- E-ISSN2288-2766
- KCI
E-ISSN : 2288-2766
A Study on the Selection Determinants on Consumers Purchasing Agricultural Products via Direct Market
Jae-Jin Kim
Abstract
This study was carried out to analyze the influential factors of how consumers methodize purchasing agricultural products via the direct market. It further utilizes the Discrete Choice Model to analyze consumer decision specifically with regards to individual markets and store attributes. As Korea’s agricultural produce direct market has a variety of substitute goods to choose from, this study will use the multinomial logit model to interpret the influential factors behind selecting a specific market to purchase from. This study establishes ‘online direct-purchase’ as the base category with ‘direct farm markets’, ‘local foods direct markets’, ‘produce boxes (CSA)’ as substitutes. As a result, firstly, the variety of products, price and freshness had a positive influence on choosing ‘direct farm markets’ over the reference variable ‘online direct-purchase’ while convenience of payment and transportation had a negative influence. Second, freshness and store attributes had a positive influence in choosing ‘local foods direct markets’ over ‘online direct markets’ but product price and packaging, location accessibility had a negative influence. And although product creditability had a positive influence on purchasing ‘produce boxes (CSA)’ over ‘online direct markets’, product price had a negative influence. Accordingly, there is a need for the South Korean government to encourage the adoption of mobile payment through smartphone applications in direct farm markets to vitalize direct agricultural purchasing. However, this does need to be approached cautiously as the price has a conflicting affect for each method of purchase.
- keywords
- Direct-Purchase of Agricultural (Fresh) Produce, Discrete Choice Model
Reference
Bavorova, M., Unay-Gailhard, I., & Lehberger, M. (2015). Who buys from farmers’ markets and farm shops: The case of Germany. International Journal of Consumer Studies, 40(1), 107-114.
Bond, J. K., Thilmany, D., &Bond, C. A. (2006). Direct marketing of fresh produce: Understanding consumer purchasing decisions. Choices, 21(4), 229-235.
Bond, J. K., Thilmany, D., & Bond, C. A. (2009). What influences consumer choice of fresh produce purchase location. Journal of Agricultural and Applied Economics, 41(1), 61-74.
Brown, A. (2002). Farmers' market research 1940-2000: An inventory and review. American Journal of Alternative Agriculture, 17(4), 167-176.
Cameron, A. C., and Trivedi, P. K. (2005). Microeconometrics using data. College Station, Texas: Stata Press.
Connell, C. M., Beierlein, J. G., & Vroomen. H. (1986). Consumer preferences and attitudes regarding fruit and vegetable purchases from direct market outlets. Paper No.185. Department of Agricultural Economics and Rural Sociology, Pennsylvania State University, University Park.
Gallons, J., Toensmeyer, U. C., Bacon, J. R., & German, C. L. (1997). An analysis of consumer characteristics concerning direct marketing of fresh produce in Delaware: A case study. Journal of Food Distribution Research, 28(1), 98-106.
Govindasamy, R., & Nayga, Jr., R. M. (1997). Determinants of farmer-to-consumer direct market visits by type of facility: A logit analysis. Agricultural and Resource Economics Review, 26(1), 31-38.
Govindasamy, R., Zurbriggen, M., Italia, J., Adelaja, A., Nitzsche, P., & Van Vranken, R. (1998). Farmers'markets: consumer trends, preferences, and characteristics. New Jersey Agriculture Experiment Station, Cook College, Rutgers, New Brunswick.
Hébert, M. (2011). Examining Current Research on Local Food: A Review. Studies by Undergraduate Researchers at Guelph, 4(2), 88-92.
Jekanowski, M. D., Williams II, D. R., & Schick, W. A. (2000). Consumers’ willingness to purchase locally produced agricultural products: An analysis of an Indiana survey. Agricultural and Resource Economics Review, 29(8), 43-53.
Ju, Sang-Hyeon (2015). An analysis and policy implication of the local food success factors. The Korean Journal of Local Government Studies, 19(3), 291-315.
Kim, Kyung Hee & Park, Duk Byeong (2012). Relationship among purchase motivation, satisfaction, and loyalty of consumers in farm direct markets. Journal of the Korean Society of Dietary Culture, 27(4), 331-339
Kim, Myunghwan, Kim, Byoungryul, Jeong, Eunmee, Seung Ryeul Shin, & Choi, Ji-Hyeon (1998). Revitalization of direct trading of agricultural and livestock products. Korea Rural Economic Institute, Policy Research Report, P27.
Korea Food Service News (2019). Increase safety and symbiosis between urban and agricultural communities in the midst of expanding public concepts. 01.16.
Korea JoongAng Daily (2015). News in News <265> Direct trading of agricultural products. 02.26.
Lee, Da Ye & Lee, Hee Yeon (2016). Factors affecting the farmer-to-consumer direct marketing and its influence on the sale increase of agricultural products. Journal of Rural Development, 39(1), 89-116.
Lee, Hee-Chan (2009). Analyzing demand for farmer-to-consumer direct marketing and size of expenditures. Korean Journal of Agricultural Management and Policy, 36(1), 49-79.
Long, J. S. (1997). Regression models for categorical and limited dependent variables. London: Sage Publications.
Ministry of Agriculture, Food and Rural Affairs (2015). Survey report on policy experience of direct trading policy of agricultural products.
Ministry of Agriculture, Food and Rural Affairs (2016a). Establishing a basic plan for promoting the use of local agricultural products and revitalizing their direct trade: Creating a distribution system in which producers and consumers trust and coexist, Press Release.
Ministry of Agriculture, Food and Rural Affairs (2016b). The basic plan for promoting the use of local agricultural products and activating their direct trade.
Ministry of Agriculture, Food and Rural Affairs (2017). Promotion of regulatory reform to revitalize direct trading of agricultural products, Press Release.
Onianwa, O., Mojica M., & Wheelock, G. (2006). Consumer characteristics and views regarding farmers markets:An examination of on-site survey data of Alabama consumers. Journal of Food Distribution Research, 37(1), 119-125.
Onianwa, O., Wheelock, G., & Mojica, M. (2005). An analysis of the determinants of farmer-to-consumer directmarket shoppers. Journal of Food Distribution Research, 36(1), 130-134.
Park, Cheol & Kim, Hyung Tak (2001). A study on the consumer’s evaluation of the agricultural product outlet store owned by agricultural cooperative. Journal of Marketing Management Research, 6(1), 85-104.
Rehman, S. U., & Selvaraj, M. (2013). Factors influencing customer preference towards Uzhavar Santhais(farmers’market) in Namakkal district Tamil Nadu. International Business Management, 7(2), 84-90.
Shafiwu, A. B., Donkoh, S. A., & Alhassan, H. (2018). Consumers’ preferred purchasing outlet of safer vegetables in Ouagadougou, Burkina Faso. Cogent Food & Agriculture, 4(1), 1-16.
Skulskis, V., & Girgžiene, V. (2013). Direct marketing and consumer trust in organic food products: Vilnius (Lithuania) Case. Journal of Agricultural Science and Technology, 3(2), 272-283.
Udimal, T. B. (2015). Factors influencing soybean producers’ choice of marketing channels in the Saboba district of northern region, Ghana. Unpublished Master Thesis, Kwame Nkrumah University.
Zepeda, L., & Li, J. (2006). Who buys local food. Journal of Food Distribution Research, 37(3), 1-11.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations
