Consumer Willingness to Pay and Marketing Opportunities for "Quality Guaranteed Tree-Ripened Peaches" in New York State

This study identifies consumer characteristics associated with willingness to pay a higher price for quality guaranteed tree-ripened peaches, with a focus on evaluating factors important to consumers when making decisions to purchase tree-ripened peaches. Telephone interviews were conducted with consumers in New York State in summer, 2002. Seventy-eight percent of the 258 survey respondents reported that they were willing to pay a higher price. A logistical regression model of willingness to pay was estimated. The empirical results indicated that willingness to pay was positively affected by the existence of previous experiences in purchasing tree-ripened peaches and by consumer dissatisfaction with peaches consumed in the past. An analysis of consumer experiences and consumer dissatisfaction showed that consumers in the two identified segments had mutually exclusive characteristics that present marketing opportunities for high quality New York-grown peaches.Consumer/Household Economics,

Market Opportunities for New Sauerkraut Products

Food Consumption/Nutrition/Food Safety, Marketing,

Consumer Preferences and Marketing Opportunities for Premium “Tree-Ripened Peaches” in New York State

R.B. 2004-10Fruit growers in New York State are adding alternative fruit crops to their production acreage in an effort to diversify their apple orchards. Peach (Prunus persica L.) is a major crop used for that purpose because of the collaboration between growers and the Cornell Agricultural Experiment Station to develop new varieties that possess higher eating quality and more eye-appealing characteristics for the consumer market and because they are suitable for the growing environment in New York State. The goal of this study is to explore consumer interests in New York-grown premium tree-ripened peaches and develop strategic marketing recommendations on how the New York stone fruit industry can expand markets for these peaches. This research is divided into two parts: a qualitative study (focus group discussion) and a quantitative study (consumer phone survey). The purpose of the focus groups was to obtain in depth responses from consumers on their attitudes and purchase behaviors for fruit, peaches and New York-grown premium tree-ripened peaches. The consumer phone survey was designed to verify results from the focus group discussion among the general population and to determine consumers’ interests and willingness to pay a higher price for “quality-guaranteed premium treeripened peaches.” The focus groups and consumer phone surveys show that consumers, especially frequent fruit shoppers, are generally very interested in good quality peaches as well as “quality-guaranteed premium tree-ripened peaches”. Although it is usually recognized that good quality tree-ripened peaches are available at farm stands or farmers’ markets, they appear to be less available in the supermarkets where respondents in this study typically shop. This presents an opportunity for New York stone fruit growers to supply good and consistent quality fresh peaches through the supermarket channel. Peaches are prized for their juiciness, sweetness, and good flavor. However, consumers are frustrated by the difficulty they perceive in selecting peaches at the proper ripening stage to get the qualities they like. Quality and consistency of the product are key factors for consumer satisfaction, and a high level of satisfaction, in turn, increases consumer demand and repeat purchases for fresh peaches. If quality and consistency exist, consumers seem to be willing to pay higher prices and buy fewer peaches in order to get the product they like. Most consumers in this study recognized New York State as a region where peaches are grown and referred to these peaches as “local” or “homegrown.” Awareness of these shoppers about peaches grown in New York and their “local” nature clearly constitutes an advantage to build on when marketing New York-grown peaches. However, there are challenges when designing a marketing program to receive a premium price for high quality New York-grown tree-ripened peaches. Many consumers could not correctly identify tree-ripened peaches, and some expected a lower price for locally grown products. Moreover, some focus group participants viewed California peaches as larger and Pennsylvania peaches as more flavorful and predictable than New York peaches. iii Therefore, when promoting “quality-guaranteed New York-grown premium tree-ripened peaches” through the supermarkets channel, a good position statement, innovative packaging, and clear labeling at the point of purchase will be the major means of informing and influencing a potential buyer. It should emphasize high quality and be used as boldly and as creatively as possible to justify the higher price and stimulate sales for the “New York-grown qualityguaranteed premium tree-ripened peaches”. Moreover, given the narrow marketing window when fresh New York peaches are available and the excitement the arrival of the peach season appears to generate, both run-of-the-crop and premium varieties can benefit from intensive promotion of their arrival. Results from this study show that demographic factors generally do not affect consumer behavior in terms of purchasing peaches or tree-ripened peaches. Therefore, promotional programs targeting specific consumer groups are not necessary. Generating consumer satisfaction through good and consistent quality products is the key to successfully marketing “New York-grown quality-guaranteed premium tree-ripened peaches.

RISK ANALYSIS OF ADOPTING ZERO RUNOFF SUBIRRIGATION SYSTEMS IN GREENHOUSE OPERATIONS: A MONTE CARLO SIMULATION APPROACH

Zero runoff subirrigation (ZRS) technology can effectively manage fertilizer input while improving greenhouse production efficiency. However, high capital investment costs and inadequate technical information to growers are impediments for adoption. A Monte Carlo simulation was used to compare the profitability and risks of alternative ZRS system investments for greenhouse operations in the northeastern and north central United States. Results showed that the Dutch movable tray system and the flood floor system were most profitable and least risky for small potted plant and bedding crop flat production, respectively. The trough bench system was least favorable because its profitability was low and highly volatile.Risk and Uncertainty,

An Analysis of Economic Dimensions of the New York State Greenhouse industry

R.B. 99-0

Sweet Corn Marketing Channels in New York State -- A New York Sweet Corn Grower Survey

R.B. 2004-05This study focused on investigating marketing channels and marketing strategies used by the New York sweet corn industry. In Spring 2001, a survey was conducted with vegetable growers in New York State. This report included responses from 482 New York vegetable farms which produced sweet corn in 2000. These respondents had total production acreage of 37,786 acres (67 percent of the state’s total) and a total production value of $38.9 million (57 percent of the state’s total). Among the respondents, 369 (77 percent) produced sweet corn mainly for the fresh market (with more than 75 percent of sweet corn produced sold for fresh use). The rest of the growers surveyed (113 or 23 percent) produced sweet corn mainly for the processing market (with more than 75 percent of sweet corn produced sold for processing). No respondents fell in the middle

Marketing and Merchandising Practices for Fresh Sweet Corn in Supermarkets -- Challenges and Opportunities for the New York State Fresh Sweet Corn industry

R.B. 2004-06This study focused on investigating key issues related to marketing fresh sweet corn through supermarket firms and implications for the New York sweet corn industry. In summer 2002, a survey was conducted with supermarket firms that operate stores in the market area of three Northeast States - New York, New Jersey and Pennsylvania. Executives from 25 supermarket firms responded to the survey. Participating firms operated 921 stores, and their 2000 sales ranged from $21 million to$10.5 billion with total retail sales of $24.5 billion in the year. The majority of supermarket firms in the study sourced fresh sweet corn directly from grower/shippers during the summer season (July – September). During the rest of the year, wholesalers become more important as the main source of this product due to their competitive advantage of being able to source product from different regions. The three most important methods used by supermarket firms to identify their fresh sweet corn suppliers are 1) personal relationships/referrals, 2) sales calls from grower/shippers, and 3) “other” ways, such as memory from previous years, through their wholesalers, and from terminal markets. Large firms also emphasized their use of shippers’ directories and field offices. The three most important characteristics sought in suppliers of fresh sweet corn by participating supermarket firms are supplier’s ability to provide consistent quality, ability to make daily deliveries, and the prospect of developing a good relationship. During the summer season, fresh sweet corn grown in New York State plays an important role among supermarket firms in the trading area studied. Its major competitor is sweet corn from New Jersey. Small and medium firms, as well as firms in New Jersey and Pennsylvania, preferred white corn, while large firms and firms in New York State preferred bi-color corn. These preferences are determined by customers’ preferences and demands. During the summer season, most of the fresh sweet corn marketed by participating supermarket firms is marketed bulk and un-shucked. The market share of tray-packed fresh sweet corn, either partially shucked or completely shucked, is still very small. Other forms of fresh sweet corn that supermarket firms would be interested in selling in their stores are mainly related to value-added and/or ready-to-cook products, such as microwave-ready trays. Results confirmed that supermarkets mainly promote fresh sweet corn during the traditional holidays of Memorial Day, the 4th of July and Labor Day. Quality, availability and price are the other factors that determine when supermarket firms run a promotion on fresh sweet corn. According to participating supermarket firms, the most effective strategies to promote fresh sweet corn, and where the biggest expansion efforts should be focused, are: locally-grown, in-store display features, store flyers and discount sales. Participating supermarket firms that purchased fresh sweet corn grown in New York State rated taste and quality of the New York product as good. Availability, shelf-life and shipping containers were rated somewhat lower -- between average and good. Medium-size supermarket firms were less satisfied with New York products’ attributes. In general, dependability of New York grower/shippers was rated as good. On-time delivery was also rated good except by medium-size supermarket firms and by New York State firms. Promotional support from New York sweet corn suppliers was the attribute with the lowest rating across all firm categories and particularly among New York State firms. These results clearly indicate that there are opportunities for the New York sweet corn industry to improve fresh sweet corn sales through supermarkets in the trading area of the study. Supermarkets of different sizes and in different regions (States of New York, New Jersey and Pennsylvania in this study) have different needs and expectations. Sweet corn grower/shippers need to strive to meet the needs and ensure the satisfaction of their various clients

Grow Your Greenhouse! Conference Proceedings

E.B. 2000-1

SWEET CORN MARKETING CHANNELS IN NEW YORK STATE -- A NEW YORK SWEET CORN GROWER SURVEY

This study focused on investigating marketing channels and marketing strategies used by the New York sweet corn industry. In Spring 2001, a survey was conducted with vegetable growers in New York State. This report included responses from 482 New York vegetable farms which produced sweet corn in 2000. These respondents had total production acreage of 37,786 acres (67 percent of the state’s total) and a total production value of $38.9 million (57 percent of the state’s total). Among the respondents, 369 (77 percent) produced sweet corn mainly for the fresh market (with more than 75 percent of sweet corn produced sold for fresh use). The rest of the growers surveyed (113 or 23 percent) produced sweet corn mainly for the processing market (with more than 75 percent of sweet corn produced sold for processing). No respondents fell in the middle