IHC 2010 Mindsets For Buying Organic And Local

Ontario Consumers’ Motivations for Buying Local and Organic Produce

© 2009 Vineland Research and Innovation Centre

Isabelle LesschaeveConsumer Insights and Product Innovation

Ben Campbell and Amy Bowen, Vineland Steve Onufrey, Onufrey PartnersHoward Moskowitz, Moskowitz Jacobs Inc.

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)

• 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 (HamzaouiEssoussi,2008)

– Taste better, Environment friendly production (Filion and Azari, 2002)

– Lack of trust in certification

Organic consumers-Background

What is a “local” product?

• Produced in Canada

• Produced in Ontario

• Produced in Niagara

(McFadden, 2010)

Purpose of the study

Ontario Consumers’ Motivations for Buying Local and Organic Produce

1. 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 produce

4. To identify consumer segments with different motivations for purchasing local or organic fruits and vegetables


The IdeaMap® technology

Principle: Consumers react to stimuli; Stimuli are created by DoE to vary systematically features defining new product/service/packaging concepts

Elements: 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

Categories and elementsPRODUCTS PRODUCT PROPERTIES

PRODUCTION PRACTICES/ORIGIN AVAILABLE AT… OCCASIONS EMOTIONAL

RESPONSESo fresh you’d think it was grown right in the store!

No need to visit many different vendors to get the products you love ...available at all major supermarkets for your shopping convenience!

You can easily incorporate this product into your everyday food choices!

Make an environmentally friendly choice, ensure a better world tomorrow!

Because you and your family deserve nutritious food!

Available at farmers markets! Perfect treat to serve guests …show them how much you care!

Feel better about making a healthy choice!

You won’t believe how good it tastes!

Available at specialty stores near you!

Feel great serving these products for holidays or special occasions!

Feel a sense of peace of mind eating and serving these products!

Good food is good food, regardless of where it’s from and/or how it’s produced

Available exclusively at health stores!

Perfect to serve to your family...show them how much you care!

Feel good about investing in this product… support of the economy!

The great quality is undeniable!

Available everywhere you shop!

This product is best when it's in season!

Feel like you’re making a difference!

With an appearance so attractive you won’t question your purchase!

This product was produced using both local and organic methods

Available at discount supermarkets for the money conscious shopper

To encourage more people to experience this product we’ve lowered our prices!

Encourages equitable treatment of workers and producers!


Example of vignette + 2 questions

How likely are you to CHOOSE this product? on a 9 point scale: 1 = Not at all likely ... 9 = Very Likely

How 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+


About the respondents

Total Panel

N=Frequency %=Percentage Base Size (278)N %

Q2: What is your gender?Female 180 65%Male 98 35%Q3: Please indicate your age group:

25 - 28 years 47 17%

29 - 34 years 51 18%

35 - 40 years 54 19%

41 - 45 years 34 12%

46 - 54 years 56 20%

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

1123 respondentstook screener

360 respondentsqualified

278 respondentscompleted IdeaMap

Analysis the results

Input 1Combination of product

features (Experimental Design)

Input 2On line panel responses to the “Choose” question

Regression Analysis

Output 1: Algebra of the Mind

The Interest model retrieves the elements that lead to acceptance or rejection of the product

Output 2: Linking the Mind and the Wallet

The Monetary model determine the added dollar value associated to each element (premium)

Input 3On line panel responses to the “Spend” question

Segmentation Analysis


Algebra of the Mind– Total panel

Interesta WTPb

Base 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 $0.06

Available 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’s produced -10 -$0.07Available exclusively at health stores -16 -$0.08

Constant + Elements = Total Interest


Linking the Mind and the Wallet –Total panel

Interesta WTPb

Base 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 $0.06

Available 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’s produced -10 -$0.07Available exclusively at health stores -16 -$0.08


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)


Winning elements – Confident in Ontario produce

Base Size 130Constant 60

strawberries.jpg 26carrots.jpg 20apples.jpg 19Garlic.jpg 17potatoes.jpg 17saladgreens.jpg 12Foodland Ontario logo 5Feel a sense of peace of mind eating and serving these products 5

130$1.83$0.48-$0.09$0.05-$0.16-$0.05$0.07$0.03$0.13


• lower income,• higher local food knowledge• higher purchases of produce, less purchases of organic produce,• not willing to try new foods, but have a strong interest in foods• more likely to shop at warehouse stores while being less likely to shop at mass merchandiser, farmers markets , and other store types

Winning elements – In organics we trust

Base Size 68 68Constant 45 $1.74

Canada organic logo 26 $0.43Local food plus logo 25 $0.31This product was produced using both local and organic methods 23 $0.47Foodland Ontario Logo 22 $0.35Verified Organic logo 19 $0.48Greenbelt logo 15 $0.17With an appearance so attractive you won’t question your purchase 9 -$0.02apples 9 -$0.07To encourage more people to experience this product we’ve lowered our prices 7 -$0.08So fresh you’d think it was grown right in the store 5 $0.09This product is best when it's in season 4 -$0.07


• higher income, • not very knowledgeable about local produce• more likely to shop at farmers market. • a respondent was more likely to be a member as they increasingly agree that food purchased matters a lot, while being less likely to be a member when they increasingly agree that food is somewhat pleasurable.

Winning elements – Socially responsible locavores

Base Size 79 79Constant 62 $2.11

Make an environmentally friendly choice, ensure a better world tomorrow 14 $0.12Available everywhere you shop 12 -$0.04Feel better about making a healthy choice 12 $0.06This product was produced using both local and organic methods 11 $0.14Feel a sense of peace of mind eating and serving these products 10 $0.06

Foodland Ontario Logo 9 -$0.01Encourages equitable treatment of workers and producers 8 $0.07Local food plus logo 7 $0.07Feel like you're making a difference 5 $0.06


• lower educated, • organic purchasing, differences in local purchasing habits, • are willing to try both new recipes and new foods,• more likely to shop at a mass merchandiser.

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

Value of the IdeaMap® approach for the 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


For more information

Campbell, 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 press

Campbell, B.L., Lesschaeve, I., Bowen , A.J, Onufrey, S.R., and Moskowitz H. Assessing consumers' mindsets for purchasing organic and local produce: importance of perceived product and emotional benefits. Acta Horticulturae. Submitted

Acknowledgements

Jenna Gilchrist @ Vineland

Ontario Ministry of Agriculture Food and Rural Affairs-New Directions funding program

Contact

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IHC 2010 Mindsets For Buying Organic And Local