Presentation Title

Why Do Consumers Prefer Locally Produced Products?

Faculty Mentor

Dr. Jae Min Jung

Start Date

23-11-2019 9:00 AM

End Date

23-11-2019 9:15 AM

Location

Markstein 301

Session

oral 1

Type of Presentation

Oral Talk

Subject Area

business_economics_public_administration

Abstract

For the past few decades, there has been a lot of social movements (e.g., Farm-To-Table and Community Supported Agriculture) and research about the benefits of buying local products, mostly food products. Consumers have responded positively, helping to increase local food sales significantly and drawing attention from industry and academics alike. Currently, most U.S. state governments have a state-labeled logo (e.g., CA Grown, Ohio Proud, Pride of Dakota) and a program that allows local businesses to affix it to the products they market within and outside their state. Given the prevalence of state branding strategies and their increasing economic importance, along with mismanagement reported in the popular press, comprehensive research is needed to understand consumer attitudes and motivations for buying local products produced within the boundary of a state line. To address the research objectives, we systematically searched for articles on the topic from agricultural economics and marketing literatures, synthesized and integrated past research, and developed a framework that will facilitate future research. In addition, we intend to generalize the findings about consumer’s preference for local food to general goods beyond agricultural products. We find that consumers have more favorable attitudes toward and prefer to buy locally-produced food and agricultural products over national products for cognitive, normative, and affective reasons. Although a paucity of papers dealing with non-agricultural, consumer goods, prevent us from drawing conclusions, those studies indicate consumer preference for consumer goods also operate similarly, suggesting avenues for future research. This research should encourage more research on the role of state-origin label in marketing literature and also help state governments in optimizing their state label programs.

Keywords: Consumer Preference, Local Labels, State Labels, Locally-Produced

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Nov 23rd, 9:00 AM Nov 23rd, 9:15 AM

Why Do Consumers Prefer Locally Produced Products?

Markstein 301

For the past few decades, there has been a lot of social movements (e.g., Farm-To-Table and Community Supported Agriculture) and research about the benefits of buying local products, mostly food products. Consumers have responded positively, helping to increase local food sales significantly and drawing attention from industry and academics alike. Currently, most U.S. state governments have a state-labeled logo (e.g., CA Grown, Ohio Proud, Pride of Dakota) and a program that allows local businesses to affix it to the products they market within and outside their state. Given the prevalence of state branding strategies and their increasing economic importance, along with mismanagement reported in the popular press, comprehensive research is needed to understand consumer attitudes and motivations for buying local products produced within the boundary of a state line. To address the research objectives, we systematically searched for articles on the topic from agricultural economics and marketing literatures, synthesized and integrated past research, and developed a framework that will facilitate future research. In addition, we intend to generalize the findings about consumer’s preference for local food to general goods beyond agricultural products. We find that consumers have more favorable attitudes toward and prefer to buy locally-produced food and agricultural products over national products for cognitive, normative, and affective reasons. Although a paucity of papers dealing with non-agricultural, consumer goods, prevent us from drawing conclusions, those studies indicate consumer preference for consumer goods also operate similarly, suggesting avenues for future research. This research should encourage more research on the role of state-origin label in marketing literature and also help state governments in optimizing their state label programs.

Keywords: Consumer Preference, Local Labels, State Labels, Locally-Produced