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State-Branded Programs and Consumer Preference for Locally Grown Produce

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  • Nganje, William E.
  • Hughner, Renee Shaw
  • Lee, Nicholas E.
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    Abstract

    Revitalization of state brands is deemed important to several constituencies. Stated preference with choice experiment methods were used to elicit consumer preferences for two locally grown products: spinach, which has had a well-publicized food safety incidence, and carrots, which have had no such incidence in recent history. A full factorial design was used to implement the choice experiment, with each commodity having four identical attributes varying at different levels. Findings reveal that consumers are willing to pay a premium for locally grown spinach marked with the Arizona Grown label over locally grown spinach that was not labeled. This premium was higher than the premium that would be paid for state-branded carrots. This difference highlights consumers’ perceptions of “locally grown†as an indicator of safety in their food supply. Findings have important implications with respect to providing consumer value and point to differentiated positioning strategies for state-branded produce.

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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:107472

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

    Keywords: state-branded produce; certification; food safety; traceability; discrete choice models; Agribusiness; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Marketing;

    References

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    1. Kevin J. Boyle & Thomas P. Holmes & Mario F. Teisl & Brian Roe, 2001. "A Comparison of Conjoint Analysis Response Formats," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 441-454.
    2. Adelaja, Adesoji O. & Brumfield, Robin G. & Lininger, Kimberly, 1990. "Product Differentiation And State Promotion Of Farm Produce: An Analysis Of The Jersey Fresh Tomato," Journal of Food Distribution Research, Food Distribution Research Society, vol. 21(3), September.
    3. John M. Halloran & Michael V. Martin, 1989. "Should states be in the agricultural promotion business?," Agribusiness, John Wiley & Sons, Ltd., vol. 5(1), pages 65-75.
    4. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
    5. 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.
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    Cited by:
    1. Carroll, Kathryn A. & Bernard, John C. & Pesek, John D. Jr., 2013. "Consumer Preferences for Tomatoes: The Influence of Local, Organic, and State Program Promotions by Purchasing Venue," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), December.
    2. Velandia, Margarita & Clark, Christopher D. & Lambert, Dayton M. & Davis, James A. & Jensen, Kimberly & Wszelaki, Annette & Wilcox, Michael D. Jr., 0. "Factors Affecting Producer Participation in State-sponsored Marketing Programs: The Case of Fruit and Vegetable Growers in Tennessee," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association.
    3. Lefèvre, Mélanie, 2014. "Do Consumers Pay More for What They Value More? The Case of Local Milk-based Dairy Products in Senegal," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(1), April.
    4. Campbell, Benjamin L. & Mhlanga, Saneliso & Lesschaeve, Isabelle, 2013. "Consumer Preferences for Peach Attributes: Market Segmentation Analysis and Implications for New Marketing Strategies," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(3), December.

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