Abstract

This study applies a Censored Normal Tobit Model on the 2016 survey data from 1,205 online shoppers in the South region of the United States to explain their Willingness To Pay (WTP) for a bundle of fresh produce from different origins. This study indicates that online shoppers are willing to pay $6.91, $6.38, and $5.22 for four pounds of bundled fresh produce that are locally, domestically grown, and imported respectively. We found that income category, interests in online shopping, interest level for local, interest level for organic, and monthly spending on fresh produce have a significant positive impact on the WTP for locally grown fresh produce. Results indicate that being married, high income, interests in online shopping, interests in local produce, interests in organic, and the monthly spending on fresh produce increase the WTP for domestically grown fresh produce, while age and being a female diminishes it. We further found that age, being a female, and interest in the freshness of the produce decrease the WTP for imported produce. Based on the findings from this study, we have suggested a couple of marketing implications and suggestions.

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