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The market potential for gift baskets of Hawaiian food products in China

Listed author(s):
  • Wuyang Hu

    (Department of Agricultural Economics, University of Kentucky, Lexington, KY 40546-0276)

  • Linda J. Cox

    (Community Economic Development Specialist, Department of Natural Resources and Environmental Management, University of Hawaii at Manoa, Honolulu, HI 96822-2279)

  • Quincy A. Edwards

    (Graduate Research Assistant, Department of Natural Resources and Environmental Management, University of Hawaii at Manoa, Honolulu, HI 96822-2279)

China is an emerging market for U.S. agricultural products. However, producers in Hawaii face challenges in entering this market due to their small volume and lack of expertise. A marketing strategy involving packaging food products in handmade containers as Hawaiian gift baskets may hold some potential for these producers. This paper analyzes the results of a survey done in China involving gift baskets with various attributes using conditional (CL), rank-ordered (RL), and mixed rank-ordered (MRL) logit models. The MRL model identified heterogeneity among the preferences of survey respondents. Some respondents are willing to pay a large positive amount for a gift basket in a handmade container. Moreover, if a basket is labeled as containing Hawaii-grown food products, an additional large positive value can be added to the basket. This methodology can be used to investigate heterogeneous preferences and identify the value of attributes to various market segments. [JEL Code: M310, D12]. © 2007 Wiley Periodicals, Inc. Agribusiness 23: 553-565, 2007.

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Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 23 (2007)
Issue (Month): 4 ()
Pages: 553-565

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Handle: RePEc:wly:agribz:v:23:y:2007:i:4:p:553-565
DOI: 10.1002/agr.20135
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  1. Kenneth Train ., 2000. "Halton Sequences for Mixed Logit," Economics Working Papers E00-278, University of California at Berkeley.
  2. Wuyang Hu, 2005. "Logit models: smallest versus largest extreme value error distributions," Applied Economics Letters, Taylor & Francis Journals, vol. 12(12), pages 741-744.
  3. John Calfee & Clifford Winston & Randolph Stempski, 2001. "Econometric Issues In Estimating Consumer Preferences From Stated Preference Data: A Case Study Of The Value Of Automobile Travel Time," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 699-707, November.
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