Hedonic analysis of US fresh produce prices at direct-to-consumer sales outlets versus competing retailers

Abstract

Purpose

The purpose of this paper is to compare prices for fresh tomatoes, potatoes, peppers, and apples at direct-to-consumer sales outlets (e.g. farmers markets, roadside stands, on-farm stores) in the USA to grocery stores and supercenters, while controlling for other attributes.

Design/methodology/approach

The author estimates a hedonic regression model to determine price differences at direct sales outlets, grocery stores, and supercenters in various regions and seasons of the year. The analysis is conducted using 2006 Nielsen Homescan data. Other product and market attributes are also considered, along with characteristics of the household sample.

Findings

Prices at direct sales outlets are lower than grocery store prices throughout the year and across the USA. Prices at direct sales outlets for some product/location/season combinations were higher than or comparable to supercenter prices.

Research limitations/implications

Future research is needed to examine how price differences may vary across the various types of direct marketing outlets.

Originality/value

Few studies have examined price differences between direct sales outlets and conventional retail stores. No studies have used nationally representative data to analyze these price differences across produce type, season, and geographic areas.

Citation

Martinez, S.W. (2016), "Hedonic analysis of US fresh produce prices at direct-to-consumer sales outlets versus competing retailers", British Food Journal, Vol. 118 No. 7, pp. 1665-1681. https://doi.org/10.1108/BFJ-05-2015-0183