Abstract: This study investigates organic consumers’ preferences for local production of apples. The analysis is based on a choice experiment among 637 Danish consumers used in combination with a principal component analysis of a set of opinion questions. The principal component analysis identifies two components of questions. Component 1 concerns benefits related to organic products while component 2 relates to positive features of locally produced products. When the components are included in analysis of data from the choice experiment a random parameter error component model suggests that respondents who recognize the benefits of organic products have relatively high preferences for both organically and locally produced apples. Respondents who, on the other hand, recognize the benefits of locally produced products have high preferences for domestically and locally produced apples but not for organic apples.
Reference: Denver, S., & Jensen, J. (2014). Consumer preferences for organically and locally produced apples. Food Quality & Preference, 31129-134. http://dx.doi.org/10.1016/j.foodqual.2013.08.014