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The Willingness to Pay for Local, Domestic, and Imported Bundled Fresh Produce by Online Shoppers

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  • Jean D. Gumirakiza
  • Taylor Choate

Abstract

This study applies a Censored Normal Tobit Model on the 2016 survey data from 1,205 online shoppers in the South region of the United States to explain their Willingness To Pay (WTP) for a bundle of fresh produce from different origins. This study indicates that online shoppers are willing to pay $6.91, $6.38, and $5.22 for four pounds of bundled fresh produce that are locally, domestically grown, and imported respectively. We found that income category, interests in online shopping, interest level for local, interest level for organic, and monthly spending on fresh produce have a significant positive impact on the WTP for locally grown fresh produce. Results indicate that being married, high income, interests in online shopping, interests in local produce, interests in organic, and the monthly spending on fresh produce increase the WTP for domestically grown fresh produce, while age and being a female diminishes it. We further found that age, being a female, and interest in the freshness of the produce decrease the WTP for imported produce. Based on the findings from this study, we have suggested a couple of marketing implications and suggestions.

Suggested Citation

  • Jean D. Gumirakiza & Taylor Choate, 2024. "The Willingness to Pay for Local, Domestic, and Imported Bundled Fresh Produce by Online Shoppers," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 10(12), pages 1-15, April.
    • Handle: RePEc:ibn:jasjnl:v:10:y:2024:i:12:p:15
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    References listed on IDEAS

    as
    1. Gumirakiza, Jean Dominique & Curtis, Kynda R. & Bosworth, Ryan C., 2014. "Who Attends Farmers’ Markets and Why? Understanding Consumers and their Motivations," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(2), pages 1-18, May.
    2. Darby, Kim & Batte, Marvin T. & Ernst, Stanley C. & Roe, Brian E., 2006. "Willingness to pay for locally produced foods: A customer intercept study of direct market and grocery store shoppers," 2006 Annual meeting, July 23-26, Long Beach, CA 21336, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Curtis, Kynda R. & Gumirakiza, J. Dominique & Bosworth, Ryan C., 2014. "Consumer Preferences and Willingness to Pay for Multi-Labeled Produce at Farmers' Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(1), pages 1-7, March.
    4. Gumirakiza J. Dominique & Curtis, Kynda R. & Bosworth, Ryan, 2015. "Farmers’ Market Consumer Preferences for Fresh Produce Attributes: Marketing and Policy Implications," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 33(1).
    5. Moser, Riccarda & Raffaelli, Roberta & Thilmany, Dawn D., 2011. "Consumer Preferences for Fruit and Vegetables with Credence-Based Attributes: A Review," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-22, May.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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