Assessing consumers' willingness to pay premium prices for organic food at the Bryanston Organic and Natural Market .

M.Tech. Business Administration. Business SchoolThe study was undertaken to assess the consumers' willingness to pay a premium price for organic food, with the focus on the Bryanston Organic and Natural market. Understanding the consumers' demand for organic food in South Africa is becoming increasingly important as the consumers' attitudes and preferences strongly influence the direction of the producers' and food retailers' strategies. The quantitative data were collected by means of structured interviews and questionnaires using closed-ended questions, and were analysed with SPSS 20. The results revealed that females with high education and income levels aged 30 years and above are likely to pay a premium price for organic food. Most of the consumers were satisfied with the premium price of the organic food. The more important the buying of organic food is regarded, the more are buyers willing to purchase it, even if the price continues to rise. Most of the consumers indicated that the price of organic food is affordable and makes no real difference when compared to the price of conventionally-produced food. The main significant barrier to the purchase of organic food was identified as its limited availability at convenient locations. The study concluded by providing useful information on marketing and economic business sense to producers and retailers, and also of understanding the potential profitability of organic food, especially for local producers and retailers