IDEAS home Printed from https://ideas.repec.org/a/ibn/jasjnl/v10y2024i12p15.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/jas/article/download/0/0/37339/37630
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/jas/article/view/0/37339
    Download Restriction: no
    ---><---

    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. 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).
    3. 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.
    4. 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).
    5. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chenyi He & Ruifeng Liu & Zhifeng Gao & Xin Zhao & Charles A. Sims & Rodolfo M. Nayga, 2021. "Does local label bias consumer taste buds and preference? Evidence of a strawberry sensory experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 550-568, July.
    2. Corsi, Alessandro & Frontuto, Vito & Novelli, Silvia, 2022. "Relational goods and direct purchase from farmers: estimating the value of the relationship between consumers and producers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(2), March.
    3. Rebecca Dunning & J. Bloom & Nancy Creamer, 2015. "The local food movement, public-private partnerships, and food system resiliency," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 5(4), pages 661-670, December.
    4. Melanie Lefevre, 2011. "Willingness-to-pay for Local Milk-based Dairy Product in Senegal," CREPP Working Papers 1108, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
    5. Schulz, Lee L. & Schroeder, Ted C. & White, Katharine L., 2012. "Value of Beef Steak Branding: Hedonic Analysis of Retail Scanner Data," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(2), pages 1-14, August.
    6. Dominic Lemken & Mandy Knigge & Stephan Meyerding & Achim Spiller, 2017. "The Value of Environmental and Health Claims on New Legume Products: A Non-Hypothetical Online Auction," Sustainability, MDPI, vol. 9(8), pages 1-18, July.
    7. Vesselin Blagoev & Elena Shustova & Inna Mischenko, 2021. "Buyer Behaviour in the Case of Organic Agricultural Products," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 124-139.
    8. Maples, McKenzie & Morgan, Kimberly L. & Interis, Matthew G. & Harri, Ardian, 2013. "Who Buys Food Directly from Producers in the Southeastern United States?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(3), pages 509-518, August.
    9. Ildikó Kovács & Marietta Balázsné Lendvai & Judit Beke, 2022. "The Importance of Food Attributes and Motivational Factors for Purchasing Local Food Products: Segmentation of Young Local Food Consumers in Hungary," Sustainability, MDPI, vol. 14(6), pages 1-14, March.
    10. Gallardo, R. Karina & Olanie, Aaron & Ordóñez, Rita & Ostrom, Ostrom, 2015. "The Use of Electronic Payment Machines at Farmers Markets: Results from a Choice Experiment Study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(1), pages 1-26, February.
    11. Gumirakiza, Jean Dominique & VanZee, Sarah, 2018. "The Most Important Food Labels among Online Shoppers when Shopping for Fresh Produce," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266683, Southern Agricultural Economics Association.
    12. Onyango, Benjamin & Govindasamy, Ramu & Alsup-Egbers, Clydette Michelle, 2015. "Uncovering Success Attributes for Direct Farmers’ Markets and Agri-Tourism in the Mid-Atlantic Region of the United States," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(2), pages 1-16, May.
    13. Azucena Gracia & Miguel I. Gómez, 2020. "Food Sustainability and Waste Reduction in Spain: Consumer Preferences for Local, Suboptimal, And/Or Unwashed Fresh Food Products," Sustainability, MDPI, vol. 12(10), pages 1-15, May.
    14. Stewart, Hayden & Dong, Diansheng, 2018. "How strong is the demand for food through direct-to-consumer outlets?," Food Policy, Elsevier, vol. 79(C), pages 35-43.
    15. Chen, Junhong & Gao, Zhifeng & Nian, Yefan, 2021. "Modeling the Joint Decisions on Consumer Store Selection and Product Choice," 2021 Annual Meeting, August 1-3, Austin, Texas 313963, Agricultural and Applied Economics Association.
    16. Anna Birgitte Milford & Nina Trandem & Armando José Garcia Pires, 2021. "Fear of pesticide residues and preference for domestically produced strawberries," Review of Agricultural, Food and Environmental Studies, Springer, vol. 102(4), pages 369-391, December.
    17. Milford, Anna & Lien, Gudbrand & Reed, Matthew, 2021. "Different Sales Channels for Different Farmers: Local and Mainstream Marketing of Organic Fruits and Vegetables in Norway," 2021 Conference, August 17-31, 2021, Virtual 315058, International Association of Agricultural Economists.
    18. Luigi Cembalo & Alessia Lombardi & Stefano Pascucci & Domenico Dentoni & Giuseppina Migliore & Fabio Verneau & Giorgio Schifani, 2015. "“Rationally Local”: Consumer Participation in Alternative Food Chains," Agribusiness, John Wiley & Sons, Ltd., vol. 31(3), pages 330-352, June.
    19. 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.
    20. Brian Lee & Jhih‐Yun Liu & Hung‐Hao Chang, 2020. "The choice of marketing channel and farm profitability: Empirical evidence from small farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 402-421, June.

    More about this item

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:jasjnl:v:10:y:2024:i:12:p:15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.