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Net Gains from 'Net Purchases? Farmers’ Preferences for Online and Local Input Purchases

Published online by Cambridge University Press:  15 September 2016

Marvin T. Batte  and
Stan Ernst
Marvin T. Batte
Affiliation:
Department of Agricultural, Environmental and Development Economics at the Ohio State University
Stan Ernst
Affiliation:
Department of Agricultural, Environmental and Development Economics at the Ohio State University
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Abstract

E-commerce represents both threats to and opportunities for rural communities. This study addresses one element of the issue: farmers’ willingness to substitute online merchants or national farm input stores for local businesses. Results of a conjoint analysis of contingent choice experiments suggest that farmers are willing to purchase from online or national stores outside their communities if compensated with lower prices or greater services. Results also demonstrate that the context of the input purchase, such as time constraints, was very important not only in valuing these services, but, more broadly, in terms of the farmer's loyalty to a local merchant.

Keywords

e-commercefarm input purchasewillingness to paycontingent choicerural communities
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 36 , Issue 1 , April 2007 , pp. 84 - 94
Copyright
Copyright © 2007 Northeastern Agricultural and Resource Economics Association 

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