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State-Branded Programs and Consumer Preference for Locally Grown Produce

Published online by Cambridge University Press:  15 September 2016

William E. Nganje ,
Renée Shaw Hughner  and
Nicholas E. Lee
William E. Nganje
Affiliation:
Morrison School of Agribusiness and Resource Management at Arizona State University in Mesa, Arizona
Renée Shaw Hughner
Affiliation:
Morrison School of Agribusiness and Resource Management at Arizona State University in Mesa, Arizona
Nicholas E. Lee
Affiliation:
Pacific Technologies, Inc., in Bellevue, Washington
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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.

Keywords

state-branded producecertificationfood safetytraceabilitydiscrete choice models
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 40 , Issue 1 , April 2011 , pp. 20 - 32
Copyright
Copyright © 2011 Northeastern Agricultural and Resource Economics Association 

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