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.
Ariana P. Torres, Alicia L. Rihn, Susan S. Barton, Bridget K. Behe, and Hayk Khachatryan
Alicia L. Rihn, Ariana Torres, Susan S. Barton, Bridget K. Behe, and Hayk Khachatryan
The landscape service sector is an important part of the environmental horticulture industry. However, research addressing factors impacting its business and marketing practices are scarce. This manuscript uses data collected via online and mail industry surveys in 2014 and 2019 to investigate U.S. landscape service firms’ advertising and marketing practices and different factors that influence their business strategies by firm type and size. Product mix, advertising method, and the importance of different business factors were impacted by firm type. Landscape service only firms had the most diverse product offerings, while firms with wholesale production had the least diversity. Landscape service only firms primarily used in-person and telephone advertising, while firms with wholesale production used a broader swath of advertising medias to reach a more diversified clientele. Overall, weather and labor-related factors had the most impact on landscaping firms’ business practices. Larger firms perceived labor factors as more important than smaller firms.
Bridget K. Behe, Rachel M. Walden, Marcus W. Duck, Bert M. Cregg, Kathleen M. Kelley, and R.D. Lineberger
An aging American population may be less willing than a younger population to install and remove a live, fresh-cut evergreen tree in their home for Christmas celebrations. An alternative to using traditional, large, fresh-cut or potted Christmas trees could be forcing these evergreen species in a small (≈1-L) container that could be displayed on a tabletop. We initiated this study to determine consumer preferences and marketability for six evergreen tree species produced for tabletop display and used three decoration themes and three price points. We constructed a web-based survey in which 331 participants were compensated with a $5 e-coupon for viewing 27 photographs of tabletop trees and providing preference and use information. The conjoint model accounted for 91.2% of the variance and showed that consumers valued tree species as the most important attribute (61% of the tree value), with decoration color/theme the second most important feature (27%) and, last, price (12%). Black Hills spruce (Picea glauca var. densata (Moench) Voss) was the most preferred species overall, and red was the most preferred decoration theme. Logically, the lowest price point was the most preferred. However, price was the most important attribute for participants younger than 25 years. The importance of price decreased as participant age increased until age 60, when price became a more important component. With a cost of production of $5.45 and decoration and shipping estimated at an additional $4.00, the product could be a profit generator priced at any of the tested price points ($14.95 and above).
Charles R. Hall, Benjamin L. Campbell, Bridget K. Behe, Chengyan Yue, Roberto G. Lopez, and Jennifer H. Dennis
Currently, one of the most widely discussed topics in the green industry, which is promulgated by consumers exhibiting greater degrees of environmental awareness, is the issue of environmental sustainability. This has led to a desire for products that not only solve the needs of consumers, but are also produced and marketed using sustainable production and business practices. Consumers increasingly place a greater emphasis on product packaging and this has carried over to the grower sector in the form of biodegradable pots. Although various forms of these eco-friendly pots have been available for several years, their marketing appeal was limited as a result of their less-than-satisfying appearance. With the recent availability of more attractive biodegradable plant containers, a renewed interest in their suitability in the green industry and their consumer acceptance has emerged. The objective of this study was to determine the characteristics of biodegradable pots that consumers deem most desirable and to identify distinct consumer segments, thus allowing producers/businesses to more efficiently use their resources to offer specific product attributes to those who value them the most. We conducted a conjoint analysis through Internet surveys with 535 valid observations from Texas, Michigan, Minnesota, and Indiana. Our results show that on average, consumers like rice hull pots the most followed by straw pots. Our analysis identified seven market segments and corresponding consumer profiles: “Rice Hull Likers,” “Straw Likers,” “Price Conscious,” “Environmentally Conscious,” “Carbon Sensitive,” “Non-discriminating.” Idiosyncratic marketing strategies should be implemented by industry firms to market biodegradable containers to the identified consumer segments.
Bridget K. Behe, Benjamin L. Campbell, Hayk Khachatryan, Charles R. Hall, Jennifer H. Dennis, Patricia T. Huddleston, and R. Thomas Fernandez
Plants are often merchandised with minimal packaging; thus, consumers have only the plant (intrinsic cue) or information signs (extrinsic cues) on which to assess the product and base their purchase decision. Our objective was to segment consumers based on their preferences for certain plant display attributes and compare their gaze behavior when viewing plant displays. Using conjoint analysis, we identified three distinct consumer segments: plant-oriented (73%), production method-oriented (11%), and price-oriented (16%) consumers. Using eye tracking technology, we show that subjects spent more visual attention to cues in the horticultural retail displays that were relatively more important to them. For example, plant-oriented consumers were the fastest segment to fixate on the plants and looked at the plants for longer amounts of time compared with the other segments. Production method-oriented consumers looked at the labeling related to production method for a longer duration, whereas the price-oriented consumer looked at the price sign the longest. Findings suggest that retailers should carefully consider the type of information included on retail signage and the visual impact it has on different consumers.
Jennifer H. Dennis, Roberto G. Lopez, Bridget K. Behe, Charles R. Hall, Chengyan Yue, and Benjamin L. Campbell
Given recent consumer and market interest in more sustainable products and business practices, researchers conducted a nationwide survey of greenhouse and nursery crop growers to determine the current state of the industry in terms of sustainability. Growers were asked about the importance of sustainability, their views of state environmental regulations, sustainable practices in place and ones they would like to implement in the next 1 to 3 years, and interest in sustainable certification. None of the grower respondents in this survey were certified sustainable, but at least one fourth (25.8%) were interested in certification. More than half of the respondents currently recycle plastic pots, use controlled-release fertilizers, and composted plant waste. However, only 12% of growers want to use biodegradable plant containers or implement water conservation measures into their production system within the next 1 to 3 years. Grower respondents felt the biggest obstacle toward implementation was the sustainable production practice would not be compatible with their existing system of production.
Jennifer H. Dennis, Bridget K. Behe, R. Thomas Fernandez, Robert Schutzki, Thomas J. Page Jr., and Richard A. Spreng
A consumer research study was conducted examining effects of plant guarantees on satisfaction and regret in the purchase of three horticultural products: hanging baskets, potted roses, and container perennials. Five hundred and seventeen respondents were divided into two groups: those who were offered a guarantee and those who were not offered a guarantee. The effects of satisfaction and regret on repurchase intentions were recorded on multi-item seven-point Likert scales. A structural equation model was used to examine simultaneous relationships between regret, satisfaction, and intention to repurchase. Survey results indicated guarantees would increase satisfaction and decrease regret for hanging baskets, but not for container perennials and potted roses. Five of six models showed regret and/or satisfaction directly impacted intention to repurchase. Both satisfaction and regret had a direct influence on repurchase intentions for the hanging baskets model regardless of the presence or absence of guarantees. When guarantees were absent, satisfaction and regret had direct effects on intention to repurchase for the perennial model. Regret was the only construct to directly impact intention to repurchase in the potted rose model. Guarantees appear to lower the risks of buying some products and may improve the perception of quality of the offering.
Bridget K. Behe, R. Thomas Fernandez, Patricia T. Huddleston, Stella Minahan, Kristin L. Getter, Lynnell Sage, and Allison M. Jones
Eye-tracking equipment is now affordable and portable, making it a practical instrument for consumer research. Engineered to best analyze gaze on a plane (e.g., a retail shelf), both portable eye-tracking glasses and computer monitor–mounted hardware can play key roles in analyzing merchandise displays to better understand what consumers view. Researchers and practitioners can use that information to improve the sales efficacy of displays. Eye-tracking hardware was nearly exclusively used to investigate the reading process but can now be used for a broader range of study, namely in retail settings. This article presents an approach to using glasses eye tracker (GET) and light eye tracker (LET) eye-tracking hardware for applied consumer research in the field. We outline equipment use, study construction, data extraction as well as benefits and limitations of the technology collected from several pilot studies.
William E. Klingeman, David B. Eastwood, John R. Brooker, Charles R. Hall, Bridget K. Behe, and Patricia R. Knight
A survey was administered to assess plant characteristics that consumers consider important when selecting landscape plants for purchase. Visitors to home and garden shows in Knoxville and Nashville, Tenn.; Detroit, Mich.; and Jackson, Miss., completed 610 questionnaires. Respondents also indicated their familiarity with integrated pest management (IPM) concepts, pest control philosophy, recognition of flowering dogwood (Cornus florida) pests and diseases, including dogwood powdery mildew (Microsphaera pulchra), and willingness-to-pay a price differential for a powdery-mildew-resistant flowering dogwood. Fewer than half of the respondents in any city indicated familiarity with IPM, although they were familiar with organic farming and pest scouting components of an IPM program. Willingness-to-pay was relatively consistent across all four locations. The uniformity of average tree premiums, which ranged from $11.87 in Jackson to $16.38 in Detroit, supports the proposition that customers are willing to pay a substantially higher price for a landscape tree that will maintain a healthier appearance without the use of chemical sprays. Factors affecting consumer demand for landscape nursery products and services can be paired with consumer awareness of IPM terminology and practices to create an effective market strategy for newly developed powdery-mildew-resistant dogwood cultivars.
Chengyan Yue, Jennifer H. Dennis, Bridget K. Behe, Charles R. Hall, Benjamin L. Campbell, and Roberto G. Lopez
Organically and locally grown food products have become increasingly popular in recent years. However, unlike food products, consumers purchase most outdoor plants for their aesthetic value rather than their nutritional value. Many of the health concerns related to food products might not be applicable to ornamental plants, so the demand for organic non-food plants is unknown. Using a survey with 834 participants from four states, we investigated consumer preference for ornamentals, vegetable transplants, and herbs grown: 1) organically, locally, and sustainably; 2) in energy-efficient greenhouses; and 3) in biodegradable, compostable, and recyclable containers. Our study found that consumers are not enthusiastic about plants or their fertilizers being “organic.” However, consumers are very interested in plants being produced locally, similar to the public's ever-increasing interest in local food products. Consumers are also interested in purchasing plants in containers that are more sustainable. Among the different types of containers, biodegradable and compostable pots are more desirable than recycled pots.