Browsing by Author "Costanigro, Marco, advisor"
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Item Open Access Measuring consumer willingness to pay for reduced sulfur dioxide content in wine: a conjoint analysis(Colorado State University. Libraries, 2012) Appleby, Christopher, author; Costanigro, Marco, advisor; Thilmany, Dawn, committee member; Menke, Stephen, committee memberAs sulfites are often perceived by consumers as causing headaches and migraines, differentiated wines based on their sulfite content may be a profitable marketing avenue. Using stated choice methods, a sample of 223 wine consumers participated in a conjoint experiment where 36 hypothetical wine labels were ranked. Collected data included socio-demographic information, subjective experiences with headaches, and purchasing behavior. The results indicate that quality and price are the primary factors influencing wine choice, while "no sulfites added" labeling does not directly determine the purchasing decision. However, we find strong evidence that, at parity with price and quality, the average consumer is willing to pay $0.64 for no sulfites added in wine. Additionally, a substantial segment (34.08%) of the consumer population is willing to pay a greater premium of $1.23 for no sulfites added, indicating a potential niche market to which marketing promotions could be targeted.Item Open Access Optimal local foods procurement in the National School Lunch Program: an analysis of potential impacts of Farm to School policies on procurement practices in three northern Colorado school districts(Colorado State University. Libraries, 2019) Long, Abigail B., author; Jablonski, Becca, advisor; Costanigro, Marco, advisor; Cunningham-Sabo, Leslie, committee memberThe most recent Farm to School (FTS) Census reported 23.6 million students in 42,587 schools (representing 42% of surveyed school districts) participated in FTS, with 77% of schools participating by procuring food locally (FNS 2014b). FTS connects K-12 students and local farms in an effort to increase the availability of healthy, local foods in school cafeterias, improve student nutrition, provide health and nutrition education opportunities, and increase market opportunities for small and medium-sized farms. Participation in FTS has been accompanied by legislative support at both the State and Federal levels. Specifically, in Spring of 2019 Colorado joined five other States and the District of Columbia in passing legislation that provides financial incentives for local food procurement (CO HB 19-1132). However, there is little research that assesses the relationship between FTS procurement and typical school food procurement practices carried out by Food Service Managers (FSMs), or quantifies how procurement policies effect procurement decisions by FSMs. This paper utilizes a unique primary data set to assess the role FTS local food procurement plays in optimal school food procurement and how policies incentivizing local procurement may impact purchasing decisions. To conduct this study, we aggregated and analyzed primary data describing real purchasing decisions made by FSMs in three Northern Colorado school districts and use the data to parameterize a Linear Programming (LP) optimization model. The optimization model acts as a proxy to examine a portion of FSM decision making regarding FFV purchasing and was then used to simulate how state reimbursements for local food purchases, as described in CO HB 19-1132, may alter FSMs procurement decision-making. We find that increases in local purchasing associated with reimbursements are nominal at lower reimbursements rates of 1% to 15% of local food purchasing, with substantial increases in local food purchasing and cost savings at higher reimbursement rates of 50% and 100%. When compared to reimbursements provided by CO HB 19-1132 and adjusted for waste we estimate that 20-40% of purchasing of FFV for use on salad bars could be reimbursed in the three districts observed if all reimbursement funds are spent on salad bar FFV exclusively. While promising, our results point to the need for more research that compares cost reductions experienced by schools to overall policy costs to the state, and benefits captured by local farmers.Item Open Access Testing a consumer barrier to farmers' market attendance: a randomized controlled trial design(Colorado State University. Libraries, 2019) Didero, Nicole M., author; Jablonski, Becca B.R., advisor; Costanigro, Marco, advisor; Sullins, Martha, committee member; Rhoades, Ryan, committee memberThis study investigates the efficacy of an informational coupon in attracting new farmers' market customers. Direct-to-consumer (DTC) market sales in the United States (U.S.) have declined since 2007, raising concern about the future viability of DTC markets overall. Farmers' market sales are one of the larger contributors to DTC sales. Previous research suggests that the limited range of products available, and thus the inability to get all of a household's at home food needs through shopping at the farmers' markets may impede sales growth. This research is timely given limited empirical evidence about successful marketing methods for farmers' market. It contributes new analysis for considering DTC marketing approaches for attracting new consumers. Specifically, this study tests the efficacy of an informational nudge (a kind of information delivery that serves as an alternative to regulations and requirements aimed at changing social behavior) on consumer attendance at a farmers' market in Northern Colorado. To test the effectiveness of the informational nudge at promoting attendance a winter farmers' market (WFM), we mailed 6,000 physical coupons redeemable for $10 to households in Fort Collins, Colorado during the 2017-2018 market season. Following a randomized controlled trial (RCT) design, half of the coupons emphasized the wide range of products sold at the WFM, while the control coupons presented a generic picture. One hundred and eleven coupons were redeemed (1.85%), of which 58 were treatment and 53 control. A two-proportion z-test was utilized to detect a difference in redemption rates between both coupon types. While the coupon was somewhat effective at attracting new customers (36% had never attended the WFM), there were no statistically significant differences in redemption rates between treatment and control.Item Open Access The value and role of food labels: three essays examining information flows in the food system for experience and credence attributes(Colorado State University. Libraries, 2012) Deselnicu, Oana C., author; Costanigro, Marco, advisor; Thilmany-McFadden, Dawn, advisor; Kroll, Stephan, committee member; Manning, Kenneth, committee memberThis dissertation investigates the role of food labels as means of conveying information about food product characteristics, with particular attention to experience and credence attributes. Unobserved product characteristics such as taste, food safety, nutrition, or quality are inherently difficult to quantify but are frequent determinants of demand. Since not all these characteristics are measurable (e.g., food safety) or directly observable (e.g., nutrition), there exists information asymmetry in the market between firms and consumers. Product labeling is a way for information that is initially hidden to eventually be disseminated in the marketplace. Different labeling schemes serve different roles in the marketing system. For example, nutrition information is critical in consumption decisions, while other product characteristics (such as "organic", or "fair trade"), may be valued by consumers but not essential for decision-making. Across three essays, we provide an assessment of how different types of labels are used in the food system. We focus equally on labels that have a long and rich history of usage in the food system (such as nutrition labels, and more recently, geographical indication (GI) labeling which denote a relationship between the product origin and specific product characteristics), but also labels that address emerging, public-minded issues which may be increasingly relevant in the future (such as environmental impact labeling and Corporate Social Responsibility (CSR) labeling). First, we meta-analyzed the literature regarding GI valuation to generate a set of guidelines, independent of any particular study, outlining the factors that are instrumental for a GI product to capture a price premium. Our findings across many studies indicate that agricultural produce and minimally processed foods such as grains, fresh meats, fruits and vegetables, benefit the most from association with GIs. These product categories generally do not develop own private reputations (brands), and thus, the premia received from association with GI collective reputations is relatively high. On the other hand, in addition to GIs, products with high value-added and longer supply chains such as wines and olive oils may also use private brands more effectively for differentiation. This suggests that brands and GIs have at least a partial substitute relationship. So, as the most broadly framed of the studies here, this cross-sectional analysis would suggest a further exploration of targeted labeling strategies, used jointly or independently of specific brand-name products, is warranted. Next, using original survey data and looking at nutrition label information, we find that truncated nutrition searches (looking only at the front label), or misleading product claims (such as "organic") are among a broad set of reasons current nutrition labeling practices may be ineffective in uniformly conveying information to consumers. We find that a nutrition index summarizing the information on the back nutrition panel, coupled with the information on the front label, may help to mitigate the incomplete information problems presented above. Moreover, we find that the environmental impact of food production is hard to identify by consumers if there is a lack of proper certification. But, until more consensus about key outcomes is framed by relevant government or consumer-oriented NGOs, a similar "informational index" solution will not be possible, so policy options are more limited. Finally, using original survey data we identify consumer preferences for CSR actions in the dairy industry. We find animal welfare to be the most preferred CSR activity and a top priority for most consumers. Sustainable agricultural practices, energy consumption, and waste management are second, third, and fourth, respectively, in importance for consumers; while company involvement in the community has the lowest priority amongst consumers. Furthermore, we monetize the value of animal welfare claims, identified as the most important CSR activity by consumers, in the context of a trusted third-party certification such as the Validus animal welfare certification program. Together, these empirical analyses provide a diverse set of findings on consumer perceptions, use of information, part-worth valuation of specific characteristics, as well as how these findings may vary by segments of consumers and product categories. By exploring these issues from a variety of perspectives and methods, the studies make both market-relevant and methodological contributions to the food labeling field.Item Open Access Three essays on horizontal regulation limiting alcohol sales(Colorado State University. Libraries, 2022) Palardy, Nathan, author; Costanigro, Marco, advisor; Cannon, Joe, committee member; Berning, Josh, committee member; Bayham, Jude, committee memberThis dissertation considers the impact of loosening horizontal regulations that limit competition among alcohol retailers on producers, retailers, and consumers. A recent trend towards the liberalization of alcohol retail has led many states, including Washington, Tennessee, Oklahoma, Utah, Kansas, and Colorado, to relax horizontal restrictions and allow for the sale of alcohol at grocery and convenience stores. Prior to the law changes, the sale of almost all alcoholic beverages was restricted to liquor stores. The new retail channels have created opportunities and challenges for alcohol producers and traditional retailers while creating more choices for consumers. The first chapter provides a brief overview of the alcohol industry and regulation in the U.S. The second chapter examines how the legalization of full-strength beer sales in grocery and convenience stores impacted craft brewers in Colorado, a core region for craft beer production. A statewide survey of the marketing strategies of craft breweries revealed that the new retail channels brought limited change to how craft breweries sell beer. Large breweries appear able to leverage their scale and brand recognition to gain access to the grocery stores, while smaller breweries face significant logistical and distribution barriers. Grocery stores captured a substantial share of craft beer sales at the expense of liquor stores. Sales of craft beer in convenience stores remain negligible. The third chapter investigates the effect of liberalized beer sales on Colorado liquor stores. While prior research has examined the effects of alcohol liberalization on liquor stores at the state-level, the impact may vary between rural and urban communities. I exploit a novel dataset containing firm-level foot traffic patterns from SafeGraph Inc. to investigate the impact of liberalizing beer sales on liquor store foot traffic using two empirical approaches: interrupted time series analysis and state space forecasting. The policy change caused liquor store foot traffic to substantially decline in urban counties, but had no impact in rural counties, suggesting that rural liquor store shoppers did not substantially change shopping behavior. I discuss the implications for alcohol retailers, producers, and consumers. In my final chapter, I broaden my analysis of the effect of liberalized alcohol sales on liquor stores to include two additional states: Oklahoma and Kansas. I exploit heterogeneity in state policy to determine whether different levels of alcohol liberalization (e.g. legalizing beer and wine sales outside of liquor stores vs legalizing beer sales only) impacts the magnitude of the effect on consumers' decision to shop at liquor stores. I estimate the effect in each state using firm-level foot traffic data from SafeGraph Inc. and a novel difference-in-differences estimator. I find that alcohol liberalization had a substantial negative impact on liquor store foot traffic in all states, however, my ability to differentiate the impact of different levels of alcohol liberalization was limited. Results can help policy makers weigh the costs to liquor stores against the benefit to consumers.Item Open Access Three essays on producer response to information disclosure(Colorado State University. Libraries, 2023) Yu, Shuiqin, author; Costanigro, Marco, advisor; Burkhardt, Jesse, committee member; Hoag, Dana, committee member; Cutler, Harvey, committee memberThis dissertation consists of three chapters studying how information and beliefs affect producers' behavior and decision making. The first chapter studies the effect of the Local Inspector Value Entry Specification (LIVES) program on restaurant hygiene in North Carolina. The LIVES Program, a collaboration between Yelp.com and municipalities, enables the display of restaurant inspection reports on Yelp's platform, simplifying access for consumers. Combining individual restaurant inspection data and restaurant level demographic data from Yelp.com, this study employs a difference-in-difference approach and geographic regression discontinuity design to analyze the LIVES program's impact on restaurant hygiene. The difference-in-difference analysis reveals a 1.143-point improvement in inspection scores for treated restaurants. The geographic regression discontinuity method, utilizing a neighboring county as a control group, corroborates the LIVES program's positive influence. The second chapter examines the effect of online consumer reviews on restaurant workers' wages. Online consumer reviews significantly influence the demand for experience goods, including movies, books, and restaurant meals. However, research on the impact of online reviews on restaurant workers' wages remains scarce. Utilizing decade-long panel data of quarterly consumer reviews and restaurant wages, this study demonstrates that an increase in average star ratings causes restaurant workers' wage growth. Notably, the effect varies across chain, major chain, and independent restaurants. The final chapter studies how Colorado farmers' and ranchers' subjective beliefs about the cost of adoption affect their intention to implement conservation practices. Promoting the adoption of conservation practices among farmers is challenging. Despite extensive research into farmers' reluctance to participate in conservation programs, few studies investigated how farmers' personal beliefs on the cost of adopting conservation practices affect their willingness to participate in those programs. This study adds to the literature by surveying over 150 Colorado farmers on their preferences for monetary and technical support regarding conservation tillage, soil testing, filter and buffer strips, and controlled-release fertilizers. Results from a choice experiment indicate that respondents' beliefs about costs can explain a large portion of the variation in farmers' willingness to adopt conservation practices.