scholarly journals Organic or Local? Investigating Consumer Preference for Fresh Produce Using a Choice Experiment with Real Economic Incentives

HortScience ◽  
2009 ◽  
Vol 44 (2) ◽  
pp. 366-371 ◽  
Author(s):  
Chengyan Yue ◽  
Cindy Tong

Determining consumers' preferences and willingness to pay (WTP) for organically grown and locally grown fresh produce is very important for stakeholders because it helps them figure out what type of fresh produce to grow and sell, what to emphasize in marketing efforts, and what are reasonable prices to charge. However, the literature that studies and compares consumers' preference and WTP for both organically and locally grown fresh produce is sparse. The objective of this study was to investigate consumers' WTP for organically grown and locally grown fresh produce and the marketing segmentation of these two types of produce. We combined a hypothetical experiment and nonhypothetical choice mechanism to investigate consumers' WTP for the attributes organic, local, and organic plus local for fresh produce. We found that when real products were used in the hypothetical experiment, the hypothetical bias (the difference between what people say they will pay and what they would actually pay) was not high. We found that consumers' WTP for the organic attribute was about the same as their WTP for the local attribute. Consumers' sociodemographics affected their choice between organically grown and locally grown produce. Furthermore, we found that consumers patronized different retail venues to purchase fresh produce with different attributes. The findings of the research have great importance for fresh produce stakeholders to make correct production and marketing decisions; the findings also contribute to experimental method choice in consumers' WTP research.

2011 ◽  
Vol 40 (1) ◽  
pp. 20-32 ◽  
Author(s):  
William E. Nganje ◽  
Renée Shaw Hughner ◽  
Nicholas E. Lee

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.


2019 ◽  
Vol 11 (19) ◽  
pp. 5219
Author(s):  
Makiko Nakano

Many previous studies on consumer choice have examined consumers’ willingness to pay (WTP) for attributes related to environmental issues. In Japan, long working hours have caused many problems, including death through overwork. However, to the best of the author’s knowledge, there are no previous studies examining WTP for the attribute related to long working hours in Japan. Therefore, this study aims to examine whether consumers prefer products without involving employees’ working long hours and to demonstrate the difference in WTP between the attribute of environmental issues (the product is made from organically grown raw cotton) and the attribute of long working hours in order to reveal Japanese consumers’ preference. The research methodology is a choice experiment using a questionnaire survey in Japan. The results indicate that the use of organically grown raw cotton can increase the WTP by JPY (Japanese yen) 121 on average. When an overworked employee who works more than 80 h of overtime per month is present, the WTP decreases by JPY 230 on average. The contribution of this study is to reveal WTP and show that consumers are interested in employees’ working hours in addition to the environmental issue. Preference heterogeneity is also examined.


2018 ◽  
Vol 10 (10) ◽  
pp. 76
Author(s):  
Jean D. Gumirakiza ◽  
Sarah M. VanZee

This study explains the most preferred food labels among online shoppers when purchasing food products. The study uses data from an online-based survey conducted in 2016. Participants are 1,205 online shoppers residing within the South region of the U.S. Using a binary logistic model, we found that the likelihood for online shoppers to consider food labels (other than prices) into their purchasing decision-making is 86 percent. Using a multinomial logit model, we found that the relative probability for “locally grown” labels to be the most important is 46 percent, 7 percent for “organically grown”, 24 percent for both local and organic, and 23 percent for other kinds of labels. The most common other important labels among this last group include nutrition contents, and country of origin. This study is significant to fresh produce growers and agricultural marketers because it provides an explanation of food labels those online shoppers consider to be the most important when shopping for fresh produce. It is significant to food products regulators who are interested in enforcing regulations related to food labels. Future researchers will find this analysis useful when furthering knowledge about this increasingly popular market venue.


Author(s):  
Yiqin Wang ◽  
Jingbin Wang ◽  
Dan Han ◽  
Shanshan Lv ◽  
Mo Chen ◽  
...  

China uses a multilevel agricultural certification system; however, its implications are not well understood. In this study, we used tomatoes as an example in a series of Becker-DeGroot-Marschak auction experiments to determine consumers’ willingness to pay (WTP) toward three safety certification labels and two kinds of brands. Then, based on the auction experiment results, we designed a menu-based choice experiment to assess the interaction relationships between the safety certification labels and brands. The results showed that consumers were generally willing to pay a premium for tomatoes with safety-certified labels (especially for organic labels) and brands (especially for the enterprise brand). Providing consumers with additional information regarding the certification remarkably improved their WTP for tomatoes with organic and green labels. The menu-based choice experiment suggested that the organic and green labels were found to be substitutes. In addition, organic and green labels could not substitute the enterprise brand, whereas the converse of this relationship was true. Finally, a mutual substitution relationship was observed between hazard-free label and enterprise brand. Our research enables producers to consider the interaction between certification strategies and brand strategies. Therefore, marketers and policymakers should take steps to promote and expand consumers’ knowledge on certification, as it could benefit the development of certified food.


2018 ◽  
Vol 48 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Qiushuo Yu ◽  
Ben Campbell ◽  
Yizao Liu ◽  
Jiff Martin

Community-supported agriculture (CSA) operators are becoming more innovative in their efforts to attract consumers to become CSA shareholders. Therefore, CSA operators must understand which attributes consumers value. Using an online survey of Connecticut consumers in conjunction with a choice experiment, we evaluate consumer preference and willingness to pay for various attributes, including risk mitigation. We find younger consumers are more likely to prefer CSAs with organic products, while a greater diversity of products in the CSA share will increase preference for a CSA for some consumers. Further, we find that consumers with and without CSA experience value the risk-mitigation attribute.


10.2196/24971 ◽  
2021 ◽  
Vol 4 (1) ◽  
pp. e24971
Author(s):  
Pengyi Zhu ◽  
Benjamin K P Woo

Background Herpes zoster affects approximately 1 million people annually in the United States, with postherpetic neuralgia as the most common complication. The frequent prescription of opioids as the first-line medication for herpes zoster or postherpetic neuralgia contributes to the increasing health care costs of their treatment. Despite the advent of internet retailers providing alternative products for the prevention and management these conditions, there are limited studies on the availability, ingredients, and consumer preference for the products. Objective This study used the internet retailer Amazon to determine the availability of products for the management of herpes zoster and postherpetic neuralgia, and assessed consumer preference based on listed ingredients. Methods The internet retailer Amazon was used to perform a search for products related to “shingles” in September 2020. Top products sorted by reviews and ratings were determined to be either shingles-specific (including “shingles” in either the product title or description) or shingles-nonspecific. Analysis of price, rating, type of vehicle, and ingredients was performed. The types of vehicles, ingredients, and percentages of positive and negative reviews related to “shingles” of the product groups were analyzed with a two-tailed two-sample proportions Z-test to assess the difference between shingles-specific and shingles-nonspecific products. Statistical significance was judged at P<.05. Results The top 131 products among over 3000 products retrieved were determined based on a rating of 4 or more stars after searching for the term “shingles” on Amazon. Forty-six of the 131 products (35.1%) were shingles-specific. Shingles-nonspecific products were more likely to have positive reviews mentioning “shingles” (P=.005). Vehicles, balms (P=.02), and salves (P=.04) were more likely to be shingles-specific, whereas tablets or capsules (P=.002) were more likely to be shingles-nonspecific. Among the ingredients analyzed, aloe vera was the top-ranked ingredient, included in 29 of the 131 total products (22.1%). Aloe vera (P=.01), lemon balm (P<.001), vitamin E (P=.03), and peppermint oil (P=.008) were more likely to be included in the shingles-specific products, whereas magnesium (P=.01) was more likely to be included in shingles-nonspecific products. Conclusions There is an abundance of products and ingredients being used for the management and treatment of shingles with certain ingredients preferred by consumers. There is a discrepancy between approved ingredients and the ingredients preferred by consumers. Furthermore, there are insufficient studies on ingredients used by consumers on internet retailers such as Amazon, and future studies can focus on the effectiveness of popular ingredients to decrease misinformation on the internet.


2018 ◽  
Vol 10 (12) ◽  
pp. 15
Author(s):  
Jean D. Gumirakiza ◽  
Taylor Choate

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.


2019 ◽  
Vol 85 (12) ◽  
Author(s):  
Jun-Won Kang ◽  
Dong-Hyun Kang

ABSTRACTIn this study, we developed a washing system capable of decontaminating fresh produce by combining the Spindle apparatus, which detaches microorganisms on sample surfaces, and a 222-nm krypton-chlorine excimer lamp (KrCl excilamp) (Sp-Ex) and investigated their decontamination effect againstEscherichia coliO157:H7,Salmonella entericaserovar Typhimurium, andListeria monocytogeneson apple (Malus domesticaBorkh.) and bell pepper (Capsicum annuumL.) surfaces. Initial levels of the three pathogens were approximately 108CFU/sample. BothE. coliO157:H7 andS.Typhimurium were reduced to below the detection limit (2.0 log CFU/sample) after 5 and 7 min of treatment on apple and bell pepper surfaces, respectively. The amounts ofL. monocytogeneson apple and bell pepper surfaces were reduced by 4.26 and 5.48 logs, respectively, after 7 min of treatment. The decontamination effect of the Sp-Ex was influenced by the hydrophobicity of the sample surface as well as the microbial cell surface, and the decontamination effect decreased as the two hydrophobicity values increased. To improve the decontamination effect of the Sp-Ex, Tween 20, a surfactant that weakens the hydrophobic interaction between the sample surface and pathogenic bacteria, was incorporated into Sp-Ex processing. It was found that its decontamination effect was significantly (P < 0.05) increased by the addition of 0.1% Tween 20. Sp-Ex did not cause significant quality changes in apple or bell pepper surfaces during 7 days storage following treatment (P > 0.05). Our results suggest that Sp-Ex could be applied as a system to control pathogens in place of chemical sanitizer washing by the fresh-produce industry.IMPORTANCEAlthough most fresh-produce processing currently controls pathogens by means of washing with sanitizers, there are still problems such as the generation of harmful substances and changes in product quality. A combination system composed of the Spindle and a 222-nm KrCl excilamp (Sp-Ex) developed in this study reduced pathogens on apple and bell pepper surfaces using sanitizer-free water without altering produce color and texture. This study demonstrates the potential of the Sp-Ex to replace conventional washing with sanitizers, and it can be used as baseline data for practical application by industry. In addition, implementation of the Sp-Ex developed in this study is expected not only to meet consumer preference for fresh, minimally processed produce but also to reduce human exposure to harmful chemicals while being beneficial to the environment.


Nutrients ◽  
2019 ◽  
Vol 11 (12) ◽  
pp. 2881 ◽  
Author(s):  
Rosaria Viscecchia ◽  
Giuseppe Nocella ◽  
Biagia De Devitiis ◽  
Francesco Bimbo ◽  
Domenico Carlucci ◽  
...  

The aim of this paper is to investigate consumers’ preferences and willingness to pay (WTP) for functional mozzarella cheese whose health benefits (reduced fat and enrichment in omega-3) are communicated by using nutrition claims (article 8) and health claims (articles 13 and 14) of the EU Regulation 1924/2006. In order to achieve the stated objective a choice survey was developed and administered to a sample of Italian respondents. The product attributes and attribute levels included in the choice experiment were obtained from in-depth interviews conducted with stakeholders working on the development of this new product in the Italian region of Puglia. Results show that many participants were not aware of functional food. Marketing segmentation performed via latent class analysis indicates that the development of this hypothetical product should be based on the addition of naturally enriched omega-3. In terms of health communication under Regulation 1924/2006, heterogeneity of preferences of the nine identified segments reveals that respondents have a clear preference for products from the Puglia region, for the combined nutrition claim over single nutrition claims and for the reduction of disease health claim (article 14) over the health claim (article 13). In monetary terms, willingness to pay for health claims is higher than nutrition claims.


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