Consumer Willingness‐to‐Pay for Organic, Transitional Organic, and Non‐Genetically Modified Food Products: An Analysis of Familiar Versus Unfamiliar Labels

ABSTRACT Consumer interest in labeled food products has been expanding. Literature suggests that consumer willingness‐to‐pay (WTP) may vary for products with familiar versus unfamiliar labels and between healthy and unhealthy foods. Therefore, this study utilized the contingent valuation method to examine consumer preferences for chips and salads with familiar labels (e.g., organic, non‐genetically modified) and unfamiliar labels (e.g., transitional organic). Findings indicate that consumer WTP for transitional organic labeled foods falls between organic and conventional alternatives. Furthermore, the impact of food labels on consumer preferences and WTP differs significantly when consumers are evaluating unhealthy versus healthy foods. The implications of this study provide valuable insights for farmers, marketers, and policymakers. Additionally, this study establishes a foundation for future studies by shedding light on the role of transitional organic labels in shaping consumer choices and preferences in the dynamic landscape of the food market.