Perceived value in community supported agriculture (CSA)

Abstract

Purpose – The purpose of this paper is threefold: to conceptualize a construct of the perceived value in CSA and its dimensions, to operationalize and validate the construct, and to empirically investigate the influence of perceived value in CSA on consumer satisfaction and loyalty. Design/methodology/approach – This research begins by reviewing relevant literature that frames the concept of perceived value in CSA and integrates this construct into a nomological network. Operational measures for each component of perceived value in CSA are then developed. The scale is validated, and then used to test the hypothesized model in a sample of 198 consumers of Beijing's five CSA farms using partial least squares (PLS) as an analytical tool. Findings – Perceived value in CSA is found to be a formative, multi-dimensional, third-order construct. Further, the results suggest that perceived value in CSA has both a direct positive effect on consumer loyalty and an indirect effect mediated through consumer satisfaction. Research limitations/implications – Limitations and research directions refer to the need to increase the sample size and replicate research in other places, the possibility of conducting longitudinal research, the need to identify antecedents of perceived value, and the opportunity to assess perceived value across a number of CSA member characteristics. Practical implications – CSA farmers should recognize the importance of value creation to build and maintain long time relationships. This study suggests that CSA farmers can enhance value from two approaches. One approach is to build strategies to facilitate delivery of product benefits, emotional benefits, and social benefits. Another approach is to invest in efforts to reduce inconvenience and lower risk. In addition, the formative model means that CSA farmers can allocate resources depending on the relative weight of each in value perceptions. Originality/value – This research is one of the first to conceptualize perceived value in a CSA setting; it argues that modeling of perceived value in CSA should take a formative approach and finds support for this; and assesses the nomological validity of the perceived value in CSA.