Organic food price plans can bolster sales and encourage cross-purchasing, however high and low pricing have different impacts, find researchers. Low cost organic products are more likely to to be repurchased but a high price strategy could prove more effective in encouraging cross-purchasing across ranges.
Published in the Food Quality and Preference, researchers investigated the market performance of four Danish organic sectors – red meat, chicken, milk and hard cheese. Currently 47% of the global organic market is in Europe, with Denmark having the highest organic market share worldwide.
The findings showed that while a low cost pricing strategy for organic products could strengthen the category through repeat purchases, a high cost strategy often considered a purchasing obstacle, was not always a disadvantage.