Articles

Consumer preferences for local origin: is closer better? The case of fresh tomatoes and ketchup in Germany

Article number
1233_27
Pages
193 – 200
Language
English
Abstract
Given the lack of state regulation and growing consumer demand regarding local foods, several retailers start to promote “locally” grown food using different labeling strategies.
However, there has been relatively little analysis of consumers’ preferences for these different labeling strategies.
The aim of the present study is hence to explore whether consumers prefer specific local food labeling strategies over others and if there is a difference between fresh and processed tomatoes.
For this purpose a choice-experiment with a representative sample of 640 German consumers was conducted.
Respondents had to choose from various products (fresh tomatoes/ketchup), varying in origin, production method, and price, the preferable alternative.
The main findings of the choice-based conjoint analysis revealed the highest part-worth utilities for the generic “local” food label.
The results did not differ greatly between processed and fresh tomatoes in the choice experiment setting.
Additionally, the findings indicated that most of the consumers view food as local if it is sold in the same state as it was grown.
This finding is particularly interesting in view of the absence of a unified definition of the term local.
A latent class segmentation of the data identified four segments, of which two placed a high importance on local food origin.
Thus, the findings indicate a high market potential for locally grown tomatoes in Germany.
This is an important finding as most tomatoes in Germany are imports from either EU or non-EU member states.

Publication
Authors
S.G.H. Meyerding, N. Trajer
Keywords
choice-based conjoint analysis, latent class segmentation, regional food, country of origin, horticulture
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