Progress 02/01/08 to 01/31/12
Outputs
OUTPUTS: One output was conducting a variety of approaches to analyze the sales trends in conventional and direct marketing channels. Primary data was been collected several ways: via a consumer survey from a national sample to investigate consumers' preferences for local, organic, fair trade, and eco-claims; through experiments that included sensory analysis of apples; and through in-store experiments with apples to validate the research with market-based data. For the survey, the data was used in two ways; one is to use the entire sample to draw inferences on the national trends, and the other is to target on consumers who is shopping directly from producers to gain insights on the current situation and the future prospect of the direct marketing channels. In the survey, data is also collected on consumers' stated importance of various product attributes and perceived relative quality based on the production location (local vs. domestic vs. international) in order to analyze how consumer behavior may be impacted by their uncertainty and perceptions about different characteristics of local and organic produce. Additionally, other indicators, more attitudinal in nature, were assessed (social norms and self-efficacy) in order to further dissect food behaviors. In a separate analysis, these variables are also used as a basis for consumer segmentation and willingness to pay assessment. Analysis of the national survey is almost complete and being presented in a variety of academic, food organizational and governmental venues. Experiments and in-store market experiments were conducted in Fall 2008/2009 to complement the survey analysis. These additional set of data represents revealed preference data with real money transactions, allowing for comparing and/or combining with survey data. We anticipate that several methods papers may evolve from this approach. Some of this work will support Colorado Proud activities since we used their label in our Colorado-based experiments, so any values derived can be directly attributed to their labeling program. Dissemination of this research has been extensive this year, to community, state and federal groups. Presentations to the C-FARE Lunch and Learn with US Congress Ag Committee Staff in Washington, DC and to the USDA ERS Local Food Systems Conference illustrate the significant policy activity surrounding the local supply chain research. Welfare analysis using the consumer data is completed and will be presented at the 2011 American Applied Economics Association meetings to show the broader implications of differentiating produce markets. PARTICIPANTS: For this project, Yuko Onozaka, a researcher formerly from CSU now at a Norwegian University, Stephan Kroll, Marco Costanigro and Marisa Bunning were all significant collaborators. For some of the research methodology, we have drawn on feedback and suggestions from peers at other Land Grant Universities and their past market research instruments, especially through the S1050 Regional Research committee. We partnered with local apple producers, a major retailer in Colorado, the Colorado Department of Agriculture and others in the local food system to conduct market experiments in Fall 2009. Six graduate students are being provided thesis work and/or experiential market research education from this project. We were a part of a Principal papers session at the American Applied Economics meetings in 2010 with a group of other researchers who had organic food studies funded by USDA. TARGET AUDIENCES: The research was intended to better inform food policy makers, those coordinating and overseeing food certification programs at the federal and state level, retailers and producers who are direct marketing some of their fresh produce. As illustrated below, most of the research dissemination has occurred through high profile national meetings of key stakeholders. This research has already been shared with five USDA agencies and has been presented at two major regional food system meetings, two national meetings of ag economists, one retailer meeting and the Advisory Teams for a food assessment conducted in Colorado. This information was also integrated into Colorado marketing Extension programs and a Building Farmer curriculum shared by six Western states. An extension program targeted at independent food retailers was presented at the AAEA Extension competition and won this national competition in 2010. PROJECT MODIFICATIONS: We received a one-year extension to conduct the research given delays in market research (as a function of needing to conduct experiments during specific times in the production season). One element was added to the market experiment, and another in-store experiment was added. All studies are completed and published, or in the review process for publication. Given the rich data collected, a producer-consumer welfare analysis is being completed as part of one student's dissertation research.
Impacts
There has been growing interest by the retail sector related to the applying the research grounded in understanding consumer motivations to buy local food and how that can be translated into point-of-purchase marketing messages. This is a great example of an extension audience that has been very interested and supportive of the outcomes of this grant project. It is probable that the nature of these findings will continue to be of interest to many stakeholders in the supply chain. In our state, the Colorado Department of Agriculture established a Farmers Market Working Group, partly due to the evidence of strong consumer demand for more direct market venues. Some of this market information was integrated into the Western Building Farmers program to illustrate the market opportunities in direct sales outlets for fresh produce, when targeted appropriately to some consumer segments with marketing messages that we found were valued by consumers. Among producers, this has changed the knowledge about how organic and local marketing strategies may vary in terms of potential market size and price point.
Publications
- No publications reported this period
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Progress 02/01/08 to 01/31/11
Outputs
OUTPUTS: One output was conducting a variety of approaches to analyze the sales trends in conventional and direct marketing channels. Primary data was been collected several ways: via a consumer survey from a national sample to investigate consumers' preferences for local, organic, fair trade, and eco-claims; through experiments that included sensory analysis of apples; and through in-store experiments with apples to validate the research with market-based data. For the survey, the data was used in two ways; one is to use the entire sample to draw inferences on the national trends, and the other is to target on consumers who is shopping directly from producers to gain insights on the current situation and the future prospect of the direct marketing channels. In the survey, data is also collected on consumers' stated importance of various product attributes and perceived relative quality based on the production location (local vs. domestic vs. international) in order to analyze how consumer behavior may be impacted by their uncertainty and perceptions about different characteristics of local and organic produce. Additionally, other indicators, more attitudinal in nature, were assessed (social norms and self-efficacy) in order to further dissect food behaviors. In a separate analysis, these variables are also used as a basis for consumer segmentation and willingness to pay assessment. Analysis of the national survey is almost complete and being presented in a variety of academic, food organizational and governmental venues. Experiments and in-store market experiments were conducted in Fall 2008/2009 to complement the survey analysis. These additional set of data represents revealed preference data with real money transactions, allowing for comparing and/or combining with survey data. We anticipate that several methods papers may evolve from this approach. Some of this work will support Colorado Proud activities since we used their label in our Colorado-based experiments, so any values derived can be directly attributed to their labeling program. Dissemination of this research has been extensive this year, to community, state and federal groups. Presentations to the C-FARE Lunch and Learn with US Congress Ag Committee Staff in Washington, DC and to the USDA ERS Local Food Systems Conference illustrate the significant policy activity surrounding the local supply chain research. Welfare analysis using the consumer data is completed and will be presented at the 2011 American Applied Economics Association meetings to show the broader implications of differentiating produce markets. PARTICIPANTS: For this project, Yuko Onozaka, a researcher formerly from CSU now at a Norwegian University, Stephan Kroll, Marco Costanigro and Marisa Bunning were all significant collaborators. For some of the research methodology, we have drawn on feedback and suggestions from peers at other Land Grant Universities and their past market research instruments, especially through the S1050 Regional Research committee. We partnered with local apple producers, a major retailer in Colorado, the Colorado Department of Agriculture and others in the local food system to conduct market experiments in Fall 2009. Six graduate students are being provided thesis work and/or experiential market research education from this project. We were a part of a Principal papers session at the American Applied Economics meetings in 2010 with a group of other researchers who had organic food studies funded by USDA. TARGET AUDIENCES: The research was intended to better inform food policy makers, those coordinating and overseeing food certification programs at the federal and state level, retailers and producers who are direct marketing some of their fresh produce. As illustrated below, most of the research dissemination has occurred through high profile national meetings of key stakeholders. This research has already been shared with five USDA agencies and has been presented at two major regional food system meetings, two national meetings of ag economists, one retailer meeting and the Advisory Teams for a food assessment conducted in Colorado. This information was also integrated into Colorado marketing Extension programs and a Building Farmer curriculum shared by six Western states. An extension program targeted at independent food retailers was presented at the AAEA Extension competition and won this national competition in 2010. PROJECT MODIFICATIONS: We received a one-year extension to conduct the research given delays in market research (as a function of needing to conduct experiments during specific times in the production season). One element was added to the market experiment, and another in-store experiment was added. All studies are completed and published, or in the review process for publication. Given the rich data collected, a producer-consumer welfare analysis is being completed as part of one student's dissertation research.
Impacts
There has been growing interest by the retail sector related to the applying the research grounded in understanding consumer motivations to buy local food and how that can be translated into point-of-purchase marketing messages. This is a great example of an extension audience that has been very interested and supportive of the outcomes of this grant project. It is probable that the nature of these findings will continue to be of interest to many stakeholders in the supply chain. In our state, the Colorado Department of Agriculture established a Farmers Market Working Group, partly due to the evidence of strong consumer demand for more direct market venues. Some of this market information was integrated into the Western Building Farmers program to illustrate the market opportunities in direct sales outlets for fresh produce, when targeted appropriately to some consumer segments with marketing messages that we found were valued by consumers. Among producers, this has changed the knowledge about how organic and local marketing strategies may vary in terms of potential market size and price point.
Publications
- Nurse G., Y. Onozaka, D.Thilmany McFadden. 2011. Understanding the Connection between Consumer Motivations and Buying Bahavior: The Case of the Local Food System Movement. Forthcoming in Journal of Food Products Marketing.
- Onozaka, Y. and D. Thilmany McFadden. 2011. "Does Local Labeling Complement or Compete with Sustainable Labels A Conjoint Analysis of Direct and Joint Values for Fresh Produce Claims." American Journal of Agricultural Economics.
- Onozaka, Y., G. Nurse, D. Thilmany McFadden. 2010. Local Food Consumers: How Motivations and Perceptions Translate to Buying Behavior. Choices, 25(1). Onozaka, Y., G. Nurse, D. Thilmany McFadden. 2010. Defining Sustainable Food Market Segments: Do Motivations and Values Vary by Shopping Locale American Journal of Agricultural Economics. doi: 10.1093/ajae/aaq152
- Thilmany, D., A. Gunter and C. Thomas. Food Markets and Buyers. Report to the Northern Colorado Food Assessment. Fall 2010
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Progress 02/01/09 to 01/31/10
Outputs
OUTPUTS: Our work in this area continues to focus on analyzing the sales trends in conventional and direct marketing channels. Primary data has been collected via a consumer survey from a national sample to investigate consumers' preferences for local, organic, fair trade, and eco-claims. We look at the data from two aspects: one is to use the entire sample to draw inferences on national trends, and the other is to target on consumers who are shopping directly from producers to gain insights on the current situation and future prospects of the direct marketing channels. In the survey, data is also collected on consumers' stated importance of various product attributes and perceived relative quality based on the production location (local vs. domestic vs. international) in order to analyze how consumer behavior may be impacted by their uncertainty and perceptions about different characteristics of local and organic produce. In a separate analysis, these variables are also used as a basis for consumer segmentation and willingness to pay assessment. Analysis of the national survey is almost complete and being presented in a variety of academic, food organizational and governmental venues. Experiments and in-store market experiments were conducted in Fall 2009 to complement the survey analysis. This additional set of data represents revealed preference data with real money transactions, allowing for comparing and/or combining with survey data. We anticipate that several methods papers may evolve from this approach. Some of this work will support Colorado Proud activities as we used their label in our Colorado-based experiments, so any values derived can be directly attributed to their labeling program. Dissemination of this research has been extensive this year, to community, state and federal groups interested in the evolution of the local food movement and USDA's new Know your Farmer, Know your Food initiative. Presentations to the C-FARE Lunch and Learn with US Congress Ag Committee Staff in Washington, DC and to the USDA ERS Local Food Systems Conference, as well as the development of a new Colorado Department of Agriculture Farmers Market Working Group, highlight the significant policy activity surrounding the local supply chain movement. PARTICIPANTS: For this project, I continue to collaborate with Yuko Onozaka, a researcher formerly from CSU now at a Norwegian University, Stephan Kroll, Marco Costanigro and Marisa Bunning. For some of the research methodology, we have drawn on feedback and suggestions from peers at other Land Grant Universities and their past market research instruments. We partnered with local apple producers, a major retailer in Colorado, the Colorado Department of Agriculture and others in the local food system to conduct market experiments in Fall 2009. Six graduate students are being provided thesis work and/or experiential market research education from this project. Since this research has already been shared with many state and federal government agencies, we hope to partner with them in using this information in focusing local food marketing and policy programs. TARGET AUDIENCES: The research was intended to better inform food policy makers, those coordinating and overseeing food certification programs at the federal and state level, retailers and producers who are direct marketing some of their fresh produce. As illustrated below, most of the research dissemination has occurred through high profile national meetings of key stakeholders. This research has already been shared with five USDA agencies and has been presented at two major regional food system meetings to colleagues in those areas. PROJECT MODIFICATIONS: We received a one-year extension to conduct the research given delays in market research (as a function of needing to conduct experiments during specific times in the production season). One element was added to the market experiment, and another in-store experiment was added. These new data will strengthen the contribution and impact of our work based on feedback from other researchers and policy makers.
Impacts
It is relatively premature for this research to have any impacts on the marketing environment, but this project is being recognized as leading research to reveal motivations behind the growing local food system in Colorado and other regions. Research, such as this project, may be part of the reason there is increased attention to Buy Local programs, state branding initiatives, new local designations in USDA's Value Added grant program and broader support for the growing Farmer's market sector across the US.
Publications
- Blandon, S., D. Thilmany McFadden, and Y. Onozaka. AMR 09-04. Location, Location, Location: Do Production Sources Influence Consumer Perceptions October 2009. 8 pp.
- Blandon, S., D. Thilmany McFadden, and M. Bunning. ARPR 09-02. Impacts of Produce Food Safety Events on Consumer Behavior: Exploring Public Perceptions and Confidence in the Food System. July 2009. 9 pp.
- Thilmany McFadden, D., C. Thomas, and Y. Onozaka. AMR 09-02. Who are the Locavores and Where Do They Shop An Analysis of Fresh Produce Market Choices in the United States. June 2009. 13 pp.
- Thilmany McFadden, D. and C. Thomas. AMR 09-01. Farmers Markets and Direct Marketing for Colorado Producers. May 2009. 4 pp.
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Progress 02/01/08 to 01/31/09
Outputs
OUTPUTS: We have begun with collecting trade data and initial analysis on trade numbers for a variety of organic products. Some experimental store experiments with tomatoes occurred in Fall 2008, with 200 useable observations. The consumer survey was administered during October 17 to November 20, 2008 by Knowledge Network Inc., a contracted third party. 1,269 panelists were solicited, resulting in 1052 usable responses. The choice experiments will occur in 2009. Only minimal dissemination has occured as we are in early stages, but we did present with two organic stakeholder groups in Chicago and DC in 2008. PARTICIPANTS: Organic Trade Association, Organic Farming Research Foundation, Lunds Markets, USDA Foreign Agricultural Service, USDA Economic Research Service, Farm Foundation Gretchen Nurse is using this as part of her graduate dissertation work, and another graduate student is beginning to receive training on the choice set experiment we will do in 2009. TARGET AUDIENCES: USDA agency administrators, organic industry leaders and federal, state and local policymakers are the target audience for the research findings and information on consumer preferences. PROJECT MODIFICATIONS: We added some other important consumer factors to the survey after focus groups suggested they were important elements. We were unable to secure space on the Organic Trade Association survey, but they have shared data with us for the trade analysis. We narrowed the number of products so we could afford to do deeper analysis on the ones we did include.
Impacts
There has been minimal impact thus far given we are in initial stages of analysis. We have worked with other funded projects to try and leverage the budgets for collecting the most consumer information possible, including the potential for follow up surveys.
Publications
- No publications reported this period
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