Understanding Ornamental Plant Market Shares to Rewholesaler, Retailer, and Landscaper Channels

Abstract

Market channel alternatives that include garden centers, landscapers, mass merchandisers, and rewholesalers have contributed to the growth of ornamental crops sales in the United States. The impact of growers' business characteristics on shares of sales to these channels by firm size was estimated using the two-limit Tobit model. Important explanatory variables were regions of the United States, sales of plant groups, kinds of contract sales, and channel diversity. There were important differences in behavior by grower size. Overall, the results indicate a stronger than expected role for the rewholesaler channel as a preferred channel for ornamental plant sales.

The use of new‐media marketing in the green industry: Analysis of social media use and impact on sales

“…Unlike a dummy rural‐urban variable, the continuum provides nine levels of classification that account not only for the degree of urbanization of a county but also for its adjacency to a metro area. Regions present different production and marketing patterns influenced by factors such as the length of the growing season and the distance to major markets (Behe, Dennis, Hall, Hodges, & Brumfield, ; Hinson, Paudel, & Velástegui, ).…”

Impact of Income and Different Generation Cohorts on Nursery Products and Landscaping Project Spending

“…Yue and Behe (2008) suggested quarter and year, region, products purchased, uses of products, sociodemographics, and factors influencing choices of different outlets all influence selections of stores for nursery products. Hinson, Paudel, and Vela'stegui (2012) indicate that garden centers, landscapers, mass merchandisers, and rewholesalers have contributed to the growth of ornamental crop sales in the United States. Data on trade flows, marketing methods, and characteristics of firms were collected using a mail survey covering 44 states in 2003.…”

Irrigation water sources and irrigation application methods used by U.S. plant nursery producers

“…The estimated parameter is consistent and asymptotically normal provided that is correctly specified. Different approaches are discussed in previous literature for univariate cases [ Hinson et al ., ; Papke and Wooldridge , ; Ramalho et al ., ]. These authors have proposed a fractional regression model on the basis of quasi‐likelihood and logit conditional mean functions.…”

“…Market channel alternatives have contributed to the growth of ornamental plant sales in the United States [ Hinson et al ., ]. Choice of a particular marketing channel may have implication on the quality expectation and cost component, thereby impacting choice of irrigation source and application method.…”

“…Previous literature Hinson et al . [] has suggested that small and large nursery plant producers behave differently [ Hinson et al ., ] in terms of management practices and marketing strategies. Therefore, we separated the firm into two categories rather than using income as a continuous variable.…”