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.
Alicia L. Rihn, Chengyan Yue, Charles Hall, and Bridget K. Behe
Alicia L. Rihn, Chengyan Yue, Bridget Behe, and Charles Hall
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.
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.
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.
Chengyan Yue, R. Karina Gallardo, James J. Luby, Alicia L. Rihn, James R. McFerson, Vicki McCracken, Tom Gradziel, Ksenija Gasic, Gregory L. Reighard, John Clark, and Amy Iezzoni
We conducted audience surveys at three major peach producer meetings across the United States. We found that the relative importance assigned to fruit quality and tree traits by producers varied across producers’ end markets. Fresh peach producers indicated fruit flavor and size were the most important fruit quality traits, whereas processed peach producers viewed fruit size, fruit firmness, and absence of split pits as being the most important traits for a successful peach cultivar. These results have potential to ensure that peach breeding programs are consonant with fresh and processed peach producers’ needs for fruit and tree traits.
Chengyan Yue, R. Karina Gallardo, James J. Luby, Alicia L. Rihn, James R. McFerson, Vicki McCracken, Nnadozie Oraguzie, Cholani Weebadde, Audrey Sebolt, and Amy Iezzoni
Developing new cherry cultivars requires breeders to be aware of existing and emerging needs throughout the supply chain, from producer to consumer. Because breeding programs in perennial crop plants like sweet and tart cherries require both extended time and extensive resources, understanding and targeting priority traits is critical to improve the efficiency of breeding programs. This study investigated the relative importance of fruit and tree traits to sweet and tart cherry producers using ordered probit models. Tart cherry producers considered productivity and fruit firmness to be the most important traits, whereas sweet cherry producers regarded fruit size, fruit flavor, fruit firmness, freedom from pitting, and powdery mildew resistance as important traits. The location of producers’ orchards and their demographic backgrounds influenced their perceptions of the importance of traits. Our findings provide a quantitative basis to reinforce existing priorities of breeding programs or suggest new targets.