This is a marketing research project I was involved in on a small team of 5 for Market of Choice regarding local foods. I conducted in-person interviews regarding shopping habits and opinions on local foods in grocery stores. For secondary research, I helped find outside information on local foods from trustworthy sources. With the collected information, we suggested some marketing ideas and provided valuable information to their marketing team.

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Oregon State University
Local Foods for Market of Choice
Luz Elena Anzures-Perez, Hope Jones, Jakob Jones, Karson Klecker,, Anna Sevruk
MRKT-492-101
Amanda Terhes
3 December, 2021

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Executive Summary
The goal of this case study is to determine customer behavior regarding how they feel
about and interact with local products at Market of Choice. Local products account for a large
portion of Market of Choice’s food; as such it is important to know what the company is doing
that is working and find out what they can change to make those products more attractive. In
order to find meaningful data on consumer behavior, the team employed a variety of intensive
research steps.
The first steps in the project were selecting objectives and research methods. Four
objectives were used to guide the research, all relating to how customers shop for local foods.
The next step was to conduct secondary research. This research guided the team to find existing
data having to do with local food purchasing in Oregon and narrow down which group of
consumers are going to be used for primary research. The primary research was the third step in
the research process, involving the surveying and interviewing of individuals who fell in the
previously outlined demographic group. Using primary and secondary research, the team was
able to consolidate the data into more usable suggestions for Market of Choice. The primary
finding was that those interviewed unanimously agreed that local products are desirable and
preferred. However, interviewee subjects were deterred by the higher price of local products.
Consumers who said they would be open to spending more on local products specified that it
would feel more financially justified if they knew that the extra money they were spending
would go directly to the local vendor.

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Table of Contents
Introduction 4
Objectives 4
Secondary Research 5
Primary research 7
Methodology 7
Sampling 7
Results 8
Marketing recommendations 9
Limitations 10
References 11
Appendices 13

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Introduction
Purchasing food is an essential part of life in society, it is up to consumers to decide what
food they purchase. The preference for healthy foods and clean ingredients has increased since
the start of the Covid-19 pandemic. With this trend, there has also been a rise in consumers who
also prefer to know where their food is grown or raised. Market Of Choice is a family-owned,
independent Oregon grocer that has been in business since 1979 has decided to pursue further
research on this segment of their consumers. Known for their clean foods and alternative food
options, Market Of Choice is a very popular grocery store among health conscious, dietary
restricted, and sustainability focused consumers. Market Of Choices’ consumers are a great
market to engage with to learn more about the preferences of local foods. The purpose of this
research is to identify insights on the importance of buying local for Market of Choice shoppers.
Objectives
We had four different objectives that we wanted to accomplish through our research for
Market of Choice, these objectives are listed below.
● To what extent do shoppers seek out products that are locally sourced?
● How do shoppers weigh the value of purchasing local, against different product
characteristics such as organic and price?
● Is buying local more important for different types of products, such as produce, meat and
seafood, shelf-stable items, or dairy?
● Identify products or product categories in order of importance to the Market of Choice
shopper wanting local products.

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Secondary Research
Through secondary research, we have been able to further understand what the statistics
and attitudes toward locally produced goods in Oregon have been in the past. In the journal
Oregon producer and consumer engagement in regional food networks: Motivations and future
opportunities, data presented showed that 52.2 percent of respondents always or usually check
where the product was made or grown. The data used for the journal shows that when buying
fresh foods, “locally produced” was considered “important” or “somewhat important” (81.3%).
Mintel’s research Grocery Retailing: Incl Impact of Covid-19-US-April 2020 shows that
shoppers mostly prefer locally sourced food and sampling in store. Out of 1,953 consumers aged
18+, half wish they had more locally sourced products in their grocery store. Locally sourced
products are “a concept that not only appeals to local pride and tastes but that may also be
viewed as more environmentally responsible,” (Mintel). Also out of the 1,953 consumers, those
who shop at natural supermarkets, 63% said they wish they would see more locally produced
food at their store. Even for those who shop at more national grocery retailers, like Walmart,
44% want to see more locally sourced products and for discount stores 53%. Overall, no matter
what store, consumers crave local food products because it’s more environmentally responsible
and it’s good to support local businesses/farms.
The phrase “locally sourced food” is an interesting term that tends to pique the interest of
shoppers. According to a recent study by Nielsen, “buying local is a top priority among 46
percent of American consumers” (2019). While the label “local” is important, Market of Choice
should prioritize categories of food that directly benefit from being local. According to a Nielsen
US Homescan Panel Survey, consumers consider produce, bakery, and eggs to be the most
important items sourced locally; while other foods like shelf-stable items, frozen food, deli meat,

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and seafood are less so (2018). It’s important for Market of Choice to keep in mind not only the
consumer behavior towards local food but also Oregon as an agricultural producer. Produce,
wheat, and eggs are all among Oregon’s top 20 agricultural commodities in 2020 (Oregon
Department of Agriculture, 2021).
Ultimately, the food industry as a whole has an upwards trend in locally sourced food;
“producer participation in local food systems is growing, and the value of local food sales [...]
appears to be increasing (USDA). From 2007 to 2014, local and regional marketing channels
have seen a large growth in farmers’ markets with around a 200% increase and regional food
hubs with about a 300% increase (USDA, Agricultural Marketing Service, Food Nutrition
Service). The food market is definitely heading towards increased demand for locally sourced
food. Market of Choice’s program for connecting consumers with small farm owners will also
flourish as the stores take on a role as a regional food hub, which the USDA has noted extreme
growth in.
Economic benefits including the increased connection between farmers and shoppers,
economic growth for producers of local foods who keep profits within their region, and
establishing more permanent or semi-permanent jobs are a few of those listed in Economic
Impact of Local Food Producers in Central Oregon, a 2016 study conducted by OSU with related
groups of Central Oregon's relationship with local food. The impact on community engagement
is one that is challenging to measure but shows improvement of culture in a given region
nonetheless. Additionally, an article called Portland’s Foodie Chains by Tuck Woodstock is one
of a variety that gives restaurant recommendations and reviews with a special nod to the local
products available at each and every business on the list.

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Primary Research
Methodology
We used two different types of data collection methods when conducting our research for
Market of Choice. Our first approach was to do one-on-one interviews either in person, over the
phone, or zoom in order to get responses from individuals about how they feel about locally
sourced products. The second approach that we used was a survey where we wanted to get
responses from individuals on a wide range of questions relating to our overall topic of locally
sourced foods. We handed out printed surveys to customers in our local Market of Choice, where
participants could easily circle their answers to the questions asked on the paper. Both of these
methods helped our group collect a wide variety of information and responses on how the
individual consumers feel about locally sourced products. In order to collect the best data
possible we ensured that our questions related to our topic. We first developed questions related
to shopping habits and dietary preferences. Next we developed questions related to purchasing
preferences, quality of food and labeling of food types and ingredients. Lastly we asked
questions related to local foods. We formatted the interview guide in order to learn more about
preferences related to foods first then moved on to local foods. The survey questions related
entirely to local food products. Questions asked on this interview guide were intended to directly
answer our objective questions.
Sampling
The demographic requirements for participants of our research methods fall into the
categories of Oregon resident, age 20-65, primary household shopper, and household prepares at
least one meal daily. This was the selected demographic for a few reasons. First, Market of
Choice does not have a set target market which is why we kept a wide age range. This allowed us

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to get answers from people of different generations which gives us different perspectives on our
objectives. The second reason being that Market of Choice is located specifically in Oregon
which means Oregonians are most familiar with the grocery company. Lastly, keeping a simple
demographic allows us to put our focus solely into our topic objectives rather than seeking out a
very specific group of consumers.
Results
One of the main things that we pulled from our primary and secondary research was the
fact that most people love locally sourced and grown products. A common theme that emerged
from our data is that individuals felt the prices for local products are too high. This deters many
individuals interested in local products who cannot afford the prices. This quote from our
interviews shows how people value locally sourced and organic food but are hung up on aspects
of it that make it less appealing than other foods, “I prefer locally sourced foods over other types
if it is available and affordable, unfortunately most of the time while it is available, it often times
is not affordable.”
While all individuals that were interviewed enjoy the idea behind locally sourced
products, respondents also felt that it is not justifiable to pay a premium for local products when
they have other expenses that they have to cover regularly. Though people did say they enjoyed
farmers markets because it allows them to explore locally sourced and seasonal foods. The team
believes that farmers markets are more appealing to consumers because they directly support the
individual that they are handing the cash to. Farmers markets also allow people to shop at their
leisure and occur intermittently making the consumer feel like they are making a difference for
local businesses while still being able to keep their budget in balance.

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Consumers of local foods desire affordable prices, especially consumers that are young or
in a lower income bracket. A desirable future for local foods consumers would be for local foods
to be more affordable and accessible to a larger segment of the population. It is very likely that
within the next 5 year local foods will increase in price due to drought and climate change.
However if those factors are avoided, local foods may become more accessible to a larger
segment of consumers.
Marketing Recommendations
A great way to attract consumers who are concerned with price is to generate more value
for local food. According to a study conducted by Hawk Incentives, 97 percent of shoppers look
for deals while they shop and 40 percent of shoppers feel smart when they can find the best
deals. On top of that, 82 percent of shoppers link price and quality to purchasing decisions
(Hawk Incentives). Market of Choice should aggressively market local food with deals and sales
to help consumers bridge the price gap. Quality, local products with great deals is a headline that
is sure to bring in many customers, and hopefully first-time consumers.
Another way to add greater value to the Market of Choice brand is by further marketing
the local businesses and farmers that Market of Choice retails. Market of Choice already does
something similar to this with their Local Maker Spotlights which features multiple blog-style
articles of local farmers (Market of Choice). The longer articles are great for long form
advertising where the consumer wants to chase and research Market of Choice. Market of Choice
also has created over 30 one minute-long documentary style videos on the Local Makers they
feature (YouTube, “Market of Choice”). The documentary style videos are also great for long
form research, but having two long form advertising mediums doesn’t diversify Market of

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Choice’s advertising as well as it could. The videos could take up to a minute to explain the
small business and how it relates to Market of Choice. For consumers, time is precious and long
videos lower conversion rates.
By adopting a short form advertisement campaign, Market of Choice could better raise
brand awareness for their local makers program. Short, fifteen to thirty second long videos can
accurately showcase vendor history, local advantages, and Market of Choice as the primary
distributor and facilitator. These short, energetic videos increase conversion rates while at the
same time allows for it to be easily distributed and advertised across more platforms like social
media, YouTube, and even television. They would increase brand awareness, generate a larger
social media presence, and bridge the price gap by showing the tremendous care local farmers
and Market of Choice give to these products.
Limitations
There were a lot of limitations for this research topic. The first limitation is access to the
right sample. Because Market Of Choices prices and the general cost of local food products, our
sample likely needed to be middle class individuals. However, due to the people we had access
to, most of our sample were college students, who tend not to be middle class and often shop at
more affordable locations. The data we collected demonstrates how much the cost of local foods
is out of budget for college students and young adults. If we had collected data from a different
sample, possibly upper middle class individuals then it is likely we would have had some
different responses.

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References:
Brekken, C. A., Parks, M., & Lundgren, M. (2017). Oregon producer and consumer engagement
in regional food networks: Motivations and future opportunities. Journal of Agriculture,
Food Systems, and Community Development. Advance online publication.
http://dx.doi.org/10.5304/jafscd.2017.074.008
Mullen, Caitlin. “People Want to Buy 'Local' Food, but They're Not Sure What It Means.”
Bizjournals.com,
https://www.bizjournals.com/bizwomen/news/latest-news/2019/05/people-want-to-buy-lo
cal-food-but-theyre-not-sure.html?page=all.
NielsenIQ. How Americans Will Shop: What Products Do Consumers Care about When Buying
Local? Nielsen Consumer LLC, 19 May 2021,
https://nielseniq.com/global/en/insights/analysis/2019/how-americans-will-shop-what-pro
ducts-do-consumers-care-about-when-buying-local/.
Oregon Agricultural Statistics. Oregon Department of Agriculture, 2021,
https://www.oregon.gov/oda/shared/Documents/Publications/Administration/ORAgFacts
Figures.pdf.
Owen, John. “Grocery Retailing: Incl Impact of Covid-19-US-April 2020 .” Mintel, Apr. 2020,
reports-mintel-com.ezproxy.proxy.library.oregonstate.edu/display/1017340/?fromSearch=
%3Ffreetext%3DLocal%2520products.
Owen, John. Mintel, 2020, p. 44, GROCERY RETAILING: INCL IMPACT OF COVID-19 US,
APRIL 2020,

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file:///C:/Users/Hope/Downloads/Grocery%20Retailing_%20Incl%20Impact%20of%20C
OVID-19%20-%20US%20-%20April%202020%20(1).pdf.
Rahe, Mallory, et al. “Economic Impact of Local Food Producers in Central Oregon.” College of
Agricultural Sciences, Oregon State University, 17 July 2020,
https://smallfarms.oregonstate.edu/economic-impact-local-food-producers-central-oregon
.
Sarah A. Low, Aaron Adalja. “Trends in U.S. Local and Regional Food Systems: A Report to
Congress.” USDA ERS, Jan. 2015,
https://www.ers.usda.gov/publications/pub-details/?pubid=42807.
Woodstock, Tuck. “Portland's Foodie Chains.” The Official Guide to Portland, Travel Portland,
16 Sept. 2021, https://www.travelportland.com/culture/portlands-foodie-chains/.
Hawk Incentives Research. (n.d.). Deal seeking on the rise; shoppers report these behaviors
make them feel smarter. Retrieved December 3, 2021, from
https://www.multivu.com/players/English/8181551-hawk-incentives-deal-seeking-shoppe
rs/.
Local makers. Market of Choice. (2021, September 28). Retrieved December 3, 2021, from
https://www.marketofchoice.com/local-makers/.
Market of Choice. (n.d.). Local Maker. YouTube. Retrieved December 3, 2021, from
https://www.youtube.com/playlist?list=PLgAfektdJ_fmVAaw2b1CS7IeGslw7UkKN.
"Market of Choice" YouTube. YouTube, n.d. Web. 3 Dec. 2021.

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Appendices:
Appendix A:
PIG’s Interview Guide
Objective 1: Shopping Habits
- What grocery store(s) do you prefer to grocery shop at?
- What about those grocery stores appeals to you?
- How long have you been a customer for the grocery store(s) you named?
- How often do you go grocery shopping? Why does this routine work for you?
- Do you purchase any of your groceries from sources other than grocery stores? If so,
where? (farmers market, CSA, etc.)
- If you were looking for a grocery item that you couldn’t find at your usual grocery store,
where would you look? Why?
Objective 2: Diet and Food preferences
- What are common items you purchase at the grocery store?
- How would you describe the kinds of foods your family commonly eats?
- Do you purchase diet specific products? This could be for allergies or health reasons. If
so, what kind of diet? (Non-dairy, vegan, gluten-free, etc)
- Do you look for foods that are labeled non-GMO? Why or why not?
- Do you buy organic products? Why or why not?
Objective 3: Purchasing Habits
- How do you decide what to purchase in one grocery shopping trip? Grocery list,
day-by-day needs, etc

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- How often do you try new products or brands?
- Which items do you normally buy first?
- Do you purchase ready-made food at the grocery store? Why or why not?
- Do you decide what is purchased at the grocery store?
- While grocery shopping do you search for labels such as grass fed, free range, cage free,
pasture raised, no hormones, no additives, etc. when buying items that come from an
animal source?
- Have you ever felt you had trouble finding foods that met your expectations of being
ethically sourced? How would you describe those expectations?
Objective 4: Local products
- Do you prefer to know where the food is sourced from? Why?
- What are your thoughts on locally sourced food?
- Do you buy locally sourced foods? Why or why not?
- If yes: Do you find it is difficult to find locally sourced foods? Where do you buy
your local products?
- If no: If you were interested in purchasing locally sourced foods, where would
you look? Why?
- How much would you be willing to pay for food produced locally? (If they would pay
more or not).
- What would encourage you to buy locally sourced products more often?
- Of the following grocery stores, which would you expect to have the most local products
and why? Fred Meyer, Trader Joes, Market of Choice, Safeway.

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Demographic questions:
- What is your age?
- What is your gender?
- Do you live with a spouse/partner?
- Do you have any dependents?
- What is your income level?
- Do you have access to a vehicle?
- How much would you say you spend on groceries each month?
Closing:
- Ask them if they have any other questions for you before you conclude the interview
- Thank them for their time and make sure to restate what the information will be used
for and what the next steps for them (if any) there will bex
- Non-Questions
- Verify the recorder and ensure it worked throughout the interview.
- Write down observations the interviewer saw from the interviewee.

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Appendix B :
Example of coding interview questions:
What about those grocery
stores appeal to you?
How long have you
been a customer for
the stores you named?
How often do you go
grocery shopping?
Why does this routine
work for you?
Do you purchase your
groceries from sources
other than grocery
stores? If so, where?
Price friendly to her cost
range, large variety
Years, since high
school
1.5 to two weeks,
it’s easy to
find a day and
restock the
necessities on those
days no
They have the cheapest
prices for grocery items,
cleaning supplies, etc and
family shops there Since I was born
I try to go every other
week, um, I obviously
grab certain items
throughout the week
for dinners. It works for
me because it’s my
time to get out of my
headspace from
studying
I would like to go to
farmers markets but
they only happen to be
on saturdays and i
work saturdays
You know where everything is,
it’s cheaper, and WincCo is
nostalgic 8 years
Every other week, it
works because I
already have access to
food at my jobs , I dont
always needs food at
home
In the summertime I
like to go to farmers
market

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Appendix C :
Demographics of interviewees
Age Gender Partners Dependants Income Level
Vehicle
Access
Monthly
Grocery
Spending
20 Female Yes No 1500/month yes $100-$150
21 female no no part time job yes $100
22 female no no 30,000/year yes $200
22 Female Yes no 1,000/month yes $150
57 Male yes yes 10,000/month yes $300-$400
25 Female yes yes 4,000/month yes $200
21 Female No No 2,000/month Yes
23 Female Yes No Student Yes
20 Female Yes No 1,500/month Yes
60 Female Yes Yes $26,000/yr Yes $4-500
62 Male Yes One $42,00/yr Yes $500
34 Male Yes Two $68,000 Yes $900
37 Female Yes Yes 110k Yes $700-800
23 Male No No N/A Yes $200
23 Female No No N/A Yes $300