Search

Purpose – The purpose of this paper is to reveal how a loyalty program that provides economic rewards for locally produced low-input farm products influences the consumers’ behavior of repeated purchase by focussing on the consumers’ motivation and characteristics. Design/methodology/approach – This study is based on data from a questionnaire survey and actual purchase data obtained from a practical study conducted in Japan. The data were analyzed using regression analysis. Findings – Consumers who gain economic rewards by purchasing locally produced low-input fresh food are not likely to purchase these products exclusively for the economic rewards of the program; rather, they do so to get safe and good quality food and to support local farmers and local farm conservation. The most remarkable finding is that the scheme that provides economic rewards makes such products more affordable for consumers from lower-income households. Originality/value – This study is of academic value and of value to policy makers and practitioners in the local food supply chain. The study suggests that for increasing and stabilizing the demand for environment-friendly farm products, institutions for creating, designing, and supporting a new market for potential consumers are needed, together with suitable certification systems. [ABSTRACT FROM AUTHOR]