OFVC 2011 Berry Session

Ontario Consumers’ Motivations for Buying Local and Organic Produce: Insights on Local Strawberries

© 2009 Vineland Research and Innovation Centre

Dr. Isabelle LesschaeveConsumer Insights and Product Innovation

OFVC – February 23, 2011

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?

(Onosaka et al. 2010)

See results from Canadian survey on poster display

Confusion in marketing messages

Purpose of the study

Ontario Consumers’ Motivations for Purchasing 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.


The IdeaMap® technology

Principle: Consumers react to stimuli; Stimuli are created by DoE to vary systematically features or elements defining a product concept

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


1123 respondentstook screener

360 respondentsqualified

278 respondentscompleted IdeaMap

• Primary grocery shoppers

• 60% females; 40% males;

• 25-60 y.o.

• 65% live in Toronto; 35% in Niagara

• Eat fruits and vegetables at least once a week

• Have purchased Ontario and organic fruits or vegetables in the last 3 months

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


What did we learn about the Strawberry consumers?

• Interest for strawberries seems related to:– Gender: males +

– Residence: Niagara Peninsula +

– Large households

– Fruit consumption frequency: several times a week +

• Interest for strawberries is not related to:– Education, household income, age groups

– Knowledge about organic or local foods

– Food involvement

– Shopping outlets

Gender differences

Females• Driven by:

– the Foodland Ontario logo; $$

– Fruits

– Organic certification (Canadian organic logo); $$

– Feeling that they can trust the product

– Produce freshness and low prices.

• Deterred by: – exclusive availability in

specialty/health store,

– relying on appearance only

– the lack of indicator of origin.

Males• Higher basic constant

• Willing to pay more per pound of produce ($1.99 vs. $1.83).

• Driven by:– Fruits, Produce freshness, Foodland

Ontario…but won’t pay more!

• Deterred by:– Salad greens

– Organic certification (Canadian organic logo)

– Feeling that they can trust the product; exclusive availability in specialty/health store; claims related to social responsibility; caring attitude


Location differences

Toronto• Higher basic interest and would pay

more ($1.95 vs $1.67)

• Driven by:– Foodland Ontario and LFP

– Organic and Local product

• Deterred by:– Specialty stores

– Quality and taste claims

– Appearance only

Niagara• Driven by:

– Foodland Ontario and LFP

– Strawberry and staples

– Availability at Farmers market

– Social responsibility; caring attitude

– Organic and local product

– Price: discount stores or price reduction

• Deterred by:– Salad greens

– Specialty stores


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. •food purchased matters a lot, but not because 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.

Benchmark study

• In Ontario (The Strategic Counsel, 2009 mandated by OMAFRA)

• “The public are aware of the organic category, and of the major differences between organic and non-organic food;

• However, while believing differences exist between organic food and non organic, there is some but limited interest in purchasing organic food;

• The major reasons for this are price (it is perceived to be more expensive) and the lack of a strong belief that organic food is healthier, fresher, tastier, or is more nutritious. This results in grocery shoppers belief that organic food does not offer enough value for money;

• Being locally produced is not an important factor driving demand and does not increase significantly the value for money proposition;

• Certification is the one factor that may improve the value for money proposition, and is one of the key drivers of interest in the category. “

Source, OMAFRA (2009)© 2010 Vineland Research and Innovation Centre

Our findings

• 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

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

Lesschaeve, I., Campbell, B.L, 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. In review

Acknowledgements

Jenna Gilchrist @ Vineland

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

Contact

[email protected]

mailto:[email protected]�

Ontario Consumers’ Motivations for Buying Local and Organic Produce: Insights on Local Strawberries


Dr. Isabelle LesschaeveConsumer Insights and Product Innovation

OFVC – February 23, 2011

Business

OFVC 2011 Berry Session