Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-23T22:25:15.507Z Has data issue: false hasContentIssue false
  • English
  • Français

Is “Localness” about Distance or Relationships? Evidence from Hard Cider

Published online by Cambridge University Press:  19 December 2019

Jarrad Farris ,
Trey Malone ,
Lindon J. Robison  and
Nikki L. Rothwell
Jarrad Farris
Affiliation:
Department of Agricultural, Food, and Resource Economics, Michigan State University, 446 W. Circle Dr., Morrill Hall of Agriculture, East Lansing, MI48824; e-mail: [email protected].
Trey Malone*
Affiliation:
Department of Agricultural, Food, and Resource Economics, Michigan State University, 446 W. Circle Dr., Morrill Hall of Agriculture, East Lansing, MI48824.
Lindon J. Robison
Affiliation:
Department of Agricultural, Food, and Resource Economics, Michigan State University, 446 W. Circle Dr., Morrill Hall of Agriculture, East Lansing, MI48824; e-mail: [email protected].
Nikki L. Rothwell
Affiliation:
Northwest Michigan Horticultural Research Center, Michigan State University Extension, 6686 S. Center Highway, Traverse City, MI49684; e-mail: [email protected].
*
e-mail: [email protected] (corresponding author)
Get access Rights & Permissions [Opens in a new window]

Abstract

While many studies have evaluated consumer demand for local foods, fewer studies have focused on the mechanism that has created the positive willingness-to-pay for local foods. This article compares the role of geographic distance and attachment value in consumer preferences for locally produced hard cider. Consumer valuations are estimated via a “branded” discrete choice experiment where the respondents chose between an in-state hard cider, an out-of-state hard cider, and a no buy option. Our measure of travel distance is based on the optimal driving route between each consumer's GPS location and the locations of the cideries while our attachment value measure is based on social capital theory. This allows us to analyze individual-specific travel distance heterogeneity in consumer choice as it relates to attachment value. Based on a latent class logit model estimated from a discrete choice experiment with 441 participants, we show that attachment value is higher for a cider produced within the state than for a cider produced outside the state. Furthermore, we show that increases in attachment value increase demand for locally produced hard cider more than an equal increase in attachment value for non-locally produced hard cider. Our findings are consistent with “local” preferences based on geopolitical boundaries (e.g., the state of Michigan) and not distance. (JEL Classifications: B55, M3, Q13, C83)

Keywords

discrete choice experimentfood mileshard ciderlocal foodsocial capital
Type
Articles
Information
Journal of Wine Economics , Volume 14 , Issue 3 , August 2019 , pp. 252 - 273
Copyright
Copyright © American Association of Wine Economists 2019

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.)

Footnotes

The authors thank an anonymous reviewer and the editor for their helpful comments and suggestions. All remaining errors are the responsibility of the authors.

References

Alho, E. (2015). The effect of social bonding and identity on the decision to invest in food production. Journal of Behavioral and Experimental Economics, 59, 47–55.CrossRefGoogle Scholar
Argent, N. (2018). Heading down to the local? Australian rural development and the evolving spatiality of the craft beer sector. Journal of Rural Studies, 61, 84–99.CrossRefGoogle Scholar
Battaglini, M., Díaz, C., and Patacchini, E. (2017). Self-control and peer groups: An empirical analysis. Journal of Economic Behavior & Organization, 134, 240–254.CrossRefGoogle Scholar
Bauermeister, M. R. (2016). Social capital and collective identity in the local food movement. International Journal of Agricultural Sustainability, 14(2), 123–141.CrossRefGoogle Scholar
Baumeister, R. F. (2002). Yielding to temptation: Self-control failure, impulsive purchasing, and consumer behavior. Journal of Consumer Research, 28(4), 670–676.CrossRefGoogle Scholar
Bazzani, C., Caputo, V., Nyaga, R. M. Jr., and Canavari, M. (2017). Revisiting consumers’ valuation for local versus organic food using a non-hypothetical choice experiment: Does personality matter? Food Quality and Preference, 62, 144–154.CrossRefGoogle Scholar
Becker, J. U., and Clement, M. (2006). Dynamics of illegal participation in peer-to-peer networks—Why do people illegally share media files? Journal of Media Economics, 19(1), 7–32.CrossRefGoogle Scholar
Belk, R. (2014). You are what you can access: Sharing and collaborative consumption online. Journal of Business Research, 67(8), 1595–1600.CrossRefGoogle Scholar
Berry, W. (1977). The Unsettling of America: Culture and Agriculture. San Francisco: Sierra Club Books.Google Scholar
Brager, D., and Crompton, M. (2017). U.S. cider trends, increasing your odds of success by evaluating marketplace dynamics. United States Association of Cider Makers in Partnership with Nielson, April 5, Webinar.Google Scholar
Brewbound (2017). Blake's hard cider completes $2 million expansion, doubles capacity. Press Release. June 28. Available at https://www.brewbound.com/news/blakes-hard-cider-completes-2-million-expansion-doubles-capacity.Google Scholar
Brinkley, C. (2017). Visualizing the social and geographical embeddedness of local food systems. Journal of Rural Studies, 54, 314–325.CrossRefGoogle Scholar
Clendenning, J., Dressler, W. H., and Richards, C. (2016). Food justice or food sovereignty? Understanding the rise of urban food movements in the USA. Agriculture and Human Values, 33(1), 165–177.CrossRefGoogle Scholar
Cloutier, L. M., Renard, L., and Arcand, S. (2019). Collective economic conceptualization of cider and wine routes by stakeholders. Journal of Wine Economics, 14(4), 1–11.CrossRefGoogle Scholar
Crespo, J., Réquier-Desjardins, D., and Vicente, J. (2014). Why can collective action fail in local agri-food systems? A social network analysis of cheese producers in Aculco, Mexico. Food Policy, 46, 165–177.CrossRefGoogle 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(2), 476–486.CrossRefGoogle Scholar
de Mello, L., and Tiongson, E. R. (2009). What is the value of (my and my family's) good health? Kyklos, 62(4), 594–610.CrossRefGoogle Scholar
Dobis, E. A., Reid, N., Schmidt, C., and Goetz, S. J. (2019). The role of craft breweries in expanding (local) hop production. Journal of Wine Economics. doi:10.1017/jwe.2019.17.CrossRefGoogle Scholar
Feeney, A. E. (2017). Cultural heritage, sustainable development, and the impacts of craft breweries in Pennsylvania. City, Culture and Society, 9, 21–30.CrossRefGoogle Scholar
Feldmann, C., and Hamm, U. (2015). Consumers’ perceptions and preferences for local food: A review. Food Quality and Preference, 40, 152–164.CrossRefGoogle Scholar
Frank, R. H. (2008). The status of moral emotions in consequentialist moral reasoning. In Zak, P. J. (ed.), Moral Markets: The Critical Role of Values in the Economy, 42–59. Princeton, NJ: Princeton University Press.Google Scholar
Gómez-Corona, C., Escalona-Buendía, H. B., García, M., Chollet, S., and Valentin, D. (2016). Craft vs. industrial: Habits, attitudes and motivations towards beer consumption in Mexico. Appetite, 96, 358–367.CrossRefGoogle ScholarPubMed
Google (2018). Google Maps [Mapping Tool]. Available at https://maps.google.com/.Google Scholar
Gracia, A. (2014). Consumers’ preferences for a local food product: A real choice experiment. Empirical Economics, 47, 111–128.CrossRefGoogle Scholar
Grebitus, C., Lusk, J. L., and Nayga, R. M. Jr. (2013). Effect of distance of transportation on willingness to pay for food. Ecological Economics, 88, 67–75.CrossRefGoogle Scholar
Greene, J. (2014). Moral Tribes: Emotion, Reason, and the Gap Between Us and Them. New York: Penguin.Google Scholar
Haidt, J. (2012). The Righteous Mind: Why Good People are Divided By Politics and Religion. New York: Vintage Books.Google Scholar
Hart, J., and Alston, J. M. (2019). Persistent patterns in the U.S. alcohol market: Looking at the link between demographics and drinking. Journal of Wine Economics, 14(4), forthcoming.Google Scholar
Hart, J., and Alston, J. M. (2020). Evolving consumption patterns in the U.S. alcohol market: disaggregated spatial analysis. Journal of Wine Economics. Doi: 10.1017/jwe.2019.14CrossRefGoogle Scholar
Hensher, D. A., Rose, J. M., and Greene, W. H. (2015). Applied Choice Analysis: Second Edition. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Hoch, S. J., and Loewenstein, G. F. (1991). Time-inconsistent preferences and consumer self-control. Journal of Consumer Research, 17(4), 492–507.CrossRefGoogle Scholar
Howard, P. H. (2017). Craftwashing in the U.S. beer industry. Beverages, 4(1), 1–13.CrossRefGoogle 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(3), 489–510.CrossRefGoogle Scholar
Keri, J. (2015). Hard cider is having a moment. FiveThirtyEight, January 9. Available at https://fivethirtyeight.com/features/hard-cider-is-having-a-moment/.Google Scholar
Kline, C., and Cole, Z. D. (2017). Craft cider tourism: Getting to the core of the matter. In Kline, C., Slocum, S., and Cavaliere, C. (eds.), Craft Beverages and Tourism, Volume 1, 41–55. London, UK and New York, NY: Palgrave Macmillan.CrossRefGoogle Scholar
Kocher, M. G., Martinsson, P., Myrseth, K. O. R., and Wollbrant, C. E. (2017). Strong, bold, and kind: Self-control and cooperation in social dilemmas. Experimental Economics, 20(1), 44–69.CrossRefGoogle Scholar
Lim, K. H., and Hu, W. (2016). How local is local? A reflection on Canadian local food labeling policy from consumer preference. Canadian Journal of Agricultural Economics, 64, 71–88.CrossRefGoogle Scholar
Lopes, H. (2008). From self-interest motives to justice motives: The challenges of some experimental results. American Journal of Economics and Sociology, 67(2), 287–313.CrossRefGoogle Scholar
Malone, T., and Lusk, J. L. (2017). Taste trumps health and safety: Incorporating consumer perceptions into a discrete choice experiment for meat. Journal of Agricultural and Applied Economics, 49(1), 139–157.CrossRefGoogle Scholar
Malone, T., and Lusk, J. L. (2019). Mitigating choice overload: An experiment in the U.S. beer market. Journal of Wine Economics, 14(1), 48–70.CrossRefGoogle Scholar
Manski, C. F. (2000). Economic analysis of social interactions. Journal of Economic Perspectives, 14(3), 115–136.CrossRefGoogle Scholar
Market, Cyder (2018). Domestic Cider. Available at https://www.cydermarket.com/domestic-cider.html.Google Scholar
Mason, W., and Suri, S. (2012). Conducting behavioral research on Amazon's Mechanical Turk. Behavior Research Methods, 44(1), 1–23.CrossRefGoogle ScholarPubMed
McFadden, D. (1974). Conditional logit analysis of qualitative choice behavior. In Zarembka, P. (ed.), Frontiers of Econometrics, 105–142. New York: Academic.Google Scholar
Meas, T., Hu, W., Batte, M. T., Woods, T. A., and Ernst, S. (2017). Substitutes or complements? Consumer preference for local and organic food attributes. American Journal of Agricultural Economics, 97(4), 1044–1071.CrossRefGoogle Scholar
Meyerding, S. G. H., Trajer, N., and Lehberger, M. (2019). What is local food? The case of consumer preferences for local food labeling of tomatoes in Germany. Journal of Cleaner Production, 207, 30–43.CrossRefGoogle Scholar
Oliver, J. R., and Robison, L. J. (2017). Rationalizing inconsistent definitions of commodification: A social exchange perspective. Modern Economy, 8(11), 1314–1327.CrossRefGoogle Scholar
Printezis, I., and Grebitus, C. (2018). Marketing channels for local food. Ecological Economics, 152, 161–171.CrossRefGoogle Scholar
Ramirez, M., Bernal, P., Clarke, I., and Hernandez, I. (2018). The role of social networks in the inclusion of small-scale producers in agri-food developing clusters. Food Policy, 77, 59–70.CrossRefGoogle Scholar
Rand, A. (1964). The Virtue of Selfishness. New York: Penguin.Google Scholar
Robison, L. J., and Ritchie, B. K. (2016). Relationship Economics: The Social Capital Paradigm and Its Application to Business, Politics and Other Transactions. New York: Routledge.CrossRefGoogle Scholar
Robison, L. J., Shupp, R. S., Jin, S., Siles, M. E., and Ferrarini, T. H. (2012). The relative importance of selfishness and social capital motives. Journal of Socio-Economics, 41(1), 118–127.CrossRefGoogle Scholar
Sexton, S. E., and Sexton, A. L. (2014). Conspicuous conservation: The Prius halo and willingness to pay for environmental bona fides. Journal of Environmental Economics and Management, 67(3), 303–317.CrossRefGoogle Scholar
Tozer, P. R., Galinato, S. P., Ross, C. F., Miles, C. A., and McCluskey, J. J. (2015). Sensory analysis and willingness to pay for craft cider. Journal of Wine Economics, 10(3), 314–328.CrossRefGoogle Scholar
U.S. Census Bureau (2018). QuickFacts Michigan. Available at https://www.census.gov/quickfacts/mi.Google Scholar
Veloutsou, C., and Moutinho, L. (2009). Brand relationships through brand reputation and brand tribalism. Journal of Business Research, 62(3), 314–322.CrossRefGoogle Scholar