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An Examination Of Consumer Willingness To Pay For Local Products, Aaron Adalja, James Hanson, Charles Towe, Elina Tselepidakis
An Examination Of Consumer Willingness To Pay For Local Products, Aaron Adalja, James Hanson, Charles Towe, Elina Tselepidakis
Aaron Adalja
We use data from hypothetical and nonhypothetical choice-based conjoint analysis to estimate willingness to pay for local food products. The survey was administered to three groups: consumers from a buying club with experience with local and grass-fed production markets, a random sample of Maryland residents, and shoppers at a nonspecialty Maryland supermarket. We find that random-sample and supermarket shoppers are willing to pay a premium for local products but view local and grass-fed production as substitutes. Conversely, buying-club members are less willing to pay for local production than the other groups but do not confllate local and grass-fed production.