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Transcript of CLD GSR Prezi

Chelsea Davidoff
May 19, 2012
Background
Creating Taste of Place
for Vermont: An Analysis of Consumers' Willingness to Pay

Research Day Presentation
Methods
Creating Taste of Place
for Vermont: An Analysis of Consumers' Willingness to Pay

Results and Discussion
Creating Taste of Place
for Vermont: An Analysis of Consumers' Willingness to Pay

Delocalization
Geographical Indicators
(Tregear et al., 1999; Raysman, 2008)
Intellectual Property Mechanisms
Examples
Location of production through offical endorcesment
Appellation d'Origine Controlle (AOC)
United Kingdom
European Union
France
(Tregaer et al., 1999)
"Controlled designation of origin"
Protects food and drink
Beyond local movement
Terroir
(Trubek & Browen, 2008)
(Illerby et al., 2005)
Market for Taste of Place
41,000 in Vermont
271,000 in Metro Areas
(Center for Rural Studies, 2010)
Certified Organic
Ethical Production Methods
Origin
Pastoral Ideals
Multiple Characteristics
Certified
(Browne, Harris, Hofney-Collins, Pasiecznic, & Wallace, 2000; Davis, Titterington, & Cochrane, 1995; Govindasamy & Italia, 1999; Hutchins & Greenhalgh, 1997; Kyriakopoulos & Ophuis, 1997; Latacz-Lohmann & Foster, 1997; Reicks, Splett, & Fishman, 1997; Roddy, Cowan, & Hutchinson, 1996; G. D. Thompson, 1998; G.D. Thompson & Kidwell, 1998)
Ethical
(Pelsmacker et al., 2005; Doanne, 2001; Anderson & Cunningham, 1972; Dickson, 2001; Laroche et al., 2001)
(Caswell & Mojdusza, 1996; Darby & Karni, 1973; Caswell, 1998; Darby et al., 2008; Dickinson & Bailey, 2002, Onyango, 2005 )
Pastoral
Multiple

Made on a farm where the farmer and farm workers make a fair wage*
Unique flavors that reflect the region where it was made
Imported from a country known for high quality food
Consistent in flavor from one batch to the next
Only available at a certain time of year
Made by a cooperative of farmers*
Helping preserve open farmland*
Traditional production methods*
Curious about new product
Grown on a family farm*
Known brand name
Produced locally*
Made in Vermont*
Certified organic*
Characteristics
(USDA-NASS,2009; USDA-NASS, 2011)
Survey
Self-administered
Cross sectional
Online or paper
October 15 to December 15
Sample Frame
Primary shopper
Philadelphia, New York, Boston, and Vermont


Mean WTP of Consumers by Area
(Vermont, Boston, Philadelphia and New York Metro Areas)
All Respondents
Vermont
Metropolitan Areas
Certified Organic***

Ethical Produciton

Made in Vermont***

Pastoral Ideals

Multiple Characteristics***
33.9

47.0

42.6

43.5

54.8
31.5

46.4

46.5

42.8

52.1
38.3

47.9

35.3

44.8

59.7
Note. Based on the findings from the independent samples t-test, there were statistically significant differences between Vermont and metropolitan areas; statistical significant is indicated by *=.100, **=.050, and ***=.010
WTP by Consumer Characteristic
Note. In the independent samples t-test statistical significance is indicated by *=.100, **=.050, ***=.010.
1 Statistical significance in income is based upon rejecting there is no relationship between willingness to pay between the two groups (e.g. less than $25,000 and all other incomes)

Percentage Points More Consumers are Willing to Pay
Note. In the one sample t-test statistical significance is indicated by *=.100, **=.050, ***=.010.
1 Statistical significance in income is based upon rejecting there is no relationship between willingness to pay between the two groups (e.g. less than $25,000 and all other incomes)

Limited Dependent Variable Model: Percentage Premium and Percentage Points Above the Conditional Mean

Characteristic
Certified
Organic
30.2
29.2
30.1
45.5
36.6
32.7
44.5
36.0
35.2
42.1
35.9
37.2
35.8
28.8
25.5
17.3
Note. In the limited dependent variable model the statistical significance is indicated by *α=.100, **α=.050, ***α=.010.
Live alone
Work full-time

$25,000 to under $50,000
$50,000 to under $75,000

$100,000 to under $125,000
$125,000 or more

Shop at specialty food store regularly

Kids present
Live in Vermont
35 to 64
65 or older
42.5
45.5
47.9
48.9
49.3
50.1
47.7
43.0
50.5
52.1
50.3
47.5
43.0
41.7
46.7

40.7
42.4
45.7
49.4
48.2
47.9
48.0
41.9
47.1
52.8
47.5
46.8
42.0
37.5
38.2

39.0
40.9
41.6
43.6
44.1
43.0
48.6
40.0
43.4
48.1
43.5
37.4
52.2
40.9
47.0

+/- C.M
39.0
40.9
41.6
43.6
44.1
43.0
48.6
40.0
43.4
48.1
43.5
37.4
52.2
40.9
47.0

Censored Regression Model:
Conclusion
Questions?
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References
Agenda
Background
Methods
Results/Discussion
Creating Taste of Place for Vermont:
An Analysis of Consumers' Willingness to Pay
Objective: Determine consumers' willingness to pay for attributes to help govern what constitutes a unique Vermont food
Reliability
Independent Samples T-Test
One Way T-Test
Censored Regression
Types of Analysis
Production
Origin
Organic
Ideals
Tobit
Bachelors' or Graduate Degree


$75,000 to under $100,000


Shop at farmers market regularly

Female




(CRS, 2010; Wit, 1992; Onken and Bernard, 2010)
Made in Vermont
(Pollan, 2001; Schlosser, 2002; Guthman, 2004)
Frequent farmers markets
Frequent specialty food stores
Female
Children present in household
Live in Vermont
18 to 34
35 to 64
65 or over
Live alone

Bachelor or graduate degree


Work full-time

Less than $25,000
$25,000 to under $50,000
$50,000 to under $75,000
$75,000 to under $100,000
$100,000 to under $125,000
$125,000 or more



Dummy variable, 0=no, 1=yes
Dummy variable, 0=no, 1=yes
Dummy variable, 0=male, 1=female
Dummy variable, 0=no, 1=yes
Dummy variable, 0=metro area, 1=Vermont
Dummy variable, 0=no, 1=yes
Dummy variable, 0=no, 1=yes
Dummy variable, 0=no, 1=yes
0=married, live together/not married,
1=divorced, widowed, single
0=two year degree, some college/no degree, high school graduate, some high school,
1= four year college degree, professional degree
0=work part time, seeing employment, retire,
1= work full time
Dummy variable, 0=no, 1=yes
Dummy variable, 0=no, 1=yes
Dummy variable, 0=no, 1=yes
Dummy variable, 0=no, 1=yes
Dummy variable, 0=no, 1=yes
Dummy variable, 0=no, 1=yes


0.57
0.26
0.60
0.13
0.64
0.07
0.46
0.41
0.31

0.32


0.36

0.09
0.19
0.17
0.12
0.06
0.13


Characteristic
Mean
S.D.
Definition
0.49
0.44
0.48
0.34
0.48
0.25
0.49
0.49
0.46

0.47


0.48

0.29
0.40
0.38
0.32
0.24
0.34


Socio-demogrpahics of Sample Population
Ethical Produciton Methods:
Pastoral Ideals:
Farmer and workers on farm make a fair wage
Produced by a cooperative of farmers
Produced usin environmentally friendly methods
Preserve open farmland
Grown on a family farm
Produced using traditional production methods
Ethical Production
43.4
Pastoral
Ideals
41.9
Made in
Vermont
38.8
Multiple
Characteristics
47.7
Full transcript