Local Products Dynamics and the Determinants of Purchasing Behaviour

Abstract

In recent years the redistribution of economic activities due to the volatile economic and business environment has led to the return of part of the urban population back to the countryside. This resulted in a renewed interest by consumers in authentic local products and services related to tradition, heritage and culture. The rise of local products characterized by some peculiarity in their ingredients can be an essential advantage in developing the agricultural economy, as there will be an improvement in farmers' income, whilst attracting visitors if combined with actions to highlight a place's natural and cultural elements. The present study investigates local products' dynamics in urban markets and explores the socio-demographic characteristics shaping consumer attitudes towards local products. Primary data, collected through a quantitative survey to a sample of 503 consumers, were assessed through exploratory factor analysis, Multiple Regression Analysis and Cluster Analysis. The results indicate that the consumer's education, the products' marketplace, the product labelling and the consumer information about these products define their purchasing behaviour. The study's findings may help formulate policy proposals to increase the demand and consumption of local products, thus creating a greater penetration of local products in the market. © 2021 Karelakis Christos et al., published by Sciendo.