The Resurgence of the Locavore: The Growth of Local Food Markets in the United States

Vasi, Ion Bogdan; Rynes, Sara L.; Nielsen, Jordan; Li, Christina

doi:10.5465/ambpp.2015.13831abstract

Cited by 4 publications

(9 citation statements)

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“…Firms use local status to socially or cognitively connect a product to a consumer by signaling that the product uniquely and distinctly resonates with the consumer's own sense of place (Marquis and Battilana, 2009;Vasi et al, 2015;Winter, 2003). Communicating this local connection frequently is accomplished through product naming strategies.…”

Section: Withincountry Consumer Productmentioning

confidence: 99%

“…A growing number of consumers have started to eschew global brands, resulting in an increase in the prevalence of even more locally focused product and brand marketing strategies, including distribution and production processes (Ataman et al, 2007;Bronnenberg et al, 2007;Verhaal et al, 2017). Indeed, a class of consumers known as "Locavores" demanding products, and especially food products, that are produced and distributed within very localized geographies has grown in size in recent years (Reich et al, 2018;Spielmann and Bernelin, 2015;Stanton et al, 2012;Vasi et al, 2015). Thus, there are reasons to believe that some significant group of consumers now are increasingly demanding "within-country local" brands (and products), where that is defined as a smaller than national localness, having a very short geographic proximity between the brand's manufacturing location and/or distribution activities and their consumption venue.…”

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confidence: 99%

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How within-country consumer product (or brand) localness and supporting marketing tactics influence sales performance

Hoskins

Verhaal

Griffin

2020

EJM

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Purpose This paper aims to move beyond previous investigations juxtaposing the performance of global versus domestic brands, where domestic is referred to as “localness” in the literature, conceptualizing and developing two measures of “within-country brand or product localness.” In doing so, it uses objective localness measures, rather than consumer perceptions of brand localness, as have been primarily used previously. Then, by leveraging established theory on brand authenticity and corollary literatures on brand identity and country-of-origin effects, this research develops and empirically tests key hypotheses about how these within-country, more geographically local products or brands (referred to as simply “localness” hereafter, for brevity), influence sales outcomes through increasing perceptions of brand and product authenticity. Design/methodology/approach Two empirical studies using different archival data sets are conducted to test the hypotheses. Study 1 focuses on new product sales from 2002 to 2011 for 31 categories of consumer packaged goods US product launches initiated in 2002–2005, whereas Study 2 investigates online consumer review and retail sales data in the US craft beer industry from 2001 to 2011. Localness is operationalized as two different objective measures: in Study 1, local distribution is measured, and in Study 2, firm headquarters denotes the geographic bounds of localness. These two measures are motivated by prior consumer perceptual studies of Locavores (consumers who strongly prefer local products), which identify that local systems of production and/or distribution are the key signals of localness. Using two measures allows the localness construct to be tested for the potential firm-side boundaries of its scope and provides two empirical measures that future researchers can leverage. Findings Brand (or product) localness gives performance advantages over national brands in the form of increased sales across both studies. The second study, focused on craft beer, dives more deeply into the theoretical mechanism (localness operates through increased perceptions of brand authenticity) and shows that while brand authenticity directly translates into higher sales, as anticipated, localness fully mediates this relationship. When coupled with supporting marketing tactics (high price and/or product variety), the link between localness and brand authenticity grows stronger. Local brands with low prices and/or limited product variety are deemed inauthentic by consumers, so it is important for brand managers to use marketing tactics that reinforce brand authenticity to support localness as a strategy. Research limitations/implications Future research could extend this inquiry in a number of ways. These include combining both empirical measures of localness into a single empirical inquiry, investigating additional product categories and further integrating aspects of strategy such as market positioning and innovation strategy. Newer data could also reveal how these phenomena are continuing to evolve. Practical implications Based on this study, managers can benefit by leveraging localness as a key brand or product attribute to achieve a sales advantage, but they must do so by using marketing tactics consistent with an authentic brand positioning. Efforts to expand a brand’s geographic reach over time should likely be conducted very locally at first, before extending to regional markets and then to a global footprint. It is also posited that retail store managers can benefit from allocating some shelf space to local brand and product offerings. Originality/value This paper conceptualizes and measures localness in new ways compared to the previous literatures. It develops objective measures of within-country localness instead of using consumer perceptions of localness and/or considering domestic brands as being “local” compared to global brands; builds key linkages between concepts of localness, authenticity and sales performance; and uncovers when and how within-country localness is a key brand or product attribute associated with increased sales success.

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Section: Withincountry Consumer Productmentioning

confidence: 99%

mentioning

confidence: 99%

How within-country consumer product (or brand) localness and supporting marketing tactics influence sales performance

Hoskins

Verhaal

Griffin

2020

EJM

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“…In the U.S., public opinion has substantial impacts on public policy [ 22 ], and the last decade has seen a favorable and growing public support for sustainable agricultural practices and local food markets [ 23 ]. In this regard, the 2018 Farm Bill saw significant shifts for local/regional food systems, with new programs supporting the local agricultural market, urban agriculture, and studies on food waste [ 24 ]. In addition, there is growing support for direct-to-consumer access to regionally produced food, markets, and business engaged in local foods such as farmers’ markets, roadside farm stands, and intermediated outlets such as farm-to-school programs, community kitchens, local retailers, school gardens, urban farms, and community gardens [ 23 ].…”

Section: Introductionmentioning

confidence: 99%

“…In addition, there is growing support for direct-to-consumer access to regionally produced food, markets, and business engaged in local foods such as farmers’ markets, roadside farm stands, and intermediated outlets such as farm-to-school programs, community kitchens, local retailers, school gardens, urban farms, and community gardens [ 23 ]. According to Vasi, the local food market is a “moralized market”, where people combine economic activities with their social values [ 24 ]. Local food markets are reported to develop in areas where residents had a strong commitment to civic participation, health, and the environment [ 24 ].…”

Section: Introductionmentioning

confidence: 99%

“…According to Vasi, the local food market is a “moralized market”, where people combine economic activities with their social values [ 24 ]. Local food markets are reported to develop in areas where residents had a strong commitment to civic participation, health, and the environment [ 24 ]. Many families living in the city would like to grow some of their own fruits, vegetables, herbs, and flowers either to save money on their food bills, or for freshness, flavor, and wholesomeness of home-grown produce.…”

Section: Introductionmentioning

confidence: 99%

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The Future of Food: Understanding Public Preferences for the Management of Agricultural Resources

Wolters

Steel

Anderson

et al. 2021

IJERPH

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The current U.S food system has managed to provide abundant food at a relatively low cost, even as the population increases. However, this unfettered growth is reaching maximum yields as demand for greater food production competes with other uses of agricultural lands. Extant ecological factors such as water scarcity are reducing food productivity, and competition for resources to produce food is becoming more apparent. This research examines public policy preferences of U.S. west coast citizens for the management of agricultural resources through the use of random household surveys. Results suggest overall support among respondents for food policies using regulatory, tax incentive, and voluntary outreach approaches. Multivariate analyses revealed that some social-demography, knowledge, environmental values, political ideology, and environmental efficacy variables were significant predictors of public opposition and support for food policies.

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Growing the community bank in the shadow of national banks: an empirical analysis of the U.S. banking industry, 1994–2018

Hoskins

Abadi

2022

JPBM

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Purpose With rising industry consolidation in the banking industry, it is unclear whether community banks may find more or less market opportunities. This paper aims to investigate how industry consolidation may affect community banks’ market share outcomes. The second goal of this paper is to establish the ways in which community banks may successfully manage market share growth goals that may be antithetical to the principles of being a local brand. Design/methodology/approach The empirical analysis is on the US banking industry, spanning the years from 1994 to 2018. This comprehensive panel data set includes county-year level granularity for more than 15,000 banks. Panel regression models that include bank-, county- and year-specific fixed effects are deployed. Findings It is found that local brands, operationalized as community banks in this study’s empirical context, are having the most success in consolidated market contexts. When pursuing market share growth, a distribution strategy to saturate a local market is found to be advantageous while expanding across geographies is less advisable for community banks. Originality/value The findings shed empirical light on the challenges and opportunities for community banks, thereby contributing to the banking industry literature and to an emerging stream of research on local brand management. By demonstrating the means of which growth can be successfully managed by local brands, the important and largely unanswered question of how a local brand can effectively grow is addressed.

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The Resurgence of the Locavore: The Growth of Local Food Markets in the United States

Cited by 4 publications

References 0 publications

How within-country consumer product (or brand) localness and supporting marketing tactics influence sales performance

How within-country consumer product (or brand) localness and supporting marketing tactics influence sales performance

The Future of Food: Understanding Public Preferences for the Management of Agricultural Resources

Growing the community bank in the shadow of national banks: an empirical analysis of the U.S. banking industry, 1994–2018

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