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Willingness to Pay for Retail Location and Product Origin of Christmas Trees

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  • Zaffou, Madiha
  • Campbell, Benjamin

Abstract

Christmas trees sales are considerable throughout the U.S. Understanding the drivers of purchase for Christmas trees, especially the impact of retail outlet and local label, is critical for producers and policy makers within states with tree production. Utilizing data from a choice experiment Connecticut residents in combination with latent class modeling we find that Christmas tree height is important to all latent classes but tree species had less of an impact. Furthermore, we find that a grown in CT label does not influence all consumers, though a majority of our sample had a preferential view and would pay a premium for a CT trees. With respect to retail location, we find that nursery/greenhouse and choose and cut retail outlets are preferred by a majority of consumers, but not by all consumers. Recommendations for the varying retail outlets are provided.

Suggested Citation

  • Zaffou, Madiha & Campbell, Benjamin, 2016. "Willingness to Pay for Retail Location and Product Origin of Christmas Trees," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229906, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea16:229906
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    References listed on IDEAS

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    1. Davis, George C., 1993. "Consumer's Specie Knowledge and the Values of Natural Christmas Tree Characteristics," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(01), pages 266-277, July.
    2. Achyut Kafle & Stephen K. Swallow & Elizabeth C. Smith, 2015. "Does Public Funding Affect Preferred Tradeoffs and Crowd-In or Crowd-Out Willingness to Pay? A Watershed Management Case," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(3), pages 471-495, March.
    3. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    4. Davis, George C., 1993. "Consumer'S Specie Knowledge And The Values Of Natural Christmas Tree Characteristics," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(01), July.
    5. Hamlett, Cathy Ann & Herrmann, Robert O. & Warland, Rex H. & Zhao, Fengkun, 1989. "Christmas Tree Consumption Behavior: Natural Vs. Artificial," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(2), October.
    6. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    7. Onozaka, Yuko & Nurse, Gretchen & Thilmany, Dawn D., 2010. "Local Food Consumers: How Motivations and Perceptions Translate to Buying Behavior," Choices, Agricultural and Applied Economics Association, vol. 25(1).
    8. George C. Davis & Michael K. Wohlgenant, 1993. "Demand Elasticities from a Discrete Choice Model: The Natural Christmas Tree Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 730-738.
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    Keywords

    consumer behavior; choice experiment; willingness to pay; Agribusiness; Marketing;

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