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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.

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.

Suggested Citation

  • Nganje, William E. & Hughner, Renee Shaw & Lee, Nicholas E., 2011. "State-Branded Programs and Consumer Preference for Locally Grown Produce," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-13, April.
  • Handle: RePEc:ags:arerjl:107472
    DOI: 10.22004/ag.econ.107472
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    File URL: https://ageconsearch.umn.edu/record/107472/files/hughner%20-%20current.pdf
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    References listed on IDEAS

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    Cited by:

    1. Jelena Vapa-Tankosić & Svetlana Ignjatijević & Jelena Kiurski & Jovana Milenković & Irena Milojević, 2020. "Analysis of Consumers’ Willingness to Pay for Organic and Local Honey in Serbia," Sustainability, MDPI, Open Access Journal, vol. 12(11), pages 1-23, June.
    2. Iryna Printezis & Carola Grebitus & Stefan Hirsch, 2019. "The price is right!? A meta-regression analysis on willingness to pay for local food," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    3. Dobbs, Leah Moore & Jensen, Kimberly L. & Leffew, Megan Bruch & English, Burton C. & Lambert, Dayton M. & Clark, Christopher D., 2016. "Consumer Willingness to Pay for Tennessee Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-24, July.
    4. Anetta Barska & Julia Wojciechowska-Solis, 2020. "E-Consumers and Local Food Products: A Perspective for Developing Online Shopping for Local Goods in Poland," Sustainability, MDPI, Open Access Journal, vol. 12(12), pages 1-17, June.
    5. Hughes, David W. & Isengildina-Massa, Olga, 2015. "The economic impact of farmers’ markets and a state level locally grown campaign," Food Policy, Elsevier, vol. 54(C), pages 78-84.
    6. Azucena Gracia & Ana María Sánchez & Francesc Jurado & Cristina Mallor, 2020. "Making Use of Sustainable Local Plant Genetic Resources: Would Consumers Support the Recovery of a Traditional Purple Carrot?," Sustainability, MDPI, Open Access Journal, vol. 12(16), pages 1-17, August.
    7. Boys, Kathryn A. & Blank, Steven, 2016. "The Evolution of Local Foods: A Retrospective and Prospective Consideration," ARE Working Papers 270993, North Carolina State University, Department of Agricultural and Resource Economics.
    8. Drago Cvijanović & Svetlana Ignjatijević & Jelena Vapa Tankosić & Vojin Cvijanović, 2020. "Do Local Food Products Contribute to Sustainable Economic Development?," Sustainability, MDPI, Open Access Journal, vol. 12(7), pages 1-18, April.

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