FS914 Fact sheet For a comprehensive list of our publications visit www.rce.rutgers.edu Characteristics and Needs of Direct Marketing Consumers in New Jersey Ramu Govindasamy, Ph.D., Extension Specialist in Marketing Direct Marketing Operations in New Jersey New Jersey farmer-to-consumer direct markets have increasingly become recognized as an important source of fresh produce and related products. Changing consumer demographics in the state will also likely lead to increased demand for farm-based recreational experiences and for fresh and farm-processed products. The recent increase in direct marketing activity in New Jersey has motivated the undertaking of this study. This fact sheet provides an overview of the various characteristics and needs of farmer-to-consumer direct market consumers in New Jersey from a mail survey conducted in 1994. The characteristics explored are: • the type of facility used • consumption of variety of fresh fruits and vegetables in the household • the number of visits to direct marketing facility • the amount spent at direct marketing facilities • expectations of quality, variety, and price compared to supermarkets • where and when consumers purchased or obtained fruits and vegetables • uses of produce from direct farm markets • consumer intentions to visit New Jersey direct markets • methods of recognition • rating of characteristics about direct markets • the most frequently purchased commodities • demographics of consumers Survey Design and Procedure A survey of New Jersey direct marketing consumers was conducted in October 1994 to collect information on characteristics. The questionnaires were mailed to 500 consumers of direct marketing facilities, identified by Rutgers Cooperative Extension. The number of returned usable questionnaires was 179. Survey Results The survey indicates that more than 60 percent of respondents visited one of the four types of direct marketing facilities in 1994 with roadside stands being visited most often. Similarly, more than three-quarters of respondents had visited direct marketing facilities in the past five years. Approximately three-quarters of the responding consumers noted an increase in consumption of fruits and vegetables in the past year with less than three percent noting a decrease in consumption of fruits and vegetables. Additionally, the majority of the responding consumers noted an increase in the variety of fruits and vegetables consumed. The average consumer visited a roadside stand 2.16 times per month, direct farm market 1.85 times, farmer’s markets 1.68 times, and pick-your-own facility 1.46 times per month. The average amount spent per visit was $11.01 at roadside stands, $13.93 at direct farm markets, $15.48 at farmer’s markets, and $18.81 at pick-your-own facilities. According to the expectations of the respondents, 92 percent expected better quality at New Jersey direct marketing facilities compared to supermarkets. Half of the New Jersey consumers expected more variety, while 35 percent expected less variety at direct marketing facilities than at supermarkets. This finding illustrates the need to educate consumers regarding the variety of produce available through marketing programs such as Jersey Fresh. Increased consumer education may serve to increase patronage of direct marketing establishments. Almost three-quarters (74%) expected lower prices at direct marketing facilities than at supermarkets. Almost all of the produce purchased from direct markets was used for fresh consumption. The balance was canned or frozen indicating a shift away from bulk purchasing. Approximately 65–75 percent of respondents intend to visit direct marketing facilities in 1995. Overall, the respondents rated the various characteristics of direct marketing facilities as “good.” Variety of products, convenience of location, and prices received the lowest average ratings of between “fair” and “good,” while quality of products and employee attitude received an average rating of “good” to “very good.” The average New Jersey consumer who decides when and where to go for direct markets is likely to be a female Caucasian in the 36–50-year-old age bracket, with at least some college education. They tend to live in a one- or two-adult household with one or two children and have an annual household income of $50,000 or more. Approximately half of the respondents have their own fruit and/or vegetable garden that ranges between 25–200 square feet. These results identify several areas in which direct marketers can potentially improve both the profitability of their operations and the quality of service to their customers. For instance, the number of visits made by the consumers to a direct market facility can be improved by strategically locating the operation. Provision of a wider variety of fruits and vegetables may not only increase the demand on the consumer side but also increase the profitability of the operation. The quality of the produce provided by the direct marketing operations plays an important role in attracting customers. The number of visits to direct markets can also be improved by the provision of the most commonly demanded fruits and vegetables, such as apples, peaches, strawberries, tomatoes, peppers, and sweet corn. For a detailed report on the characteristics of farmer-to-consumer direct marketing customers in New Jersey, please contact Ramu Govindasamy at (732) 932-9171 ext. 25. The author wishes to thank Rick VanVranken for reviewing this fact sheet. Figure 1: Average Number of Visits Per Month by the Consumer Based on 129, 137, 128, and 124 respondants, respectively. Figure 2: Average Dollar Spent on Each Visit by the Consumer Based on 121, 136, 111, and 115 respondants, respectively. Figure 3: Percent of Respondents Who Intend to Visit Direct Markets Based on 179 respondants. © 2004 by Rutgers Cooperative Research & Extension, NJAES, Rutgers, The State University of New Jersey. Desktop publishing by Rutgers-Cook College Resource Center Published: June 1998 RUTGERS COOPERATIVE RESEARCH & EXTENSION N.J. AGRICULTURAL EXPERIMENT STATION RUTGERS, THE STATE UNIVERSITY OF NEW JERSEY NEW BRUNSWICK Distributed in cooperation with U.S. Department of Agriculture in furtherance of the Acts of Congress on May 8 and June 30, 1914. Rutgers Cooperative Extension works in agriculture, family and community health sciences, and 4-H youth development. Dr. Karyn Malinowski, Director of Extension. 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