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Important financial savings, along with reductions in environmental impact, can be achieved by planting lawns with low-input turfgrass species. Drawing on data from an online survey, this article provides empirical evidence on the factors that influence consumers’ willingness to adopt low-input turfgrasses. We group consumers into two segments: Willing Adopters and Reluctant Homeowners. Regardless of segment, consumers who regard maintenance requirements as more important were more willing to adopt low-input turfgrasses, whereas those who placed a higher value on appearance, were more unlikely to change to a low-input turfgrass, especially for Reluctant Homeowners. We categorized the barriers to adoption as follows: 1) Promotion, 2) Benefits and Accessibility, 3) Peer Effect, 4) Sample, and 5) Information. Our models predict that consumers’ willingness to adopt low-input turfgrass can be significantly increased if the identified barriers are removed. Based on our study, suppliers/retailers should adopt heterogeneous and multiple marketing strategies, such as promoting through multiple channels, informing and advising the public on proper information, providing photos or exhibiting in-store samples, triggering communication between different types of consumers, and providing incentives and improving accessibility, to target different consumer groups.
Demand for fresh-cut flowers and floral products has been decreasing in recent years, particularly among young consumers. The objectives of this study were to explore Generations X and Y's positive and negative attitudes toward flowers as gifts; explore differences in perceptions about price, product, place, and promotions among Generations X and Y to determine the best marketing techniques to reach them; and determine what actions the floral industry can take to improve Generations X and Y's use of flowers as gifts. Participants were recruited in Minneapolis and St. Paul, MN, and Lansing and East Lansing, MI. Participants were asked to complete a questionnaire and participate in a focus group discussion. An ordered probit model was used to analyze the data. Results showed that younger consumers were dissatisfied with several floral product attributes, including short longevity, lack of trendiness, relative high cost, lack of appropriateness, and lack of uniqueness. Results also indicate that younger consumers perceived that their friends do not enjoy floral gifts. Additionally, younger consumers viewed floral advertisements less frequently and considered floral gifts difficult to purchase, resulting in decreased awareness and interest. Overall, most participants felt that in-store sales or discounts, greater flower longevity, more price ranges, and trendier arrangements/flowers would increase their use of fresh flowers as gifts.
Sales of many products, including umbrellas and skis, depend on weather conditions. Anecdotal evidence from plant producers and retailers indicate that their sales are also heavily reliant on weather conditions. Still, little published literature documents weather's influence on plant sales. Daily sales data of herbs, vegetables, and flowering annuals were acquired from 42 retail stores in Indiana, Ohio, and Michigan (which were divided into four regions based on zip code). The multisite Midwestern retailer sells food and household items year-round but seasonally sells plants in outdoor covered areas. The data were analyzed using time series regression and the model produced significant results, but the amount of variance captured by region, weather parameters, month, and day of the week was only ≈40% for herbs and vegetables (H+V) and flowering annual plants (FA). Precipitation amount had no effect on sales of H+V and FA, likely because the plants were merchandised under cover. Increasing units of sunshine lowered sales by 1%. H+V sales were greatest in the southeast Michigan region but for FA were greatest in the mid-Michigan region. Lower minimum air temperature reduced sales for sales of both H+V and FA, whereas higher maximum air temperature increased sales. Sales were substantially higher in May and lower in June and July compared with April. Sales were higher in 2009 than 2007. Compared with Wednesday, sales were higher everyday and highest on Saturday. Day of week and month had a greater impact on sales than did any weather parameter. Thus, region, weather, month, and weekday do influence daily plant sales but did not account for most of the variability in 42 U.S. midwestern retail outlets.
The value and role of intellectual property (IP) rights pertaining to plant innovations and their economic consequences on plant values is largely unknown. A hedonic pricing model was adapted to the characteristics of the U.S. wholesale ornamental plant market, specifically the bedding, garden plant and nursery plant markets, to analyze two forms of IP rights used on plants (i.e., plant patents and trademarks). By controlling plant-specific attributes and a variety of market variables that might affect plant values, our empirical analysis reveals sizable price premiums for plant patents that may have been masked in other studies. As expected, plant patent premiums vary considerably between species where the costs of producing and marketing new cultivars differ greatly. Surprisingly, we find that the use of trademarks have a negative effect on plant prices.
The economic downturns of 2007–09 and the COVID-19 pandemic affected most industries in the United States, including landscape services and equipment sales, and provoked both short-term disruptions and long-term changes. To understand how the landscaping industry has responded, we investigated patterns of consumer expenditures on landscape services and equipment from 2009 through 2021 using a representative sample of 76,895 US households. We categorized US households as detached single-family residents and townhouse residents to more fully articulate the factors that turned potential consumers into purchasers and the factors that affected purchasers’ expenditures. We used a double-hurdle model to identify key factors that drive consumer demand for landscape services and equipment over time, including social-demographics, geographic characteristics, housing conditions, year and seasonal trends, and the COVID-19 pandemic. We found that during the studied period, the demand for landscape services declined in terms of both the percentage of consumers purchasing the services and the purchasers’ average expenditures, while the demand for do-it-yourself (DIY) equipment remained relatively unchanged. In response to the COVID-19 pandemic, the percentage of consumers who purchased landscape services increased, while the expenditures on landscape services decreased in 2020 and then began to rebound in 2021, but not enough to reverse the overall downward trend. In contrast, purchases of DIY equipment were relatively stable in response to the COVID-19 pandemic and mainly relied on current consumers.
Choice experiments were conducted to explore the market potential or value added when using longevity information and guarantees on cut flower arrangements in the retail setting. The objective of our study was to determine consumer preferences and willingness to pay for different vase life longevities and guarantees on cut flower arrangements. The choice experiment data were collected using online surveys with 525 U.S. consumers in July 2011. The choice experiment scenarios included single species or mixed species cut flower arrangements with varying vase life longevity (5 to 7 days, 8 to 10 days, 11 to 14 days), presence or absence of vase life longevity guarantee, personal or gift use, and price range ($7.99 to $11.99, $34.99 to $43.99). Two types of arrangements were used in the experiment, mixed arrangements consisting of different species of cut flowers and single-species arrangements consisting of six red roses plus a filler flower. We analyzed the data with a mixed logit model and Ward’s linkage cluster analysis. As expected, participants were willing to pay higher prices for cut flower arrangements with longer vase life longevity. The presence of a guarantee improved participants’ probability of selecting the corresponding cut flower arrangement. Using Ward’s linkage cluster analysis, we found there were three distinct consumer clusters: guarantee seekers (49% of the sample), value-conscious consumers (31%), and spenders (20%). Among the three clusters, guarantee seekers were more likely to select cut flower arrangements with guarantees. Value-conscious consumers were interested in both guarantees and longevity indicators. Spenders were least interested in longevity indicators and guarantees. We conclude floral retailers could successfully implement the use of longevity indicators and guarantees to increase consumer interest in cut flowers and generate profits. Target marketing strategies could then be developed by floral retailers to attract different consumer clusters.
The demand for native plants has been increasing as consumers exhibit stronger interest in sustainable gardening and landscaping. To determine whether point of sale (POS) displays increased consumer knowledge of native grass (Poaceae) benefits and affected consumer purchases, a marketing study was conducted over 2 years at five garden centers in Minnesota. A POS display poster and plant tags listing four benefits of native grasses were displayed at the garden centers in 2016 and 2017. We surveyed 341 consumers at these garden centers to understand consumer knowledge of native grasses and the influence of the POS display. Respondents totaled 84 (30.7%) who indicated they had bought a native grass that day, and of those 84, 54 (64.3%) had seen the display. The binary probit model estimates showed that seeing the POS display increased the likelihood of a native grass purchase. If a consumer had previously purchased a native grass, they were more likely to purchase a native grass again. Consumers who expressed a greater willingness to purchase native grasses based on their environmental benefits were more likely to purchase a native grass. However, neither the level of knowledge that consumers possessed about native grasses nor demographics significantly increased likelihood of purchase.
In the current global market, the development of novel products is important for staying competitive. The development of horticultural products often manifests as new cultivars. Gauging consumer interest is an important step in cultivar development because it is a resource-intensive process. The present study used an experimental auction to measure consumers’ willingness to pay (WTP) for novel fruit referred to as kiwiberry (Actinidia arguta and Actinidia kolomikta) and explore consumer segmentation for their preferences. The mean WTP for 6-ounce packages of kiwiberries ranged from $1.63 to $2.19, depending on species and cultivar. Four groups of consumers were identified in relation to their WTP for kiwiberries. Using survey data, socio-demographic variables such as age, education, and neophobic attitudes were significantly different between the mixed kiwiberry price premium and kiwiberry discounting groups. These findings suggest that consumers with variety-seeking tendencies have a WTP for kiwiberries that is comparable to that for other berries. Marketing strategies for these groups are proposed.
The floral industry has experienced declining sales in the past few decades, causing many to speculate as to the underlying causes. To identify consumers’ spending patterns for fresh flowers and potted plants, we extracted and analyzed quarterly expenditure interview data from the Consumer Expenditure Survey, 1996 to 2013. Our analysis revealed consumption trends over time by age group, and compared the differences in expenditure patterns across states. Additionally, we employed the Heckman two-step model to estimate how flower consumption is affected by sociodemographic characteristics, geographic factors, housing status, and seasonal factors. The estimation results show that the source of declining demand can be attributed to the decrease in both number of flower purchasers and expenditure among purchasers. Many factors including age, marital status, gender, education, income, number of earners in household, population size of the residing city, house type, and number of rooms in the house affect the demand for fresh flowers and potted plants. Given that floral expenditure has been decreasing among consumers under 40 years of age for the past two decades, innovative marketing strategies to target this age cohort are essential for the floral industry’s success in the future.
Aquaponics, an integrated system with both hydroponic plant production and aquaculture fish production, is an expanding alternative agriculture system. Many key questions about the overall feasibility of aquaponic systems remain unanswered. Of particular concern for start-up and established producers alike are consumer perceptions and willingness to pay for aquaponic produce and fish. This study reports results and analysis of a consumer survey about perceptions and preferences for aquaponic-grown products that was conducted in Minnesota during Feb. 2016. Probit and ordered probit models are used to evaluate the probability of different consumer demographic segments having various levels of knowledge and perceptions about aquaponics. About one-third of respondents had previously heard of aquaponics, and upon learning more about the system through the survey, respondents tended to be generally neutral or favorable to aquaponics. Price might be an issue for many consumers, but many tend to believe that aquaponics can impact the environment in a positive way. The results represent a first step toward building knowledge about the potential consumer base for aquaponics, which is a critical piece in the system’s potential overall profitability. It appears that consumer education and marketing will be key for the expansion of the market.