Hostname: page-component-76fb5796d-qxdb6 Total loading time: 0 Render date: 2024-04-26T17:52:23.471Z Has data issue: false hasContentIssue false

Consumer factors associated with purchasing local versus global value chain foods

Published online by Cambridge University Press:  03 November 2016

Svetlana Bogomolova
Affiliation:
Ehrenberg-Bass Institute for Marketing Science, Business School, University of South Australia, Adelaide, South Australia, Australia
Adam Loch*
Affiliation:
Centre for Global Food and Resources, University of Adelaide, Adelaide, South Australia, Australia
Larry Lockshin
Affiliation:
Ehrenberg-Bass Institute for Marketing Science, Business School, University of South Australia, Adelaide, South Australia, Australia
Jon Buckley
Affiliation:
Alliance for Research in Exercise, Nutrition and Activity (ARENA), University of South Australia, Adelaide, South Australia, Australia
*
*Corresponding author: adam.loch@adelaide.edu.au

Abstract

Global value chains (GVCs) have grown to represent the major source of modern food and grocery items. Yet there is an increasing preference among consumers toward locally sourced and supplied foods among perceptions of health, economic and community benefits. Typically purchased in farmers’ markets and specialty outlets, local foods are becoming more widely available in supermarkets, who are now interested in how they might introduce or increase that product range. We collect actual purchase data from a regional supermarket chain and analyze the drivers of higher local food proportional outcomes across a sample of consumers. Attempts to link theoretically important drivers of local food purchasing in traditional (e.g., farmers’ market) outlets to supermarket settings proved difficult. Results do, however, suggest some means by which parties interested in developing local value chains between regional suppliers and supermarket outlets could be achieved. As such, the study is a useful first-step in the development of new value chains to address future potential issues of socio-economic stratification and inequality as a consequence of GVC prevalence.

Type
Research Article
Copyright
Copyright © Cambridge University Press 2016 

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

Aitchison, J. 1984. The statistical analysis of geochemical compositions. Journal of the International Association for Mathematical Geology 16:531564.Google Scholar
Aitchison, J. and Egozcue, J. 2005. Compositional data analysis: Where are we and where should we be heading? Mathematical Geology 37:829850.Google Scholar
Anesbury, Z.W. 2014. How Online Shoppers Behave: Describing and Comparing Patterns in Online Supermarket Shopper Behaviour. Ehrenberg-Bass Institute for Marketing Science – University of South Australia, Adelaide, SA.Google Scholar
Angell, R., Memery, J., Megicks, P., and Lindgreen, A. 2015. Unpicking motives to purchase locally-produced food: Analysis of direct and moderation effects. European Journal of Marketing 7/8: 12071233.Google Scholar
Armstrong, J.S. and Green, K.C. 2013. Effects of corporate social responsibility and irresponsibility policies. Journal of Business Research 66:19221927.Google Scholar
Australian Government 2012. FOODmap: An Analysis of the Australian Food Supply Chain. Department of Agriculture, Fisheries and Forestry, Canberra, ACT.Google Scholar
Bailey, M. 2013. Consumer profiles and behavior in Australian shopping centers, new benchmarks for assessing mall shopping patterns. Retail Property Insights 20:411.Google Scholar
Bennett, R., Kerrigan, F., O'REILLY, D., Lee, Z., and Sargeant, A. 2011. Dealing with social desirability bias: An application to charitable giving. European Journal of Marketing 45:703719.Google Scholar
Bianchi, C. and Mortimer, G. 2015. Drivers of local food consumption: A comparative study. British Food Journal 117:22822299.Google Scholar
Brennan, M. and Esslemont, D. 1994. The accuracy of the Juster scale for predicting purchase rates of branded, fast-moving consumer goods. Marketing Bulletin 5:4752.Google Scholar
Brown, C. 2003. Consumers’ preferences for locally produced food: a study in southeast Missouri. American Journal of Alternative Agriculture 18:213224.CrossRefGoogle Scholar
Brown, E., Dury, S., and Holdsworth, M. 2009. Motivations of consumers that use local, organic fruit and vegetable box schemes in Central England and Southern France. Appetite 53:183188.Google Scholar
Buis, M.L. 2010. Relationship between the Likelihood Functions used in fmlogit and mlogit . Universität Tübingen, Institut für Soziologie, Tübingen, Germany.Google Scholar
Carpio, C.E. and Isengildina-Massa, O. 2009. Consumer willingness to pay for locally grown products: The case of South Carolina. Agribusiness 25:412426.Google Scholar
Cohen, D.A. and Babey, S.H. 2012. Contextual influences on eating behaviours: Heuristic processing and dietary choices. Obesity Reviews 13:766779.Google Scholar
Coles 2015. We Work Hard to Source Our Fresh Fruit & Veg from Aussie Growers through Our Australia First Sourcing Policy [Online]. Coles Supermarkets Australia, Sydney, Australia. Available at Web site: https:// http://www.coles.com.au/corporate-responsibility/aussie-made-and-grown/fresh-fruit-and-veg (verified 27 February 2015).Google Scholar
Conner, D., Colasanti, K., Ross, R.B., and Smalley, S.B. 2010. Locally grown foods and farmers markets: Consumer attitudes and behaviors. Sustainability 2:742756.Google Scholar
Cook, D. and Kieschnick, R. 2008. Regression analysis of proportions in finance with self-selection. Journal of Empirical Finance 15:860867.Google Scholar
Cranfield, J., Henson, S., and Blandon, J. 2012. The effect of attitudinal and sociodemographic factors on the likelihood of buying locally produced food. Agribusiness 28:205221.CrossRefGoogle Scholar
Creamer, N.G. and Dunning, R.D. 2012. Local food systems for a healthy population. North Carolina Medical Journal 73:310.Google Scholar
Darby, K., Batte, M.T., Ernst, S., and Roe, B. 2008. Decomposing local: A conjoint analysis of locally produced foods. American Journal of Agricultural Economics 90:476486.Google Scholar
Eastwood, D.B., Brooker, J.R., and Gray, M.D. 1999. Location and other market attributes affecting farmer's market patronage: The case of Tennessee. Journal of Food Distribution Research 30:6372.Google Scholar
Euromonitor International 2015. Grocery Retailers in Australia [Online]. Euromonitor International, Sydney, Australia. Available at Web site: http://www.euromonitor.com/grocery-retailers-in-australia/report (verified 14 November 2015).Google Scholar
FMI 2012. U.S. Grocery Shopper Trends. Food Marketing Institute, Arlington, VA.Google Scholar
Gereffi, G. 1994. The Organization of Buyer-Driven commodity chain: How US retailers shape overseas production networks. In Gereffi, G. and Korzeniewicz, M. (eds). Commodity Chains and Global Capitalism. Praeger, Westport, Connecticut, London.Google Scholar
Gracia, A., De Magistris, T., and Nayga, R.M. 2012. Importance of social influence in consumers’ willingness to pay for local food: Are there gender differences? Agribusiness 28:361371.Google Scholar
Haines, J. and Neumark-Sztainer, D. 2006. Prevention of obesity and eating disorders: A consideration of shared risk factors. Health Education Research 21:770782.Google Scholar
Hammond, K., Ehrenberg, A.S., and Goodhardt, G.J. 1996. Market segmentation for competitive brands. European Journal of Marketing 30:3949.Google Scholar
Hu, M.Y., Toh, R.S., and Lee, E. 2000. Survey accuracy as a function of usage rate. Marketing Letters 11:335348.Google Scholar
Hu, W., Batte, M.T., Woods, T., and Ernst, S. 2012. Consumer preferences for local production and other value-added label claims for a processed food product. European Review of Agricultural Economics 39:489510.Google Scholar
Ilbery, B. and Maye, D. 2006. Retailing local food in the Scottish–English borders: A supply chain perspective. Geoforum 37:352367.Google 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 29:4353.CrossRefGoogle Scholar
Kennedy, R. and Ehrenberg, A. 2001. There is no brand segmentation. Marketing Research 13:4.Google Scholar
Koch, S.F. 2010. Fractional Multinomial Response Models with an Application to Expenditure Shares. Working Paper 2010–21. Department of Economics, University of Pretoria, Pretoria, South Africa.Google Scholar
Kotler, P. and Armstrong, G. 2010. Principles of Marketing. Pearson Education, New Jersey.Google Scholar
Krysan, M., Schuman, H., Scott, L.J., and Beatty, P. 1994. Response rates and response content in mail versus face-to-face surveys. Public Opinion Quarterly 58:381399.CrossRefGoogle Scholar
Ludwichowska, G.M. 2013. Can we Fix Errors in Self-Reported Buying Frequencies. Submission for the award of Master of Business (Research), University of South Australia, Adelaide, South Australia, Australia.Google Scholar
Ludwichowska, G. and Romaniuk, J. 2012. Who is the culprit? Errors in self-reported category buying frequencies. Australian New Zealand Marketing Association Conference. 1–3 December; Adelaide.Google Scholar
Mcguinness, S. and Wooden, M. 2009. Overskilling, job insecurity, and career mobility. Industrial Relations: A Journal of Economy and Society 48:265286.Google Scholar
Morgan, R. 2015. Supermarkets Dominate Fruit and Vegetable Trade-Even for Fresh Market Shoppers. Roy Morgan Research, Sydney, Australia.Google Scholar
Morsbach, S.K. and Prinz, R.J. 2006. Understanding and improving the validity of self-report of parenting. Clinical Child and Family Psychology Review 9:121.Google Scholar
Mu, J. and Mccarl, B. 2011. Adaptation to climate change: land use and livestock management change in the US. Southern Agricultural Economics Association Annual Meeting. Corpus Christi TX, February 5–8.Google Scholar
Nanney, M.S., Johnson, S., Elliott, M., and Haire-Joshu, D. 2007. Frequency of eating homegrown produce is associated with higher intake among parents and their preschool-aged children in rural Missouri. Journal of the American Dietetic Association 107:577584.Google Scholar
Nenycz-Thiel, M., Beal, V., Ludwichowska, G., and Romaniuk, J. 2013. Investigating the accuracy of self-reports of brand usage behavior. Journal of Business Research 66:224232.CrossRefGoogle Scholar
Oberhofer, H. and Pfaffermayer, M. 2009. Fractional response models – A replication exercise of Papke and Wooldridge (1996). Working papers in Economics and Statistics. University of Innsbruck.Google Scholar
Onianwa, O., Wheelock, G., and Mojica, M. 2005. An analysis of the determinants of farmer-to-consumer direct-market shoppers. Journal of Food Distribution Research 36:130134.Google Scholar
Onozaka, Y., Nurse, G., and Mcfadden, D.T. 2010. Local food consumers: How motivations and perceptions translate to buying behavior. Choices 25:16.Google Scholar
Papke, L.E. and Wooldridge, J.M. 1996. Econometric methods for fractional response variables with an application to 401 (K) plan participation rates. Journal of Applied Econometrics 11:619632.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 15:179196.3.0.CO;2-K>CrossRefGoogle Scholar
Pearson, D. and Bailey, A. 2012. Exploring the market potential of ‘local’ in food systems. Locale: The Australasian-Pacific Journal of Regional Food Studies 2:82103.Google Scholar
Peloza, J. and Shang, J. 2011. How can corporate social responsibility activities create value for stakeholders? A systematic review. Journal of the academy of Marketing Science 39:117135.Google Scholar
Phua, P., Page, B. and Bogomolova, S. 2015. Validating Bluetooth logging as metric for shopper behaviour studies. Journal of Retailing and Consumer Services 22:158163.Google Scholar
Porter, M. 1985. Competitive Advantage: Creating and Sustaining Superior Performance. Simon and Schuster, New York.Google Scholar
Racine, E.F., Mumford, E.A., Laditka, S.B., and Lowe, A.E. 2013. Understanding characteristics of families who buy local produce. Journal of Nutrition Education and Behavior 45:3038.Google Scholar
Robinson-O'brien, R., Larson, N., Neumark-Sztainer, D., Hannan, P., and Story, M. 2009. Characteristics and dietary patterns of adolescents who value eating locally grown, organic, nongenetically engineered, and nonprocessed food. Journal of Nutrition Education and Behavior 41:1118.Google Scholar
Salois, M.J. 2012. Obesity and diabetes, the built environment, and the ‘local'food economy in the United States, 2007. Economics & Human Biology 10:3542.Google Scholar
Smith, A.F., Jobe, J.B., and Mingay, D.J. 1991. Retrieval from memory of dietary information. Applied Cognitive Psychology 5:269296.CrossRefGoogle Scholar
Sorenson, H. 2009. Inside the Mind of the Shopper. Pearson Education, Upper Saddle River, NJ.Google Scholar
Thaler, R.H. and Sunstein, C.R. 2008. Nudge: Improving Decisions about Health, Wealth, and Happiness. Yale University Press, New Haven, CT.Google Scholar
Tourangeau, R. 2000. Remembering what happened: memory errors and survey reports. In Stone, A., Turkkan, J., Bachrach, C., Jobe, J., Kurtzman, H. and Cain, V. (eds). The Science of Self-Report: Implications for Research and Practice. Lawrence Erblaum Associates Inc., Mahwah, NJ.Google Scholar
Tourangeau, R. and Smith, T.W. 1996. Asking sensitive questions the impact of data collection mode, question format, and question context. Public Opinion Quarterly 60:275304.Google Scholar
Treadgold, A. 1996. Food retailing in Australia-three retailers, three strategies. International Journal of Retail & Distribution Management 24:616.Google Scholar
Trobe, H.L. 2001. Farmers’ markets: Consuming local rural produce. International Journal of Consumer Studies 25:181192.Google Scholar
Uncles, M., Kennedy, R., Nenycz-Thiel, M., Singh, J., and Kwok, S. 2012. In 25 years, across 50 categories, user profiles for directly competing brands seldom differ: Affirming Andrew Ehrenberg's principles. Journal of Advertising Research 52:252261.Google Scholar
Wind, Y. and Lerner, D. 1979. On the measurement of purchase data: Surveys versus purchase diaries. Journal of Marketing Research 16:3947.Google Scholar
Woolworths 2015. 96% of Our Fresh Fruit and Vege is Grown Right here in Australia and if it's not, here's why [Online]. Woolworths Supermarkets, Sydney, Australia. Available at Web site: http://www.woolworths.com.au/wps/wcm/connect/website/woolworths/freshfoodideas/fresh+food+guides/fresh+food+chart/fresh+food+chart (verified 25 September 2015).Google Scholar
Wright, M., Sharp, A., and Sharp, B. 2002. Market statistics for the Dirichlet model: Using the Juster scale to replace panel data. International Journal of Research in Marketing 19:8190.Google Scholar
Zepeda, L. 2009. Which little piggy goes to market? Characteristics of US farmers’ market shoppers. International Journal of Consumer Studies 33:250257.Google Scholar
Zepeda, L. and Li, J. 2006. Who buys local food? Journal of Food Distribution Research 37:1.Google Scholar