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Consumer Preferences and Willingness to Pay for Bundled Fresh Produce Claims at Farmers’ Markets

ABSTRACT This study uses a conditional logit with systematically varying parameters model to analyze consumer survey data collected at farmers’ markets in Utah. The purpose of this study is to examine consumption preferences and willingness to pay for differentiated fresh produce among farmers’ market shoppers in Utah. Three primary differentiating claims, namely conventionally grown of unknown origin, conventionally grown local (in-state), and organically grown of unknown origin, are investigated. Results indicate that consumer preferences and willingness to pay are higher for the conventionally grown local origin claim, emphasizing the importance of local origin labeling for directed marketed fresh produce. This claim was especially preferred among frequent farmers’ market shoppers and those who spend above average. Those who receive WIC and/or food stamp benefits show lower preferences for fresh produce. The shoppers are significantly sensitive to price increases. This study implies that marketing strategies and policy regulations aiming at promoting local, organic, labeling, and reinforcing repeated farmers’ market customers can positively impact purchasing preferences and willingness to pay for production-method-based and origin labeled products.