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Abstract

This paper examines factors affecting how much consumers spend when purchasing directly from producers. A joint decision framework models two decisions: 1) whether to purchase directly and 2) how much to spend. Consumers with a greater incidence of family disease or who are immigrants, prepare more meals at home, and are more concerned with U.S. food safety also spend more on food purchased directly from producers. Results suggest that farmers should develop a three-pronged marketing strategy by attracting new consumers, adopting sales promotion tools that encourage existing customers to purchase more frequently, and encouraging consumers to spend more per visit.

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