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The Direct and Indirect Effects of ‘Locally Grown’ on Consumers’ Attitudes towards Agri-Food Products

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  • Dentoni, Domenico
  • Tonsor, Glynn T.
  • Calantone, Roger J.
  • Peterson, H. Christopher

Abstract

Recent agricultural economics literature has largely analyzed consumers’ willingness to pay (WTP) for many credence attributes, including place of origin, organic, locally grown, environment friendly, fair trade, and animal welfare. In this study, we instead attempt to analyze why consumers value “locally grown,” which is a credence attribute receiving increasing attention in the market. Specifically, we propose a distinction between the direct effect and the indirect effect of “locally grown” on consumers’ attitudes towards agri-food products to explain consumers’ preferences for locally grown products. We collect data from an experiment with university students and analyze the data with a structural equation modeling methodology.

Suggested Citation

  • Dentoni, Domenico & Tonsor, Glynn T. & Calantone, Roger J. & Peterson, H. Christopher, 2009. "The Direct and Indirect Effects of ‘Locally Grown’ on Consumers’ Attitudes towards Agri-Food Products," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(3), pages 1-13, December.
    • Handle: RePEc:ags:arerjl:59252
    DOI: 10.22004/ag.econ.59252
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    1. van Ittersum, Koert & Candel, Math J. J. M. & Meulenberg, Matthew T. G., 2003. "The influence of the image of a product's region of origin on product evaluation," Journal of Business Research, Elsevier, vol. 56(3), pages 215-226, March.
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    Cited by:

    1. Jason R.V. Franken & Joost M.E. Pennings & Philip Garcia, 2017. "Risk attitudes and the structure of decision†making: evidence from the Illinois hog industry," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 41-50, January.
    2. Adalja, Aaron & Hanson, James & Towe, Charles & Tselepidakis, Elina, 2015. "An Examination of Consumer Willingness to Pay for Local Products," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(3), pages 253-274, December.
    3. Ge, Houtian & Gomez, Miguel I. & Richards, Timothy J., 2018. "Retailer Marketing Strategy and Consumer Purchase Decision for Local Food – An Agent-Based Model," 2018 Annual Meeting, August 5-7, Washington, D.C. 273819, Agricultural and Applied Economics Association.
    4. Wirth, Ferdinand F. & Stanton, John L. & Wiley, James B., 2011. "The Relative Importance of Search versus Credence Product Attributes: Organic and Locally Grown," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-15, April.
    5. Marco A. Palma & Alba J. Collart & Christopher J. Chammoun, 2015. "Information Asymmetry in Consumer Perceptions of Quality-Differentiated Food Products," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(3), pages 596-612, November.
    6. Lefèvre, Mélanie, 2014. "Do Consumers Pay More for What They Value More? The Case of Local Milk-based Dairy Products in Senegal," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(1), pages 1-20, April.
    7. Hussein, Mohamud & Fraser, Iain & Costanigro, Marco, 2016. "Hedonic Analysis of Origin of Meat In The United Kingdom," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236353, Agricultural Economics Society.
    8. Elena Kokthi & Drita Kruja, 2017. "Customer Based Brand Equity Analysis: An Empirical Analysis to Geographical Origin," Proceedings- 11th International Conference on Mangement, Enterprise and Benchmarking (MEB 2017),, Óbuda University, Keleti Faculty of Business and Management.
    9. Gedikoglu, Haluk & Parcell, Joe L., 2014. "Variation of Consumer Preferences Between Domestic and Imported Food: The Case of Artisan Cheese," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-21, July.
    10. Christian Garavaglia & Paolo Mariani, 2017. "How Much Do Consumers Value Protected Designation of Origin Certifications? Estimates of willingness to Pay for PDO Dry‐Cured Ham in Italy," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 403-423, June.
    11. Chad M. Baum & Robert Weigelt, 2019. "How Where I Shop Influences What I Buy: The Importance of the Retail Format in Sustainable Tomato Consumption," Economic Complexity and Evolution, in: Andreas Chai & Chad M. Baum (ed.), Demand, Complexity, and Long-Run Economic Evolution, pages 141-169, Springer.
    12. Skreli, Engjell & Imami, Drini, 2012. "Analyzing Consumers’ Preferences for Apple Attributes in Tirana, Albania," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(4), pages 1-20, November.
    13. 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.
    14. Barbara Cafarelli & Piermichele La Sala & Giustina Pellegrini & Mariantonietta Fiore, 2017. "Consumers? preferences investigation for extra virgin olive oil basing on conjoint analysis," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(1), pages 203-218.
    15. Vukasovič, Tina, 2015. "Attitudes towards organic fruits and vegetables," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(1), pages 1-15.
    16. Rajković, Borislav & Đurić, Ivan & Zarić, Vlade & Glauben, Thomas, 2021. "Gaining trust in the digital age: The potential of social media for increasing the competitiveness of small and medium enterprises," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(4).
    17. Garavaglia, Christian & Mariani, Paolo, 2015. "How Much Do Consumers Value PDO Certifications? Estimates of WTP for PDO Dry-Cured Ham in Italy," 145th Seminar, April 14-15, 2015, Parma, Italy 200376, European Association of Agricultural Economists.
    18. Jing Xie & Zhifeng Gao & Marilyn Swisher & Xin Zhao, 2016. "Consumers’ preferences for fresh broccolis: interactive effects between country of origin and organic labels," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 181-191, March.
    19. Parcell, Joseph L. & Gedikoglu, Haluk, 2012. "Consumer Preference Variation between Domestic and Imported Food," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124183, Agricultural and Applied Economics Association.
    20. Boncinelli, Fabio & Contino, Caterina & Romano, Caterina & Scozzafava, Gabriele & Casini, Leonardo, 2016. "Territory, environment, and healthiness in traditional food choices: insights into consumer heterogeneity," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(1), October.
    21. Sackett, Hillary M. & Shupp, Robert S. & Tonsor, Glynn T., 2012. "Discrete Choice Modeling of Consumer Preferences for Sustainably Produced Steak and Apples," 2012 AAEA/EAAE Food Environment Symposium 123517, Agricultural and Applied Economics Association.
    22. McKay, Lettie & DeLong, Karen L. & Jensen, Kimberly L. & Griffith, Andrew P. & Boyer, Christopher N., 2018. "Restaurants’ Willingness to Pay for Tennessee Certified Beef," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266578, Southern Agricultural Economics Association.
    23. Chang, Kuo-Liang & Elliott, Lisa M. & Sand, Shannon & Dailey, Rocky & Blachford, Sierra, 2014. "A Study of the Impacts of Social Media Outlets on Generation-X and Millennial Consumers’ Beef Consumption, with an Emphasis on the Importance of Nutrition Information," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169648, Agricultural and Applied Economics Association.
    24. Alho, Eeva, 2015. "The effect of social bonding and identity on the decision to invest in food production," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 59(C), pages 47-55.

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