Hostname: page-component-848d4c4894-wg55d Total loading time: 0 Render date: 2024-06-07T08:36:12.086Z Has data issue: false hasContentIssue false
  • English
  • Français

Comparing Willingness to Pay for Organic, Natural, Locally Grown, and State Marketing Program Promoted Foods in the Mid-Atlantic Region

Published online by Cambridge University Press:  15 September 2016

Kathryn A. Onken ,
John C. Bernard  and
John D. Pesek Jr.
Kathryn A. Onken
Affiliation:
Department of Food and Resource Economics at the University of Delaware, in Newark, Delaware
John C. Bernard
Affiliation:
Department of Food and Resource Economics at the University of Delaware, in Newark, Delaware
John D. Pesek Jr.
Affiliation:
Department of Food and Resource Economics at the University of Delaware, in Newark, Delaware
Get access

Abstract

A choice experiment of Mid-Atlantic consumers was conducted to determine marginal willingness to pay for the attributes organic, natural, locally grown, and state marketing program promoted for strawberry preserves. The influence of purchasing venue on willingness to pay was also examined. Results indicated a price premium when purchased at a farmers market across all five states and versions. Organic was preferred to natural in only one state. Preference ordering between local and state program promoted varied. Consumers in Maryland and Pennsylvania clearly preferred local, while those in New Jersey seemed most likely to prefer the state program version.

Keywords

organicnaturallocally grownstate marketing programchoice experiment
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 40 , Issue 1 , April 2011 , pp. 33 - 47
Copyright
Copyright © 2011 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Atkinson, A.C., and Donev, A.N. 1992. Optimum Experimental Designs (Oxford Statistical Science Series). New York: Oxford University Press.Google Scholar
Batte, M., Hooker, N., Haab, T., and Beaverson, J. 2007. “Putting Their Money Where Their Mouths Are: Consumer Willingness to Pay for Multi-Ingredient, Processed Organic Food Products.” Food Policy 32(2): 145–159.CrossRefGoogle Scholar
Bond, C.A., Thilmany, D.D., and Bond, J.K. 2008. “What to Choose? The Value of Label Claims to Fresh Produce Consumers.” Journal of Agricultural and Resource Economics 33(3): 402–427.Google Scholar
Brown, C. 2003. “Consumers’ Preferences for Locally Produced Food: A Study in Southeastern Missouri.” American Journal of Alternative Agriculture 18(4): 213–224.Google Scholar
Carlsson, F., and Martinsson, P. 2001. “Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?” Journal of Environmental Economics and Management 41 (2): 179–192.CrossRefGoogle Scholar
Carpio, C.E., and Isengildina-Massa, O. 2009. “Measuring the Potential Impact of a Regional Agricultural Promotion Campaign: The Case of South Carolina.” Presented at the 2009 Southern Agricultural Economics Association annual meetings, Atlanta, GA (January 31 through February 3).Google Scholar
Commonwealth of Pennsylvania. 2009. “PA Preferred: Description.” Pennsylvania Department of Agriculture, Harrisburg. PA. Available at http://www.agriculture.state.pa.us/portal/server.pt/gateway/PTARGS_0_2_24476_10297_0_43/http%3B/10.41.0.36/AgWebsite/ProgramDetail.aspx?name=PA-Preferred%c2%ae&navid=12&parentnavid=0&palid=80& (accessed July 2009).Google Scholar
Commonwealth of Virginia. 2009. “What Is Virginia's Finest?” Virginia Department of Agriculture and Consumer Services, Richmond, VA. Available at http://www.vdacs.virginia.gov/vafinest/ (accessed July 2009).Google Scholar
Darby, K., Batte, M., Ernst, S., and Roe, B. 2008. “Decomposing Local: A Conjoint Analysis of Locally Produced Foods.” American Journal of Agricultural Economics 90(2): 476–486.CrossRefGoogle Scholar
Gifford, K., and Bernard, J.C. Forthcoming. “The Effect of Information on Consumers’ WTP for Natural and Organic Chicken.” International Journal of Consumer Studies.Google Scholar
Giraud, K., Bond, C., and Bond, J. 2005. “Consumer Preferences for Locally Made Specialty Food Products across Northern New England.” Agricultural and Resource Economics Review 34(2): 204–216.Google Scholar
Govindasamy, R., Schilling, B., Sullivan, K., Turvey, C., Brown, L., and Puduri, V. 2004. “Returns to the Jersey Fresh Promotional Program: The Impacts of Promotional Expenditures on Farm Cash Receipts in New Jersey.” Food Policy Institute Publication No. RR-0404-006, Department of Agricultural, Food and Resource Economics, Rutgers University, New Brunswick, NJ.Google Scholar
Greene, W.H. 2003. NLogit Version 3.0, Econometric Software Inc., Plainview, NY.Google Scholar
Hanagriff, R., Lau, M., and Rogers, S. 2009. “State Funded Marketing and Promotional Activities to Support a State's Winery Business: Are There Economics Returns? A Case Study Using Texas Senate Bill 1370's Support of the Texas Wine Industry.” Presented at the 2009 Southern Agricultural Economics Association annual meetings, Atlanta, GA (January 31 through February 3).Google Scholar
Henneberry, S.R., and Agustini, H.N. 2004. “An Analysis of Oklahoma Direct Marketing Outlets: Case Study of Produce Farmers’ Markets.” Presented at the 2004 Southern Agricultural Economics Association annual meetings, Tulsa, OK (February 14–18).Google Scholar
Hensher, D.A., and Greene, W.H. 2002. “Specification and Estimation of the Nested Logit Model: Alternative Normalisations.” Transportation Research Part B 36(1): 1–17.Google Scholar
Hu, W., Batte, M., Woods, T., and Ernst, S. 2010. “What Is Local and for What Foods Does It Matter?” Presented at the 2010 Southern Agricultural Economics Association annual meetings, Orlando, FL (February 6–9).Google Scholar
Hu, W., Woods, T., and Bastin, S. 2009. “Consumer Acceptance and Willingness to Pay for Blueberry Products with Nonconventional Attributes.” Journal of Agricultural and Applied Economics 41(1): 47–60.Google Scholar
Hughner, R.S., McDonagh, P., Prothero, A., Shultz, C.J. II, and Stanton, J. 2007. “Who Are Organic Food Consumers? A Compilation and Review of Why People Purchase Organic Food.” Journal of Consumer Behaviour 6(2/3): 94–110.CrossRefGoogle Scholar
Jekanowski, M.D., Williams, D.R., and Schiek, W.A. 2000. “Consumers’ Willingness to Purchase Locally Produced Agricultural Products: An Analysis of an Indiana Survey.” Agricultural and Resource Economics Review 29(1): 43–53.Google Scholar
Kuhfeld, W.F. 2009. “Marketing Research Methods in SAS.” Technical paper, SAS Institute Inc. Available at http://support.sas.com/techsup/technote/mr2009.pdf (accessed March 2009).Google Scholar
Loureiro, M.L., and Hine, S. 2002. “Discovering Niche Markets: A Comparison of Consumer Willingness to Pay for Local (Colorado Grown), Organic, and GMO-Free Products.” Journal of Agricultural and Applied Economics 34(3): 477–487.Google Scholar
Lusk, J., and Hudson, D. 2004. “Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making.” Review of Agricultural Economics 26(2): 152–169.CrossRefGoogle Scholar
Lusk, J.L., and Norwood, F.B. 2005. “Effect of Experimental Design on Choice-Based Conjoint Valuation Estimates.” American Journal of Agricultural Economics 86(4): 1032–1043.Google Scholar
Lusk, J.L., and Schroeder, T.C. 2004. “Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks.” American Journal of Agricultural Economics 86(2): 467–482.Google Scholar
Nielsen Company. 2009. “‘Natural’ Beats Organic’ in Food Sales According to Nielsen's Healthy Eating Report.” NielsenWire (January 21). Available at http://blog.nielsen.com/nielsenwire/consumer/%e2%80%9cnatural%e2%80%9d-beats-%e2%80%9corganic%e2%80%9d-in-food-sales-according-to-nielsen%e2%80%99s-healthy-eating-report/ (accessed January 2010).Google Scholar
Onianwa, O., Mojica, M., and Wheelock, G. 2006. “Consumer Characteristics and Views Regarding Farmers Markets.” Journal of Food Distribution Research 37(1): 119–125.Google Scholar
Onken, K.A., and Bernard, J.C. 2010. “Catching the ‘Local’ Bug: A Look at State Agricultural Marketing Programs.” Choices 25(1): 1–7.Google Scholar
Organic Trade Association (OTA). 2010. “Industry Statistics and Projected Growth.” Available at http://www.ota.com/organic/mt/business.html (accessed July 2010).Google Scholar
Packaged Facts. 2007. “Locally Grown Foods Niche Cooks Up at $5 Billion as America Chows Down on Fresh” Press release (June 20). Available at http://www.packagedfacts.com/about/release.asp?id=918 (accessed January 2010).Google Scholar
Patterson, P.M., Olofsson, H., Richards, T.J., and Sass, S. 1999. “An Empirical Analysis of State Agricultural Product Promotions: A Case Study on Arizona Grown.” Agribusiness 15(2): 179–196.Google Scholar
Roe, B., Irwin, E.G., and Morrow-Jones, H.A. 2004. “The Effects of Farmland, Farmland Preservation, and Other Neighborhood Amenities on Housing Values and Residential Growth.” Land Economics 80(1): 55–75.Google Scholar
Salant, P., and Dillman, D.A. 1994. How to Conduct Your Own Survey. New York: John Wiley & Sons, Inc.Google Scholar
Schneider, M.L., and Francis, C.A. 2005. “Marketing Locally Produced Foods: Consumer and Farmer Opinions in Washington County, Nebraska.” Renewable Agriculture and Food Systems 20(4): 252–260.Google Scholar
State of California. 2009. “Research.” Buy California Marketing Agreement (BCMA), State of California, Sacramento, CA. Available at http://www.californiagrown.org/licensing/research.asp (accessed July 2009).Google Scholar
State of Delaware. 2009. “Marketing: Our Services.” Delaware Department of Agriculture, Dover, DE. Available at http://www.delawarefresh.com (accessed July 2009).Google Scholar
State of Maryland. 2009. “Maryland's Best.” Maryland Department of Agriculture, Annapolis, MD. Available at http://www.marylandsbest.net (accessed July 2009).Google Scholar
State of New Jersey. 2009. “Jersey Fresh Quality Grading Program.” New Jersey Department of Agriculture, Trenton, NJ. Available at http://www.state.nj.us/agriculture/divisions/md/prog/jfqgp.html (accessed July 2009).Google Scholar
Stegelin, F. 2008. “Consumer Understanding of Buying Local, Fresh, and Safe.” Presented at the 2008 conference of the Food Distribution Society, Dublin, OH (October 11–15).Google Scholar
Thilmany, D., Bond, C.A., and Bond, J.K. 2008. “Going Local: Exploring Consumer Behavior and Motivations for Direct Food Purchases.” American Journal of Agricultural Economics 90(5): 1303–1309.Google Scholar
U.S. Department of Agriculture. 2009. “Farmers Market Growth: 1994–2009.” Agricultural Marketing Service (AMS), U.S. Department of Agriculture, Washington, D.C. Available at http://www.ams.usda.gov/ (accessed January 2010).Google Scholar
U.S. Department of Agriculture. 2010a. “Going Organic.” National Organic Program (NOP), U.S. Department of Agriculture, Washington, D.C. Available at http://www.ams.usda.gov/nop (accessed October 2010).Google Scholar
U.S. Department of Agriculture. 2010b. “Meat and Poultry Labeling Terms.” Food Safety and Inspection Service (FSIS), U.S. Department of Agriculture, Washington, D.C. Available at http://www.fsis.usda.gov/factsheets/Meat_&_Poultry_Labeling_Terms/index.asp (accessed July 2010).Google Scholar
Yiridoe, E.K., Bonti-Ankomah, S., and Martin, R.C. 2005. “Comparison of Consumer Perceptions and Preferences toward Organic versus Conventionally Produced Foods: A Review and Update of the Literature.” Renewable Agriculture and Food Systems 20(4): 193–205.Google Scholar
Zepeda, L., and Leviten-Reid, C. 2004. “Consumers’ Views on Local Food.” Journal of Food Distribution Research 35(3): 1–6.Google Scholar