|
on Marketing |
Issue of 2016‒06‒14
twenty-two papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
By: | Dubois, Pierre; Griffith, Rachel; O'Connell, Martin |
Abstract: | There are growing calls to restrict advertising of junk foods. Whether such a move will improve diet quality will depend on how advertising shifts consumer demands and how firms respond. We study an important and typical junk food market { the potato chips market. We exploit consumer level exposure to adverts to estimate demand, allowing advertising to potentially shift the weight consumers place on product healthiness, tilt demand curves, have dynamic effects and spillover effects across brands. We simulate the impact of a ban and show that the potential health benefits are partially offset by firms lowering prices and by consumer switching to other junk foods. |
Keywords: | advertising, demand estimation, dynamic oligopoly, welfare |
JEL: | L13 M37 |
Date: | 2016–05 |
URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:30473&r=mkt |
By: | Nakajima, Toru |
Abstract: | Non-alcoholic (NA) beer, a beverage that tastes like beer and contains no/little alcohol, has seen growing world-wide popularity as a potential substitute of beer. To elucidate consumer demand and profitability of NA beer, this study estimated price elasticities and price-cost margins of beer and NA beer at brand level in the case of Japan, using a structural demand model of differentiated products and a purchase data scanned by 30,000 consumers. According to the empirical result, NA beer demand is responsive to prices of some regular and premium beer brands as well as NA beer brands while beer demand is not responsive to NA beer prices. This implies that (1) some consumers of regular and premium beers consider NA beer as a substitute although NA beer consumers do not recognize beer as a replacement; (2) although low-malt, new-genre (alcoholic drinks with beer-like taste), and NA beers have some common product characteristics, consumers of low-malt and new-genre beers have different preference from that of NA beer consumers; (3) unless prices of NA beer brands increase, certain amount of demand for NA beer can be expected to remain irrespective of price levels of beer brands. Price-cost margins of producing NA beer were found to be similar to those of regular and new-genre beers while price-cost margins for premium beer were small and those for low-malt beer were large. |
Keywords: | Non-alcoholic beer, consumer demand, price-cost margin, product differentiation, the BLP model, Agribusiness, Demand and Price Analysis, Industrial Organization, Marketing, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235734&r=mkt |
By: | Liu, Qing; Zhou, Jiehong; Yan, Zhen |
Abstract: | The present study attempts to separate the environmental motivation and healthy motivation of consumers' choice for pro-environmental products through choice experiment and latent class model. Moreover, the different motives behind pro-environmental purchase and its impact on heterogeneity of consumer preferences needs to be further examined. Data are collected by means of face-to-face interview in Zhejiang, Shanghai, Jiangsu and Guangdong of China with a total sample size of 477 consumers. The results reveal that the consumers who are willing to buy pro-environmental products are motivated by health benefits as well as environmental considerations due to the higher consciousness of food safety and eco-environment in China. However, the healthy attributes tend to prevail in consumers' motivations. Consumers who have stronger environmental motivation will show higher preferences for pro-environmental products. It is also found that these consumers have the following characteristics: higher perception and knowledge of pro-environmental products,lower income , convenient purchase and female. Our results have implications for the improvement of government's consumption policies and the precision marketing of producers to induce consumers' participation to buy pro-environmental products, which in turn do a great benefit to environmental-friendly production and sustainable environment. |
Keywords: | pro-environmental purchase motives, consumer preference, choice experiment, latent class model, Agricultural and Food Policy, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:236261&r=mkt |
By: | Pasirayi, Simba; Grebitus, Carola |
Abstract: | Recent studies on private labels find that store brand consumers tend to be middle income, educated, older consumers with large families. Moreover, low-income households that have the same needs as wealthier households do not economize by buying a greater proportion of private-label products. Instead they prefer higher priced national brands even in recessionary times. In this research study we employ the reference group theory to explain this counterintuitive phenomenon. Results show that low-income households are upward comparing, that is, they contrast themselves with high-income households whom they believe are better-off. These comparisons result in preference for national brands. In addition, we find that low income consumers know little about advances in private labels which also explains why they prefer national brands. Last, we find that our results are also consistent in emerging economies. |
Keywords: | private labels, social influence, socioeconomic status, Consumer/Household Economics, Marketing, |
Date: | 2016–05–25 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:236070&r=mkt |
By: | Carew, Richard C.; Florkowski, Wojciech J.; Meng, Ting |
Abstract: | Previous hedonic wine studies have employed conventional regression models to show the effects of objective and subjective attributes such as sensory characteristics, expert quality panel assessments, and regional reputation on wine prices. This paper employs a market segmentation approach based on price to show how lower, mid-priced and higher priced California red and white wines sold in British Columbia (BC) are influenced by objective attributes including geographical origin, grape variety, family brand names, alcohol content, and volume sales. Results show that red and white wine prices are segmented differently and the price segments for either wine type vary from those reported by earlier studies. Also, the effects of numerous attributes on wine prices vary significantly across wine types and price segments. The study findings show higher priced California Cabernet Sauvignon wines fetch a sizeable price premium compared to similar priced varietal wines like Merlot. Higher priced California white wines from Napa are discounted relative to wines labeled with a generic California appellation, whereas higher priced California red wines from Sonoma, Central Valley and Central Coast earn a price discount. Moreover, alcohol content is negatively related to higher priced California red wines, while positively associated with prices of mid-priced and higher priced California white wines. |
Keywords: | Attribute, hedonic pricing, panel data, varietal wines, log-likelihood test, Agribusiness, Demand and Price Analysis, Marketing, Q11, D12, L66, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235253&r=mkt |
By: | Zhao, Shuoli; Yue, Chengyan; Wang, Yumeng |
Abstract: | Many food companies are developing nanotechnology modified food packages and it is critical to understand the informational and attitudinal factors that influence public acceptance of nano-packaging. This study uses experimental auction with real nano-packaged products to test and compare consumer acceptance for nano-packaged food products with information from various sources. The results indicate when provided with information from different sources, consumer acceptance for and attitude toward nano-packaged food products are changing: for plain-labeled food products, reliance on government regulation was the only determinant influencing participants’ willingness to pay; after general information about nanotechnology was given, participants were willing to pay more for nano-packaged products, which was affected by their general attitude towards new food technology and concerns about environment/health; when detailed information were provided, concern about the environment/health became the only factor that significantly influenced participant willingness to pay for nano-packaged food products. |
Keywords: | Nano-package, Nanotechnology, Experimental Auction, Structural Equation Model, Information Effect, Willingness-to-Pay, Consumer/Household Economics, Marketing, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235602&r=mkt |
By: | Qing, Ping; Hu, Wuyang |
Abstract: | China has risen to be the largest red wine consumer in the world but related studies using disaggregated and consumer-based data are scarce. This article examines Chinese preferences and willingness to pay for different wine attributes through a recent national survey including a choice experiment. Results indicate that country of origin is still one of the most important attributes for wine. Taste of wine and organic production are also relevant to consumers. Wine vintage is not as important as expected. Key implications on Chinese domestic and imported wines are discussed under the context of recent profound structural changes in wine consumption induced by policy shifts. |
Keywords: | China, wine, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing, Q13, |
Date: | 2016–05 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235477&r=mkt |
By: | Dhoha AlSaleh (Gulf University for Science and Technology) |
Abstract: | Understanding impact of social media on user's attitude is important. As social media have become very popular amongst people and have become an integral part of the world economy in recent years, predicting impact of social media sites has become a major goal of many researchers in academia and industry. The objectives of the proposed research are two-fold. The first objective is to identify factors that strongly predict consumers' attitudes toward social media usage. The second objective is to investigate how culture influences adoption of social media in developed and less developed countries. The research draws upon the Theory of Reasoned Action, TRA (Fishbein & Ajzen 1975) and the Technology Acceptance Model, TAM (Davis 1989). To achieve the objectives of this research, an English and Arabic Online survey is developed for the US and Kuwait samples and then Structural Equation Modeling (SEM) is used for testing of the hypothesized relationships and to compare the two cultures. This research provides valuable information and new insights for scholars and managers. The results of this study enable marketing managers understand the importance of social media that can be used to enhance their business. More specifically, the research will assist marketing managers in Kuwait and the US in understanding the critical factors that lead businesses to create their own social media sites by identifying what factors affect consumer's attitude toward social media sites in order for business owners to focus on the most important factors without placing unnecessary emphasis on aspects which are proven to be less important. Furthermore, based on the positive significant results, marketing managers in the two countries are be able to develop effective advertisement strategies through social media based on the proper mix of factors depending on the target market. |
Keywords: | Social Media, Critical Mass, Attitude, Perceived Usefulness, Perceived Ease of Use, Theory of Reasoned Action, Technology Acceptance Model. |
URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3605860&r=mkt |
By: | Yingqi, Zhong; Zuhui, Huang; Linhai, Wu |
Abstract: | In this study, we used a random nth-price auction to estimate consumers’ willingness to accept (WTA) when exchanging orange juice containing additives for freshly squeezed orange juice without additives. Also, we analyzed the effects of positive and negative information of orange juice additives on consumers’ risk perceptions. In summary, three basic findings are obtained. a. Negative information of orange juice additives is given a higher weight by consumers; consumers with some knowledge about additives, rather than those without knowledge about additives, have a higher WTA. b. Consumers with the information processing capacity, concern about the health of themselves and their families, and the ability to foresee the consequences of information have a deep impact on their WTA. c. The initial bid has a significant anchoring effect on consumers’ WTA. As a result, there are three effective approaches to eliminate consumer food scares. The first is to disclose information about food safety risks timely and accurately. The second is to prevent the misguidance by the media, especially the internet media. The third is to employ different communication strategies based on the differences among consumer groups. |
Keywords: | Food Safety, Risk Perception, Willingness to Accept, Food additives., Food Consumption/Nutrition/Food Safety, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235759&r=mkt |
By: | Shen, Meng; Gao, Zhifeng |
Abstract: | Colors can carry specific meaning and have an important influence on people’s feelings, thoughts and behaviors. This paper investigates the impact of blue versus red on how consumers process information in food choice. Results show color indeed influences consumer information processing and feature evaluation. Specifically, consumers spend more time and pay more attention to choice tasks in the red condition than in the blue condition. In addition, consumers are willing to pay more premium for certain feature on the red label than on the blue label. |
Keywords: | Choice experiment, Color, Information Processing, Willingness-to-pay, Agribusiness, Consumer/Household Economics, Marketing, |
Date: | 2016–05–25 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235782&r=mkt |
By: | Acharya, Ram |
Abstract: | Abstract: This study examines the relationship between agricultural fair visitor’s motivation, satisfaction, and loyalty using online survey data. The structural equation model results show that both push and pull motivations play a crucial role in determining customer satisfaction. Consumer’s motives also affect loyalty indirectly through their influence on fair visitor’s perceived satisfaction. |
Keywords: | Agricultural fairs, push and pull motivation, customer satisfaction, and loyalty, Agribusiness, Institutional and Behavioral Economics, Marketing, Q13, D03, |
Date: | 2016–05–25 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235916&r=mkt |
By: | Staudigel, Matthias; Anders, Sven |
Abstract: | Recent controversial policy proposals have aimed at creating a healthier food supply by means of taxation, minimum quality standards or nutritional labeling. Yet the outcomes of such policies strongly depend on the competitive structures and thus substitution processes of individual products within categories, which are not well understood. The objective of this paper is to quantify the source and impact of differentiation in ingredient formulation and especially product health attributes on the competitive positioning of brands under heterogeneous consumer preferences. We employ Berry, Levinsohn and Pakes’ (1995) random-coefficient logit framework to estimate product-level demand for highly differentiated potato and tortilla chips in the U.S. We are specifically interested in the extent to which heterogeneous consumers respond to changes in product formulation, pricing and brand attributes. Our results support the unhealthy-tasty intuition hypothesis only to a certain degree with consumers’ utility increasing in sodium and saturated fat levels but decreasing in energy and total fat content. Results further suggest strong impacts of price, brand, and flavor effects on band-level market shares. Our analysis underlines the trade-offs involved in food manufacturers’ decisions to reformulate products in order to comply with policy and public demands for healthier products options that do not sacrifice taste. |
Keywords: | Brand-level demand, differentiated products, health-taste trade-off, retail scanner data, product formulation, random-coefficients logit., Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Industrial Organization, Marketing, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235755&r=mkt |
By: | Chen, Xuqi; Gao, Zhifeng |
Abstract: | This study exams consumers’ Willingness-to-Pay (WTP) for eco-labeled fresh produce under the influence of emotion. Previous literature has indicated a significant correlation between emotion and consumer final purchase decisions. However, few researchers conducted the study within the context of eco-labeled products. In this paper, about 2,500 participants were asked to evaluate four different types of eco-labeled fresh strawberries in terms of WTP. Respondents’ emotion and changes in emotion after a stimulus were measured. Contingent valuation method was used to estimate consumers’ WTP. Multivariate tobit model and seemingly unrelated regression (SUR) were used to estimate the effect of emotion on consumers’ WTP for eco-labeled products. Results show that emotion has a significant positive effect on consumers’ WTP for GMO-free, organic and natural products. Meanwhile, it also has a significant positive impact on the WTP premium for these three products and locally produced products as well, using conventional counterpart as the base. |
Keywords: | Emotion, Willingness to pay (WTP), Eco-labels, Fresh Strawberry, Contingent Valuation (CV), Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235996&r=mkt |
By: | Chen, Kuan-Ju; McCluskey, Jill J. |
Abstract: | It can be difficult to understand how wines prices are established. Wines are experience goods, so consumers must rely on their previous experience or expert opinions in making their purchase choices. The impact of expert rating scores on wine prices is well documented. This study estimates the contribution of expert’s wine tasting notes, focusing on certain keywords, and other wine characteristics. We examine whether expert descriptive information has an influence on the wine prices using tasting notes on Washington wines that are listed in Wine Spectator magazine. The analysis includes estimations of different wine segments by price category. Estimating a hedonic price functions by product segment relaxes the assumption that the implicit prices of each attribute are the same across price categories. The results indicate that certain keywords used in tasting notes and wine characteristics exert a significant influence on the prices of wines and these effects are different across different segments. |
Keywords: | Tasting note, hedonic regression, market segmentation, structural breaks, wine, Agribusiness, Demand and Price Analysis, Industrial Organization, Marketing, C23, L11, L66, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235697&r=mkt |
By: | Zhong, Hua; Qing, Ping; Hu, Wuyang |
Abstract: | This study attempts to investigate Chinese rural consumer online expenditures and factors explaining their purchasing decisions. Through a survey of rural consumers in China, we investigate their perceptions and attitudes on online shopping, such as the most often purchased items, reasons of shopping online, the most favorite online store, the most often used payment method, online expenditures, online shopping frequencies, and daily online viewing activities. Our results show that if consumer incomes are mainly from migrant labors or local non-agriculture related small businesses, they will shop online more frequently. If consumers’ main monthly expenditures are medical expenses and clothing, they will spend 74 and 57 yuan less per month, respectively, to shop online. The more time consumers spend on online activities, the more frequently they will purchase online, and the more money they will spend on online shopping. |
Keywords: | Expenditure, Online shopping, Rural consumer, Consumer/Household Economics, Marketing, D12, Q12, |
Date: | 2016–07 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235575&r=mkt |
By: | Henning, Christian; Zubek, Nana |
Abstract: | Combining the new consumer theory of Becker with a network model of belief formation developed in sociology we derive a theory of peer group influence on households' consumer beliefs regarding the impact of health related attributes on households utility and hence on households' willingness to pay for functional food. In particular, our theory implies peer group effects on households' preferences for functional food, while following the famous De-Gustibus-Non-Est-Disputandum paradigm of Bekcer and Stigler our theory implies no peer group effects on households z-good preferences, e.g. WTP for health, taste or convenience as nutrition related z-goods. Using own unique social and medical survey data of 2000 probands, the KIK-panel (Kieler- Interventions-Kohorte), collected within the Focus-project in Germany during the years 2012 and 2013 we test our theory applying a two-stage latent class estimation of macro and micro food preferences. In particular, the approach allows a statistical testing of the impact of peer group network effects on consumer beliefs, preferences and nutrition behavior. Central results are (i) estimation confirming our theory implying significant peer group effects on consumer beliefs and implied WTP for functional food attributes; (ii) however, we also found significant peer group effects on z-good preferences which contradicts the De-Gustibus-Non-Est-Disputandum paradigm. (iii) accordingly we offer a modified new consumer theory allowing for peer group effects on z-good preferences. At a practical level, our results have interesting implications for specific marketing strategies promoting demand for functional food as well as for specific political communication strategies preventing nutrition based morbidities and thus promoting public health. |
Keywords: | peer group effects, Consumer beliefs, social networks, functional foods, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Institutional and Behavioral Economics, |
Date: | 2016–05–25 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235917&r=mkt |
By: | Hartmann, Monika; Cash, Sean B.; Yeh, Ching-Hua; Landwehr, Stefanie C.; McAlister, Anna R. |
Abstract: | Background: Children’s dietary related diseases and their associated costs have expanded dramatically in many countries, making children’s food choice a policy issue of increasing relevance. As children spend a considerable amount of money on energy dense, nutrient‐poor (EDNP) food products a better understanding of the main drivers of children’s food purchase decisions is crucial to prompt this behavior towards a more health promoting diet. Objective: The objective of the study is to investigate the role of branding and price in motivating children to choose healthier snack options. Methods: The study investigates snack choices of children ages 8 to 11 based on a survey and a purchase experiment. The research took place in after‐school programs of selected schools in the Boston area. 118 children took part in the study. Products in the choice experiment differed on three attributes, namely, product type (chocolate chip cookie as less healthy, and apple slices and strawberry tube yogurt as more healthy snacks), brand (McDonald’s or generic), and price ($0.30, $0.50, or $0.70). Data was analyzed using aggregated logit models, random parameter logit model and latent class analysis. Results: The results show that children’s purchase deci¬sions are primarily determined by product type with most children showing a high and signifi¬cant pre¬ference for choco¬late chip cookies. Surprisingly, generic products are preferred over the McDonald’s products across the whole sample, though children stating that they like McDonald’s reveal this also in their purchase decision. Prices only prove significant after controlling for whether or not children obtain allowance. Conclusion: First, it is not simple brand awareness but a child’s liking of the brand what determines whether a brand is success¬ful in motivating a child to choose a product and potentially a healthier option. Second, the extent of chil¬dren’s experience with money influences their price responsiveness. To the extent that children who receive allowance are primarily the once buying food snacks, higher prices for EDNP snacks could be success¬ful in motivating children to choose the healthier option. |
Keywords: | children’s food preference, discrete choice experiment, aggregated and random parameter logit models, Food Consumption/Nutrition/Food Safety, Marketing, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235841&r=mkt |
By: | Chenavaz, Régis |
Abstract: | A firm usually sets the selling price of a product by taking into account consumers' reference price. A behavioral pricing scheme integrating reference effects would suggest that the higher the reference price, the higher the firm can set the price. In this paper, the author investigates this intuition by accounting for reference dependence in an optimal control framework. Results show that the dynamics of price originates from the sensitivity of customers to reference price. Contrary to intuition, price dynamics is not systematically associated to the evolution of the reference price, but derives from competing effects related to the dynamics of the reference price. |
Keywords: | dynamic pricing,behavioral pricing,reference dependence,optimal control |
JEL: | C61 M21 D03 |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201620&r=mkt |
By: | Britwum, Kofi; Yiannaka, Amalia |
Abstract: | Research on recent pre-slaughter interventions in the beef industry, particularly vaccinations and direct-fed microbials, have proven their effectiveness in reducing E. coli contamination in beef. In spite of such evidences, adoption of these technologies have been minimal. This study determined consumer response and willingness to pay (WTP) for beef products from cattle vaccinated against E. coli and given direct-fed microbials, and evaluated multiple message frames and their persuasive impacts on WTP for the technologies. Respondents were grouped into six information treatments, and were exposed to gain-framed and loss-framed messages, a media food safety story, and combinations of the media story and the gain-framed and loss-framed messages. A survey which included a choice experiment targeted a representative, random sample of 1,879 residents across the U.S in July and August 2015. A random parameters logit model found that consumers preferred animal vaccines over direct-fed microbials, and preferred either intervention to none at all. Corroborating prospect theory’s loss aversion, the loss-framed message, and the combined loss-framed message with the media story were the most persuasive, inducing the highest WTP. These findings altogether present an optimistic outlook about consumers’ openness to these technologies, and are of interest to agents in the beef sector who influence the variety and presentation of consumption choices available to consumers. |
Keywords: | direct-fed microbials, message framing, vaccines, willingness to pay., Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, D11 D12 Q13, |
Date: | 2016–05–25 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235884&r=mkt |
By: | Li, Yi |
Abstract: | I analyze a green product market in which eco-labeling programs compete—programs certifying the environmental quality of the product to their respective standards. Specifically, I examine the strategic competition between an industry-sponsored program and a program sponsored by nongovernmental organization (NGO) in a duopoly product market where eco-labels are strategic variables for firms. In particular, I analyze the effects of such eco-label competition on environmental benefit and social welfare. I show that the eco-label competition may generate the same environmental benefit and generally increase social welfare relative to a single NGO label. |
Keywords: | Label-competition, Duopoly, Credence goods, Vertical product differentiation, Agricultural and Food Policy, Environmental Economics and Policy, Industrial Organization, Public Economics, Q18, Q58, L13, L15, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235389&r=mkt |
By: | Arzu KAZAZ (Selcuk University); Süleyman KARAÇOR (Selcuk University); METE KAZAZ (Selcuk University) |
Abstract: | Increasing their effectiveness and audience with each passing day, works of advertisement are today an indispensable way for political parties to express themselves, leave a positive impression on the electorate, and reach potential voters. Without doubt, political party advertisements differ in certain aspects from commercials in which an ordinary product or service is promoted. In this sense, trying a product by whose advertisement we are affected could be relevant, whereas voting for a political party only because we like its advertisement is not a very common case. Multiple variables of voting behavior have been the topic of various scientific studies. The aim of the present study in the basic sense is to examine several indicators used by political advertising on the basis of imposing an idea, belief, or point of view and to present what kind of effects the indicators used in political advertising intend to leave on the voters. Semiotic analysis is used as the method of the study, and the sample examined consists of the advertisement films of the Republican People's Party (CHP) with the theme ‘WE are here, WE will do’ used for the General elections of November 1, 2015. |
Keywords: | Television, Political Advertisement, CHP, Semiotics. |
URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3606207&r=mkt |
By: | Li, Zongyu; McCracken, Vicki; Connolly, Jenny |
Abstract: | In 2013, USDA statistics indicate that at the wholesale level, 80% of fresh flowers sold in the United States are not grown in North America, but imported from other countries. Shipping flowers from those countries to the United States incurs large transportation, energy, refrigeration, and storage costs, leaving an enormous carbon footprint. These floral materials may carry residue of chemical pesticides or fungicides. Washington State is among the top ten cut flower producing states in recent years. As competition with international growers has increased the structure of the WA industry has changed resulting in more small-scale producers growing specific flowers that aren’t easily imported. Small-scale cut flower producers are mostly selling their produce directly to consumers. Fresh fruits and vegetables tend to be the most important food categories for products sold at farmers’ markets, which is one of the most popular ways for direct sales to consumers. Cut flowers are also frequently sold directly to consumers, particularly at farmers’ markets. In this study we are using a WA consumer survey to identify factors influencing consumers’ purchase decisions for cut flowers, separating the analyses into flowers purchased for personal use and for a gift. By identifying differences between purchase decision for personal use and for gift can help producers better identify market opportunities and barriers. Results Preliminary results indicate that factors affecting purchases for personal use are not exactly same as those affecting purchases for gift use. Some factors (e.g. age, income and garden ownership) had similar impacts on both types of purchase decisions. Both purchase decisions were positively impacted by the information that the cut flower was grown in Washington. Looking at the differences between the two purchase decisions, we found consumer knowledge about cut flowers affected cut flower purchase decision for personal use but not for gift use. And factors important in the purchase decision for gift use only were gender and education. All else constant, consumers more likely to buy cut flowers for gift use were males, at higher education levels, and who valued variety in cut flowers. However, consumers more likely to buy cut flowers for personal were married, and had correct knowledge about how to keep cut flower last longer. |
Keywords: | Agribusiness, |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235227&r=mkt |