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The Biggest Bang for the Buck: Valuation of Various Components of a Regional Promotion Campaign by Participating Restaurants

Published online by Cambridge University Press:  26 January 2015

Ran Xie ,
Olga Isengildina-Massa  and
Carlos E. Carpio
Ran Xie
Affiliation:
John E. Walker Department of Economics atClemson University, Clemson, South Carolina
Olga Isengildina-Massa
Affiliation:
University of Texas at Arlington, Arlington, Texas
Carlos E. Carpio
Affiliation:
Department of Agricultural and Applied Economics atTexas Tech University, Lubbock, Texas
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Abstract

This study examined how various components of the Certified South Carolina campaign are valued by participating restaurants. A choice experiment was conducted to estimate the average willingness to pay (WTP) for each campaign component using a mixed logit model. Three existing campaign components—Labeling, Multimedia Advertising, and the “Fresh on the Menu” program—were found to have a significant positive economic value. Results also revealed that the type of restaurant, the level of satisfaction with the campaign, and the factors motivating participation significantly affected restaurants' WTP for the campaign components.

Keywords

choice experimentmixed logit modellocal food willingness to payC40M31M38

Information

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 2 , May 2014 , pp. 193 - 208
Copyright
Copyright © Southern Agricultural Economics Association 2014

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