Bridget K. Behe
Firms have limited resources that cannot be allocated efficiently to the market as a whole, but can be targeted to selected customer groups. Market segmentation is the process of dividing a market into distinct customer components. Selected products and services that best meet the needs of a selected customer group are targeted to that particular segment in a marketing strategy. Market segmentation and product-targeting concepts help management efficiently allocate scarce resources as part of a comprehensive strategy to expand revenues and profits.
Bridget K. Behe
Michigan fresh asparagus marketers were interested in profiling asparagus consumers in the Northeast and Midwest with regard to preferences, purchases, preparation, and consumption. A computer-assisted survey was conducted with a total of 1126 respondents representative of the population on average in 12 selected states in the Northeast and Midwest. Even though the U.S. Department of Agriculture recommends adults consume three servings of vegetables daily, on average over the 2 weeks before taking the survey, 62% did not. Only 39% of the persons in the sample ate fresh asparagus in the 4 weeks preceding the survey. Twenty-five percent ate it steamed on the stovetop. The conjoint analysis accounted for 63% of the variance in asparagus preference with attribute relative importance decreasing from price (42.0%), to brand (29.9%), to spear diameter (23.5%), to spear segment (4.6%). Light users consumed fresh asparagus at least once in the 4 weeks before the survey, during the peak fresh asparagus season. The potential to increase consumption in this large group (28% of the sample but 71% of asparagus consumers) is tremendous. They placed high relative importance on price per pound and will likely be the more price-sensitive group. If their consumption can be increased by one more asparagus consumption event per month, it could increase asparagus demand by 14%. Results show there is good market potential for a prepackaged fresh asparagus product in the Northeast and Midwest.
Bridget K. Behe
Bridget Behe and Susan Barton
SERVQUAL has been demonstrated to be a reliable and valid tool to measure customer perceptions and expectations of service quality. Two previous uses of the survey in the horticulture industry were identified. In Spring 1997, we adapted the SERVQUAL instrument to survey 701 customers of 10 retail garden centers (TR) and four nontraditional retail or mass-merchandise outlets (MM) in seven U.S. markets. Among the seven markets, customers differed on only two of six demographic characteristics: income and number of people residing in the household. Demographic characteristics of TR and MM customers were similar in terms of age (47 and 45 years), people residing in the household (2), percent female respondents (77% and 73%), and family status. Customers differed demographically on 1996 household income ($50,722 and $44,753). Customers of TR and MM had similarly high expectations for three of five service quality and one product quality dimensions. However, TR customer perceptions were consistently higher on all service and product quality dimensions than MM customers. This yielded consistently higher service quality gaps for MM customers when compared to TR customers. We concluded that TR hold an advantage in these seven markets with higher customer perceptions of product and service quality.
Chengyan Yue and Bridget K. Behe
Flower color is a dominant attribute of fresh flowers, likely playing a key role in purchase preference. Several prior studies showed flower color preference differed by gender, but other information on color preferences is sparse. Data for this study were collected by the Ipsos-National Panel Diary Group for the American Floral Endowment, which maintained an extensive panel of consumer transactions from 1992 to 2005, including floral purchases. Multinomial logit analysis of single-stem cut flower purchases showed that men and women differed in their cut flower color preferences but that flower color preference also varied with demographic characteristics and by occasion. We grouped colors into six categories: BluePurple, RedBronze, PeachPink, White, Yellow, and Other. The highest percentage of flowers purchased were RedBronze (34%), whereas the lowest percentage of flowers were Yellow (10.01%) with Other flower colors accounting for less than 5% of purchases. Although women used a more diverse color palette, both men and women were more likely to buy RedBronze flowers for an anniversary and buy PeachPink flowers for Mother's Day. Between 1992 and 2005, women were less likely to purchase PeachPink flowers and men were less likely to purchase RedBronze over time. Overall demand for BluePurple and Yellow flower colors increased over time, whereas the demand for other color categories decreased over time.
Chengyan Yue and Bridget K. Behe
Competition among floral retailers has promulgated industrywide structural changes while giving consumers more choices in locations for purchase. Consumer panel data collected by the American Floral Endowment from 1992 to 2005 were used to evaluate consumers' choice of different floral retail outlets among box stores (BS), traditional freestanding floral outlets (TF), general retailer (GR), other stores (OS), and direct-to-consumer (DC) channels. Since 1992, market share and percentage of transactions decreased through TF but increased for BS. Mean expenditure per transaction in TF was higher than in BS and GR. Consumers who made floral gift purchases were more likely to patronize TF, but those who bought floral products for themselves were more likely to purchase from BS. Consumers patronizing TF or DC were more likely to buy arranged flowers rather than unarranged flowers. Consumers who purchased foliage plants and outdoor bedding or garden plants were more likely to buy them from BS. Reasons consumers who choose BS and GR cited for using those outlets included convenience and lower prices, whereas consumers who purchased from TF and DC cited delivery, reputation, and service as major drivers impacting their use. Demographic and geographic differences were also identified among consumers using the aforementioned outlets.
Jennifer H. Dennis and Bridget K. Behe
In Sept. 2004, an Internet study was conducted to evaluate and determine differences in gardening participation, purchases, and levels of satisfaction and regret by ethnic background. Consumers were asked to identify their participation in seven gardening activities and about the purchase of 12 gardening product categories. The sample was stratified by income and age. The number of differences in garden-related activity participation and purchases decreased as income level increased across ethnic groups. At every income level, persons of Caucasian descent had a higher satisfaction average score and factor score and higher regret mean score and factor score. This indicated that Caucasians did experience greater satisfaction and less regret than persons of other ethnic backgrounds, regardless of income. For marketers, this shows a heterogeneous market at lower-income levels and a more homogeneous market at upper-income levels. Ethnicity could be used as a basis for market segmentation, and differences are indeed present.
Kathleen M. Kelley and Bridget K. Behe
Kristin L. Getter and Bridget K. Behe
Christmas tree and poinsettia (Euphorbia pulcherrima) sales are static or declining nationally and in Michigan. The objectives of this project were to evaluate a “buy local” educational media campaign (“Make it a Real Michigan Christmas”) designed to increase sales of poinsettias and Christmas trees. Consumer online surveys were administered four separate times (Oct. 2011, Jan. 2012, Oct. 2012, and Jan. 2013) to collect measures of awareness and knowledge both before and after each year’s educational media campaign. The survey asked Michigan residents about their Christmas tree and flowering plant purchases for the holiday, Christmas attitudinal questions (scored on a five-point Likert scale), awareness of this campaign, and demographic information. There were 1712 respondents, roughly split into a quarter per survey. Most measures of demographics and purchasing habits were very similar across the four sampling times. A little over a quarter (28% to 30%) purchased a Christmas tree the previous holiday, 16% to 20% which were live trees and 9% to 10% were artificial trees. Roughly a third (31% to 39%) of respondents purchased live poinsettias the previous holiday. “Make it a Real Michigan Christmas” had 3.3% to 5.0% of consumer awareness. Factor analysis identified two key attitudinal dimensions of the Christmas holiday. Factor 1 was described as a dimension of live Christmas trees being difficult, whereas Factor 2 showed a dimension of live trees being worth the effort. Participants were segregated into four clusters based on their factor scores. Emerging groups were either low/high on factor 1 (live trees are difficult) and/or factor 2 (live trees worth the effort). Few demographic differences were identified between the four groups, indicating they are relatively homogeneous in demographic composition. The largest group produced in the cluster analysis was 44% of the sample (cluster 1) and those consumers were more focused on the difficulty of live-tree purchases while the smallest group (6%, cluster 3) had factor scores less than 0 for both attributes.