SUSTAINABILITY IN HORTICULTURE 2012 Bioplastic Container Cropping Systems Conference

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SUSTAINABILITY IN
HORTICULTURE
CONSUMER PREFERENCE
2012 Bioplastic Container Cropping Systems Conference
“Currently, one of the most widely discussed
topics in the green industry, which is
promulgated by consumers exhibiting greater
degrees of environmental awareness, is the
issue of environmental sustainability.”
- Charles Hall, 2012
Texas A&M University
WHAT CHARACTERIZES SUSTAINABLE
PRODUCTS?
• Product is produced with low
environmental impact.
• Product use results in low environmental
impact.
GLOBAL CONSUMER ATTITUDES
•  Over 80% indicated concerns over all of the
elements in a typical consumer goods supply
chain:
•  packaging
•  waste disposal
•  transportation
•  Price, quality, availability of greatest concern to
mainstream consumers, but…
•  2 out of 3 say company offering products with
low environmental impacts wins their loyalty.
The Guardian, 2010, Sustainable Business survey of readers
U.S. GREEN CONSUMER MOVEMENT
•  2 in 4 Americans agree that a cleaner planet
starts at home.
•  2 in 3 are ready to make changes.
•  84% say they base their choices in
environmental issues.
•  87% of Americans say that global warming is not
the point – it’s all about trash and waste
reduction.
Linda Gilbert, CEO, Eco-Focus Worldwide
MAKE IT EASY TO BE “GREEN”
“The easier it is for consumers to buy
sustainable products, the more successful
the company will be.”
– Linda Gilbert
Read more: http://greeneconomypost.com/sb10consumer-attitudes-eco-moms-10535.htm#ixzz22ioAiuwU
NOT ALL CONSUMERS ARE ALIKE
• Attitudes, preferences, behavior
• Even “green” consumer attitudes about the
environment differ.
• What are biodegradable pot
characteristics deemed most desirable?
Gladwin et al., 1995, Academy of Management Review
Value of a product to the consumer is
related to the utility or satisfaction
associated with each attribute that
makes the product what it is.
Baker, 1998, International Food and Agribusiness Management Review
CONJOINT ANALYSIS OF CONSUMER
PREFERENCE
FACTORS CONSIDERED
• Price
• Material
• Carbon footprint (energy consumed to make or
ship the product)
• Waste composition (how much of the product was
made from waste ingredients?)
Internet survey in Texas, Michigan, Minnesota, Indiana
Hall et al., 2010, HortScience
OVERALL RELATIVE IMPORTANCE
• Container type – 33.3%
• Price – 24.3%
•  Lower prices preferred.
• Carbon footprint – 23.4%
•  Carbon-neutral or carbon-saving preferred.
• Waste composition – 19%
•  Only slight preferences for lower waste
composition.
Hall et al., 2010, HortScience
Attributes
Price
- $2.49
- $2.99
- $3.49
PriceEnvironmentally
conscious
conscious
Carbonsensitive
76%
27%
0
28%
66%
6%
9.5%
81%
9.5%
No
preference
Some preference
Greater
preference
Waste
composition
- 0%
- 1-49%
- 50%+
30%
46%
24%
40%
32%
28%
9.5%
23%
67%
Carbon footprint
- carbon-neutral
- carbon-saving
- carbon-intense
53%
37%
19%
36%
74%
0
62%
38%
0
Container type
Hall et al., 2010, HortScience
CONSUMER PROFILES
• PRICE-CONSCIOUS:
•  Higher education
•  Married
•  May be unfamiliar with “sustainability.”
•  Greater interest in locally produced
conventional bedding plants
•  Pots will have to be price-competitive with
alternative products.
CONSUMER PROFILES
• ENVIRONMENTALLY-CONSCIOUS
•  Younger
•  Concern about the environment
•  Not opposed to sorting household waste
•  Not concerned whether packaging is made
from recycled material
•  Less concerned with pot-type, including plastic
•  Offer products with smallest carbon footprint.
CONSUMER PROFILES
• CARBON-SENSITIVE
•  Different from environmentally conscious
segment but difficult to define
•  Prefer higher waste composition products.
•  Will not reward carbon-saving attribute more
than carbon-neutral.
CONSUMER PROFILES
• Non-discriminating
•  ~37% of respondents
•  Older, living metro area
•  Lower education/income
•  Feel sorting household waste is too
inconvenient.
MERCHANDISING STRATEGIES
•  Consistent message across multiple media.
•  Avoid “greenwashing.”
•  Quality always matters.
•  Understand why customers buy “green” and
what premium willing to pay.
•  Make demand “inelastic.”
•  Communicate how your product differs from others
to best target your market.
NEVADA CONSUMERS
• Market for “green” products greatest
among the young, and among higherincome, older gardeners.
• 30- to 50-year-old market is highly pricesensitive (slower economic recovery + higher
unemployment rate than rest of U.S.).
• Mistrust of currently available
biodegradable products (newly formed soils
with limited bio-activity).
BIOPLASTICS CONSUMER PREFERENCE
SURVEY - 2013
•  Iowa, Ohio, Nevada
•  Determine willingness to pay for:
• 
• 
• 
• 
Different pot types
Carbon footprint levels
Level of biodegradability
Others…?
•  Describe the market profile for bioplastic pot
purchasers:
•  Age, gender, income level, types of plants purchased and
willingness to purchase in bio-pots
•  General attitudes / behaviors related to sustainability
QUESTIONS
Dr. Heidi Kratsch
kratschh@unce.unr.edu
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