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Local and Organic: Substitutes or Complements? An In-Store Evaluation of Labels for Apples

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  • Costanigro, Marco
  • Kroll, Stephan
  • Thilmany, Dawn D.
  • Nurse, Gretchen

Abstract

Over the past two decades, consumer demand for niche products has grown substantially. The primary objective of this paper is to disentangle the value consumers place on two prominent food claims, organic and local (defined as Colorado Proud in this study) as they relate to fresh produce. Using primary data from a choice experiment conducted in a grocery store that has conducted co-promotional efforts with the Colorado Proud program, we found the value of the “local” claims trumps that of “organic” in apples. However, the difference in results between the experiments that offered participants either one- or two-pounds is far more pronounced, illustrating how scaling may influence estimates in such market-based research.

Suggested Citation

  • Costanigro, Marco & Kroll, Stephan & Thilmany, Dawn D. & Nurse, Gretchen, 2010. "Local and Organic: Substitutes or Complements? An In-Store Evaluation of Labels for Apples," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61537, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea10:61537
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    References listed on IDEAS

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    More about this item

    Keywords

    choice experiment; local foods; organic; apple consumer demand; Agricultural and Food Policy; Consumer/Household Economics; Marketing; D12; Q11; Q18;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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