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An Examination of Consumer Willingness to Pay for Local Products

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  • Adalja, Aaron
  • Hanson, James
  • Towe, Charles
  • Tselepidakis, Elina

Abstract

This paper uses stated and revealed preference data from a choice-based conjoint survey instrument to estimate willingness to pay for distance-based local food products. The survey was administered to three different groups of respondents: members of a consumer buying club, a random sample of Maryland residents, and suburban Maryland grocery store shoppers. We find that both the random sample of Maryland residents and the grocery store shoppers are willing to pay a premium for local products, but view locality and production method as substitutes. Conversely, more selective shoppers, members of a consumer buying club, are willing to pay less for local than their counterparts, but do not conflate local with other premium attributes, such as grass-fed production.
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  • Adalja, Aaron & Hanson, James & Towe, Charles & Tselepidakis, Elina, 2015. "An Examination of Consumer Willingness to Pay for Local Products," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(03), pages 253-274, December.
  • Handle: RePEc:cup:agrerw:v:44:y:2015:i:03:p:253-274_00
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    Cited by:

    1. Adu-Gyamfi, Akua & Omer, Reem I. & Bartlett, Jannette R. & Tackie, David Nii O. & Perry, Bridget J., 2016. "Assessing Florida Consumer Attitudes and Beliefs about Locally or Regionally Produced Livestock and Products," Professional Agricultural Workers Journal (PAWJ), Professional Agricultural Workers Conference, vol. 0(Number 1), pages 1-18, October.
    2. repec:cup:jagaec:v:50:y:2018:i:02:p:233-254_00 is not listed on IDEAS
    3. repec:gam:jsusta:v:10:y:2018:i:7:p:2560-:d:159205 is not listed on IDEAS
    4. Merritt, Meagan G. & Delong, Karen Lewis & Griffith, Andrew P. & Jensen, Kimberly L., 2018. "Consumer Willingness To Pay For Tennessee Certified Beef," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 50(02), pages 233-254, May.
    5. Dobbs, Leah & Jensen, Kimberly & Leffew, Megan & English, Burton & Lambert, Dayton & Clark, Christopher, 2015. "Willingness to Pay for Tennessee Beef among Tennessee Consumers," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196672, Southern Agricultural Economics Association.
    6. Shi, Wei & Halstead, John M. & Huang, Ju-Chin, 2017. "Market Experience Matters: Status Quo Effect in the Economic Valuation of Consumer Preferences for Local Produce," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258290, Agricultural and Applied Economics Association.
    7. Anabela Botelho & Isabel Dinis & Lina Sofia Lourenço-Gomes & Jorge Moreira & Lígia Costa Pinto, 2013. "The importance of the origin of apple varieties: results from a discrete choice experiment in Portugal," NIMA Working Papers 54, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.

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