IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/234959.html
   My bibliography  Save this article

Farmers’ Willingness to Pay for Various Features of Electronic Food Marketing Platforms

Author

Listed:
  • Vassalos, Michael
  • Lim, Kar Ho

Abstract

This study utilizes a choice experiment to evaluate agricultural producers’ preferences and willingness to pay (WTP) for five features offered by electronic food marketing platforms. The attributes examined are: an online marketplace, social media advertisement of farms, different operators of the marketing platforms, an online directory, and monthly fee levels. The results in this study indicate heterogeneity in producers’ preferences. Specifically, farmers can be divided into two distinct groups: producers interested in electronic food trading platforms, and producers who are not interested in them. Producers in the first group are willing to pay $70 per month for an online marketplace and $152 per month for the service. Lastly, farmers have a slight preference for a for-profit operator when compared to a not-for-profit operator.

Suggested Citation

  • Vassalos, Michael & Lim, Kar Ho, 2016. "Farmers’ Willingness to Pay for Various Features of Electronic Food Marketing Platforms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-19, May.
  • Handle: RePEc:ags:ifaamr:234959
    DOI: 10.22004/ag.econ.234959
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/234959/files/620150043.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Cristina Connolly & H. Allen Klaiber, 2014. "Does Organic Command a Premium When the Food is Already Local?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 1102-1116.
    2. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    3. Arne Risa Hole, 2007. "A comparison of approaches to estimating confidence intervals for willingness to pay measures," Health Economics, John Wiley & Sons, Ltd., vol. 16(8), pages 827-840.
    4. Jeffrey Williams, 2001. "E-Commerce and the Lessons from Nineteenth Century Exchanges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1250-1257.
    5. Palma, Marco A. & Morgan, Kim & Woods, Timothy & McCoy, Sean, 2013. "Response of Land Grant Universities to the Increase in Consumer Demand for Local Foods in the South," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 28(4), pages 1-5.
    6. Montealegre, Fernando & Thompson, Sarahelen R. & Eales, James S., 2007. "An Empirical Analysis of the Determinants of Success of Food and Agribusiness E-Commerce Firms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(1), pages 1-21.
    7. Shermain D. Hardesty, 2008. "The Growing Role of Local Food Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1289-1295.
    8. LeRoux, Matthew N. & Schmit, Todd M. & Roth, Monika & Streeter, Deborah H., 2009. "Evaluating Marketing Channel Options for Small-Scale Fruit and Vegetable Producers," Working Papers 49006, Cornell University, Department of Applied Economics and Management.
    9. Befecadu, Joseph & Chembezi, Duncan M. & McFarlane, Dionne, 2003. "Internet Adoption And Use Of E-Commerce Strategies By Agribusiness Firms In Alabama," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35021, Southern Agricultural Economics Association.
    10. Arianto A. Patunru & John B. Braden & Sudip Chattopadhyay, 2007. "Who Cares about Environmental Stigmas and Does It Matter? A Latent Segmentation Analysis of Stated Preferences for Real Estate," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 712-726.
    11. Amanor-Boadu, Vincent, 2013. "Diversification Decisions in Agriculture: The Case of Agritourism in Kansas," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(2), pages 1-17, May.
    12. Ahearn, Mary & Sterns, James, 2013. "Direct-to-Consumer Sales of Farm Products: Producers and Supply Chains in the Southeast," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(3), pages 497-508, August.
    13. LeRoux, Matthew N. & Schmit, Todd M. & Roth, Monika & Streeter, Deborah H., 2009. "Evaluating Marketing Channel Options for Small-Scale Fruit and Vegetable Producers: Case Study Evidence from Central New York," EB Series 49044, Cornell University, Department of Applied Economics and Management.
    14. Hodges, Alan W. & Stevens, Thomas J. & Wysocki, Allen F., 2014. "Local and Regional Food Systems in Florida: Values and Economic Impacts," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(2), pages 285-298, May.
    15. 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.
    16. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, December.
    17. Ahearn, Mary Clare & Sterns, James, 2013. "Direct-to-Consumer Sales of Farm Products: Producers and Supply Chains in the Southeast," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45, pages 1-12, August.
    18. Zapata, Samuel D. & Carpio, Carlos E. & Isengildina-Massa, Olga & Lamie, R. Dave, 2011. "Do Internet-Based Promotion Efforts Work? Evaluating MarketMaker," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 29(1).
    19. Darren Hudson & Lee-Hong Seah & Diane Hite & Tim Haab, 2004. "Telephone presurveys, self-selection, and non-response bias to mail and Internet surveys in economic research," Applied Economics Letters, Taylor & Francis Journals, vol. 11(4), pages 237-240.
    20. Mickael Bech & Dorte Gyrd-Hansen, 2005. "Effects coding in discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 1079-1083.
    21. Chu, Junhong & Arce-Urriza, Marta & Cebollada-Calvo, José-Javier & Chintagunta, Pradeep K., 2010. "An Empirical Analysis of Shopping Behavior Across Online and Offline Channels for Grocery Products: The Moderating Effects of Household and Product Characteristics," Journal of Interactive Marketing, Elsevier, vol. 24(4), pages 251-268.
    22. Uematsu, Hiroki & Mishra, Ashok K., 2011. "Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-19, April.
    23. Kisaka, Lily & Obi, Ajuruchukwu, 2015. "Farmers’ Preferences for Management Options as Payment for Environmental Services Scheme," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(3), pages 1-22, September.
    24. Zapata, Samuel D. & Carpio, Carlos E. & Isengildina-Massa, Olga & Lamie, R. David, 2013. "The Economic Impact of Services Provided by an Electronic Trade Platform: The Case of MarketMaker," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-20.
    25. Baer, Alexander G. & Brown, Cheryl, 2007. "Adoption of E-Marketing by Direct-Market Farms in the Northeastern United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(2), pages 1-11, July.
    26. Adam Drucker, 2007. "Measuring Heterogeneous Preferences for Cattle Traits among Cattle-Keeping Households in East Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 1005-1019.
    27. Erik Meijer & Jan Rouwendal, 2006. "Measuring welfare effects in models with random coefficients," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(2), pages 227-244.
    28. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    29. Campo, Katia & Breugelmans, Els, 2015. "Buying Groceries in Brick and Click Stores: Category Allocation Decisions and the Moderating Effect of Online Buying Experience," Journal of Interactive Marketing, Elsevier, vol. 31(C), pages 63-78.
    30. Hodges, Alan W. & Stevens, Thomas J. & Wysocki, Allen F., 2014. "Local and Regional Food Systems in Florida: Values and Economic Impacts," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(2), pages 1-14, May.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:234959. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/ifamaea.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.