INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025
The research aligns with the findings of Ilbery and Maye (2005), which emphasize that local food systems are
significantly influenced by regional socioeconomic and environmental factors. Their study indicates that these
contextual variables affect not only the processes of production and supply but also the pricing strategies in local
food markets. For instance, elements like geographic location, infrastructure quality, availability of local labor,
and environmental conditions impact production expenses as well as supply chain effectiveness, thereby
influencing price determinações. In addition, social elements such as community values, local culture, and
consumer expectations are crucial in shaping the demand side of the local food economy, influencing pricing
strategies as well.
As noted by Thilmany et al. (2018), the cost structure includes both direct costs—like raw materials, ingredients,
and labor—and indirect costs encompassing utilities, rent, and marketing expenditures. Food businesses often
utilize cost-plus pricing, which involves calculating the total production cost and then adding a markup to secure
profitability. This approach offers a clear and dependable method for pricing, enabling businesses to cover all
expenses incurred while sustaining viable profit margins. Furthermore, a thorough understanding of cost
components allows businesses to strategically modify prices in response to market fluctuations, competition, and
customer demand, ensuring they remain competitive and economically viable.
Research in marketing reveals that digital channels such as Facebook, Instagram, and company websites
significantly boost visibility, customer interaction, and brand recall for various businesses, including those in
the local food sector. According to Duffett (2017) and Ahmad et al. (2019), these platforms provide businesses
with the capability to swiftly reach broader audiences and engage customers through interactive content,
promotional efforts, and direct communication.
Research consistently shows that personal recommendations are among the most reliable and effective forms of
marketing, often outperforming paid advertisements (Jalilvand & Samiei, 2012). Unlike paid advertisements,
which can be seen as biased or disruptive, word-of-mouth (WOM) promotions inherently carry trust because
they come from personal connections like friends, family, or colleagues who provide genuine experiences.
Studies reveal that personal referrals establish immediate credibility and greatly affect consumer choices, with
referred customers showing a higher likelihood to trust, engage with, and buy from a business. Furthermore, the
research indicates that while food delivery apps greatly enhance visibility and sales, their effectiveness varies
depending on the extent of technological adoption and the size of the market, in line with findings by Li, Mirosa,
and Bremer (2020).
The research conducted by Widjaja and Giovanni (2018) examined how Online-to-Offline (O2O) service quality
and brand image impact customer satisfaction and repeat purchase intentions. Their findings suggest that high
O2O service quality (such as responsiveness, reliability, and empathy) and a positive brand image lead to greater
customer satisfaction and an increased likelihood of repeat purchases. This supports the notion that local food
businesses utilizing digital ordering channels (phone, email, online) not only enhance convenience but also foster
customer trust and loyalty, which aligns well with the high ratings customers give these ordering methods.
According to research by Ilbery and Maye (2005), regional brands often act as signals of quality that convey
authenticity, safety, and cultural heritage, thereby boosting consumer confidence in local products. Regional
branding can further distinguish products by highlighting their unique geographical origins, traditional
production techniques, and sustainability credentials, all of which resonate with the increasing consumer values
centered around health and environmental awareness. Empirical evidence reveals that regional brand
endorsement, particularly when supported by government certification or community recognition, enhances
brand trust and positively sways purchase intentions.
Research by Batat (2021) highlights that personal interactions, familiarity, and physical presence are essential
elements that continue to influence customer loyalty in local food markets. Customers tend to appreciate the
direct relationship with producers or sellers, which cultivates a sense of trust, authenticity, and belonging to the
community. This interpersonal connection strengthens loyalty as customers feel more engaged and supported,
viewing the local food experience as more than merely a transaction. Studies indicate that such personal
engagement can result in more effective word-of-mouth promotion and repeat business, which are crucial for
the sustainability of local food enterprises.
Page 2259