PRODUCT DIFFERENTIATION AND STATE PROMOTION OF FARM PRODUCE: AN ANALYSIS OF THE JERSEY FRESH TOMATO
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Product differentiation, a prerequisite for successful state promotion of state branded farm products, may be reflected by differences in the own-price, cross-price and income elasticties of demand between a state's brand and other products. This paper tests for such differentiation by estimating demand functions for tomatoes available at the retail level in New Jersey. The "Jersey Fresh" brand is shown to have higher own-price and income elasticities of demand. It is thus perceived to be of higher quality than others. Consumers are also found to be origin biased. Promotion based on the Jersey Fresh's unique attributes and on encouraging further origin bias may have a good chance of success.