Applied Economics/2024-05pr
Utah Consumer Preferences and Willingness to Pay for Specialty Labeled Fruit Products Kynda Curtis, Professor and USU Extension Specialist, Department of Applied Economics Makaylie Langford, USU Extension Intern, Department of Applied Economics Marcelo Pignatari, Graduate Research Assistant, Department of Applied Economics
Introduction
Understanding consumer attitudes and preferences for specialty labeled foods is a popular area of study. Insights derived from these studies are valuable for producers and marketers to assess whether their products meet consumer needs and which certification, or labeling programs are highly valued. Understanding consumer preferences enables growers to take advantage of the premiums associated with differentiated products. Additionally, policymakers can use these findings to develop programs aligned with emerging consumer preferences, promoting the implementation of food certification initiatives. Previous research shows consumers are willing to pay premiums for products featuring specialty labels, such as locally grown, organic, GMO-free, etc. (Blare et al., 2019; Carroll et al., 2013). Consumer preferences for local labels are associated with environmental and quality considerations, local community support, and perceived freshness (Grebitus et al., 2013; Darby et al., 2008). Similarly, consumers associate organic labels with perceptions of healthiness, tastiness, lower pesticide levels, and better overall quality compared to conventionally produced food (Yazdanpanah et al., 2015; Loebnitz & Aschemann-Witzel, 2016). In this fact sheet, we discuss the results of a 2023 study examining Utah consumer preferences and willingness to pay (WTP) for fruit products labeled local (Utah’s Own™), organic, and GMO-free. We discuss and compare survey respondents past consumption, awareness, preferences, and attitudes toward these labeling programs. Additionally, we examine consumer WTP values for each of these labels for three fruit varieties and fresh and dried products, namely fresh apples, strawberries, and dried tart cherries.
Study Overview
The study was conducted in the fall of 2023 through an online survey of Utah consumers, aiming to determine consumer attitudes and purchasing behaviors related to fruit products. Researchers also sought to assess which fruit attributes Utah consumers value, such as organic or locally grown. Survey questions were developed based on previous research on consumer preferences and willingness to pay for specialty labeling 1