Hostname: page-component-586b7cd67f-tf8b9 Total loading time: 0 Render date: 2024-11-30T18:53:25.787Z Has data issue: false hasContentIssue false

What Influences Consumer Choice of Fresh Produce Purchase Location?

Published online by Cambridge University Press:  26 January 2015

Jennifer Keeling Bond
Affiliation:
Department of Agricultural and Resource Economics, Colorado State University, Fort Collins, CO
Dawn Thilmany
Affiliation:
Department of Agricultural and Resource Economics, Colorado State University, Fort Collins, CO
Craig Bond
Affiliation:
Department of Agricultural and Resource Economics, Colorado State University, Fort Collins, CO

Abstract

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.

Keywords

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2009

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

Baker, G.A., and Crosbie, P.J.Measuring Food Safety Preferences: Identifying Consumer Segments.Journal of Agricultural and Resource Economics 18,2(1993):277–87.Google Scholar
Baker, G.A., and Burnham, T.A.Consumer Response to Genetically Modified Foods: Market Segment Analysis and Implications for Producers and Policy Makers.Journal of Agricultural and Resource Economics 26,2(2001):387417.Google Scholar
Brown, A.Farmers' Market Research 1940-2000: An Inventory and Review.American Journal of Alternative Agriculture 17,4(2002):167–76.CrossRefGoogle Scholar
Borooah, V.K. Logit and Probit Ordered and Multinomial Models. CA: Sage Publications, 2002.Google Scholar
Cloud, J. 2007. “Eating Better Than Organic.” Time Magazine March 02. Internet site: http://www.time.com/time/magazine/article/O,9171,1595245,00.html.Google Scholar
Cartier, K.C.Direct Marketing of Produce: A Study of Farmers' Markets in Jackson, Knoxville, and Memphis, Tennessee.” Ph.D. Dissertation, University of Tennessee, Knoxville, 1994.Google Scholar
Gallons, J., Toensmeyer, UC, Bacon, J., and German, C.Analysis of Consumer Characteristics Concerning Direct Marketing of Fresh Produce in Delaware: A Case Study.Journal of Food Distribution Research 28(1997):98106.Google Scholar
Govindasamy, R., Italia, J., and Thatch, D.Consumer Attitudes and Response toward State Sponsored Agricultural Promotion: An Evaluation of Jersey Fresh Program.” Journal of Extension 37,3(1999).Google Scholar
Govindasamy, R., “Direct Market Retailer Perceptions of State-Sponsored Marketing Programs.Review of Agricultural Economics 22,1(2000):7788.CrossRefGoogle Scholar
Govindasamy, R., and Thornsbury, S.Fresh Produce Marketing: Critical Trends and Issues.Choices 4,21(2006):225–65.Google Scholar
Grannis, J., and Thilmany, D.Marketing Natural Pork: An Empirical Analysis of Consumers in the Mountain Region.Agribusiness 18(2002):475–89.Google Scholar
Green, P.E., and Srinivasan, V.Conjoint Analysis in Marketing: New Developments with Implications for Research and Practice.Journal of Marketing 54,4(1990):319.Google Scholar
Jacoby, J., Chestnut, R., and Silberman, W.Consumer Use and Comprehension of Nutrition Information.The Journal of Consumer Research 4,2(1977):119–28.Google Scholar
Jekanowski, M.D., Williams, D.R. II, and Schiek, W.A.Consumers' Willingness to Purchase Locally Produced Agricultural Products: An Analysis of an Indiana Survey.Agricultural and Resource Economics Review 29(2000):4353.Google Scholar
Keeling Bond, J., Thilmany, D., and Bond, C.Direct Marketing of Fresh Produce: Understanding Consumer Purchasing Decisions.Choices 21,4(2006):16.Google Scholar
Kremen, A., Greene, C., and Hanson, J.. Organic Produce, Price Premiums, and Eco-Labeling in U.S. Farmers' Markets. U.S. Department of Agriculture, Economic Research Service, Outlook Report No. VGS-301-01, Washington, DC, 2004.Google Scholar
Loureiro, M., and Hine, S.Discovering Niche Markets: A Comparison of Consumer Willingness to Pay for Local (Colorado Grown), Organic, ad GMO-Free Products.Journal of Agricultural and Applied Economics 34,3(2003):477–87.Google Scholar
Loureiro, M.L., and Umberger, W.J.Estimating Consumer Willingness-to-Pay for Country of Origin Labeling.Journal of Agricultural and Resource Economics 28(2003):287301.Google Scholar
Nayga, R.M. Jr.Determinants of Consumers' Use of Nutritional Information on Food Packages.Journal of Agricultural and Applied Economics 28,2(1996):303–12.Google Scholar
Patterson, P.M.State-Grown Promotion Programs: Fresher, Better?Choices 21,1(2006):4146.Google Scholar
Pirog, R., Van Pelt, T., Enshayan, K., and Cook, E.Food, Fuel, and Freeways: An Iowa Perspective on How Far Food Travels, Fuel Usage, and Greenhouse Gas Emissions.” Staff Paper, Leopold Center for Sustainable Agriculture, Ames, Iowa. June, 2001.Google Scholar
Roth, M.Overview of Farm Direct Marketing Industry Trends.” Paper presented at Agricultural Outlook Forum conference, Arlington, Virginia, February 22-23, 1999.Google Scholar
Sharp, J., Imerman, E., and Peters, G.Community Supported Agriculture (CSA): Building Community among Farmers and Non-Farmers.” Journal of Extension 40,3(2002).Google Scholar
Stephenson, G., and Lev, L.Common Support for Local Agriculture in Two Contrasting Cities.” Oregon State University Extension Service. Oregon Small Farms Technical Report 1, 1998.Google Scholar
Sunding, D.L.The Role for Government in Differentiated Product Markets: Looking to Economic Theory.American Journal of Agricultural Economics 85,3(2003):720–24.Google Scholar
Thilmany, D., Keeling Bond, J., Bond, C., Stushnoff, C., Stonaker, F., Kendall, P., and Bunning, M.Eat Your Fruits and Veggies: Exploring Fresh Produce Market Choices.” Food Distribution Research Society Conference Proceedings, 37(1), 2006.Google Scholar
Thilmany, D., Umberger, W., and Ziehl, A.Strategic Market Planning for Value-Added Natural Beef Products: A Cluster Analysis of Colorado Consumers.Renewable Agriculture and Food Systems 21(2006):192203.Google Scholar
Thompson, G.D., and Kidwell, J.Explaining the Choice of Organic Produce: Cosmetic Defects, Prices, and Consumer Preferences.American Journal of Agricultural Economics 80,2(1998):277–87.CrossRefGoogle Scholar
Thompson, G.D., The National Organic Program, Organic Food Standards and Labels: The Facts. April, 2002. Internet site: http://www.ams.usda.gov/nop/Consumers/brochure.html.Google Scholar
U.S. Department of Agriculture-Agriculture Marketing Service (USDA-AMS). Program Announcement, USDA Releases New Farmers Market Statistics. December. AMS No. 281-06, 2006. Internet site: http://www.ams.usda.gov/tmd/MSB/.Google Scholar