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 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.
Bridget K. Behe
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.
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.
Kristin L. Getter and Bridget K. Behe
The objectives of this study were to survey Midwest consumers to assess their willingness to buy alternatives to Impatiens walleriana given the confirmed presence of Impatiens downy mildew (IDM; Plasmopara obducens) in Michigan landscapes in 2012. An Internet survey queried consumers from four states (Illinois, Indiana, Michigan, and Ohio) and questions consisted of likelihood to buy, purchasing characteristics considered, impatiens purchases in 2012, and demographic questions. Roughly 500 participants per state responded and almost three-fourths (73.8%) of respondents said they planted impatiens in their landscape in 2012. Of the 16.4% who said their plants did not look healthy at the end of the growing season, 69.3% self-identified the plant as having IDM symptoms. Purchasing characteristics that had the highest mean scores were bloom period, flower color, and longevity, whereas the lowest mean scores were for compact shape with no spindly growth, fragrance, and locally grown. Three impatiens alternative species were acceptable alternatives (scored a positive utility in the conjoint analysis) for shade-tolerant species. Begonia semperflorens was the most preferred followed by Browallia speciosa and then Impatiens hawkeri. Solenostemon scutellarioides was the least preferred. Three impatiens alternative species also scored a positive utility in the conjoint analysis and would serve well for partial shade-tolerant species. Heliotropium arborescens was the most preferred followed by Salvia splendens and then Lobelia erinus. Hypoestes phyllostachya and Iresine herbstii were preferred least as impatiens alternatives. The attribute with the highest relative importance was species for both conjoint analyses, whereas the price attribute was the least important.