Unwrapping the Native Plant Black Box: Consumer Perceptions and Segments for Target Marketing Strategies

The increasing demand for sustainable products has helped spur demand for native plants. This study used an online survey of 2066 US consumers, a factor analysis, and Ward’s linkage cluster analysis to identify unique customer segments in the native plant marketplace. The following three clusters were identified: native averse (31.6%), native curious (35.7%), and native enthusiast (32.7%). The native enthusiast cluster agreed strongly with positive statements related to native plant perceptions and attributes. The native averse cluster exhibited the lowest level of agreement with these items and the greatest level of agreement with negative or neutral statements about native plants. The native curious cluster was intermediate between the other clusters but generally agreed with positive attributes. Demographic characteristics impacted cluster membership. The marketing implications are discussed

Perceptions and Socioeconomic Status Influence Purchases of Native Plants

Plants native to the United States, defined as those being present before European settlement, have aesthetic and environmental benefits. In 2018, only 10% of plant sales were native plants, a plant category that tends to be underrepresented in many residential and commercial landscapes. Although earlier research indicated that consumers find native plants less aesthetically appealing relative to introduced species, more recent research reported a growing demand for native plants. Thus, a better understanding of consumer perceptions would facilitate their marketing. We used an online survey of 1824 participants representing five geographic regions (West, Southwest, Midwest, Southeast, and Northwest) to classify adopters based on their purchase of native plants. A double-hurdle model was used to estimate factors influencing purchasing native plants among US homeowners, and the factors influencing the amount spent on native plants in 2021. Demographically, metropolitan, college-educated, and younger participants were more likely to be native plant adopters; they also spent 80% more on plants compared with nonnative plant adopters. More native plant adopters agreed that native plants were better for the environment than exotic plants (68%), are readily available in their area (67%), and are better adapted to difficult sites (75%). Marketing efforts should capitalize on the environmental benefits to stimulate purchases

Paycheck Protection Program Participation in Tennessee's Green Industry: April 3-June 30, 2020

On March 11, 2020, the novel coronavirus disease (COVID-19) was declared a pandemic by the World Health Organization (WHO, 2020) and began to emerge in the United States. On March 13, 2020, President Trump issued a proclamation declaring that the COVID-19 outbreak in the U.S. was a national emergency (Whitehouse, 2020). As COVID-19 evidenced community spread, actions were taken by federal, state and local governments to help limit the spread. Some of these actions included recommendations or orders to stay at home, temporary closures or limitations of services by certain types of businesses (e.g., dine-in restaurants and bars), limiting meetings of organizations and institutions, travel restrictions and other actions. Tennessee Governor Lee issued Executive Order No. 22 (EO 22) with a safer-at-home directive, except for engagement in essential activities or services (State of Tennessee, 2020). Under EO 22, nursery and greenhouse growers, wholesalers and retailers and garden centers were deemed essential services, which meant that they could remain open (State of Tennessee, 2020). However, the COVID-19 pandemic and associated economic downturn impacted many other businesses in a variety of ways. In some cases, businesses were temporarily closed, limited in their business activities or directed to offer modified services. This may ultimately impact consumers’ access and ability to afford nursery and greenhouse products, if the consumers’ household employment status has been negatively impacted. Other firms experienced labor issues due to outbreaks or employee illness. In some cases, this likely impacted the available supplies of some products. Many businesses experienced impacts on sales of their products and/or services. For instance, green industry projections anticipate that industry revenue growth will slow in 2020, due to decreased per capita income and consumer spending, with the largest threat coming from supply chain disruptions and shortages, partially attributed to COVID-19 (IBISWorld, 2020). While nursery and greenhouse growers were considered essential, several economic forces led to unintended consequences due to the COVID-19 pandemic and have likely influenced the state’s nursery and greenhouse industry. First, the pandemic has had negative impacts on employment and consumers’ employment (Jensen, et al., 2020) and consequently incomes, which could negatively impact sales of nursery and greenhouse products (IBISWorld, 2020). For example, Tennessee’s unemployment increased from 3.3 percent in January 2020, to 15.5 percent in April 2020, and 11.0 percent in May 2020 (Bureau of Labor Statistics, 2020). Anecdotal evidence suggests, however, that national, statewide and local better-at-home recommendations and stay-at-home directives have encouraged some consumers to add to their landscapes, grow their own food at home or participate in other gardening activities (Murphy, 2020; Willjasper and Polansek, 2020), as many consumers count gardening as a healthy hobby (Conway, 2016; Soga, Gaston, and Yamaura, 2017). Third, nursery stock sales can be linked in part to the housing markets. Compared with February, the month just prior to the pandemic, housing starts declined in March-June, with the greatest decline observed this year in March and April (US Census Bureau, 2020a). In the U.S., new single unit housing starts declined from 994,000 in February to 666,000 in April. For the southern U.S., single unit housing starts declined from 732,000 in February to 612,000 in April. Fourth, in some cases, growers may have experienced temporary labor disruptions due to infection or health concerns among workers. An important component of keeping the nursery greenhouse industry supply chain disruptions to a minimum and maintaining the well-being of the industry is being able to keep workers on a payroll through the pandemic (Bartik et al., 2020)

Paycheck Protection Program Loans in Tennessee's Landscape Services Industry April 3-August 8, 2020

Landscape service firms provide commercial landscaping services including design, installation and maintenance of turfgrass lawns, ornamental plant beds, gardens and other outdoor areas for private residences and commercial properties. In 2020, the U.S. landscaping services industry consisted of 510,000 firms who had a revenue of nearly $102 billion and employed one million people with wages of$32.9 billion (Diment, 2020). In Tennessee, the landscaping industry consists of 1,679 firms employing 12,475 workers with an annual payroll of $424.5 million indicating an annual average wage of$34,000 (U.S. Census Bureau, 2018). The majority (82 percent) of the industry’s products and services are related to landscape maintenance activities (Diment, 2020). Thus, this industry’s revenue is closely tied to new housing developments, the housing market (in general) and consumers’ disposable incomes. On March 11, 2020, the World Health Organization (WHO, 2020) declared the Novel Coronavirus Disease (COVID-19) a pandemic. Shortly after, on March 13, 2020, the COVID-19 outbreak was declared a national emergency by President Trump (White House, 2020). Actions were taken to decrease community spread and Americans were encouraged to stay home, avoid large group gatherings and avoid unnecessary outings. Aligning with these directions, Tennessee’s Governor Lee passed the Executive Order No. 22 (EO 22) encouraging people to stay at home except for essential activities or services (State of Tennessee, 2020). Under EO 22, landscape management was deemed an essential infrastructure operations service and landscaping firms were allowed to remain open. However, several factors related to the COVID-19 pandemic and economic downturn could negatively impact the landscaping service industry. For example, businesses who closed or reduced their activities could influence product availability through supply chain disruptions, as well as customers’ employment and disposable incomes potentially dropping, reducing spending on non-essentials. Furthermore, the landscaping service industry is heavily influenced by the housing market which experienced a drop in March and April, 2020 potentially due to the uncertainty caused by the pandemic (U.S. Census Bureau, 2020). Despite this momentary drop, the housing market rebounded and continued to have positive growth after those first few months of the pandemic meaning the impact of this drop on the landscape service industry was likely temporary. In order to mitigate potential economic hardships from the pandemic, the Coronavirus Aid, Relief and Economic Security (CARES) Act was passed on March 27, 2020 (U.S. Department of Treasury, 2020). As part of the CARES Act, the Paycheck Protection Program (PPP) was implemented and administered by the Small Business Administration through local lending firms. The goal of the PPP was to provide support for payroll and other operating expenses to small businesses during the pandemic and economic downturn. The PPP provided over $660 billion in forgivable loans (Bureau of Economic Analysis, 2020). This report summarizes the PPP loans approved to landscaping service firms in Tennessee and several neighboring states to provide an overview of the aid and its influence in Tennessee’s landscaping services industry

A Ten-Year Review of the Southeast U.S. Green Industry, Part I: Labor and Firm Characteristics

The green industry is a vibrant part of Tennessee’s agricultural economy, directly contributing $965 million annually to the state’s economy,$23.5 million in annual state and local taxes, and over 13,000 jobs (Jensen et al., 2020). In recent years, labor shortages have become more pronounced nationally and within the state of Tennessee (Velandia et al., 2021). Tennessee growers report that hiring locally and retaining locally hired employees is challenging, and that labor-related challenges are on the increase. In 2018, nearly 80 percent of nurseries indicated that labor is their greatest hurdle, and over 50 percent stated the lack of qualified labor limited their ability to hire additional employees (McClellan, 2018). Alongside the issue of an uncertain and inadequate labor force is the increasing demand for nursery and landscape products and services. Nationally, the industry demonstrated a 0.6 percent annual growth from 2015 to 2019, which is expected to increase 1.8 percent annually through 2025 (Daly, 2021). Just prior to the COVID-19 pandemic, members of the Tennessee green industry anticipated expanding production by 16.5 percent over the next five years (Jensen et al., 2020). With the development of the COVID-19 pandemic that led to dramatically increased interest in home gardening, the green industry experienced an increase in national sales, with 47 percent of participating nurseries and 87 percent of garden centers reporting an increase in sales in 2020 relative to 2019 (Daly, 2021; Nursery Management, 2020). Southeastern U.S. households reported an increase in plant purchases of 3.4 percent and landscaping purchases by 4.6 percent from 2019 to 2020 (Campbell, Rihn, and Campbell, 2021). Given the increase in demand, green industry firms will likely increase production, which will require more labor. In an effort to help the green industry better understand employment issues, related trends and to better position their businesses for the future, a two-part series titled “A Ten-Year Review of the Southeast U.S Green Industry” was developed. In “Part I: Labor and Firm Characteristics” annual sales, product types and workforce demographics are covered for three sub-samples, including: national, a select geographical area in the southeast U.S. (hereafter termed “five-state region” which includes Georgia, Kentucky, North Carolina, South Carolina and Tennessee), and the state of Tennessee. In the companion publication, “A Ten-Year Review of the Southeast U.S. Green Industry, Part 2: Addressing Labor Shortages and Internal and External Factors Affecting Businesses Strategies,” we discuss specific strategies that businesses are using to address the labor shortage. In Part 2, we also discuss the importance of other factors and issues that are also weighing on business decisions that affect the future sustainability of the green industry

Paycheck Protection Program Loans in Tennessee's Landscape Services Industry April 3-August 8, 2020

Landscape service firms provide commercial landscaping services including design, installation and maintenance of turfgrass lawns, ornamental plant beds, gardens and other outdoor areas for private residences and commercial properties. In 2020, the U.S. landscaping services industry consisted of 510,000 firms who had a revenue of nearly $102 billion and employed one million people with wages of$32.9 billion (Diment, 2020). In Tennessee, the landscaping industry consists of 1,679 firms employing 12,475 workers with an annual payroll of $424.5 million indicating an annual average wage of$34,000 (U.S. Census Bureau, 2018). The majority (82 percent) of the industry’s products and services are related to landscape maintenance activities (Diment, 2020). Thus, this industry’s revenue is closely tied to new housing developments, the housing market (in general) and consumers’ disposable incomes. On March 11, 2020, the World Health Organization (WHO, 2020) declared the Novel Coronavirus Disease (COVID-19) a pandemic. Shortly after, on March 13, 2020, the COVID-19 outbreak was declared a national emergency by President Trump (White House, 2020). Actions were taken to decrease community spread and Americans were encouraged to stay home, avoid large group gatherings and avoid unnecessary outings. Aligning with these directions, Tennessee’s Governor Lee passed the Executive Order No. 22 (EO 22) encouraging people to stay at home except for essential activities or services (State of Tennessee, 2020). Under EO 22, landscape management was deemed an essential infrastructure operations service and landscaping firms were allowed to remain open. However, several factors related to the COVID-19 pandemic and economic downturn could negatively impact the landscaping service industry. For example, businesses who closed or reduced their activities could influence product availability through supply chain disruptions, as well as customers’ employment and disposable incomes potentially dropping, reducing spending on non-essentials. Furthermore, the landscaping service industry is heavily influenced by the housing market which experienced a drop in March and April, 2020 potentially due to the uncertainty caused by the pandemic (U.S. Census Bureau, 2020). Despite this momentary drop, the housing market rebounded and continued to have positive growth after those first few months of the pandemic meaning the impact of this drop on the landscape service industry was likely temporary. In order to mitigate potential economic hardships from the pandemic, the Coronavirus Aid, Relief and Economic Security (CARES) Act was passed on March 27, 2020 (U.S. Department of Treasury, 2020). As part of the CARES Act, the Paycheck Protection Program (PPP) was implemented and administered by the Small Business Administration through local lending firms. The goal of the PPP was to provide support for payroll and other operating expenses to small businesses during the pandemic and economic downturn. The PPP provided over $660 billion in forgivable loans (Bureau of Economic Analysis, 2020). This report summarizes the PPP loans approved to landscaping service firms in Tennessee and several neighboring states to provide an overview of the aid and its influence in Tennessee’s landscaping services industry

Consumer Perceptions of Wine Quality Assurance Programs: An Opportunity for Emerging Wine Markets

Quality assurance programs (QAPs) may add value to wines through reassuring consumers of wine quality prior to purchase and consumption. In Tennessee, the potential to use a wine QAP is being explored as a means to improve the industry’s economic sustainability. To date, several QAPs exist, but studies directly related to their impact on consumer behavior for wines from emerging areas are scarce. We used an online survey instrument to elicit consumer perceptions of QAPs importance on wine purchasing decisions and how the presence of a QAP may impact their purchasing behavior for a wine from an emerging area (e.g., Tennessee). Wine involvement, QAP perceptions, and familiarity were also measured. A mixed-process model was used to estimate the two ordered probit models for importance of QAPs and the influence of QAPs on Tennessee wine purchases, where QAP importance was treated as a latent variable influencing Tennessee wine purchases. Ordinal probit estimates suggest that greater on-site spending and greater perceived benefits of QAPs (as indicators of quality and standardization) resulted in a higher probability of perceived QAP importance when making wine purchasing decisions. Reduced form estimates of the model of Tennessee wine purchases indicated distance to wine producing areas, female gender, and familiarity with Tennessee wines each negatively influenced the potential impact of QAPs on Tennessee wine purchases. However, on-site spending at wineries and perceived benefits of a Tennessee QAP increased likelihood of Tennessee wine purchases

Consumer Perceptions of Wine Quality Assurance Programs: An Opportunity for Emerging Wine Markets

Quality assurance programs (QAPs) may add value to wines through reassuring consumers of wine quality prior to purchase and consumption. In Tennessee, the potential to use a wine QAP is being explored as a means to improve the industry’s economic sustainability. To date, several QAPs exist, but studies directly related to their impact on consumer behavior for wines from emerging areas are scarce. We used an online survey instrument to elicit consumer perceptions of QAPs importance on wine purchasing decisions and how the presence of a QAP may impact their purchasing behavior for a wine from an emerging area (e.g., Tennessee). Wine involvement, QAP perceptions, and familiarity were also measured. A mixed-process model was used to estimate the two ordered probit models for importance of QAPs and the influence of QAPs on Tennessee wine purchases, where QAP importance was treated as a latent variable influencing Tennessee wine purchases. Ordinal probit estimates suggest that greater on-site spending and greater perceived benefits of QAPs (as indicators of quality and standardization) resulted in a higher probability of perceived QAP importance when making wine purchasing decisions. Reduced form estimates of the model of Tennessee wine purchases indicated distance to wine producing areas, female gender, and familiarity with Tennessee wines each negatively influenced the potential impact of QAPs on Tennessee wine purchases. However, on-site spending at wineries and perceived benefits of a Tennessee QAP increased likelihood of Tennessee wine purchases

Tennessee's Wine Industry: Consumer Perceptions, Quality Assurance Programs and Marketing Strategies

The Tennessee Wine and Grape Board and Tennessee Department of Agriculture commissioned a research study addressing consumer perceptions and value of Tennessee wines and how those perceptions vary between Tennessee residents and non-residents. The study also addressed consumer perceptions of wine quality assurance programs (QAPs) and local labeling related to Tennessee wines. Together, these objectives provide information about how consumers perceive Tennessee wines, local wines and QAPs, which can be leveraged when making future business and marketing strategies. Internet surveys were used in September 2021 to elicit consumer purchasing behavior, perceptions, and valuations towards Tennessee wines and QAPs. A total of 1,216 U.S. consumers completed the survey, with nearly 61 percent of the sample consisting of Tennessee residents. Non-Tennessee participants were from across the U.S. with Florida, Texas, New York, Georgia and Ohio having the largest levels of participation. Non-Tennessee residents were recruited to participate because they had either recently or planned to visit Tennessee. In general, consumers perceived local and Tennessee wines favorably but do not differentiate between local ingredients, processing/fermentation or sales locations, which implies that local terminology is often positive, but vaguely interpreted by the end consumer. There is an opportunity for the Tennessee wine industry to use this information and take actions to define their own reputation. Consistent quality and positive experiences can aid in maintaining a positive local brand image and reputation, which can benefit wine industry stakeholders throughout the state. Although participants indicated awareness of Tennessee wines and vacations, the results were lower for wine trails and clubs, meaning there is potential to build the customer base for Tennessee wines by making potential customers more aware of wine trails and clubs that are available and feature Tennessee wines. Increased awareness in- and out-of-state could benefit the industry through access to additional markets. For instance, many participants indicated their visits to Tennessee involved visiting family/friends. If more in-state family/ friends are aware of Tennessee wine offerings, a stable local market could be used to attract additional tourists through family connections. These connections also provide the opportunity to explore additional marketing avenues (e.g., restaurants, etc.) that can increase market penetration and product availability to consumers. Beyond local and Tennessee wine perceptions, participants were asked about QAPs and how that relates to their purchasing decisions. Participants indicated they would expect to pay $21.39 per bottle of QAP certified wine (versus an average current spending of$14.89 per bottle of non-QAP wine). Results show that QAPs are perceived as important, could aid in growing the Tennessee wine industry, and that the source influenced its impact on purchasing behavior. In general, QAP sources from within the industry (e.g., associations, wineries) had a more positive impact on purchasing decisions than sources from outside the industry (e.g., universities, independent third-parties, government agencies). Likely this preference is related to the complexity of wine production and flavor development, meaning having a QAP from a source that is familiar with all of the dimensions involved with wine making would align better and likely understand quality better than an organization less familiar with the industry. However, the choice experiment results indicate that a university-based QAP will not impact wine choice, but wine sweetness and Tennessee origins positively influenced choice. These findings suggest that sweetness and origin have a stronger impact than a university QAP. Overall, the results indicate that using an industry-specific organization as a source for the QAP would improve its impact more so than other types of organizations but other wine features (e.g., sweetness, origin) may be more influential on choice. The next section summarizes 15 key insights from the study, followed by a brief introduction, study methods and sample demographics, the in-depth results, a summary, and then recommendations based on the key findings

Tennessee Fruit and Vegetable Farmer Preferences and Willingness to Pay for Plastic Biodegradable Mulch

Regardless of the potential economic and environmental benefits associated with plastic biodegradable mulch (BDM) use in fruit and vegetable production, BDM adoption among U.S. farmers remains relatively low. One of the factors influencing low BDM adoption is its cost. Using a 2019 Tennessee fruit and vegetable farmer survey, the contingent valuation method, and a probit regression, this study evaluates farmers’ preferences and willingness to pay (WTP) for BDM. Results suggest price, on-farm income, and familiarity with BDM are factors influencing farmer adoption of BDM. However, results suggest producer WTP for BDM is below current BDM market prices