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Do Local Production, Organic Certification, Nutritional Claims, and Product Branding Pay in Consumer Food Choices?

  • Batte, Marvin T.
  • Hu, Wuyang
  • Woods, Timothy A.
  • Stan, Ernst

This research furthers the assessment of consumer demand for locally produced foods, while also considering a host of other food attributes that may interact to influence consumer utility. Using stated preference data from a choice-based conjoint analysis survey instrument, we estimate willingness-to-pay for processed food products (blackberry jam) that are differentiated with respect to their branding, the location of their production, certification as organically produced, branding as a product of a small family farming association, and carrying a State Proud certification. Although price is the most important single attribute influencing consumer choice for our sample, consumers also were willing to pay more for food products produced in their state or in a well identified multistate region. Our sample was more willing to purchase organic products, although there was an indication of some confusion as to the meaning of the NOP organic logo. Our results also supported the notion that consumers are willing to support small family farms with purchases if the product is clearly labeled as a product of small farms. These conclusions have important is significant has important policy and merchandising strategy implications.

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File URL: http://purl.umn.edu/61026
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Paper provided by Agricultural and Applied Economics Association in its series 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado with number 61026.

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Date of creation: 29 Apr 2010
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Handle: RePEc:ags:aaea10:61026
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  1. Darby, Kim & Batte, Marvin T. & Ernst, Stanley C. & Roe, Brian E., 2006. "Willingness to pay for locally produced foods: A customer intercept study of direct market and grocery store shoppers," 2006 Annual meeting, July 23-26, Long Beach, CA 21336, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Ernst, Stan & Batte, Marvin T. & McNaull, Julie T., 2007. "Pie Potential: Examining Berry Market Expansion through Baked Goods," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(1), March.
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