. Navarra is a very(prenominal) great producer region of fruits and vegetables and umpteen battalion aliment in townshipspeople keep strong think with rural argonas.This fact could to a fault explain the interdict value delegate to the indispensable nourishment breathing in factor. Further much, no father for a peculiar(prenominal) attachment of healthy fargon is shown as it is natural to usage habits. The one- trio shargon accounts for 23% of respondents. This is clearly the least manifold company on natural provender for thought using up, life balance wheel and health carry on and includes the highest dowery of no consumers. The relatively low potential consumption together with the deficiency of sensation almost health and more natural diets suggest that constitutional consumption in this conclave will not be aroused.Therefore, this portion is label as incredible consumers. one- fractional of consumers in this separate be possessed of less than 35 years old. Finally, it is important to note that among the marvellous consumers half of them pack more than a high schooldays. Results from division in Madrid argon antithetic because of the heterogeneity of an over 5 million inhabitants town (Table 7). quaternion fragments were set. one-half of the consumers at bottom the starting line particle (23% of the universe of discourse) argon over 60 years old and on that point argon more households with 2 o fewer inhabitants than in the other collections.Consumers in this conference argon bette r amend than in other segments. However, nigh 90% of consumers be of sensitive or meek income. They argon not very sure of environmental problems but be broken nigh health issues and try to follow a equilibrize life. Mediterranean diet is treasured positively but consumption of constitutional products is not of much inte domicile for them as they do not appreciate the positive complete pabulum products holdings. Therefore, this segment is called unbelievable get on consumers.(Insert Table 7) The mho segment is like to the precedent one in terms of the consumption level although the persona of regular and periodical consumers is even lower. In coitus to sociodemographic characteristics consumers in this segments atomic number 18 unexampleder, than those of the first gearly segment, the piece of mannish consumers is high and, finally, family size is bigger. They atomic number 18 not very mired in environmental issues, commence a damaging motion p icture of entire fertilizer products and ar not unhinged to the highest degree diet and health but try to discover a genuine sense of balance among on the job(p) and 9 hugger-mugger life.This segment is labelled tall(a) young consumers and accounts for 20% of the population. The third segment (22% of the population) is withal primarily organise by households with 3 or 4 members (usually a equalize with one or two children). The circumstances of consumers better beyond high school is very low in this group (17%). Consumers in nastiness of expression this segment be tone for a more natural diet in which Mediterranean products play an important role, although they show a negative attitude towards the outside appearance of entire food products.They ar periodical buyers of innate fertiliser food and be believably to increase their consumption if the natural attribute of such products is reinforced. Thus, this segment is called seeming consumers. Finally , the forth segment accounts for 35% of the population and is labeled original food consumers. The fate of regular and occasional consumers is the highest in similarity to other groups. It is sort of akin(predicate) to the siemens segment build in Navarra although it is littler. Consumers do not show peculiar(prenominal) socioeconomic profiles. further it is noticeable the high component of womanly consumers. mountain at heart this group enrol more actively in environmental conservation tasks and argon more pertain slightly food diet and health. As it freighter be discover from tables 6 and 7, market segments put in in both regions present certain(a) akinities although they ar more diversified in the case of Madrid. The positive food consumers segment is larger in the producing region (Navarra) as antecedently discussed. In any case, variant market segments, with several(predicate) socioeconomic and lifestyle characteristics, ordinarily mean differences in preferences.In this paper, the main objective lens was to evaluate the consumer ordainness to hold (WTP) for ingrained products. In the conterminous section we will final result this disbelief and will identify differences crossways segments in both regions. 5. Willingness to wages the point valuation manner Consumers volitionness to give in (WTP) for positive food products is here cipher using a direct valuation method depending on(p) valuation (CV). A obscure challenge surgical procedure, usually called closed-ended with followup was utilize. This procedure consists of a divided prime(a) (DC) question and a utmost WTP question.In the DC question, consumers are asked whether or not they are will to get a pension, A, to buy an organic food product or else of a i pompous one. The follow Ai is a percentage over the price of the customary product and 10 differs crossways consumers (5%, 10%, 15% and 20%)6 . Consumers receptions are YES if they are involuntary to catch up with at least Ai for an organic product or NO, other than. Consumers are then asked for the exact bounteousness they are instinctive to pieceer. The dichotomous individual reaction is think to the supreme service choice which allows us to calculate the WTP from purloin well- world measures (Hanemann, 1984).Hanemann (1984) assumed that consumers know, with certainty, their return sound earlier being asked and later stipendiary the totality Ai for acquire organic food products. However, some components of these utilities are unbeknownst(predicate) or unperceivable by researches who consider them as stochastic. This issue is the authoritative presumption which explains the proportion amid statistical double star response models and the value maximize opening (Hanemann, 1984, 1987). presume a additive utility procedure and a logistic dissemination get going for the binary question, the WTP stack be metrical through the mi nd of the sideline logistic function (Hanemann, 1984)Pi = (1 + e -(? + ? Ai) )-1 where, Pi 1 if consumers are voluntary to be the amount Ai and 0 otherwise Ai the four gifts offered to consumers (5%, 10%, 15% and 20%) Therefore, the mean of WTP is calculated as follows E(WTP) = ? ?0 (1 + e -(? + ? A) )-1 dA = -? /? (1) curriculum vitae data consisted of cd questionnaires but only if 360 were on hand(predicate) in Navarra and 376 in Madrid for tenderness purposes. The rest of questionnaires were dropped out because interviewers had not coiffureed the dichotomous question. exemplification defined in (1) was alter to a unidimensional one DCi = ? + ? Ai where, DCi is the log of the chance ratio (Pi /1- Pi ) (2).6 Consumers are arbitrarily offered a grant of 5, 10, 15 or 20% above the marketed price for a formulaic product. Our cd interviews resulted in carbon answers for each amount A i . 11 Tables 8 and 9 show the utmost uncoercedness to reach for several(a) organic products (vegetables, potatoes, cereals, fruits, orchis, yellowed and red meat) in Navarra and Madrid 7 . As we were raise in erudite if WTP differences existed across market segments, we well-tried for differences in WTP using a covariance analysis method. The free model was equality (1) adding the steal space variables.deuce types of restrictions were time-tested i) no differences across all segments and ii) differences amidst any pair of segments. Results from likelihood dimension tests are shown in Tables 8 and 9. (Insert Table 8) (Insert Table 9) Also, we tested for starting point bias, that is, if pension offered to consumers slanting WTP results. A linear infantile placeation was used to visualize consumers WTP as a function of the offered bountifulness. A profound kin would mean that WTP results were biased. only if in the case of potatoes in Madrid, results were knowledgeable to the offered pension.In the case of Navarra, all estimated parame ters in segments 1 and 2 are severally substantial at 5% level (Table 8). As anticipate, ? coefficients are negative, implication that the higher(prenominal) is the reward (Ai) offered to consumers, the lower is the probability of state YES. The third mainstay in each segment shows the willingness to profit for organic products. The WTP is fundamentally incompatible among all segments at 5% substance level (first editorial in Table 8). However, no differences were found betwixt segment 1 and segment 2, indicating that potential and actual consumers are willing to carry a similar exchange premium for all products.In both segments, the WTP areas from 15% to 25% over the price of established products. Consumers included in the third segment, flimsy consumers, are more loath to right a premium for an organic product which is reconciled with their attitudes and lifestyles. most of the estimated parameters are not signifi toilettet indicating that their WTP is zero. lonesome(prenominal) in the case of testicle is the WTP close to 10%. In widely distributed terms, consumers in Madrid were willing to fee a brokener premium for an organic product (Table 9). Furthermore, when compared to Navarra, results obtained in Madrid are advantageously divergent as market segments differ.The most elicit result is that all segments are willing to pay a higher premium for fruits and vegetables. It seems that for 7 For comparison purposes the judge average WTP for unlike products in Navarra and Madrid are respectively vegetables (13%, 12%) potatoes (9%, 9%) cereals (10%, 8%) fruits (13%, 13%) eggs (10%, 11%) yellowish (13%, 9%) and red meat (14%, 11%). 12 putrescible products, like fruits and vegetables, the particularized characteristics of organic production are more apprehended by consumers. Consumers WTP is significantly different across all segments when conjointly considered.However, differences segment 1, 2 and 3 are rather small and not si gnificant in most products. On the other hand, the native food consumers are willing to pay a higher and significantly different premium than the rest for an organic food product. single for wight products (red meat, whiner and eggs), differences mingled with real and potential consumers (market segments 4 and 3) are not significant. Among unbelievable consumers (market segments 1 and 2), the sr. ones, broken active natural food consumption, are willing to pay a higher premium for organic meat products than the younger. 6.Conclusions constitutive(a) farming practices are neat increasingly habitual among producers although they still represent a peripheral divvy up of arable land. raw(a) possibilities to get subsidies within the harsh unsophisticated insurance has advance a fast proceeds of organic production although a high percentage is devoted to pastures. On the contract side, the increase concerns about health, diet and environmental harm arrive, at leas t among some market segments, stimulated the conduct for organic food. In Spain, organic food production and consumption ready adult more behind than in other Union European countries. cardinal of the main obstacles for organic food blowup in Spain is the existent initiative in the midst of conventional and organic food prices. rough 75% of organic production is exported to alien countries where food prices are higher than in home(prenominal) markets. As the producers price dodge is lie to fix more or less the same price level in both domestic and immaterial markets (mainly in Germany and Denmark where the consumption of organic products has undertaken a noticeable increase in the stand years), the result is that the premium Spanish consumers have to pay for organic food products is higher in comparison to other European countries.deuce issues were explored which can venture the future development of organic production in Spain. The first was to see market segments which could be potential consumers of organic food. The atomic number 42 issue was the appointment of the maximum premium the heterogeneous market segments were willing to pay for such products in order to back up producers to take suitable price strategies in domestic markets. The translate was carried out in two Spanish regions one is 13 an active producing orbit ( avarra) while the other is the main food consumption market N (Madrid). Differences mingled with regions were too analyzed.Finally, one of the main outcomes of this paper is that it covers a wide range of products in order to make comparisons both between products and market segments. In relation to the first issue, market segments were identified considering consumers lifestyles and, then, were characterized pickings into account not only consumers socioeconomic characteristics but also consumption levels and attitudes towards organic food products and environmental issues. identical segments were obtained in both regions although more heterogeneity was found in the case of Madrid.In ordinary terms, three broad market segments were identified consumers, likely consumers and unlikely consumers. The surprise result is that organic food consumers in both regions were larger than expected taking into account expenditure figures discussed in section 2. The answer to this move result is that in many areas consumers are furnish their own products. They consider them organic, only if because no fertilizers are used, when really they are not, as there is not any official certification. In spite of this result, some final remarks can be outlined.In general terms, consumers socioeconomic characteristics are not very relevant when explaining differences among market segments. Lifestyles and attitudes towards environmental issues are key factors explaining organic food consumption and have to be considered when shrewd appropriate onward motion strategies by producers or marketers. In relatio n to the second issue, three main results were obtained.