Abstract
Government’s support for Go Organic program provides a significant effect on the increasing organic land from only 71 thousand hectares in 2010 to 113 thousand hectares in 2014. This is caused by the shifting lifestyle of consumers who are more concerned about health. Rice as one of carbohydrate sources consumed by Indonesian people has an organic variant which is favored by many consumers. This study involved 100 households which were intentionally selected based on their convenience and readiness to be interviewed. This research was also conducted to analyze the comparison of consumer’s attitudes on organic and non-organic rice and to analyze consumer’s willingness to pay (WTP) for organic rice. Fishbein and Contingent Valuation Method were used as an analytical tool to find out the consumers’ attitudes and the maximum values that they are willing to pay. Consumers of non-organic rice had a more positive attitude on non-organic rice compared to organic rice with a WTP value of Rp 20,000 and the potential opportunity value that can be projected for organic rice in Bogor City is IDR291,788,621,400 per month. Keywords: consumer’s attitude, contingent valuation method, fishbein, organic rice, willingness to pay
Highlights
The demand for world organic food commodity continues to increase
Consumers of non-organic rice had a more positive attitude on non-organic rice compared to organic rice with a willingness to pay (WTP) value of Rp 20,000 and the potential opportunity value that can be projected for organic rice in Bogor City is IDR291,788,621,400 per month
In this research, was measured using Fishbein multiattribute attitude model which was obtained from the result of multiplication between the value of consumer belief and the value of attribute evaluation
Summary
The demand for world organic food commodity continues to increase. Since 1997, the sale of organic commodity in the United States of America (USA) has increased from $3.6 billion to $43.4 billion in 2015 (OTA, 2016). Most of the consumers, who have positive attitude on products that are environmentally friendly and care for health, do not consider the high price of organic products as a problem. Consumers even believe and are willing to pay more for organic product because it is considered necessary to pay a slightly more expensive price for an organic product compared to the conventional product (Ravensway, 1991). This statement is supported by the result of research carried out by Gil et al (2000), Tanner and Kast 2003, and Laroche et al (2001) which revealed that consumers are willing to pay more for organic products
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