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An Examination of Consumer Willingness to Pay for Local Products

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  • Adalja, Aaron
  • Hanson, James
  • Towe, Charles
  • Tselepidakis, Elina

Abstract

We use data from hypothetical and nonhypothetical choice-based conjoint analysis to estimate willingness to pay for local food products. The survey was administered to three groups: consumers from a buying club with experience with local and grass-fed production markets, a random sample of Maryland residents, and shoppers at a nonspecialty Maryland supermarket. We find that random-sample and supermarket shoppers are willing to pay a premium for local products but view local and grass-fed production as substitutes. Conversely, buying-club members are less willing to pay for local production than the other groups but do not conflate local and grass-fed production.

Suggested Citation

  • Adalja, Aaron & Hanson, James & Towe, Charles & Tselepidakis, Elina, 2015. "An Examination of Consumer Willingness to Pay for Local Products," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(3), pages 1-22, December.
    • Handle: RePEc:ags:arerjl:225657
    DOI: 10.22004/ag.econ.225657
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    2. Merritt, Meagan G. & Delong, Karen Lewis & Griffith, Andrew P. & Jensen, Kimberly L., 2018. "Consumer Willingness To Pay For Tennessee Certified Beef," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 50(2), pages 233-254, May.
    3. Petjon Ballco & Fatma Jaafer & Tiziana de Magistris, 2022. "Investigating the price effects of honey quality attributes in a European country: Evidence from a hedonic price approach," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 885-904, October.
    4. Krzysztof Solarz & Magdalena Raftowicz & Marian Kachniarz & Agnieszka Dradrach, 2023. "Back to Locality? Demand Potential Analysis for Short Food Supply Chains," IJERPH, MDPI, vol. 20(4), pages 1-14, February.
    5. Herrmann, Roland & Bissinger, Katharina & Krandick, Lisa, 2018. "Price Premia for Sustainability Characteristics in Foods: Measurement Matters!," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276855, International European Forum on System Dynamics and Innovation in Food Networks.
    6. Wen Lin, 2023. "The effect of product quantity on willingness to pay: A meta‐regression analysis of beef valuation studies," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 646-663, July.
    7. Yiwen Yang & PingSun Leung & Chu‐wei Tseng, 2022. "Price premium or price discount for locally produced food products? A 5W1H approach in meta‐analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2261-2274, September.
    8. Anabela Botelho & Isabel Dinis & Lina Sofia Lourenço-Gomes & Jorge Moreira & Lígia Costa Pinto, 2013. "The importance of the origin of apple varieties: results from a discrete choice experiment in Portugal," NIMA Working Papers 54, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    9. Jasper Grashuis & Alexandre Magnier, 2018. "Product differentiation by marketing and processing cooperatives: A choice experiment with cheese and cereal products," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 813-830, October.
    10. Dobbs, Leah Moore & Jensen, Kimberly L. & Leffew, Megan Bruch & English, Burton C. & Lambert, Dayton M. & Clark, Christopher D., 2016. "Consumer Willingness to Pay for Tennessee Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-24, July.
    11. Kar Ho Lim & Michael Vassalos & Michael Reed, 2018. "Point-of-Sale Specific Willingness to Pay for Quality-Differentiated Beef," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    12. Rebecca Wasserman-Olin & Miguel I. Gómez & Thomas Björkman, 2023. "Meeting the Expectations of the Customer: Consumer Valuation of Broccoli Produced in the Eastern United States and the Impact of Local Marketing," Sustainability, MDPI, vol. 15(10), pages 1-13, May.
    13. Konrád Kiss & Csaba Ruszkai & Antónia Szűcs & Gábor Koncz, 2020. "Examining the Role of Local Products in Rural Development in the Light of Consumer Preferences—Results of a Consumer Survey from Hungary," Sustainability, MDPI, vol. 12(13), pages 1-24, July.
    14. Gioacchino Pappalardo & Giuseppe Di Vita & Giovanni La Via & Severino Romano & Antonella Vastola & Mario Cozzi & Mario D?Amico, 2019. "Exploring gender differences in the Italian traditional pizza consumption," Economia agro-alimentare, FrancoAngeli Editore, vol. 21(1), pages 11-28.
    15. Iryna Printezis & Carola Grebitus & Stefan Hirsch, 2019. "The price is right!? A meta-regression analysis on willingness to pay for local food," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    16. Herrmann, R. & Bissinger, K. & Krandick, L., 2018. "Implicit Prices of Sustainability Characteristics in Foods: the Case of the German Online Market for Honey," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277079, International Association of Agricultural Economists.
    17. DeLong, Karen L. & Jensen, Kimberly L. & Upendram, Sreedhar & Eckelkamp, Elizabeth, . "Consumer Preferences for Tennessee Milk," Journal of Food Distribution Research, Food Distribution Research Society, vol. 51(2).
    18. Dobbs, Leah & Jensen, Kimberly & Leffew, Megan & English, Burton & Lambert, Dayton & Clark, Christopher, 2015. "Willingness to Pay for Tennessee Beef among Tennessee Consumers," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196672, Southern Agricultural Economics Association.
    19. Anabela Botelho & Isabel Dinis & Lina Sofia Lourenço-Gomes & Jorge Moreira & Lígia Costa Pinto, 2014. "Origin or organoleptic characteristics of Pears: which is more valued in the market?," NIMA Working Papers 55, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    20. Jana Jaďuďová & Milada Šťastná & Iveta Marková & Emília Hroncová, 2023. "Regional Labelling as a Tool for Supporting Rural Development: A Slovak Case Study," Agriculture, MDPI, vol. 13(5), pages 1-14, May.
    21. Bissinger, Katharina & Herrmann, Roland & Krandick, Lisa, 2019. "Implicit Prices of Sustainability on the German Online Market for Honey," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(3), September.
    22. Haizhao Zhang & Zizhong Shi & Hui Zhou & Xiangdong Hu, 2023. "Pork Consumption Patterns among Rural Residents in China: A Regional and Cultural Perspective (2000–2020)," Agriculture, MDPI, vol. 13(10), pages 1-20, September.
    23. Shi, Wei & Halstead, John M. & Huang, Ju-Chin, 2017. "Market Experience Matters: Status Quo Effect in the Economic Valuation of Consumer Preferences for Local Produce," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258290, Agricultural and Applied Economics Association.

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