Date of Graduation
5-2024
Document Type
Thesis
Degree Name
Bachelor of Arts
Degree Level
Undergraduate
Department
Economics
Advisor/Mentor
Malone, Trey
Committee Member
Brownback, Andy
Second Committee Member
Robinson, Samantha
Third Committee Member
Clay, Matthew
Abstract
This study examines the adoption of electronic payment systems within direct-to-consumer (DTC) transactions in U.S. farmers' markets to draw broader implications for small business strategy. Through primary and secondary data sources, this paper assesses the impact of electronic payment integration on consumer behavior and market dynamics. The analysis reveals significant disparities in payment system adoption across different geographic and demographic landscapes. Regions with higher adoption of credit card systems at farmers' markets are predominantly urban and higher-income areas, suggesting a correlation between market access to technology and economic status. Consumer data further indicates that the availability of electronic payment options can influence spending behaviors, with a notable preference for credit cards over cash, highlighting the role of convenience and security in consumer choices. The study identifies two distinct consumer segments: 'Market Mavericks' and 'Yearly Patrons,' differentiated by their payment preferences and frequency of market attendance. Market Mavericks, who are more receptive to electronic payments, tend to spend more and engage more frequently, underscoring the potential revenue benefits for small businesses through targeted technological enhancements. The findings suggest that small business owners might consider electronic payment systems as a strategic tool to enhance consumer satisfaction, reduce transaction costs, and capture a broader customer base. Integrating such technologies aligns with evolving consumer preferences and offers significant opportunities for business growth and market expansion.
Keywords
Electronic Payment Systems; Consumer Behavior; Farmers' Markets; Agricultural Marketing; Technology Adoption
Citation
Thomsen, A. (2024). The Digital Pivot: Exploring Credit Card and E-Payment Utilization in Direct-to-Consumer U.S. Agriculture. Economics Undergraduate Honors Theses Retrieved from https://scholarworks.uark.edu/econuht/54
