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Consumer Willingness to Pay for Locally Grown Plants

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  • Zaffou, Madiha
  • Campbell, Benjamin

Abstract

Over the last decade there has been a move by many consumers to purchase locally grown products. Many studies have focused on food with limited studies examining plants. Utilizing a choice experiment in conjunction with latent class modeling with examine the impact of locally labeling and retail outlet on preference and willingness to pay for azaleas. Results indicate that only one of the latent classes, about 43% of the sample, valued locally labeling. Furthermore, the same class that valued local also preferred a nursery/greenhouse outlet over a home improvement center. Recommendations for the different retail outlets are given based on the results.

Suggested Citation

  • Zaffou, Madiha & Campbell, Benjamin, 2016. "Consumer Willingness to Pay for Locally Grown Plants," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230056, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea16:230056
    DOI: 10.22004/ag.econ.230056
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    References listed on IDEAS

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    1. Low, Sarah A. & Vogel, Stephen J., 2011. "Direct and Intermediated Marketing of Local Foods in the United States," Economic Research Report 118025, United States Department of Agriculture, Economic Research Service.
    2. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    3. Collart, Alba J. & Palma, Marco A. & Carpio, Carlos E., 2013. "Consumer Response to Point of Purchase Advertising for Local Brands," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(2), pages 1-14, May.
    4. 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.
    5. Onozaka, Yuko & Nurse, Gretchen & Thilmany, Dawn D., 2010. "Local Food Consumers: How Motivations and Perceptions Translate to Buying Behavior," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 25(1), pages 1-6.
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