An Examination of Consumer Willingness to Pay for Local Products
Adalja, Aaron; Hanson, James; Towe, Charles; Tselepidakis, Elina
We use data from hypothetical and nonhypothetical choice-based conjoint analysis to estimate willingness to pay for local food products. The survey was administered to three groups: consumers from a buying club with experience with local and grass-fed production markets, a random sample of Maryland residents, and shoppers at a nonspecialty Maryland supermarket. We find that random-sample and supermarket shoppers are willing to pay a premium for local products but view local and grass-fed production as substitutes. Conversely, buying-club members are less willing to pay for local production than the other groups but do not confllate local and grass-fed production.
beef; conjoint analysis; field experiment; grass-fed; local; willingness to pay
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