The Direct and Indirect Effects of ‘Locally Grown’ on Consumers’ Attitudes towards Agri-Food Products

Abstract

Recent agricultural economics literature has largely analyzed consumers’ willingness to pay (WTP) for many credence attributes, including place of origin, organic, locally grown, environment-friendly, fair trade, and animal welfare. In this study, we instead attempt to analyze why consumers value “locally grown,” which is a credence attribute receiving increasing attention in the market. Specifically, we propose a distinction between the direct effect and the indirect effect of “locally grown” on consumers’ attitudes towards agri-food products to explain consumers’ preferences for locally grown products. We collect data from an experiment with university students and analyze the data with a structural equation modeling methodology.

Marketing Power Berries: An Importance-Performance Analysis of Blueberry

“…Without access to a growers' location and expertise to evaluate the production method, consumers are not able to determine the authenticity of the products' local or organic production. Other credence attributes of food products found in the literature were genetically modified organism (GMO), animal welfare, calories content, pesticide free, and all natural (Dentoni, Tonsor, Calantone, & Peterson, 2009;He et al, 2015;Hill, Sanchez, Klein, & Boueri, 2015;Hong & Wyer, 1989;Van der Lans, Van Ittersum, De Cicco, & Loseby, 2001).…”

“…In two studies, consumers were found to be willing to pay a price premium for locally-produced food (Carpio & Isengildina-Mass, 2008;Ruth & Rumble, 2015). Local food has been reported to be perceived as having higher quality based on search and experience attributes such as freshness and taste (Byker, Rose, & Serrano, 2010;Chambers, Lobb, Butler, Harvey & Traill, 2007;Dentoni et al, 2009;Goodwin, 2013;Zepeda & Leviten-Reid, 2004). Researchers have reported that consumers believed local food has credence qualities of supporting local producers, supporting the local economy, as well as being environmentally friendly (Darby, Batte, Ernst, & Roe, 2008;Nimon & Beghin 1999;Loureiro, McCluskey, & Mittelhammer, 2002;Thilmany, Bond, & Bond, 2008).…”

Fruit and Vegetable Consumers’ Behavior: Implications for Organized Retailers in Emerging Markets

“…Outcomes of some studies have shown that the important criteria considered in buying fresh fruits and vegetables are quality and price, respectively (Akpinar et al, 2009). Studies have concluded that credence attributes have a positive impact on consumers' attitude toward a product and consequently influence consumers' buying intentions (Dentoni, Tonsor, Calantone, & Peterson, 2009;Gao, Schroeder, & Yu, 2010;Wirth, Stanton, & Wiley, 2011). Visual, smell, and aroma components were often top rated among attributes listed, which is logical because they represent the basic components of eating pleasures (Ernst, Batte, Darby, & Worley, 2006;Zanoli et al, 2003, cited in Moser, Raffaeli, & Thilmany-McFadden, 2011.…”

Consumer Characteristics and Willingness to Pay for Locally Produced Product: A Case Study of Rib-eye Steaks in the Northern Great Plains

“…For instance, Rao and Monroe (1988) suggested that the variations in rural consumers' preferences and WTP were due to gaps in their respective incomes, rather than their prior knowledge (or lack thereof) of the products. Two studies by Dentoni, Tonsor, Calantone, and Peterson (2009) and by James, Rickard, and Rossman (2009) suggested that consumers who have better knowledge of a product actually had less preference and WTP for that product's credibility attributes. Yu and Gao (2010) suggested that variations in study methods, the selection of product and consumer attributes, the study time period, and the geographic locations all contributed to the inconsistency of estimating WTP for beef cuts.…”