RECONCILING ATTITUDES AND BEHAVIOR IN ORGANIC FOOD RETAILING

ABSTRACT---For organic food to reach the average consumer will require greater penetration into conventional supermarkets. Product placement can be expanded into more stores by altering attitudes that lower the probability of selling organic foods. This study identified significant factors in the retail decision to sell organic foods and quantifies the effects of retailer attitudes on behavior. We used a probit model to quantify the effect of customer demographics, store characteristics, manager characteristics, and profitability of organic retailing on the decision to sell organic foods. The model was based on interview data collected in Atlanta, Georgia from 66 retailers who sell organic foods and 21 who do not. Our research indicates that organic education programs can be a cost-effective way to expand market penetration without requiring changes in price or cost premiums. If properly composed and targeted, such programs can alter underlying attitudes and increase the probability of selling organic foods.-----KEY WORDS-----organic agriculture, marketing margin, food retailing, probit model Faculty Series are circulated without formal review. The views contained in this paper are the sole responsibility of the authors. Research for this paper was supported by Cooperative Agreement 43-3AEK-9-80002 with the USDA-ERS