Consumer preferences for longevity information and guarantees on cut flower arrangements
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abstract
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.
