Willingness to Pay Analysis of Generation Z and Millennials for Organic Vegetables in Mataram City, Indonesia

Abstract

This study examined the willingness to pay (WTP) of Generation Z and Millennial consumers for organic vegetables in Mataram City, Indonesia, and identified factors associated with their willingness to pay a premium price. A quantitative survey approach was used with 188 respondents, comprising 98 Generation Z consumers and 90 Millennial consumers. Respondents were selected based on residence in Mataram City and experience with, or knowledge of, organic vegetables. WTP was estimated using the contingent valuation method with a payment card elicitation technique. Differences in WTP between generations were analysed using an independent samples t-test, while factors influencing WTP were examined using binary logistic regression. The results showed that 77.7% of respondents were willing to pay a higher price for organic vegetables. The average WTP was Rp21,628 per 250 g for organic brazilian spinach and Rp17,968 per 250 g for organic lettuce, both exceeding observed market prices. Millennials showed higher WTP than Generation Z for both commodities, and the difference between generations was statistically significant. Logistic regression indicated that gender, income, and knowledge of organic products had positive and significant effects on WTP. Knowledge of organic products was the strongest factor, with an odds ratio of 6.115. These findings suggest that consumer knowledge may be associated with WTP and that targeted educational initiatives for young consumers may support organic product adoption in emerging markets.