Jones, Eugene

English

Research Papers in Economics

Determinants of Apple Purchases for Ohio
Consumers: Implications for Other States
Eugene Jones
Many  states are  attempting  to  increase their  respect  to education, just  21.7  percent  of the  re-
production  and  marketing  of  fruits  and  vegeta-  spondents to this survey  had not received at least
bles.  Ohio  is no exception!  Currently  the  state  is  some  college  education.  By  contrast,  when  the
exploring opportunities  for increasing  its produc-  state's  population  is limited to the 25  and  above
tion and marketing of Ohio-grown apples.  Apples  age  group,  60.6  percent  of the  state's  residents
are  perceived  to  offer  expansion  opportunities  had received no college education.
because  of the state's  production  potential,  con-  With  respect to income,  12.3  percent  of the
sumers'  positive  perceptions  of  the  quality  of  respondents to this survey had household incomes
Ohio  apples,  the  state's large  population,  and  its  above  $90,000.  For the  county  and  state,  these
proximity to other large population centers.  percentages  are  6 percent  and  5 percent  respec-
Since  Ohio consumers  represent the  primary  tively. In  short, demographic  and  socioeconomic
buyers  of Ohio-grown  apples,  a  general  premise  comparisons  show major  differences  among sur-
of this paper is that any planned  expansion of ap-  vey respondents,  and residents  of the county and
pie production and marketing must emanate from  state.  Of interest  to  Ohio  apple  producers  and
a  clear  understanding  of consumers'  buying  and  marketers,  of course,  is whether these differences
consumption habits.  To gain this understanding,  a  are  significant  enough  to  invalidate  inferences
random  sample of 500 consumers  were surveyed.  from the sample to the larger population.
Of these  500 consumers surveyed,  191  responded  Careful  analysis  of the  results  reported  by
and  161  of these returned  surveys  were complete  the  respondents  would  suggest  it  is quite  appro-
and usable (Jones,  1995). This paper reports many  priate to draw inferences  from  the sample to the
of the findings from these  161 surveys.  larger population.  For  example,  results  from  this
survey  show little correlation  between  apple pur-
Demographic  and Socioeconomic  chases  and income,  or apple  purchases  and  edu-
Characteristics  cation. Moreover,  a factor with which  apple con-
sumption  is  most  highly  correlated,  age,  has  a
Even  though  consumers  across  the  entire  distribution  in  the  sample  which  more  closely
state of Ohio represent the primary interest group  approximate that for the state. As examples, limit-
for this study, available research funds limited the  ing  the  relevant  populations  to  those  20  and
consumer  survey  to registered  voters  in Franklin  above,  24.6  percent  of the  residents  in  the state
county,  the capital  seat for the state. To evaluate  are  60  or  older  and  22.6  percent  of the  respon-
the  validity  of  this  localized  or  cluster-type  dents to  this  survey  are  60 or  older. Also,  23.9
sampling, it seems appropriate  to compare  demo-  percent  of the respondents  to this survey  are  be-
graphic and socioeconomic  characteristics  for the  tween the ages of 31-40, whereas 23.2 percent of
county,  state  and the  respondents  to this  survey.  those  20  and  older  in  the state  are  between  the
Comparisons  between  the  state and county  show  ages  of 31-40.  These  comparable  figures  across
Franklin  county  to have  a younger  age  distribu-  age  groups suggest that the sample  is quite repre-
tion,  higher  levels  of education,  and  higher  in-  sentative of the  larger population with respect to
comes (Bureau of the Census).  Likewise,  respon-  an  important  factor  which  is  highly  correlated
dents to the survey had higher levels of education  with apple consumption.
and  income  than residents  across the  state.  With
Author is an Associate  Professor at The Ohio  State Univer-
sity, Columbus, Ohio.54  February  1996  Journal  of Food Distribution  Research
Focus of Questionnaire  affect  consumer  purchases  more  adversely  than
poor  color.  Additionally,  our  results  show  that
Although  a  large  number  of  questions  ap-  only  a  small  percentage  of  consumers  associate
peared  on the survey questionnaire, those address-  the flavor of an apple with its color. Thus, for our
ing the  primary concerns  of apple producers  and  respondents, color appeared to not be a significant
marketers  constitute  the  focus  of this paper.  In  a  factor in purchasing decisions.
nutshell,  these  questions  centered  around  three  Although  consumer  rankings  of  apple  at-
major  issues:  (1)  What  are  the  critical  factors  tributes  suggest  diminished  importance of highly
which determine consumers'  apple purchases? (2)  colored  traditional  varieties  such  as  Red  and
What are the long-term  outlook for increased con-  Golden  Delicious  apples,  these  traditional  varie-
sumption  of the  newer  apple  varieties?  and  (3)  ties  continue  to  dominate  sales  in Ohio.  Yet,  for
What  are the current and expected  impacts of the  those consumers  who have  tried the newer varie-
5-A-Day  program?  These  issues  are  discussed  at  ties, these varieties tend to represent  a large  share
considerable  length  and  a  few  graphs  are  pre-  of their total apple consumption. Simply put, con-
sented to help focus the discussion.  sumers  appear  to  be  in  two  groups:  those  who
have tried and  like the  newer varieties,  and those
Critical Factors Influencing Apple Purchase  who  have not tried  and  therefore  cannot  like the
newer varieties.  Yet, given the importance of taste
From an identifiable  set of attributes describ-  and the evidence  from  Oregon  supporting better-
ing apples,  consumers  selected  taste  as  the most  tasting  newer  varieties,  it  seems  reasonable  to
important attribute influencing  their purchase  de-  conjecture  that many consumers have not yet ex-
cision.  This  attribute  was  followed  by  firmness,  perienced  the  newer  varieties.  Given  the  prefer-
overall  quality, and  skin condition.  Color,  an  at-  ence  ordering  as expressed  by the respondents  to
tribute which has historically  influenced  consum-  this survey, Ohio  apple marketers  appear to have
ers' purchase decisions, was ranked  6th among  10  new  opportunities  for  developing  marketing
attributes  (Figure  1).  This is of particular  signifi-  strategies  which  de-emphasize  color  and  re-
cance  to Ohio  apple producers  because  these  re-  emphasize the more desirable attributes  which are
suits suggest marketing opportunities  for varieties  important to consumers.
which are  not highly colored.  Such description  is
quite  common  for  many  of the  newer  varieties  Outlook for Increased Marketing
such  as  Braeburn,  Fuji,  Gala,  and  Jonagold.  of Newer Apple Varieties
Moreover, these newer varieties are likely to have
enhanced  sales  potential  if taste  tests,  like those  Marketing  any  new  product  generally  re-
conducted at Oregon State University, continue to  quires  the  development  of a  strategy  to  induce
show them  to have  superior  taste  to more  tradi-  consumers  to  try the  product.  New  varieties  of
tional varieties (Stebbins, et al.,  1991).  apples  are  no  exception!  The  results  from  this
Closely  related  to the  color  attribute  of an  survey  show  quite  clearly  that  most  consumers
apple  is  the  concept  of waxing.  Indeed  waxing  are  unfamiliar  with  the  newer  apple  varieties
historically has been a method of enhancing color  (Figure  2).  This  unfamiliarity  exists  despite  the
and  the  perceived  purchase  appeal of an  apple.  fact that these  newer varieties  are  nearly  always
Yet the results of this  study show that consumers  displayed  side-by-side  with the traditional  varie-
have no strong preference  for waxing.  The results  ties. The fact that many consumers have not pur-
show  that  the  shine  of an  apple  influences  the  chased  these newer varieties  may be  due to sev-
purchase  decisions  of just 35  percent  of the  re-  eral  factors. First, consumers may perceive  some
spondents. Further, when color is included among  utility or satisfaction  risk in purchasing  unknown
five identifiable factors which cause consumers to  varieties  because  apples  may  not be  viewed  by
alter their apple  purchases,  the results  show that  them to be  a homogeneous  commodity.  Second,
color is the least bothersome of five factors.  Soft  there  may  be  too  much  of a  price  differential
spots and bruising  are by far the most detrimental  (premium  on  the  newer  varieties)  between  the
factors,  but  even  blemishes  and  stem  punctures  traditional and newer varieties. And finally, con-Jones, Eugene  Determinants  ofApple Purchases  for Ohio Consumers  55
Figure 1.  Consumers' Highest Ranking of Ten Attributes of Apples.
Shape  9.2
Shine  ..  10.1
>  Size  14.8
Color  23.5
§  Cooking Ability  23.7
Vitamins  25.2
M  Skin Condition  44.5
Overall Quality  62.5
Z  Firmness  77;i  . . - :-I;.;:;i  igs.Ba7  -i68.6
Taste  i  92.3
0  10  20  30  40  50  60  70  80  90  100
Percent
Figure 2.  Consumer Familiarity with Newer  Apple Varieties.
100 
90  --
80  ----
70  ----
60  -----  n  -------
50  -
40
30
20  -
10  ----  - -
0
Braeburn  Cortland  Criterion  Fuji  Gala  Jonagold
•  Familiar  oNot Familiar
sumers may make their purchase decisions  on the  marketers  must  find  an  effective  way  to  induce
basis  of  previous  experiences  (Nerlove,  1958).  consumers to at least try their commodities.
Regardless  of whether any or all of these factors  For a typical branded  or manufactured  prod-
account  for  consumers'  lack  of familiarity  with  uct, a low introductory price is a common strategy
the  newer  varieties,  it  is  clear  that  Ohio  apple  employed  to  induce  consumer  to  try  unknown56  February  1996  Journal  of  Food  Distribution  Research
products  (Monroe,  1990).  For a  fresh,  unbranded  forts  are likely to be required  to get consumers to
commodity  like  apples,  this  strategy  is  likely  to  taste  these newer varieties.  With  respect to the 5-
be  less effective  than other  non-price  promotion.  A-Day  program,  Ohio  apple  producers  and  mar-
For  example,  given  the  prominence  of  taste  in  keters  have  succeeded  in  informing  consumers
influencing consumer purchase  decisions,  a mar-  about the program.  Over  85  percent  of Ohio  con-
keting  strategy which  utilizes this attribute of ap-  sumers  are  aware  of the  5-A-Day  program,  as
pies  is  likely to  be more effective  than  price  pro-  compared  to  19  percent  nationwide.  Yet,  the  re-
motion.  Of  course,  some  reduction  in  the  pre-  sponsiveness  of Ohio  consumers  to the  5-A-Day
mium  over traditional  varieties  may  have  to  be  message  closely mirrors  that shown  for consum-
coupled with  taste promotions.  For many  outlets,  ers  nationwide. Twenty-six percent  of those  con-
an  effective  marketing  strategy  for  apples  may  sumers  in  Ohio  who  have  heard  the  5-A-Day
simply  involve  the display  of free sample  slices  message have  increased their consumption  of ap-
during peak shopping hours. Once  consumers ex-  ples  (survey  data).  By  contrast,  29  percent  of
perience the taste of newer varieties,  results from  those consumers  nationwide  who have  heard  the
this study suggest that they become  frequent pur-  5-A-Day message  have increased their consump-
chasers of these apples. For example, Fuji  apples  tion  of produce  (The  Packer,  1996).  These  re-
represent  23  percent  of the  total  apple purchases  sponses suggest that there  is a considerable  time-
for those  consumers who  have been  won  over to  lag between  consumers'  exposure  to information
their  taste.  Similarly,  Gala  apples  represent  23  and their response to it.
percent of total apple  purchases for a large num-  One  reason  consumers  may  be  slow  in  re-
ber  of consumers  of this  variety.  These  sizable  sponding  to information  about  the  importance  of
purchases are significant when evaluated  from the  increased  consumption of fruits and  vegetables  is
standpoint that Red  and  Golden  Delicious  apples  that  they  often  receive  conflicting  information.
represented  more  than  73  percent  of total  apple  For example,  beta carotene  has been emphasized
purchases  for  at  least  67  percent  of all  respon-  as  an  important  vitamin  for  reducing  the  inci-
dents.  dence  of cancer  and  heart  disease,  but  a recent
For four of the most commonly known  new  study  involving  beta  carotene  supplements  was
apple varieties -- Braeburn,  Fuji,  Gala, and Jona-  terminated  prematurely  because  the  revealed  in-
gold  --  an  average  of 86  percent  of the  respon-  cidence of these  diseases actually  increased  (The
dents  did  not  purchase  any  of  these  varieties  Columbus  Dispatch,  1996).  Such abrupt termina-
(Figure  3). A  promotional  strategy which  moves  tion of a research  study generates  negative  pub-
just a small percentage of these potential consum-  licity  and  increases  consumer  uncertainty  about
ers to become regular purchasers could be seen as  the healthful benefits of fruits and vegetables.  To
an  effective  marketing  effort.  Indeed,  it  would  diminish  or  help  alleviate  consumer  uncertainty
likely precipitate  market  growth for these  newer  about the value of increased consumption of fruits
apple varieties. At this early stage of development  and  vegetables,  it  seems  reasonable  to  suggest
for newer apple varieties,  it is quite apparent that  ways  for  generating  and  disseminating  credible
mere  availability  (supply)  is not creating its  own  information  (Evans  and  Berman,  1992).  To  this
demand.  If producers of the newer apple varieties  end, the national produce industry could possibly
wish to  have these  commodities  become  serious  identify  a national  and  prominent  personality to
competitors  in  the  apple  market,  then  it  seems  speak for the industry.  Similarly, Ohio apple pro-
reasonable to provide some purchase  inducements  ducers and  marketers  could  identify  a prominent
to potential consumers.  and trustworthy  Ohioan to promote increased  ap-
ple consumption. Perhaps the most important role
Current and Expected Impact  this person could play  during the early phases  of
of the 5-A-Day  Program  these promotional  efforts would  be  one of facili-
tating  taste  demonstrations  at  apple  marketing
Because  many apple  producers  are  depend-  outlets.  Such  promotions  have  the  potential  for
ing  on  these  newer  varieties  for  expanded  pro-  being  more  effective  than  current  approaches
duction,  some  educational  and  promotional  ef-  used by the Produce for Better Health Foundation.Jones, Eugene  Determinants  ofApple Purchases  for Ohio Consumers  57
Figure 3. Percent of Respondents Not Purchasing Newer Varieties in 1993.
100  93.2  93.2
90  83.9
80  Fuji  Gala  J73.9
70 
60
72.3
40
30
20
10
0 -
Braeburn  Fuji  Gala  Jonagold
Figure 4.  Impact of the 5-a-Day Program on Apple Consumption.
~~~~80 ~~72.3
70
60
50
40
30  25.5
20
0
Increased  Stayed Same  Decreased  Do Not Know
Implications for Other States  sumption  habits  of consumers.  Results  from  this
study  make  it  clear  that  consumers  are  slow  to
Although these survey results are focused on  experiment  with new  apple varieties,  slow to  re-
Ohio,  other  states  wishing  to  expand  their  pro-  spond to positive information  about the healthful
duction and marketing of new apple varieties also  benefits of apples,  and generally  have little incli-
must  become  responsive  to the  buying and  con-58  February 1996  Journal  of Food Distribution  Research
nation to move  beyond their  current consumption  continue  to  purchase  and  consume  these  newer-
level of fruits and vegetables.  arieties.  Moreover,  the  results  show that  the  ap-
Another  lesson  revealed  from  these  survey  peal  of newer  apple  varieties  cut  across  all  seg-
results  is  that  simple  messages  highlighting  the  ments  of the  population.  That  is,  well-educated
healthful  attributes  of a commodity  are  not likely  consumers  with high  incomes are  no more  likely
to move  a  large  number of consumers  to  higher  to  purchase  newer  apple  varieties  than  less-
levels  of produce  consumption.  Perhaps  consum-  educated  consumers  with  lower  incomes.  This
ers  are  not  yet  convinced  that  the  information  condition  can  be  beneficial  to  apple  marketers
they receive  about  the  healthful  benefits  of pro-  because  it suggests  that  their target  market  con-
duce  is  coming  from  an  unbiased,  third-party  sists not  of niche  groups,  but  the  entire  popula-
source.  In the  presence  of such  condition,  states  tion.
are  left  with  the  option  of communicating  clear
and convincing messages about produce.  Indeed it  References
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Distributed Lags and Demand Analysis for Conclusion Agricultural and Other Commodities.

Fresh Trends 1996: A Profile of the Fresh Pro- entice consumers to at least try their commodities. duce Consumer,

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DETERMINANTS OF APPLE PURCHASES FOR OHIO CONSUMERS: IMPLICATIONS FOR OTHER STATES

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