Is it just the distance? Consumer preference for geographical and social proximity of food production

Abstract

Consumption of locally-produced food is one important contribution to promote a more sustainable economy. Several previous studies have focused on distance declarations, denoted as geographical proximity of food production, and how it affects choice. All without consensus about what distance should hold for local food. Other previous research has identified social proximity as a local-related product characteristic that drives perception and choice (e.g., family-run farms). However, there is no previous study providing a clear picture regarding the choice behavior and preference relationship of geographical and social proximity attributes (particularly when the distance declaration of locally-produced food varies). To fill this research gap, we employed a between-subjects experiment (i.e., varying the distance declaration of local food) in combination with a choice-based conjoint analysis to understand consumer preferences for geographical and social proximity of food production in Germany. Results indicate a higher preference and willingness to pay for food with greater geographical and social proximity, with the effects more pronounced for geographical proximity. A follow-up analysis provides novel insights by explaining preference heterogeneity for geographical and social proximity attributes with important implications for research and practice.