Product Differentiation and Market Segmentation in Applesauce: Using a Choice Experiment to Assess the Value of Organic, Local and Nutrition Attributes
AbstractRecently there is much interest among horticultural producers concerning the marketing of organically- and locally- produced food. Here we developed a consumer survey that asked respondents to choose an applesauce product from a list of products differentiated by price and four attributes. The products were differentiated by labels that described fat content, nutrition content, and whether the product was grown organically and/or locally. The survey was distributed to 3,000 residents in rural Pennsylvania and over 1,500 responses were collected yielding a response rate of 56%. Survey results were used to assess consumers’ willingness to pay for the product attributes in applesauce, and we found that consumers were willing to pay more for locally-grown applesauce compared to applesauce that was labeled organic or low fat and low sugar. Furthermore, the analysis incorporated the effects of consumer characteristics on the demand for applesauce attributes and we find evidence that increased knowledge of agriculture decreases the willingness to pay for organically- and locally-grown applesauce.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 48916.
Date of creation: Jan 2009
Date of revision:
Applesauce; Choice experiment; Consumer demand; Fruit and vegetable markets; Locally grown; Multinomial logit model; Organic; Pennsylvania; Willingness to pay; Agribusiness; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Q13;
Find related papers by JEL classification:
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-05-02 (Agricultural Economics)
- NEP-ALL-2009-05-02 (All new papers)
- NEP-DCM-2009-05-02 (Discrete Choice Models)
- NEP-MKT-2009-05-02 (Marketing)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Martinez, Stephen W. & Hand, Michael S. & Da Pra, Michelle & Pollack, Susan L. & Ralston, Katherine L. & Smith, Travis A. & Vogel, Stephen J. & Clark, Shellye & Lohr, Luanne & Low, Sarah A. & Newman, , 2010.
"Local Food Systems: Concepts, Impacts, and Issues,"
Economic Research Report
96635, United States Department of Agriculture, Economic Research Service.
- Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
- Perla, Joseph M. & Rickard, Bradley J. & Schmit, Todd M., 2014. "Looking for Locapours: Using Zagat Survey Data to Examine Restaurant Demand for Local Wine," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(1), April.
- LefÃ¨vre, MÃ©lanie, 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.
- Azucena Gracia, 2014. "Consumers’ preferences for a local food product: a real choice experiment," Empirical Economics, Springer, vol. 47(1), pages 111-128, August.
- Wirth, Ferdinand F. & Stanton, John L. & Wiley, James B., 2011. "The Relative Importance of Search versus Credence Product Attributes: Organic and Locally Grown," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), April.
- Costanigro, Marco & Kroll, Stephan & Thilmany, Dawn D. & Bunning, Marisa, 2010. "Do Taste Buds Trump Labels and Information? A Sensory Test and Economic Experiment on Organic and Local Apples," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61668, Agricultural and Applied Economics Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.