Willingness to pay for locally grown, organic and natural foods: implications for producers and state-sponsored agricultural marketing programs

Author(s)Onken, Kathryn
Date Accessioned2011-07-01T12:20:26Z
Date Available2011-07-01T12:20:26Z
Publication Date2010
AbstractA survey of Mid-Atlantic consumers in five states was conducted to determine consumer preference and marginal willingness to pay for the attributes organic, natural, locally grown and state program promoted. The influence of purchasing venue on willingness to pay was examined as well. A key part of this survey was a choice experiment featuring strawberry preserves. The survey also included a variety of questions concerning shopping behavior, awareness and opinion of state marketing programs, and the geographical area that the respondent considered to be local. The results of the choice experiment portion of the survey were analyzed using a conditional logit model and a nested logit model. Marginal willingness to pay figures were calculated from the results of the nested logit model. These results indicated a price premium for preserves purchased at a farmers' market across five Mid-Atlantic states. The organic attribute was only preferred over natural in one state. In addition, the attributes local and state program promoted were preferred over non-local across all states. The preference ordering between local and state program did vary. Consumers in Maryland and Pennsylvania clearly preferred local, while those in New Jersey seemed to prefer the state program version. Overall, findings from this study suggest programs in several states should consider focusing on more generic “buy local” promotions, instead of statewide promotional programs. Additional results indicate that consumers from states other than Delaware consider areas smaller than the borders of their state as being local, such as a county or regional area. The results of this study would be of use to state marketing agencies, producers and processors targeting the Mid-Atlantic region.en_US
AdvisorBernard, John
AdvisorPesek, John D.
DegreeM.S.
DepartmentUniversity of Delaware, Department of Food and Resource Economics
URLhttp://udspace.udel.edu/handle/19716/9782
PublisherUniversity of Delawareen_US
dc.subject.lcshMarket surveys -- Middle Atlantic States
dc.subject.lcshConsumers -- Middle Atlantic States -- Attitudes
dc.subject.lcshLocal foods -- Middle Atlantic States -- Marketing
dc.subject.lcshNatural foods -- Middle Atlantic States -- Marketing
TitleWillingness to pay for locally grown, organic and natural foods: implications for producers and state-sponsored agricultural marketing programsen_US
TypeThesisen_US
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