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Direct Marketing of Fresh Produce: Understanding Consumer Interest in Product and Process-Based Attributes

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  • Thilmany, Dawn D.
  • Bond, Jennifer Keeling
  • Bond, Craig A.

Abstract

This study employs factor and cluster analysis techniques to explore a national-level dataset of fresh produce consumers. Specifically, we characterize the major sources of variation in the dataset using four internally-derived factors, and then use these factors to split the data into five consumer segments using cluster analysis. We then examine the major differences in preferences and willingness to pay across these groups with respect to various produce attributes, production processes, and production locality. We explore the traditional concerns such as taste, purity, and freshness, but also account for civic agricultural issues such as local production and production systems which tend to be associated with higher levels of environmental quality (e.g., organic production), as well as the impact on consumer preferences from information about nutrition and the source of purchase of fresh produce.

Suggested Citation

  • Thilmany, Dawn D. & Bond, Jennifer Keeling & Bond, Craig A., 2006. "Direct Marketing of Fresh Produce: Understanding Consumer Interest in Product and Process-Based Attributes," 2006 Annual meeting, July 23-26, Long Beach, CA 21217, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea06:21217
    DOI: 10.22004/ag.econ.21217
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    References listed on IDEAS

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    1. Leigh J. Maynard & Sharon T. Franklin, 2003. "Functional Foods as a Value-Added Strategy: The Commercial Potential of “Cancer-Fighting” Dairy Products," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(2), pages 316-331.
    2. Handy, Charles & Kaufman, Phil, 2000. "Evolving Marketing Channels Reveal Dynamic U.S. Produce Industry," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 23(2), pages 1-7.
    3. David L. Sunding, 2003. "The Role for Government in Differentiated Product Markets: Looking to Economic Theory," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 720-724.
    4. Sparling, Edward & Grannis, Jennifer L. & Thilmany, Dawn D., 2002. "Regional Demand For Natural Beef Products: Urban Vs. Rural Willingness To Pay And Target Customers," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36544, Western Agricultural Economics Association.
    5. Thilmany, Dawn D. & Grannis, Jennifer L. & Sparling, Edward, 2003. "Regional Demand For Natural Beef Products In Colorado: Target Consumers And Willingness To Pay," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 21(2), pages 1-17.
    6. Jennifer Grannis & Dawn D. Thilmany, 2002. "Marketing natural pork: An empirical analysis of consumers in the mountain region," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 475-489.
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    Cited by:

    1. Nicole Didero & Marco Costanigro & Becca B. R. Jablonski, 2021. "Promoting farmers market via information nudges and coupons: A randomized control trial," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 531-549, July.
    2. Azucena Gracia, 2014. "Consumers’ preferences for a local food product: a real choice experiment," Empirical Economics, Springer, vol. 47(1), pages 111-128, August.
    3. Nicholas A. Lancaster & Ariana P. Torres, 2019. "Investigating the Drivers of Farm Diversification Among U.S. Fruit and Vegetable Operations," Sustainability, MDPI, vol. 11(12), pages 1-20, June.
    4. Bougherara, Douadia & Grolleau, Gilles & Mzoughi, Naoufel, 2009. "Buy local, pollute less: What drives households to join a community supported farm?," Ecological Economics, Elsevier, vol. 68(5), pages 1488-1495, March.
    5. Yeong Sheng Tey & Poppy Arsil & Mark Brindal & Chi Teen Teoh & Han Wei Lim, 2017. "Motivations Underlying Consumers’ Preference for Farmers’ Markets in Klang Valley: A Means-End Chain Approach," Sustainability, MDPI, vol. 9(11), pages 1-13, October.
    6. Richards, Timothy J. & Gómez, Miguel I. & Pofahl, Geoffrey, 2012. "A Multiple-discrete/Continuous Model of Price Promotion," Journal of Retailing, Elsevier, vol. 88(2), pages 206-225.
    7. Spiller, Achim & Zuhlsdorf, Anke & Mellin, Matthias, 2007. "Farmer-to-Consumer Direct Marketing: The Role of Customer Satisfaction Measurement for Service Innovations," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6607, International European Forum on System Dynamics and Innovation in Food Networks.
    8. Chao-Jung R. Chen & Tun-Hsiang Edward Yu & Rachel J. C. Fu, 2021. "Strategic Management for Community-Based Markets: From Consumers’ Perspectives and Experiences," Sustainability, MDPI, vol. 13(10), pages 1-18, May.
    9. Bavorova, Miroslava & Unay-Gailhard, İlkay & Lehberger, Mira, 2016. "Who buys from farmers’ markets and farm shops: The case of Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 40(1), pages 107-114.
    10. Chen, Xuqi & Gao, Zhifeng & Swisher, Marilyn & House, Lisa & Zhao, Xin, 2018. "Eco-labeling in the Fresh Produce Market: Not All Environmentally Friendly Labels Are Equally Valued," Ecological Economics, Elsevier, vol. 154(C), pages 201-210.
    11. Pilar Fernández‐Ferrín & Belén Bande & Aitor Calvo‐Turrientes & M. Mercedes Galán‐Ladero, 2017. "The Choice of Local Food Products by Young Consumers: The Importance of Public and Private Attributes," Agribusiness, John Wiley & Sons, Ltd., vol. 33(1), pages 70-84, January.
    12. Michael Vassalos & Zhifeng Gao & Lisha Zhang, 2017. "Factors Affecting Current and Future CSA Participation," Sustainability, MDPI, vol. 9(3), pages 1-16, March.
    13. Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2007. "What to Choose? The Value of Label Claims to Produce Consumers," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9704, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Pozo, Veronica F. & Saak, Alexander E. & Hanawa-Peterson, Hikaru, 2009. "Product Origin and Reputation for Quality: the Case of Organic Foods," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49503, Agricultural and Applied Economics Association.
    15. Kyung-Hee Kim & Duk-Byeong Park, 2014. "Factors Influencing Rural Tourists' Purchasing Behaviour: Four Types of Direct Farm Markets in South Korea," Tourism Economics, , vol. 20(3), pages 629-645, June.

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