As more individuals use the Internet for business and leisure, the opportunities for firms to promote products and services and to communicate with consumers online increases. The objective of this study was to investigate green industry managerial decisions to engage in online advertising and how much to invest while determining the main drivers contributing to these decisions. A double-hurdle model analyses of 1735 responses to the 2014 National Green Industry Survey, which gathered information on business practices, showed >40% of green industry business invested in online advertising. Typically, businesses investing in online advertising spent more than 43% of all advertising expenditures in online methods, including websites, social media, and newsletters. Furthermore, the decision to engage in online advertising was driven by the percentage of wholesale and contract sales, market access, firm size, product mix, and business owners’ perceptions. Results also showed that the amount of dollars invested in online advertising depended on firm size, tools used to find customers, location, and business owners’ perceptions. Our findings can help extension personnel and policymakers with the design and deliver social media training and educational events. Our findings can also help green industry businesses understand the two-step nature of the decision to invest in online advertising.
Ariana P. Torres, Susan S. Barton, and Bridget K. Behe
Ariana P. Torres, Alicia L. Rihn, Susan S. Barton, Bridget K. Behe, and Hayk Khachatryan
Online advertising is becoming a mainstay business practice to reach firms’ customer bases. Yet, the adoption and use of online advertising in the green industry are topics that have not been adequately researched. Using a national survey of green industry firms conducted in 2019, this research uses a double-hurdle model to investigate factors that impact firms’ adoption of, and amount spent on, online advertising. Our results show that one-third of the companies invested in online advertising. Of those investing in online advertising, the average percentage of online advertising as a share of all advertising expenditures was 46%. Small businesses were less likely to invest in online advertising compared with larger businesses; however, once they invested in online advertising, the percentage of investment was 25% higher among small firms when compared with their larger counterparts. Increasing years in operation as well as trade show participation was related to a 3% decrease in likelihood to use online advertising. Business owners who perceived hiring competent employees as a barrier to business growth invested 19% less of their advertising budget in online channels, which may indicate a lack of human resources to advertise online. We also compared the industry results with data from a 2014 survey and found the amount invested in online advertising increased ≈3% to 5% between studies. The percentage in wholesale sales influenced the amount spent on online advertising in 2014 but not in 2019. Being a small firm in 2014 increased the amount spent on online advertising, but the effect was 14% lower in 2019. In 2014, firms located in the Pacific, Southcentral, and Southeast U.S. regions invested more in online advertising compared with other regions, but in 2019, the only geographic difference was that firms in the Great Plains spent less on online advertising. Despite their lower adoption rates, the increased expenditures on online advertising implies that smaller firms that implement online advertising receive value through that channel and are willing to allocate more resources to leverage its reach. Firms contemplating adopting and investing in online advertising should consider their resource availability and marketing goals related to reaching different customer groups through online advertising.
Hannah M. Mathers, Alejandra A. Acuña, Donna R. Long, Bridget K. Behe, Alan W. Hodges, John J. Haydu, Ursula K. Schuch, Susan S. Barton, Jennifer H. Dennis, Brian K. Maynard, Charles R. Hall, Robert McNeil, and Thomas Archer
The U.S. nursery and landscape industry generates 1.9 million jobs and had an annual payroll of greater than $3 billion in 2002, yet little is known about nursery and landscape workers. This lack of information is even more pressing considering that labor generally accounts for greater than 40% of production costs and 31% of gross sales. Labor shortages, immigration reform, and legal status of employees are widely reported as the industry's most critical issues. We hypothesized that relevant data regarding the nursery industry workforce may raise an appreciation of the industry's diversity, increase political power and public awareness, and help stakeholders evaluate policy decisions and plan corrective strategies in a more informed manner. A total of 4466 self-administered questionnaires were sent in 2006, attempting to reach 30 nurseries in each of nine states with 1561 returned (35% response rate). Hispanics constituted 70% of the average nursery workforce, including general laborers (76%), crew leaders (61%), and sales/managers (others) (21%). Across firms, labor retention was less than 51% after 5 years and only 22% of employees understood English, raising questions regarding availability and access to training. Sixty percent of nursery employees had not received work-related training, although 81% of men and 72% of women were interested, and an association between training and employee retention existed. The highest rated training topic of interest was English/Spanish (respective of Spanish/English primary language respondents). There was a positive correlation between developing fluency and worker turnover, making the laborer attrition rate even more unfavorable for employers who not only lost employees with acquired experience, but also with acquired English skills.