IHC 2010 Mindsets For Buying Organic And Local

416 views

Published on

Published in: Business, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
416
On SlideShare
0
From Embeds
0
Number of Embeds
10
Actions
Shares
0
Downloads
11
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

IHC 2010 Mindsets For Buying Organic And Local

  1. 1. Ontario Consumers’ Motivations for Buying Local and Organic ProduceIsabelle Lesschaeve Ben Campbell and Amy Bowen, VinelandConsumer Insights and Product Innovation Steve Onufrey, Onufrey Partners Howard Moskowitz, Moskowitz Jacobs Inc. © 2009 Vineland Research and Innovation Centre
  2. 2. Organic sector-Background• Organic produce market is growing – Retail organic food market (2008) • in Canada $1.5 billion • In the USA $22.9 billion – Expected to grow between 10-20% ; continued to grow during recession – 70% organic foods consumed in Canada is imported – 5% of Canadian organic farms produce certified organic fruits and vegetables © 2010 Vineland Research and Innovation Centre Source, OMAFRA (2009)
  3. 3. Organic consumers-Background• Organic consumers (OMAFRA ,2009) • 2007: 60% consumers bought some organic products • 5% consumers buy 50% of all organic foods• Consumers associate primarily fruits and vegetables with organic (Padel and Foster, 2005)• Perception and drivers for purchasing organic products – Health concerns, food scares (Zanoli, 2004) • Organic: lack of negatives such as chemical residues (Ritson and Oughton, 2007) • Organic food is more nutritious and safer (Hamzaoui Essoussi,2008) – Taste better, Environment friendly production (Filion and Azari, 2002) – Lack of trust in certification
  4. 4. What is a “local” product?• Produced in Canada• Produced in Ontario• Produced in Niagara (McFadden, 2010)
  5. 5. Purpose of the study Ontario Consumers’ Motivations for Buying Local and Organic Produce1. To determine the importance of local and organic status in consumer choice for fruits and vegetables;2. To identify motives and drivers that would increase the likelihood of choice for these products;3. To determine the fair price consumers are willing to pay for a value proposition related to local or organic produce4. To identify consumer segments with different motivations for purchasing local or organic fruits and vegetables © 2010 Vineland Research and Innovation Centre
  6. 6. The IdeaMap® technologyPrinciple: Consumers react to stimuli; Stimuli are created by DoE to vary systematically features defining new product/service/packaging conceptsElements: Positive short phrases or images describing an attribute of the product or service; “Because you and your family deserve nutritious food!”Categories: Elements grouped into categories describing factors that may influence consumer response “Produce type, Perceived benefits, Availability..”Measure: Questions that assess the consumers’ level of value and interest in concept wines; “How likely are you to CHOOSE this produce?” “How much would you SPEND for a pound of this produce?”Exit questionnaire: Demographics/Attitudes
  7. 7. Categories and elements PRODUCTIONPRODUCTS PRODUCT PROPERTIES PRACTICES/ORIGIN AVAILABLE AT… OCCASIONS EMOTIONAL RESPONSE So fresh you’d think it was No need to visit many You can easily Make an environmentally grown right in the store! different vendors to get the incorporate this friendly choice, ensure a products you love ...available product into your better world tomorrow! at all major supermarkets for everyday food choices! your shopping convenience! Because you and your family Available at farmers markets! Perfect treat to serve Feel better about making deserve nutritious food! guests …show them a healthy choice! how much you care! Available at specialty stores Feel great serving Feel a sense of peace of You won’t believe how good it near you! these products for mind eating and serving tastes! holidays or special these products! occasions! Good food is good food, Available exclusively at health Perfect to serve to Feel good about investing regardless of where it’s from stores! your family...show in this product… support and/or how it’s produced them how much you of the economy! care! The great quality is Available everywhere you This product is best Feel like you’re making a undeniable! shop! when its in season! difference! Available at discount To encourage more Encourages equitable With an appearance so This product was supermarkets for the money people to experience treatment of workers and attractive you won’t question produced using both conscious shopper this product we’ve producers! your purchase! local and organic lowered our prices! methods © 2010 Vineland Research and Innovation Centre
  8. 8. Example of vignette + 2 questionsHow likely are you to CHOOSE this product? on a 9 point scale: 1 = Not at all likely ... 9 = Very LikelyHow much would you SPEND on this product (per pound)? on a 5 point scale: 1= $1.50 or less 2 = $1.51 - $3.00 3 = $3.01 - $4.50 4 = $4.51 - $6.00 5 = $6.01+ © 2010 Vineland Research and Innovation Centre
  9. 9. About the respondents Total Panel N=Frequency %=Percentage Base Size (278) N % Q2: What is your gender?1123 respondents Female 180 65%took screener Male 98 35% Q3: Please indicate your age group: 25 - 28 years 47 17%360 respondents 29 - 34 years 51 18%qualified 35 - 40 years 54 19% 41 - 45 years 34 12% 46 - 54 years 56 20%278 respondentscompleted IdeaMap 55 - 60 years 36 13% Q4: Where do you currently reside? Toronto region 215 77% Niagara region 63 23% © 2010 Vineland Research and Innovation Centre
  10. 10. Analysis the results Input 1 Input 2 Input 3 Combination of product On line panel responses On line panel responses features to the “Choose” question to the “Spend” question (Experimental Design) Regression Analysis Output 1: Algebra of the Mind Output 2: Linking the Mind and the WalletThe Interest model retrieves the elementsthat lead to acceptance or rejection of the The Monetary model determine the addedproduct dollar value associated to each element (premium) Segmentation Analysis © 2010 Vineland Research and Innovation Centre
  11. 11. Algebra of the Mind– Total panel Interesta WTPbBase Size Constant + Elements = Total Interest 278Constant 57 $1.88strawberries.jpg 13 $0.37apples.jpg 10 -$0.03Foodland Ontario logo 10 $0.09Garlic.jpg 7 -$0.22carrots.jpg 7 -$0.30potatoes.jpg 6 -$0.18This product was produced using both local and organic methods 6 $0.11Local Food Plus logo 5 $0.06Available at farmers markets -5 -$0.01With an appearance so attractive you won’t question your purchase -5 -$0.10Available at specialty stores near you -10 -$0.04Good food is good food, regardless of where it’s from and/or how it’sproduced -10 -$0.07Available exclusively at health stores -16 -$0.08 © 2010 Vineland Research and Innovation Centre
  12. 12. Linking the Mind and the Wallet – Total panel Interesta WTPbBase Size 278Constant 57 $1.88strawberries.jpg 13 $0.37apples.jpg 10 -$0.03Foodland Ontario logo 10 $0.09Garlic.jpg 7 -$0.22carrots.jpg 7 -$0.30potatoes.jpg 6 -$0.18This product was produced using both local and organic methods 6 $0.11Local Food Plus logo 5 $0.06Available at farmers markets -5 -$0.01With an appearance so attractive you won’t question your purchase -5 -$0.10Available at specialty stores near you -10 -$0.04Good food is good food, regardless of where it’s from and/or how it’sproduced -10 -$0.07Available exclusively at health stores -16 -$0.08 © 2010 Vineland Research and Innovation Centre
  13. 13. Consumer segments• Three consumer segments identified – Confident in Ontario produce (47% of total sample) – In organics we trust (24.5% of total sample) – Socially responsible locavores (28.5% of total sample) © 2010 Vineland Research and Innovation Centre
  14. 14. Winning elements – Confident in Ontario produce • lower income, • higher local food knowledge Base Size 130 130 • higher purchases of Constant 60 $1.83 produce, less purchases of strawberries.jpg 26 $0.48 organic produce, carrots.jpg 20 -$0.09 • not willing to try new foods, apples.jpg 19 $0.05 but have a strong interest in Garlic.jpg 17 -$0.16 foods potatoes.jpg 17 -$0.05 • more likely to shop at saladgreens.jpg 12 $0.07 warehouse stores while being Foodland Ontario logo 5 $0.03 less likely to shop at mass Feel a sense of peace of mind eating $0.13 merchandiser, farmers and serving these products 5 markets , and other store types © 2010 Vineland Research and Innovation Centre
  15. 15. Winning elements – In organics we trustBase Size 68 68 Constant 45 $1.74 • higher income,Canada organic logo 26 $0.43 • not very knowledgeableLocal food plus logo 25 $0.31 about local produceThis product was produced using both • more likely to shop at farmerslocal and organic methods 23 $0.47 market.Foodland Ontario Logo 22 $0.35 • a respondent was more likelyVerified Organic logo 19 $0.48 to be a member as theyGreenbelt logo 15 $0.17 increasingly agree that foodWith an appearance so attractive you purchased matters a lot, whilewon’t question your purchase 9 -$0.02 being less likely to be aapples 9 -$0.07 member when theyTo encourage more people to increasingly agree that food isexperience this product we’ve lowered somewhat pleasurable.our prices 7 -$0.08So fresh you’d think it was grown rightin the store 5 $0.09This product is best when its in season 4 -$0.07 © 2010 Vineland Research and Innovation Centre
  16. 16. Winning elements – Socially responsible locavores Base Size 79 79 • lower educated, Constant 62 $2.11 • organic purchasing, Make an environmentally friendly differences in local purchasing choice, ensure a better world habits, tomorrow 14 $0.12 • are willing to try both new Available everywhere you shop 12 -$0.04 recipes and new foods, Feel better about making a healthy • more likely to shop at a mass choice 12 $0.06 merchandiser. This product was produced using both local and organic methods 11 $0.14 Feel a sense of peace of mind eating and serving these products 10 $0.06 Foodland Ontario Logo 9 -$0.01 Encourages equitable treatment of workers and producers 8 $0.07 Local food plus logo 7 $0.07 Feel like youre making a difference 5 $0.06 © 2010 Vineland Research and Innovation Centre
  17. 17. Implications• Results from 2009 survey on Organic consumers’ attitudes are validated, however our findings are moderated by gender, location and segments – ‘Social responsible locavores’ are driven by environmental and ethical matters, as well as a healthy proposition – Certification is especially important for ‘In organics we trust” and females respondents – Price is a driver for the ‘Social responsible locavores’ who recognize value of organics• Contrarily to previous survey, ‘Organic + Local ‘ appears as a powerful message for most groups – Willingness to pay more – Impact on the market dynamics remain to be studied © 2010 Vineland Research and Innovation Centre
  18. 18. Value of the IdeaMap® approach forthe horticulture industry• Get into consumer mindsets: – Identify tangible and intangible drivers – Interest ≠ Willingness to pay a premium• Applications: – Test a large number of concept elements in a single experiment and in a systematic manner; – Use findings to deliver the right messages and imagery to consumers; – Discover consumer segments and make an informed decision on whom to target : customize market strategies to these groups © 2010 Vineland Research and Innovation Centre
  19. 19. For more informationCampbell, B.L., Lesschaeve, I., Bowen , A.J, Onufrey, S.R., and Moskowitz H.Purchase Drivers of Local and Organic Produce by Canadian Consumers,HortScience, in pressCampbell, B.L., Lesschaeve, I., Bowen , A.J, Onufrey, S.R., and Moskowitz H.Assessing consumers mindsets for purchasing organic and local produce: importanceof perceived product and emotional benefits. Acta Horticulturae. SubmittedAcknowledgementsJenna Gilchrist @ VinelandOntario Ministry of Agriculture Food and Rural Affairs-New Directions funding programContactIsabelle.Lesschaeve@vinelandresearch.com
  20. 20. © 2009 Vineland Research and Innovation Centre

×