Purchasing of Local goods in the Fargo Moorhead Area Kristina Morken, Katrina Fick, Kristin Pahl, and Lu Sun

Discussions and Implications Introduction

In recent years, there appears to have been a push toward encouraging consumers to purchase locally and domestically made goods. There have not been many studies addressing this particular area of commerce. We hope to find what influences consumers willingness to purchase locally and domestically made products and what factors are strongly correlated with their behavior.

Research Purpose
The purpose of this study was to examine factors influencing consumers perception of locally and domestically made goods and what influences their purchases in these areas. Our hypotheses address whether the cost of merchandise, the distance they must travel, and their accessibility to the merchandise affects their purchasing behavior. In addition, we address the idea that the purchase of local merchandise and its effects on the community will also influence such purchases. We feel this information will be beneficial to local retailers as it may determine whether carrying locally made goods would be more beneficial to them as opposed to mainly imported goods.

Literature Review
Some people are more likely to believe they can contribute to sustainability efforts through their purchasing behaviors and that this belief is associated with more sustainable behaviors (Howard and Allen, 2006). Consumers who buy locally grown products are not only expressing interest in quality goods but also expressing a desire to create benefits for the local economy and environment through such purchases. Hustvedt and Bernard (2008) found consumers are willing to pay a premium for goods labeled with Local Origin. According to new research conducted by Ohio State University, Supermarket shoppers are willing to pay a premium price for locally produced foods. (Darby, Ernst and Roe, 2008) We believe that this concept transfers to any locally/domestically produced product and will apply to shoppers willingness to pay more for local apparel and interior merchandise.

Although the main focus of todays consumer is not the purchasing of local goods, we have found that consumers are concerned with the purchasing of local goods and how those purchases affect their community. Consumers desire to support their community and their willingness to purchase local goods are directly related. In addition, we found that consumers believe that local goods are of better quality. The importance of supporting local community and the economic effects that purchasing local goods has on the community are important to consumers. Retailers need to be aware of the desire consumers have to purchase goods that are made locally and domestically and how this will affect their purchasing behaviors.

Method
A survey approach was taken . The sample was 100 people who shop in the Fargo-Moorhead Area. The average age was 21.2 and of our participants 88% women and 12%men.

References
Darby, K., Ernst, S., & Roe, B. (2008, June 8). Average shoppers are willing to pay a premium for locally produced food. Science Daily: News & Articles in Science, Health, Environment & Technology. http://www.sciencedaily.com/releases/2009/06/080 603120242.htm Howard, P., & Allen, P. (2006). Beyond organic: consumer interest in new labeling schemes in the Central Coast of California. International Journal of Consumer Studies, 5(30), 439-451. Hustvedt, G., & Bernard, J. (2008). Consumer willingness to pay for sustainable apparel: the influence of labeling for fiber origin and production methods. International Journal of Consumer Studies, 32, 491498.

Findings
Peopel's willingness to purchase local goods is reliant on various factors. People are willing to spend more on local goods because they are a higher quality (p<.01), accessiable (p<.01), and because people feel they are supporting the community (p<.01). In addition we found that people are willing to spend more on goods if they are produced locally (p<.01).

ADHM 481 Apparel/Textiles Capstone Experience Instructor: Jaeha Lee