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Comparing Willingness to Pay for Organic, Natural, Locally Grown, and State Marketing Program Promoted Foods in the Mid-Atlantic Region

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Author Info

  • Onken, Kathryn A.
  • Bernard, John C.
  • Pesek, John D., Jr.

Abstract

A choice experiment of Mid-Atlantic consumers was conducted to determine marginal willingness to pay for the attributes organic, natural, locally grown, and state marketing program promoted for strawberry preserves. The influence of purchasing venue on willingness to pay was also examined. Results indicated a price premium when purchased at a farmers market across all five states and versions. Organic was preferred to natural in only one state. Preference ordering between local and state program promoted varied. Consumers in Maryland and Pennsylvania clearly preferred local, while those in New Jersey seemed most likely to prefer the state program version.

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File URL: http://purl.umn.edu/106065
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Bibliographic Info

Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 40 (2011)
Issue (Month): 1 (April)
Pages:

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Handle: RePEc:ags:arerjl:106065

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Web page: http://www.narea.org/
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Related research

Keywords: organic; natural; locally grown; state marketing program; choice experiment; Consumer/Household Economics; Demand and Price Analysis; Marketing;

References

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  1. Govindasamy, Ramu & Schilling, Brian J. & Sullivan, Kevin P. & Turvey, Calum G. & Brown, Logan & Puduri, Venkata S., 2004. "Returns to the Jersey Fresh Promotional Program: The Impacts of Promotional Expenditures on Farm Cash Receipts in New Jersey," P Series 36728, Rutgers University, Department of Agricultural, Food and Resource Economics.
  2. Jayson Lusk & T Schroeder, 2004. "Are choice experiments incentive compatible? A test with quality differentiated beef steaks," Artefactual Field Experiments 00096, The Field Experiments Website.
  3. Henneberry, Shida Rastegari & Agustini, Haerani N., 2004. "An Analysis Of Oklahoma Direct Marketing Outlets: Case Study Of Produce Farmers' Markets," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34710, Southern Agricultural Economics Association.
  4. Onken, Kathryn A. & Bernard, John C., 2010. "Catching the "Local" Bug: A Look at State Agricultural Marketing Programs," Choices, Agricultural and Applied Economics Association, vol. 25(1).
  5. Loureiro, Maria L. & Hine, Susan E., 2002. "Discovering Niche Markets: A Comparison Of Consumer Willingness To Pay For Local (Colorado Grown), Organic, And Gmo-Free Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(03), December.
  6. Onianwa, Odili & Mojica, Maribel N. & Wheelock, Gerald, 2006. "Consumer Characteristics and Views Regarding Farmers Markets: An Examination of On-Site Survey Data of Alabama Consumers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(01), March.
  7. Batte, Marvin T. & Hooker, Neal H. & Haab, Timothy C. & Beaverson, Jeremy, 2007. "Putting their money where their mouths are: Consumer willingness to pay for multi-ingredient, processed organic food products," Food Policy, Elsevier, vol. 32(2), pages 145-159, April.
  8. Hu, Wuyang & Woods, Timothy A. & Bastin, Sandra, 2009. "Consumer Acceptance and Willingness to Pay for Blueberry Products with Nonconventional Attributes," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(01), April.
  9. Jayson L. Lusk & F. Bailey Norwood, 2005. "Effect of Experimental Design on Choice-Based Conjoint Valuation Estimates," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 771-785.
  10. Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
  11. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
  12. Hensher, David A. & Greene, William H., 2002. "Specification and estimation of the nested logit model: alternative normalisations," Transportation Research Part B: Methodological, Elsevier, vol. 36(1), pages 1-17, January.
  13. Zepeda, Lydia & Leviten-Reid, Catherine, 2004. "Consumers' Views on Local Food," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(03), November.
  14. Dawn Thilmany & Craig A. Bond & Jennifer K. Bond, 2008. "Going Local: Exploring Consumer Behavior and Motivations for Direct Food Purchases," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1303-1309.
  15. Carpio, Carlos E. & Isengildina-Massa, Olga, 2009. "Measuring the Potential Economic Impact of a Regional Agricultural Promotion Campaign: The Case of South Carolina," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46729, Southern Agricultural Economics Association.
  16. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
  17. Hu, Wuyang & Batte, Marvin T. & Woods, Timothy A. & Ernst, Stanley C., 2010. "What is Local and for What Foods Does it Matter?," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56326, Southern Agricultural Economics Association.
  18. Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2008. "What to Choose? The Value of Label Claims to Fresh Produce Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), December.
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Citations

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Cited by:
  1. Perla, Joseph M. & Rickard, Bradley J. & Schmit, Todd M., 2013. "Do Restaurants Cater to Locapours? Using Zagat Survey Data to Examine Factors that Influence Wine List Selections," Working Papers 164709, American Association of Wine Economists.
  2. Cash, Sean B. & Slade, Peter & Cranfield, John, 2013. "The Chicken Wears No Skin: Ordering E ects in Elicitation of Willingness to Pay for Multiple Credence Attributes in Ethical and Novel Food Products," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150364, Agricultural and Applied Economics Association.
  3. Velandia, Margarita M. & Davis, James A. & Lambert, Dayton M. & Clark, Christopher D. & Wilcox, Michael D., Jr & Wszelaki, Annette & Jensen, Kimberly L., 2012. "Factors Affecting Producer Awareness of State Programs Promoting Locally Grown Foods: The Case of Fruit and Vegetable Growers in Tennessee," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), July.
  4. Parcell, Joseph L. & Gedikoglu, Haluk, 2012. "Consumer Preference Variation between Domestic and Imported Food," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124183, Agricultural and Applied Economics Association.

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