Date of Graduation

8-2024

Document Type

Thesis

Degree Name

Master of Science in Agricultural Economics (MS)

Degree Level

Graduate

Department

Agricultural Economics and Agribusiness

Advisor/Mentor

McFadden, Brandon

Committee Member

Mosley, Jacquelyn

Second Committee Member

Mitchell, James

Keywords

Agricultural economics; Black-owned; Consumer behavior; Food labeling; Food marketing

Abstract

Black and African Americans have faced historic underrepresentation in the agri-food system (Horst & Marion, 2019). Systemic inequities have hindered food entrepreneurs and economic growth within this community. Recent diversity, equity, and inclusion (DEI) initiatives highlight societal concerns about these imbalances (Darity, 2024). Some consumers aim to address this underrepresentation by purchasing products from Black entrepreneurs, but this requires effective communication, which can increase marketing expenses and risks for producers. However, highlighting Black-owned food products may enhance outcomes for this marginalized community. Credence attributes like Black ownership cannot be evaluated even after consumption, unlike traits such as taste and quality. Marketing of credence attributes, commonly by the use of production labels (e.g., organic), helps communicate these desired traits, allowing consumers to make utility-maximizing choices (McFadden et al., 2021). Consumer preferences for Black ownership as a credence attribute remain largely untested, presenting a unique opportunity for Black entrepreneurs in the agri-food sector. This study aimed to determine consumer preferences for Black-owned, value-added food products (e.g., Barbeque (BBQ) sauce, beef jerky, and honey), whether preferences varied across products, and the consumer characteristics associated with these preferences. A web-based survey was distributed to 2,997 respondents who completed a discrete choice experiment (DCE) with products varying by price, locality, and Black ownership. Respondents were assigned to a DCE for either BBQ sauce (n=1,000), beef jerky (n=999), or honey (n=998). Data on respondent characteristics, Intercultural Sensitivity Scale, and Social Desirability Scale were also collected. Two conditional logistic regression models were estimated for the DCE data. The first model combined all products to examine preferences for Black-owned and local attributes, while the second model included interaction terms between attributes and product type. Results showed a positive preference for Black-owned products with little heterogeneity across products. Separate Cragg hurdle regression models were estimated for each attribute and product type, totaling six models, to examine respondent characteristics associated with selecting Black-owned products. Several consumer characteristics specifically influenced the selection of Black-owned products, differing from those influencing local options. This study fills a gap in the literature by highlighting the potential marketing benefits of a Black-owned food label. It offers a data-driven framework for marketing strategies that could benefit Black food entrepreneurs, providing an asset to mitigate barriers and support the growth of Black professionals in agri-food careers.

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