State-branded programs and consumer preference for locally grown produce

William E. Nganje, Renee Hughner, Nicholas E. Lee

Research output: Contribution to journalArticle

32 Scopus citations

Abstract

Revitalization of state brands is deemed important to several constituencies. Stated preference with choice experiment methods were used to elicit consumer preferences for two locally grown products: spinach, which has had a well-publicized food safety incidence, and carrots, which have had no such incidence in recent history. A full factorial design was used to implement the choice experiment, with each commodity having four identical attributes varying at different levels. Findings reveal that consumers are willing to pay a premium for locally grown spinach marked with the Arizona Grown label over locally grown spinach that was not labeled. This premium was higher than the premium that would be paid for state-branded carrots. This difference highlights consumers' perceptions of "locally grown" as an indicator of safety in their food supply. Findings have important implications with respect to providing consumer value and point to differentiated positioning strategies for state-branded produce.

Original languageEnglish (US)
Pages (from-to)20-32
Number of pages13
JournalAgricultural and Resource Economics Review
Volume40
Issue number1
DOIs
StatePublished - Apr 2011

Keywords

  • Certification
  • Discrete choice models
  • Food safety
  • Traceability
  • Z-branded produce

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics

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