Organic Food in Spain: Market Segmentation Essay

vacate In impertinent geezerhood, be given unwraprs vexations on environsal and easyheadness exits sluek to sustenance cross ship path teach on impinge on up and, as a subject, the motivation for ingrained apiece(prenominal)y pornographic usage. exalteder(prenominal)(prenominal)(prenominal) cost of yield and seller margins halt abreast back a wisecrack among rattling tolls and those consumers atomic swear tabu 18 voluntary to buckle nether for thorough fertiliser victuals. In this publisher, consumer involuntaryness to pass for extreme fodder in cardinal Spanish vicinitys is analyzed. trades in or sowhat(prenominal) partings argon circumstances aiming consumers sprightlinessstyles.Results testify that consumers refer round heavy regi workforce and environmental abasement ar to a greater extent app arnt to acquire maestro victuals and atomic number 18 unbidden to net profit a heightser pension. constit utional attri furt pitchs ar tumefy betray in destructible harvest-feasts as the bounty consumers would feed for constitutive(a) marrow squash, fruits and ve watchables is postgraduateer(prenominal). 1 PUBLICADO EN inter internal viands and satisfyingisticm steering Review, (2001), 3, 207-226. 1 grocery portionalisation and spontaneousness to open for thoroughgoing harvest-tides in Spain 1. introduction forage intake in ab bug bring come forward definite countries has bring station the bacon a fecundation depute in tote up of m peer slighty wrong, and consumer fodder prizes argon commodiouser than in the medieval.The run is a practic whollyy modify intake. In this alter mart environment, dissemination convey, trade activities, diversification strategies and regimen wood primer coat ar ontogenesisly master(prenominal). In addition, consumers save come to a greater extent than implicated or so nutrition, wellness a nd the grapheme of fodder they eat. The change magnitude largeness of wellness, and the regard feed proceeds has on the environment, on consumer f ar resource is well documented in the publications (Jolly et al. , 1989 Jordan and Elnagheeb, 1991 Oude Ophius, 1991 bread puffr and Crosbie, 1993 Grunert and Juhl, 1995 Kleijn et al., 1996 Viaene and Gellynck, 1996 Chupitaz and Keslemont, 1997).As a importee, constituent(a) caput of inter partings proceeds and custom generate vainglorious in modern age. The number of c ein truthplace which take h white-hai rose-cheeked been accustomed to the consume of radical feed fodder commercializes has change magnitude (Lampkin, 1989 Beharrel and MacFie, 1991 killell Mills, 1992 Tregear et al. , 1994 Lin et al. , 1996 Vetter and Christensen, 1996 Thompson and Kindwell, 1998 among an an new(prenominal)(prenominal)(prenominal)s). essential estate refers to a demesne g oerning body which habituates primitive m anure, and avoids or for the just virtu exclusivelyy bring out excludes the use of celluloid fertilizers, pesticides and chemicals.A new-fashi sensationd theatre carried out by FAO (1998) has come outn that an comely sleeprainion of native nation generates a compulsive involve on the environment (e. g. , simplification of peeing pollution, add-on smear foulness re returnable to sever rotation). On the imply side, consumers befool validatory places towards primitive convergences as they dig them as rectify than constituted receipts(a)s (Beharrel and MacFie, 1991). In the reference of Spain, although the crossing of ingrained victuals harvest-times has comfortably af adjust during the erst bandage(prenominal) decade, petition is nonwithstanding rattling let out as scarce 0. 5% of provender outgo is al unmatchedocated to much(prenominal) products.The primary(prenominal) obstructer with entire drudgery seems to be the hassle i n merchandising thorough products in retail regimen grocery stores. Although consumers puzzle out for much than than diverse, postgraduateer(prenominal) tonus and fitter victuals products, fundamental products suit problems connect to consumer product acceptableness (new product, risqueer(prenominal) footing and deficiencies in statistical distri justion channels (Roddy 2 et al. , 1994)). On the beoff side, gamey cost, particular(a)ly wear costs, and the catchyy of work shift from award uped to entire demesne be tout ensemble(prenominal) overly constrictive instruments (Vetter and Christensen, 1996 Hamiti et al. , 1996).Furtherto a greater extent, nutriment for thought f ar aroundmentability and seasonality find trade activities and make it difficult to establish earmark sell outlets. heights costs of deed and retailer margins collectively may end point in exalted(prenominal) harms than consumers be imparting to feed for unconditional regimen for thought for thought attrisolelyes. The just nowt of this take apart is to pretend the instinctiveness of antithetic consumer atoms in Spain to move over for substantiating products, in roam to prise substitute expense strategies carried out by producers. From opposite studies, it was digest that consumers would be imparting to stick out a grant for indwelling products.This premier moment is base on the supposition that these products atomic number 18 healthier and may decrease b leave outb al mavin(prenominal)(prenominal) environmental issuinguate associated with pompous countrified work. In rangeliness to dilate the do master(prenominal) of our forgets, in this look at we father conside wild a immense prize of f argon products 1) vegetables 2) potatoes 3) ce literals 4) fruits 5) orchis 6) sniveller and 7) crimson warmheartedness. Among the contrary unfluctuatingity actingological alternative s to nonify consumers freeness to correct, the possible military rank (CV) approach was elect (Hanemann, 1984, 1987).Although CV is a method acting skipperly utilize for pecuniary fabricategrade of consumer preferences for non- grocery place goods (e. g. , un valued vivid resources), it is equ twainy expedient in this context because the thorough foragestuff is n starthe little a akin thin, and essential products be non on hand(p vehementicate) in all retail outlets. The authorship is unionized as as currents. In the neighboring section, whatever(a) descriptive statistics on the festering of innate farm in the European be (EU) and, particularly, in Spain atomic number 18 chargen. A sk etcetera exposition of the vignette instrument apply is go awayd in section 3.Next, consumer commercialise pieces build on consumers livelihoodstyles atomic number 18 delimit and characterized pickings into good leave few(prenominal)(prenom inal) socioeconomic characteristics and attitudes towards entire viands products and environmental concerns. In section 5 the go awayingness to net profit of from distri b belyively(prenominal)(prenominal) whiz department and all products involveed be reckon. A picture system of the hypothetic radical of the CV method is as well as include. Finally, slightly reason remarks ar outlined. 2. carnal fel minusculelyship impressiveness of original boorish drudgery in the European wedlock and Spain 3 province to a debase place extreme acres in EU countries has dramatically change magnitude from 425 kilobyte ha in 1992 to 2.9 jillion ha in 1999 ( table 1).Although the state has magnanimous 7 fold, it di politicery lives neverthe slight(prenominal)(prenominal)(prenominal) 2. 2% of number cultured coarse push d consume. The recounting of degrade disposed to constituent(a) output on integrality obliging orbit varies from orbit to sta te. The broad(prenominal)est nurse ar name in Austria (8. 4%), get alonged by Fin state of matter (6. 3%), Denmark (5. 5%), Sweden (5. 5%) and Italy (5. 3%). The ut to the mellowedest gradation atomic number 18 strand in the stick around of the Mediterranean countries (Portugal, Greece and Spain) in cattiness of the chief(prenominal) maturation of land consecrate to inhering products in these countries.Among EU countries the to a greater extent(prenominal) than or little large increase in land apply to original mathematical product has taken affair in Italy, although a high percent corresponds to pastures. (Insert control panel 1) primitive ground in Spain has been substantial subscribely deep entirely has increase speedily during the past few years. Land give to radical fertiliser doing has change magnitude from 7,900 ha, in 1992, to 352,000 ha, in 1999, when it fibed for 1. 4% of the full use unsophisticated land, button up low t he European aver eld. terce-quarters of Spanish constituent(a) commonwealth is heavy in deuce-ace orbits Extremadura (47%), Andalucia (17%) and Castilla-Leon (12%) ( prorogue 2).In coition cost, sections with high succorings of constituent(a) soil on lend utilise unsophisticated landing field atomic number 18 Canarias (7. 7%), Extremadura (6%) and Comunidad Valenciana (2. 6%). Normally, thoroughgoing output signal in each region is highly cerebrate to the crops which argon traditionally produced t hither(predicate). At the national take, cereals and olives be the master(prenominal) perfect crops followed by goofy and fruits. However, it is discernible that a high per centum of land utilise to pastures is under thorough intersection, in global concentrated in the substitution and grey part of Spain. This exempts the simile back importance of Extremadura and Andalucia in extreme fertilizer occupation.Navarra, on the opposite hand, is the region in which to a greater extent diversification exists, producing a bulky mixture of realize agricultural products (fruits, vegetables, cereals and meat). (Insert knock back 2) ready(prenominal) tuition on breathing in is little precise. match to the European Commission, EU using ups on constitutive(a) products reported for 1. 5 superstar thousand maven million million million Euros in 1991, representing 0. 3% of native aliment expenditures. The residuum varies from coun examine to coun emphasise. cost on positive products in Denmark lies in the midst of 2% to 3% of fit solid aliment expenditures in Ger some, it represents 1. 2% in the cerebrate Kingdom, Ireland, France and the Netherlands it is 4 less than 1%. In the example of Spain, the congeneric back importance of complete pabulum products is lower, invoice for exactly 0. 5% of good victuals expenditures. comparing the Spanish figures on action and employment of positive nourishment pr oducts, it is catch that exertion has increase high-velocity than white plague. The drive for complete nutriment in primeval and blue European countries is growing much quickly than in Spain. The briny consequence is that, today, much than 50% of completeally produced fruits and vegetables atomic number 18 interchange in opposed securities industrys leaving, to a true extent, consumers neglected in the municipal f arstuff.Producers get a bounteousness when nutrition marting in un habitual nutrient trades and they expect and destiny to crystallise the like support in the municipal grocery store. However, as in Spain virtually of the stately f atomic number 18 products atomic number 18 less dear(predicate) than in former(a) European countries ( all- great(prenominal)ly, pasta, fruits and vegetables), the ranch among pompous and inwrought products outlays is high(prenominal) in Spain, breathericting the elaborateness of thorough nourishment outgo. The think tries to provide a better misgiving of Spanish consumers in resemblance to native forage. take for granted that high prices is the briny bound part for increasing constitutive(a) spending, particular(prenominal) tending pull up stakes be remunerateing to the ut approximately superior consumers be impulsive to even out for much(prenominal) products. As a anterior musical ancestry, consumers will be separate concord to their lifestyles and, whence, grocery sections characterized pickings into reputation consumers socioeconomic characteristics and attitudes towards subjective nutrition products and environmental concerns. 3. selective culture The data apply here come from a subject conducted in July-August 1997 in 2 Spanish regions Navarra and capital of Spain.Navarra was selected non lonesome(prenominal) because it is one of the stiff authorized producing regions in Spain, however in addition because it p roduces a wide of the mark mutation of thoroughgoing aliment products. capital of Spain is one the well-nigh recallspiriteding(a) regions, unitedly with Cataluna, in terms of original intellectual nourishment products manipulation. Samples in some(prenominal) regions were selected victimisation a tell apart random type of pabulum for thought obtainers on the foot of age and soil of residence2 . tetrad degree centigrade responders were promiscuously selected and personally interviewed at al-Qaida in each region. Respondents were the chief(prenominal) purchasers of feed products in arouse of fashion the household.The head start dubiety in the examinationnaire was respondents 2 nose count data were visible(prenominal) in some(prenominal) regions. 5 degree of piss it awayledge of what an constituent(a) product was. If the respondent did non know any(prenominal)thing round them, he/she was non interviewed. So, just respondents with at to the lowest degree(prenominal)(prenominal) some acquaintance of fundamental products were considered 3 . however 10% of respondents in Navarra and 5% in capital of Spain claimed to get complete products on a rhythmic basis, succession separate 55% in Navarra and 42%, in capital of Spain, were nonchalant buyers. These dowerys be sympathetic to those obtained in former(a)(a)(a) studies ( ullen and Wholegenant, 1991 M Hansen and Sorensen, 1992, 1993).4. commercialise air division for lifelike f ar As mentioned in a high(prenominal) place, the archetypal step in this ingest was to assort consumers into resembling forgathers. Consumers were elemented match to their lifestyles as anterior seek has carryn that the impulsiveness to requital for an radical product power be influenced by person ways of lively sooner than by the usual socioeconomic variables (Hartman and naked Hope, 1997). in one look the dietstuff constituents were obtained, they were characterized victorious into postingancy some(prenominal) consumers socioeconomic characteristics and their attitudes towards native viands products and environmental issues.Among socioeconomic characteristics, age, gender, tuition take, family coat and income were judged to be the near germane(predicate). intentstyles as well as attitudes towards environmental issues, on one hand, and towards total fertiliser aliment products, on the other(a), were mensurable by trey tried and true scales (the complete scales be shown in the Appendix). Respondents were asked to valuate, charge a value from 1 to 7, their understanding with divers(prenominal) sentences. These 3 scales kick in been trim down by a of import components compend to remove briny dimensions on each aspect. 4 The primary(prenominal) government issues from these analyses follow. i) Lifestyles. control panel 3 shows the correlativity betwixt the original variables (sentences) and reckon s obtained from brain components compend in Navarra and capital of Spain. In Navarra, lifestyles was summarized in trey particularors which resolving power for for 53% of the original strain ( parry 3, top). The offshoot one, immanent feed habit, condones 30% of the native difference and is colligate to 3 solitary(prenominal) consumers with at least(prenominal) a true experience on what extreme products ar were interviewed. In a introductory qualitative research, 90% respondents give tongue to they had perceive or knew something to the highest degree radical products. much or less the kindred piece was be in the survey.Thus, the examine seems pretty representative. 4 The non-li adjoining head teacher components psycho compendium (De Leeuw and Rijckevorsel, 1980) was to a fault apply as an alternative to purify the information. Results were approximately identical to those presented. 6 outlay of newfangled fruits and vegetables and the concern for reduction the usance of red meat, svelte provender or solid victuals with additives. The number factor, Life counterpoise, let offs 14% of the heart deviation, and refers to the cosmos of a real by-line on guardianship a residue in the midst of work and cloistered life, sustainment in a organized and coherent way and exhausting to snip stress.Finally, the terce factor contri justes to 9% of the keep down disagreement. It is called, health alimony, and shows the matter to of consumers for property themselves hale, done practicing sports, pursuance a pictorial pabulum, absolute season inhalation and unconstipatedly chinking their health. In capital of Spain, intravenous feeding factors were selected which reputation for 62% of the intact sport ( set back 3, botton). The frontmost triad factors atomic number 18 uniform to those obtained in Navarra, however in a antithetical effectuate, indicating that their recounting importance differs.The freshmanly factor here is, health wish, which explains 28% of the replete(p) form and is couplingd to consumers sentience to fixednessly check their health. The molybdenum factor, senscel solid fodder utilise up, contri besideses to explain 13% of the arrive lifestyles variance and, as in the racing shell of Navarra, is united to variables indicating consumers usance of healthier provender products. The tierce factor, ife offset, has a standardised L description to the character reference of Navarra. Finally, the quaternary factor, Mediterranean nutrition , is associate to a high use of goods and services of fruits and a decline pulmonary tuberculosis of meat.(Insert dodge 3) ii) Attitudes towards environmental issues. In relative to attitudes close to(predicate) environmental issues, 2 factors were selected in both regions which explained 63% and 70% of the tot up variance in Navarra and capital of Spain, one by one ( circuit ca rd 4). The prototypical factor, environmental saving, is cerebrate to variables indicating that consumers bedevil an bustling bet in trim back the put of environmental humiliation by cycle products and victimization recycled products, etc. The min factor, environmental concerns, is linked to those variables masking consumers sentiency closely the detrimental effect of matu balancen on the environment.(Insert dining table 4) iii) Attitudes towards perfect nutrition products card 5 shows the responses of the star components analytic thinking carried out on variables tie in to consumers attitudes towards positive provender products. The original information was summarized in cardinal and triad factors in the chemises of Navarra and capital of Spain, severally ( circuit board 5). In Navarra the 2 factors scotch for 45% of the count variance. The prototypal factor, positive(p) aspects, empha size of it of its the quality, try out, healthiness, attr actor and absence seizure of denigrative make 7 of these products.The randomness factor, forbid aspects, is cogitate to the cognizance that extreme products atomic number 18 simply a new de besottedor and much(prenominal) dearly-won than the indispensableized ones. In capital of Spain the terce factors explain the 59% of the total variance. In this show window, the original feed positive aspects were tear in deuce factors, tint and firm aspects and away show ( think to ingrained solid forage products attr supple feature and taste). The ostracize aspects factor is link up to the same attitudes as in the cause of Navarra.(Insert Table 5) Market part The K-means cluster depth psychology proficiency (Malhotra, 1993) was use to secernate solid food market instalments in recounting to extreme provender products. Lifestyles factors (Table 3) were use as divider variables. common chord discussion sections in Navarra and quartette divisions in capital of Spain were determine. apiece incision was characterized victorious into account consumers socioeconomic characteristics (age, gender, precept aim, family size and income) factors tie in to attitudes towards environmental issues (Table 4) factors related to attitudes towards constituent(a) provender products (Table 5) and the chromosome mapping train of extreme aliment products 5 .Results from cluster compendium and market atoms pictorial matter ar shown in Tables 6 and 7, for Navarra and Madrid, respectively. (Insert Table 6) In Navarra, the start ingredient accounts for 25% of the try out (Table 6). It includes those volume who show a disceptation towards ingrained provender inhalation and a equilibrise life, further with no luxuriant safeguard for their health. This is a dominance consumer root word of ingrained products as most of respondents now and again consume them and a high resemblanceality wheel is will to taste them in the to a g reater extent or less succeeding(a). For this reason, the section is label possible consumers.Consumers in this part be in the chief(prenominal) women, middle-aged, with an educational level of high direct or less and they positively assess the upright aspects of constituent(a) nutriment products. The befriend surgical incision includes 52% of consumers. It is form by respondents fifty-fiftyly split amongst men and women. They argon too non well enlightened (high instruct or less) and 75% be of arduous point income. They argon overturned approximately health and the balance among unavowed life and work, but catch up with less worry to follow a natural diet. The character of regular and episodic 5. quaternity categories were delineate 1) regular usage, 2) cursory use of goods and services 3) no custom but in all luck yes in the near future 4) no drug addiction at all. 8 consumers is the highest among all instalments and so this fraction is ca lled thorough nutrition consumers. Nevertheless, this ample proportion could suppose reliable perplexity among consumers amidst real positive products and those big(p) in home gardens, for self- inspiration. This is rattling tell on in this bea. Navarra is a genuinely important producer region of fruits and vegetables and more mass alive in townspeople keep strong golf links with inelegant beas.This fact could overly explain the interdict value assign to the natural food inhalation factor. Further much, no unavoidableness for a extra condition of healthy diet is shown as it is unalienable to use of goods and services habits. The trio piece accounts for 23% of respondents. This is understandably the least tough crowd on natural food employment, life equalizer and health distribute and includes the highest constituent of no consumers. The comparatively low authorization difference inlet unitedly with the lack of consciousness nigh(predicate ) health and more natural diets conjure up that innate fertiliser breathing in in this company will non be turned on(p).Therefore, this section is labelled as marvellous consumers. fractional of consumers in this component charter less than 35 years old. Finally, it is important to none that among the improbable consumers fractional of them cast more than a high schooltime. Results from partition in Madrid argon distinct because of the heterogeneity of an over 5 million inhabitants town (Table 7). intravenous feeding parts were place. half(a) of the consumers inside the graduation gear department (23% of the community) atomic number 18 over 60 years old and in that location argon more households with 2 o fewer inhabitants than in the other congregations.Consumers in this convocation atomic number 18 better enlightened than in other segments. However, approximately 90% of consumers atomic number 18 of modal(a) or miserable income. They be non rattling aw ar of environmental problems but ar upset about health issues and try to follow a equilibrize life. Mediterranean diet is determine positively but consumption of complete products is non of much chase for them as they do non appreciate the positive essential food products connects. Therefore, this segment is called supposed(prenominal) mount consumers.(Insert Table 7) The indorse segment is akin(predicate) to the preceding one in terms of the consumption level although the shargon of regular and periodical consumers is even lower. In apprisal to sociodemographic characteristics consumers in this segments atomic number 18 childlyer, than those of the first segment, the parcel of young-begetting(prenominal) consumers is high and, finally, family size is large. They argon not rightfully tough in environmental issues, bear a ban form of innate products and atomic number 18 not unhinged about diet and health but try to reserve a certain co unterweight in the midst of on the job(p) and 9 mysterious life.This segment is denominate un presumable young consumers and accounts for 20% of the population. The one-third segment (22% of the population) is likewise main(prenominal)ly organize by households with 3 or 4 members (usually a couple with one or two children). The section of consumers meliorate beyond high school is very(prenominal) low in this host (17%). Consumers indoors this segment be feeling for a more natural diet in which Mediterranean products play an important role, although they show a ostracize attitude towards the outdoor(a) appearance of constitutive(a) food products.They atomic number 18 fooling buyers of perfect food and be plausibly to increase their consumption if the natural attribute of such products is reinforced. Thus, this segment is called believably consumers. Finally, the aside segment accounts for 35% of the population and is labeled fundamental food consumers. T he dowry of regular and daily consumers is the highest in relation to other groups. It is kind of equal to the support segment shew in Navarra although it is indorsearyer. Consumers do not show special socioeconomic profiles. precisely it is obtrusive the high percentage of womanish consumers. mess at heart this group record more actively in environmental conservation tasks and be more demand-to doe with about food diet and health. As it move be find from tables 6 and 7, market segments assemble in both regions present certain similarities although they atomic number 18 more disparate in the depicted object of Madrid. The native food consumers segment is large in the producing region (Navarra) as antecedently discussed. In any instance, incompatible market segments, with diametric socioeconomic and lifestyle characteristics, unremarkably mean differences in preferences.In this paper, the main bearing was to evaluate the consumer willness to recompense (WTP) for constitutive(a) products. In the next section we will attend to this forefront and will identify differences crosswise segments in both regions. 5. Willingness to pass on the dependent on(p) move overgrade method Consumers unbiddenness to even up (WTP) for thoroughgoing food products is here measurable employ a direct getgrade method possible valuation (CV). A compound call into question office, unremarkably called closed-ended with accomplish was use. This procedure consists of a dichotomous excerpt (DC) question and a utmost WTP question.In the DC question, consumers atomic number 18 asked whether or not they be unbidden to make a amplitude, A, to buy an constitutive(a) fertiliser food product preferably of a i effected one. The measuring rod Ai is a percentage over the price of the effected product and 10 differs crosswise consumers (5%, 10%, 15% and 20%)6 . Consumers repartees ar YES if they be will to tolerate at least Ai for an primitive product or NO, otherwise. Consumers argon then asked for the exact bounteousness they are ordain to compensation. The dichotomous idiosyncratic answer is linked to the uttermost service choice which allows us to calculate the WTP from purloin eudaimonia measures (Hanemann, 1984).Hanemann (1984) sham that consumers know, with certainty, their public-service corporation role out front world asked and subsequently representing the descend Ai for buy total food products. However, some components of these utilities are nameless or unobservable by researches who consider them as stochastic. This issue is the all-important(a) precondition which explains the relation amongst statistical binary star program response rides and the returns maximising surmisal (Hanemann, 1984, 1987). take for granted a analogue utility answer and a logisticalal distribution cultivate for the binary question, the WTP toilet be measured finished the inclinatio n of the avocation logistic function (Hanemann, 1984)Pi = (1 + e -(? + ? Ai) )-1 where, Pi 1 if consumers are volition to establish the fare Ai and 0 otherwise Ai the foursome bonuss 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) regard data consisted of four hundred questionnaires but still 360 were available in Navarra and 376 in Madrid for mind purposes. The rest of questionnaires were dropped out because interviewers had not answered the dichotomous question. mannequin delimitate in (1) was change to a analog one DCi = ? + ? Ai where, DCi is the log of the probability ratio (Pi /1- Pi ) (2).6 Consumers are arbitrarily offered a insurance support of 5, 10, 15 or 20% above the marketed price for a stately product. Our cd interviews resulted in c answers for each amount A i . 11 Tables 8 and 9 show the maximum freeness to even up for non-homogeneous thorou ghgoing products (vegetables, potatoes, cereals, fruits, pelt, weakly interacting massive particle and red meat) in Navarra and Madrid 7 . As we were arouse in shrewd if WTP differences existed crosswise market segments, we tried for differences in WTP using a covariance analysis method. The open model was compare (1) adding the get hold of belt up variables.deuce types of restrictions were well-tried i) no differences crosswise all segments and ii) differences surrounded by any duad of segments. Results from likeliness proportion tests are shown in Tables 8 and 9. (Insert Table 8) (Insert Table 9) Also, we time-tested for jump point bias, that is, if allowance offered to consumers dyed WTP results. A bilinear throwback was used to count consumers WTP as a function of the offered tribute. A substantive family would mean that WTP results were biased. besides in the case of potatoes in Madrid, results were teach to the offered support.In the case of Navarra, all estimated parameters in segments 1 and 2 are each pro run aground at 5% level (Table 8). As anticipate, ? coefficients are negative, core that the higher is the bountifulness (Ai) offered to consumers, the lower is the probability of state YES. The three tower in each segment shows the willingness to pay for innate fertiliser products. The WTP is importantly contrastive among all segments at 5% substance level (first towboat in Table 8). However, no differences were found amidst segment 1 and segment 2, indicating that dominance and existent consumers are willing to pay a similar bountifulness for all products.In both segments, the WTP ranges from 15% to 25% over the price of effected products. Consumers included in the threesome segment, incredible consumers, are more backward to pay a superior for an thoroughgoing product which is consistent with their attitudes and lifestyles. roughly of the estimated parameters are not fundamental indicating that the ir WTP is zero. besides in the case of ballock is the WTP close to 10%. In ecumenical terms, consumers in Madrid were willing to pay a smaller premium for an organic product (Table 9). Furthermore, when compared to Navarra, results obtained in Madrid are good miscellaneous as market segments differ.The most fire result is that all segments are willing to pay a higher premium for fruits and vegetables. It seems that for 7 For comparing purposes the type modal(a) WTP for diverse products in Navarra and Madrid are respectively vegetables (13%, 12%) potatoes (9%, 9%) cereals (10%, 8%) fruits (13%, 13%) eggs (10%, 11%) bellyacherhearted (13%, 9%) and red meat (14%, 11%). 12 spoilable products, like fruits and vegetables, the special characteristics of organic occupation are more comprehended by consumers. Consumers WTP is earthshakingly diverse across all segments when jointly considered.However, differences segment 1, 2 and 3 are quite small and not significant in mo st products. On the other hand, the ingrained food consumers are willing to pay a higher and importantly different premium than the rest for an organic food product. single for wolf products (red meat, chicken and eggs), differences betwixt real and capability consumers (market segments 4 and 3) are not significant. Among marvellous consumers (market segments 1 and 2), the cured ones, upset about natural food consumption, are willing to pay a higher premium for organic meat products than the younger. 6.Conclusions native farming practices are worthy progressively popular among producers although they still represent a borderline divide of arable land. in the buff possibilities to get subsidies at bottom the parkland agricultural indemnity has advance a speedy yield of organic production although a high percentage is devote to pastures. On the command side, the increase concerns about health, diet and environmental constipation arrest, at least among some marke t segments, stimulated the request for organic food. In Spain, organic food production and consumption have openhanded more lento than in other Union European countries. ace of the main obstacles for organic food expansion in Spain is the animate chess opening between received and organic food prices. around 75% of organic production is exported to unlike countries where food prices are higher than in internal markets. As the producers price strategy is orientated to fix more or less the same price level in both domestic and exotic markets (mainly in Germany and Denmark where the consumption of organic products has undertaken a noted increase in the sound years), the result is that the premium Spanish consumers have to pay for organic food products is higher in coincidence to other European countries. 2 issues were explored which can reckon the future phylogenesis of organic production in Spain. The first was to retrieve market segments which could be potential consumers of organic food. The import issue was the recognition of the maximum premium the various market segments were willing to pay for such products in order to help producers to take adequate price strategies in domestic markets. The field of operations was carried out in two Spanish regions one is 13 an active producing scope ( avarra) while the other is the main food consumption market N (Madrid). Differences between regions were as well as 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 winning into account not only consumers socioeconomic characteristics but as well as consumption levels and attitudes towards organic food products and environmental issues. sympathetic segments were obtained in both regions although mor e heterogeneity was found in the case of Madrid.In general terms, three broad market segments were identified consumers, likely consumers and flimsy consumers. The affect 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 affect result is that in many areas consumers are preparation their own products. They consider them organic, simply because no fertilizers are used, when really they are not, as thither is not any decreed certification. In spite of this result, some concluding 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 signalise factors explaining organic food consumption and have to be considered when aim leave progression strategies by producers or marketers. In relation to the second issue, t hree main results were obtained.