Grashuis, Jasper

January, 2023

By: Grashuis, Jasper; Su, Ye
There is much empirical evidence of consumer preferences for food products with state-sponsored designations. However, the behavioral characteristics that form the foundation of such consumer preferences are unknown. Using a choice experiment, we explain preferences for the Missouri Grown state-sponsored designation from the perspective of consumer ethnocentrism. According to the results, most consumers have a significant willingness-to-pay for the Missouri Grown label. However, the price premium is substantially higher for consumers who think that products from Missouri conform with in-group preferences. These novel findings imply a strong motivation for producers and legislators to expand adoption and support of state-sponsored programs.