Grant Information

ASSESSING THE CONSUMER BEHAVIOR, MARKET COORDINATION AND PERFORMANCE OF THE CONSUMER-ORIENTED FRUIT AND VEGETABLE SECTOR

Sponsoring Institution National Institute of Food and Agriculture
Status COMPLETE
Funding Source HATCH
Division NIFA Formula
Reporting Frequency Annual
Project Director House, Lisa
Accession Number 1002793
Project Number FLA-FRE-005332
Multistate Number S-1050
Dates 2014-03-18 - 2015-09-30
Animal Health Component 50%
Performing Department Food and Resource Economics
Recipient Organization UNIVERSITY OF FLORIDA
G022 MCCARTY HALL
GAINESVILLE,FL 32611
Keywords consumer attitudes
fruits
marketing
vegetables
Research Effort Applied (50%)
Basic (50%)
Developmental (0%)
Classification Parameters
Knowledge AreaSubject of InvestigationField of SciencePercent
604 - Marketing and Distribution Practices 999 - Citrus, general/other 3010 - Economics 45%
607 - Consumer Economics 1199 - Deciduous and small fruits, general/other 3010 - Economics 30%
703 - Nutrition Education and Behavior 999 - Citrus, general/other 3010 - Economics 25%
Non-technical Summary

Many factors impact a person's food choice, from demographics like age and income, to knowledge levels about food and nutrition, to psychographics like preferences. Understanding more about the factors that influence consumers subjective perceptions about fruit and vegetable consumption will allow agribusinesses and agricultural producers to respond more effectively to consumer concerns. Changing tastes and preferences of consumers, coupled with changes in the way food is produced and processed (i.e. biotechnology or organically) create a dynamic, ever changing environment. Evaluating the characteristics of consumer attitudes and preferences will help producers and agribusinesses, as well as policy makers, respond to changes in the market. Information will be collected through a variety of methods, including, but not limited to surveys, focus groups, and experimental auctions. Data will be analyzed using econometrics to generate a better understanding of consumer demand for food products.

Goals / Objectives
Develop demand and market valuation models for the produce sector that can be used to evaluate effects of increasingly complex product differentiation schemes (organic, enhanced health claims, biodynamic), trade, commodity marketing programs, labeling programs (local, food miles, Fair Trade), traceability systems, and food safety events in the U.S. produce markets. Analyze the relative benefits and costs, to producers and consumers, of government and industry-led marketing and policy programs (certifications, Leafy Greens marketing order, Country of origin labeling, farmers markets) using both theoretical approaches and empirical evidence from multi-state applied research projects.
Methods (unparsed)

Methods used to develop an understanding of consumers will likely involve focus groups, surveys, and experimental auctions for data collection. Information collected from consumers, as well as other information that may be collected from producers will be used to address many questions, such as: what drives consumers to make their purchase decisions. Information will be collected through a variety of methods. Contingent valuation surveys are often used to collect information on willingness to pay for products. The specific configuration of surveys will often be developed through exploratory research based focus groups. Focus groups are a reasonably efficient qualitative market research technique in which a group of eight to ten participants of common demographics, attitude or purchase pattern, are led through a discussion of a particular topic within a specified period of time (usually one to two hours) by a skilled moderator. Experimental methods can also be used to determine the value consumers place on these types of products. Depending on the data collected, an appropriate econometric modeling technique will be applied to analyze the data and draw conclusions from the research. Often, a Cragg double-hurdle model is used in these types of analyses as this model can address a two-part decision. Most consumer surveys and experimental auctions will involve questions that examine why a consumer will choose whether or not to purchase a good, as well as if they do purchase the good, what affects the quantity they choose to consume. Because of this dual-level decision, a model such as the Cragg double-hurdle is often the appropriate method for analyzing consumer data. Other data requires use of limited dependant models such as the tobit or probit.

Methods
Methods used to develop an understanding of consumers will likely involve focus groups, surveys, and experimental auctions for data collection. Information collected from consumers, as well as other information that may be collected from producers will be used to address many questions, such as: what drives consumers to make their purchase decisions. Information will be collected through a variety of methods. Contingent valuation surveys are often used to collect information on willingness to pay for products. The specific configuration of surveys will often be developed through exploratory research based focus groups. Focus groups are a reasonably efficient qualitative market research technique in which a group of eight to ten participants of common demographics, attitude or purchase pattern, are led through a discussion of a particular topic within a specified period of time (usually one to two hours) by a skilled moderator. Experimental methods can also be used to determine the value consumers place on these types of products. Depending on the data collected, an appropriate econometric modeling technique will be applied to analyze the data and draw conclusions from the research. Often, a Cragg double-hurdle model is used in these types of analyses as this model can address a two-part decision. Most consumer surveys and experimental auctions will involve questions that examine why a consumer will choose whether or not to purchase a good, as well as if they do purchase the good, what affects the quantity they choose to consume. Because of this dual-level decision, a model such as the Cragg double-hurdle is often the appropriate method for analyzing consumer data. Other data requires use of limited dependant models such as the tobit or probit.
Project Timeline Tracking

Outputs

Target Audience
Producers and processors in specialty crops, as well as academic audiences.

Changes / Problems
Nothing Reported

Training & Professional Development
We have worked with graduate students and post-doctoral assistants throughtout the process.

Dissemination Streams
Results have been communicated in meetings with industry and academics, as well as through academic publications.

Next Reporting Steps
Nothing Reported

Outputs

Target Audience
Producers and processors in the specialty crops sector

Changes / Problems
Nothing Reported

Training & Professional Development
A post-doc was involved in the South Korean study.

Dissemination Streams
Results have been presented at professional meetings and with industry.

Next Reporting Steps
Nothing Reported <br><br>

Impacts (unparsed)

<br>What was accomplished under these goals? We continue to work on data collected investigating consumer perceptions of Florida citrus by South Korean consumers. Findings indicated that Korean retailers were pleased with the internal quality of fruit, but had concerns related to the external quality in terms of marketing success. Consumers surveyed indicated a high preference for Florida-labeled citrus, and were more likely aware of US products than the main competitor in the market (Israel). Marketing messages were tested and found to influence nonconsumers to try the product. In addition, we studied consumption of specialty crops (fresh fruits and vegetables) by college students. In this student, we found family history of fruit and vegetable consumption carried forward to influence consumption once the student left home. We also found lifestyle variables did impact whether or not a student would consume fruits and vegetables, but not how frequently they consumed. <br><br><b>Publications</b><br>

Outputs

Target Audience
Producers and processors in the specialty crops sector.

Changes / Problems
Nothing Reported

Training & Professional Development
A post-doctoral associate was involved in all stages of this research.

Dissemination Streams
Results have been presented to the citrus industry and are awaiting presentation at professional meetings for wider distribution.

Next Reporting Steps
Broaden existing products that examine the impact of labeling on consumption of US produced specialty crops. Continue to examine the demand for US specialty crops abroad. <br><br>

Impacts (unparsed)

<br>What was accomplished under these goals? Research was conducted on consumer perceptions of Florida citrus by South Korean consumers. Findings indicated that Korean retailers were pleased with the internal quality of fruit, but had concerns related to the external quality in terms of marketing success. Consumers surveyed indicated a high preference for Florida-labeled citrus, and were more likely aware of US products than the main competitor in the market (Israel). Marketing messages were tested and found to influence non-consumers to try the product. <br><br><b>Publications</b><br>


Publications Inventory

Journal Articles

Other