Consumer Preferences for Local and Sustainable Plant Production Characteristics

Behe, Bridget K.; Campbell, Benjamin L.; Hall, Charles R.; Khachatryan, Hayk; Dennis, Jennifer; Yue, Chengyan

doi:10.21273/hortsci.48.2.200

Cited by 74 publications

(82 citation statements)

References 16 publications

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“…Previous studies on consumer preferences focused on identifying ornamental horticulture consumers by clustering them according to their socio‐demographic characteristics and propensities of consumption (e.g., Behe, Prince, & Tayama, ; Behe et al., ). Behe, Prince, and Tayama () segmented supermarket floral consumers on the basis of two demographic characteristics and floral‐purchase factors including their attitudes toward floral products, types of products purchased, and the uses of floral‐product purchases.…”

Section: Introductionmentioning

confidence: 99%

Ornamental Plants in the United States: An Econometric Analysis of a Household‐Level Demand System

Hovhannisyan

Khachatryan

2016

Agribusiness

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This study provides an empirical analysis of demand for a large group of ornamental plants using a theorybased demand model. Specifically, consumer preferences are represented by the Almost Ideal Demand System where allowance is made for demand censoring. Given that revealed-preference data are usually limited to certain ornamental plants and geographical locations, we exploit unique hypothetical purchase data collected via an online survey regarding 16 annual, perennial, and foliage plants from across the United States. The effect of various socio-economic and demographic factors on demand for plants is quantified. Our findings indicate that ornamental plants are predominantly price-elastic with foliage plants being more price-responsive vis-a-vis other plant categories. Further, a majority of plants are expenditureelastic with the estimates of foliage plants manifesting the greatest variability. Finally, plants in the same category appear to be closer substitutes. Results benefit ornamental plant industry stakeholders as they determine the best pricing strategies in their specific markets. C 2016 Wiley Periodicals, Inc.

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Section: Introductionmentioning

confidence: 99%

Ornamental Plants in the United States: An Econometric Analysis of a Household‐Level Demand System

Hovhannisyan

Khachatryan

2016

Agribusiness

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“…To be considered economically viable, these alternatives would either have to reduce costs at various points of the firm-level or industry-wide supply chain and/or enable industry participants to use the sustainable attributes as a marketing advantage (e.g., the ability to capture a price premium), or both. Previous research has documented that the latter is possible if firms emphasize the more sustainable (or environmentally beneficial) aspects of landscape shrubs and trees (Behe et al, 2013;Hall and Dickson, 2011;Khachatryan et al, 2014;Yue et al, 2010Yue et al, , 2011.…”

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Carbon Footprint and Production Costs Associated with Varying the Intensity of Production Practices During Field-grown Shrub Production

Hall¹,

Ingram²

2015

horts

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This research uses a life cycle analysis and economic engineering approach to determine the costs and global warming potential (GWP) of production and post-production practices associated with Taxus ×media ‘Densiformis’, which is often grown using a more capital-intensive regime during the propagative and harvesting stages than the typical field-grown shrub. Total variable costs incurred during the rooted cutting stage were slightly over $0.24 per marketable rooted cutting. This was made up of $0.1966, $0.032, and $0.0127 for labor, materials, and equipment operating costs, respectively. The GWP of materials and equipment used during the rooted cutting stage of production was 0.0097 and 0.2762 kg CO2 equivalent (CO2e), respectively. Equipment costs in this phase were predominantly from heating the greenhouse (92%) and the greenhouse heating functions comprised 95% of the rooting cutting GWP. GWP during the post-farm gate stage was 2.4506 kg CO2e per marketable shrub but was offset by 12.5522 kg CO2 being sequestered in the shrub during its time in the landscape and weighted over the 100-year assessment period, leaving a net GWP of –8.1824 kg CO2e per marketable shrub by the end of the life cycle. Total takedown and disposal costs (labor) after an assumed 50-year life in the landscape were $9.0610. During the entire life cycle from cutting to landscape to takedown and disposal, total variable costs incurred were $17.9856 per shrub. These findings are consistent with previous studies in that the GWP is positive when considering the entire life cycle of the shrub from propagation to eventual removal from the landscape. Knowing the carbon footprint of production and distribution components of field-grown shrubs will help nursery managers understand the environmental costs associated with their respective systems and evaluate potential system modifications to reduce greenhouse gas (GHG) emissions.

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“…As the green industry struggles to cope with declining demand (since 2006) and tight profit margins (0.2% to 2%; IBISWorldReports, 2013a), increased attention on consumer preferences and factors that influence individual choice behavior is needed. Recently, marketing of products with environmentally friendly characteristics has become a promising strategy to attract a specific segment comprised of environmentally conscious consumers (Behe et al, 2013;Royne et al, 2011).…”

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confidence: 99%

The Effects of Individual Environmental Concerns on Willingness to Pay for Sustainable Plant Attributes

Khachatryan¹,

Campbell²,

Hall³

et al. 2014

horts

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This study adds to the consumer choice literature by linking consumers’ environmental concern (EC) orientations (egoistic, altruistic and biospheric) to willingness to pay (WTP) premiums for proenvironmental attributes. Results from a mixed-ordered probit model showed that individuals were willing to pay a premium for energy-saving production practices ($0.131), non-plastic containers such as compostable ($0.227), plantable ($0.122), and recyclable ($0.155), and locally grown plants ($0.222). Individuals scoring high on the EC scale expressed higher WTP across all attributes—$0.148 for energy-saving practices, $0.288 for locally grown plants, and $0.255, $0.143, and $0.175 for compostable, plantable, and recyclable containers, respectively. Using the results, we discuss the practical implications for nursery and garden stores (i.e., communicating product attributes related information to consumers).

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Consumer Preferences for Local and Sustainable Plant Production Characteristics

Cited by 74 publications

References 16 publications

Ornamental Plants in the United States: An Econometric Analysis of a Household‐Level Demand System

Ornamental Plants in the United States: An Econometric Analysis of a Household‐Level Demand System

Carbon Footprint and Production Costs Associated with Varying the Intensity of Production Practices During Field-grown Shrub Production

The Effects of Individual Environmental Concerns on Willingness to Pay for Sustainable Plant Attributes

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