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Abstract

There are various types of marketing outlets that feature food with different attributes and quality. We conduct a series of BDM auctions at multiple marketing outlets (price-conscious grocery stores, quality-focused grocery stores and farmers’ markets), to elicit consumers’ willingness-to-pay for organic and local blueberries. The results show that consumers’ attitudes and their reported valuation of organic and local production of blueberries vary across different types of marketing outlets. Specifically, auction participants at the quality-focused stores and farmers’ markets have higher WTPs for local blueberries while participants at the quality-focused store have higher WTPs for organic blueberries than price-conscious stores. Additionally, in the multivariate regression, we find the impact of the two store types (quality-focused store and farmers’ market) on the price premium of organic/local to be equal.

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