No abstract

The choices consumers make about fresh produce, such as where it is purchased and what they are willing to pay, are likely influenced by a range of private and public attributes. This study uses factor and cluster analysis techniques to explore the preferences of consumers who responded to a 2006 national survey to determine the dimensions over which consumers make purchasing decisions and to identify key market segments. Analysis is based on a variety of survey questions relating to preferences for various fresh produce traits and process attributes, as well as willingness to pay for a subset of these attributes. We find that although there is only a small degree of correlation between tested variables, four consumer clusters can be identified as market segments: Urban, Assurance Seekers, Price Conscious Consumers, Quality and Safety Consumers, and Personal Value Buyers. Each cluster values both private and public attributes, though with differing intensities and focus. [EconLit citations: Q130, D120]. © 2008 Wiley Periodicals, Inc.

There is evidence that consumers are increasingly purchasing food directly from local producers, but little is understood about which market-specific, intrinsic, extrinsic, and demographic attributes influence the probability of preferring to purchase fresh produce through direct-market channels. A multinomial logit model is used to analyze a national dataset of fresh produce consumers with a focus on exploring differences among those that prefer to purchase direct always, occasionally (seasonally and as a secondary source), and never. Results suggest that to increase patronage and loyalty of current customers, producers may emphasize the availability of fresh, superior, vitamin-rich, and locally-grown produce at market locations through booth displays, ads in magazines, radio spots, and electronic newsletters. To attract new customers who do not currently admit a preference for purchasing direct, producers may find greater success by locating in convenient-to-reach venues, showcasing a variety of colorful offerings, and working to enhance the overall aesthetic appeal of market locations.

Does willingness to pay a premium for local specialty food products differ between consumers in Maine, New Hampshire, and Vermont? Two food categories are investigated: low-end ($5) and high-end ($20) products. Premia estimates are compared across states and across base prices within states using dichotomous choice contingent valuation methods. Results suggest that the three states of northern New England have many similarities, including comparable price premia for the lower-priced good. However, there is some evidence that the premium for the higher-priced good is greater for the pooled Vermont and Maine treatment than for the New Hampshire treatment. Vermont and New Hampshire residents are willing to pay a higher premium for a $20 than for a $5 food item, while the evidence suggests that Maine residents are not.