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Net Gains from 'Net Purchases? Farmers' Preferences for Online and Local Input Purchases

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  • Batte, Marvin T.
  • Ernst, Stanley C.

Abstract

E-commerce represents both threats to and opportunities for rural communities. This study addresses one element of the issue: farmers' willingness to substitute online merchants or national farm input stores for local businesses. Results of a conjoint analysis of contingent choice experiments suggest that farmers are willing to purchase from online or national stores outside their communities if compensated with lower prices or greater services. Results also demonstrate that the context of the input purchase, such as time constraints, was very important not only in valuing these services, but, more broadly, in terms of the farmer's loyalty to a local merchant.

Suggested Citation

  • Batte, Marvin T. & Ernst, Stanley C., 2007. "Net Gains from 'Net Purchases? Farmers' Preferences for Online and Local Input Purchases," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), pages 1-11, April.
    • Handle: RePEc:ags:arerjl:10154
    DOI: 10.22004/ag.econ.10154
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    References listed on IDEAS

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    4. Leroux, Nicole & Wortman, Max S., Jr. & Mathias, Eric D., 2001. "Dominant Factors Impacting The Development Of Business-To-Business (B2b) E-Commerce In Agriculture," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(2), pages 1-14.
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    Cited by:

    1. Zapata, Samuel D. & Isengildina-Massa, Olga & Carpio, Carlos E. & Lamie, R. David, 2016. "Does E-Commerce Help Farmers’ Markets? Measuring the Impact of MarketMaker," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-18, July.
    2. Mishra, Ashok K. & Williams, Robert P. & Detre, Joshua D., 2009. "Internet Access and Internet Purchasing Patterns of Farm Households," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(2), pages 240-257, October.
    3. Spaulding, Aslihan D. & Tudor, Kerry W. & Mahatanankoon, Pruthikrai, 2015. "The Effects of Outcome Expectations on Individual’s Anxiety and Continued Usage of Mobile Devices: A Post-Adoption Study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(4), pages 1-16, November.
    4. Zapata, Samuel D. & Carpio, Carlos E. & Isengildina-Massa, Olga & Lamie, R. David, 2013. "The Economic Impact of Services Provided by an Electronic Trade Platform: The Case of MarketMaker," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-20.
    5. Fecke, Wilm & Danne, Michael & Mußhoff, Oliver, 2018. "E-commerce in agriculture: The case of crop protection product purchases in a discrete choice experiment," DARE Discussion Papers 1803, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    6. Zeng, Yiwu & Jia, Fu & Wan, Li & Guo, Hongdong, 2017. "E-commerce in agri-food sector: a systematic literature review," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4), February.
    7. Spahn, Laurin & Höhler, Julia, 2021. "Farm supply and grain elevator businesses in a changing business environment: A mixed methods investigation of past and future strategies," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317047, German Association of Agricultural Economists (GEWISOLA).
    8. Thia Hennessy & Doris Läpple & Brian Moran, 2016. "The Digital Divide in Farming: A Problem of Access or Engagement?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(3), pages 474-491.
    9. Fecke, Wilm & Danne, Michael & Mußhoff, Oliver, 2018. "Online-Einkauf von Pflanzenschutzmitteln: Ein Discrete Choice Experiment mit landwirtschaftlichen Unternehmern in Deutschland," DARE Discussion Papers 1811, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).

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    Keywords

    Farm Management; Marketing;

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