The Biggest Bang for the Buck: Valuation of Various Components of a Regional Promotion Campaign by Participating Restaurants


Ran Xie, Olga Isengildina-Massa, and Carlos E. Carpio


Olga Isengildina-Massa


Applied Economics (College of Business and Behavioral Science)


Government funded advertising campaigns play an important role in agricultural and food policy around the world. Previous studies of economic value of regional promotion campaigns were limited by their exclusive focusing on the benefits received by farmers. Other potential campaign beneficiaries such as consumers, local restaurants and farmers markets have been largely. Furthermore, regional promotion campaigns are typically analyzed as a whole providing little guidance to policy makers about relative benefits of various campaign components. This study fills these voids by examining how various components of the Certified South Carolina Locally Grown campaign are valued by a generally overlooked segment of participating restaurants. A stated-preference choice experiment was conducted to estimate the average willingness to pay (WTP) for each campaign component using a mixed logit model. Three existing components--Labeling, Multimedia Advertising, and \\\\\\\"Fresh on the Menu\\\\\\\" were found to have significant positive economic value. Individual WTP was calculated in order to explore the relationship between WTP and participating restaurant characteristics. We found that restaurant image, satisfaction with the campaign, and motivation for participation significantly affected their WTP for “Fresh on the menu” and labeling components.

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