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A135 51.21. ‘.$)- .fuwrufh .. ,. 1: mlllillilllfillllllWilli 3 1293 01688 0571 This is to certify that the thesis entitled CONSUMER MARKET RESEARCH ON MICHIGAN APPLES: CONSUMER PREFERENCES FROM VISUAL TESTS, TASTE TESTS, AND FOCUS GROUP DISCUEfiiFN‘sef‘ by Andrea C. Jeffers has been accepted towards fulfillment of the requirements for MS degree in Agricultural Economics Mitzi Major professor Date W43; /9)/9?X 0-7639 MS U is an Affirmative Action/Equal Opportunity Institution LIBRARY; Mlchlgan State - Unlverslty fi PLACE IN RETURN BOX Kout from your record. to remove this chec TO AVOID FINES return on or before date due. DATE DUE DATE DUE DATE DUE PM . I ‘1 1 1 0'2 05 Milt! 21 (8 20m - ________._.._—— _________..___—— ____/.._ _____,_._.._——- ____,.___.———- ___,____..__——- ___,____.._——— ______/ ____________——- 1198 Muse“ CONSUMER MARKET RESEARCH ON MICHIGAN APPLES: CONSUMER PREFERENCES FROM VISUAL TESTS, TASTE TESTS, AND FOCUS GROUP DISCUSSIONS By Andrea Christine Jeffers A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE Department of Agricultural Economics 1998 ABSTRACT coNSUMER MARKET RESEARCH ON MICHIGAN APPLES: CONSUMER PREFERENCES FROM VISUAL TESTS, TASTE TESTS, AND FOCUS GROUP DISCUSSIONS By Andrea Christine Jeffers Research conducted at Michigan State University on consumer preferences for fi‘esh apples (Ricks et al. 1995, Beggs 1996) indicates that attributes of crispness, color, and size of apples are important to consumers. A consumer market research project was conducted to build upon these findings and provide more detailed consumer information to the Michigan apple industry. Visual tests, taste tests, and focus group discussions were conducted to investigate specific consumer preferences and purchase intentions for the attributes of apple crispness, color and size. The findings regarding these preferences were very similar to the findings of the earlier telephone survey (Beggs 1996). For specific levels of crispness, consumers showed little difference in preference for medium vs. high pressure apples. For color, although there was little difference in purchase intention at higher percentages of color, at lower percentages it decreased significantly. Although size is of lesser importance to consumers, consumer participants indicated a preference for “large” to “medium” sized apples. To my family and Chris for their support and love when I thought I couldn’t finish. ACKNOWLEDGMENTS Most importantly, I would like to thank Dr. Ricks for his support and encouragement throughout my degree program and especially during the research and writing process. In addition, I would like to thank Dr. Kirk Heinze for his support and help in the research design and direction of this project. Thanks also to Dr. Chris Peterson and Dr. Tom Pierson for their patience and interest in my work and academic endeavors. Many thanks to Dr. Randy Beaudry for post-harvest advice and storage space for my apples. Additionally, the completion of this thesis could not have been possible without the support of the Michigan Apple Committee, who provided a majority of the funding for the research project. Special thanks to Dr. Jack Allen for reminding me that “I have a life,” and keeping me connected. Thanks to Jim and Curtis for navigation and assistance through “apple country.” Without the friendship of Jane, Mimi, George, Lorie, Patricia, Brian, Sonja, Julie, and Anwar, I could not have completed this project. Thanks for being there not only when I was laughing, but most importantly when I was crying. I will miss you. iv TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES Chapter 1: THE MICHIGAN APPLE INDUSTRY: COMPETING FOR MARKET SHARE 1.1 Introduction 1.2 Purpose and Objectives 1.3 Background on the Research Project 1.3.1 Expansion of Consumer Research Projects 1.3.2 Expansion of Fresh Markets 1.3.3 “Production” vs. “Marketing” 1.4 Organization of the Thesis Chapter 2: STRATEGIC ANALYSIS OF THE MICHIGAN APPLE INDUSTRY IN RELATION TO CONSUMER MARKET RESEARCH 2.1 Introduction 2.2 Importance and Organization of Apple Industry Strategic Planning 2.3 Strategic Analysis of the Michigan Apple Industry 2.4 Internal Elements of the Michigan Apple Industry 2.4.] The Fresh Apple Marketing Value Chain 2.4.2 Production and Fresh Sales Trends of the Michigan Apple Industry 2.4.3 Varieties 2.4.4 Technological and Management Processes 2.4.5 Marketing Utilization of Michigan Apples 2.5 External Elements of the Michigan Apple Industry 2.5.1 Competitive Pressure 2.5.2 Consumer Preferences for Fresh Produce 2.5.3 Research Findings: Consumer Preferences for Fresh Apples 2.5.3.a A Study at the University of New Hampshire 2.5.3.b A Study at the University of Connecticut 2.5.3.c A Study at California Polytechnic State University 2.5.3.d A Study at the University of Maine 2.5.3.c A Study at Washington State University 2.5.3.f Previous Studies at Michigan State University 2.5.4 Synopsis of Research Findings 2.5.5 Trade Buyer Preferences for Fresh Apples 2.5.6 Governmental Actions and Policies Affecting the Fresh Apple Industry viii O‘k-FUJUJNu—A oo 11 12 12 15 18 18 20 22 22 32 34 35 35 -35 36 37 38 39 41 43 2.6 Conclusion Chapter 3: RESEARCH METHODOLOGIES 3.1 Introduction 3.2 Planning and Evolution of the Research Project 3.2.1 Initial Discussions with the Michigan Apple Committee (MAC) Staff 3.2.2 Development of the Research Project Plan Along with Industry Input 3.2.3 Use of a Market Research Firm for Certain Phases of the Project 3.2.4 Collaboration with Post-Harvest Research Expert 3.2.5 Procuring the Apples for the Research Sessions 3.2.6 Transportation of Apples to the Research Site 3.3 Methodologies Used in Previous Apple Research 3.4 The Research Question 3.5 Research Setting 3.6 Research Methodologies: Taste Tests, Visual Tests, and Focus Group Discussions 3.7 Advantages of Research Methodologies Used in this Project 3.8 Limitations of Research Methodologies Used in this Project Chapter 4: RELATIVE IMPORTANCE TO CONSUMERS OF APPLE CRISPNESS, COLOR, AND SIZE 4.] Introduction 4.2 Importance of Crispness 4.3 Importance of Color 4.4 Importance of Size 4.5 Importance of Separating “Pm-Purchase” and “Post-Purchase” Attributes 4.6 Summary Chapter 5: CRISPNESS PREFERENCES BASED ON TASTE TESTS 5.1 Introduction 5.2 Crispness Preferences for Red Delicious 5.3 Crispness Preferences for Empire 5.4 Comparison of Empire and Red Delicious Regarding Crispness Chapter 6: COLOR PREFERENCES BASED ON VISUAL TESTS 6.1 Introduction 6.2 Color Preferences for Red Delicious 6.3 Color Preferences for Empire 45 45 46 46 47 48 48 48 49 50 52 52 53 57 58 59 59 61 61 62 62 63 8222?: 68 71 72 72 73 76 Chapter 7: SIZE PREFERENCES BASED ON VISUAL TESTS 7.1 Introduction 7.2 Size Perceptions and Preferences for Red Delicious 7.3 Size Perceptions and Preferences for Empire 7.4 Comparison of Empire and Red Delicious Regarding Size Chapter 8: CONSUMER PREFERENCES FOR BAGGED APPLES BASED ON VISUAL TEST 8.1 Introduction 8.2 Purchase Intention for Bagged Apples 8.3 Focus Group Discussions on Bagged Apples vs. Tray Pack Apples 8.4 Overall Appeal of Bagged Apples Chapter 9: HIGHLIGHTS FROM THE FOCUS GROUP DISCUSSIONS 9.1 Introduction 9.2 The Importance of Crispness to Apple Quality 9.3 Influencing Consumers to Buy a New Variety 9.4 Apples in the Retail Environment 9.5 Information for Consumers About Apples - - Needs and Desires 9.6 Variety Preferences 9.7 Purchases from Markets and Orchards 9.8 Dislikes Regarding Fresh Apples Chapter 10: SUMMARY 10.1 Introduction 10.2 Review and Implication of Findings 10.3 Recommended Methodologies for Future Research 10.4 Implications for Future Research Efforts 10.5 Areas for Future Research APPENDICES APPENDIX A QUESTIONNAIRE APPENDIX B TASTE TEST AND VISUAL TEST QUESTIONNAIRE APPENDIX C FOCUS GROUP DISCUSSION QUESTIONS LIST OF REFERENCES vii 80 80 81 86 91 93 93 93 96 98 101 101 101 102 103 106 107 108 108 111 111 111 115 116 116 118 119 121 123 126 LIST OF TABLES Table 1 Important Pre-purchase Attributes Table 2 Important Post-purchase Attributes Table 3 Apples Used for Visual and Taste Tests Table 4 Importance of Apple Characteristics Table 5 Purchase Intentions Related to Crispness of Red Delicious Apples Table 6 Purchase Intentions Related to Crispness of Empire Apples Table 7 Purchase Intention for Color of Red Delicious Apples Table 8 Overall Appeal for Color of Red Delicious Apples Table 9 Purchase Intention for Color of Empire Apples Table 10 Overall Appeal for Color of Empire Apples Table 11 Perceptions for Size of Red Delicious Apples Table 12 Purchase Intention Related to Size of Red Delicious Apples Table 13 Overall Appeal Related to Size of Red Delicious Apples Table 14 Perceptions of Size of Empire Apples Table 15 Purchase Intention Related to Size of Empire Apples Table 16 Overall Appeal Related to Size of Empire Apples Table 17 Perceptions for 100 Size Apples Empire vs. Red Delicious Table 18 Purchase Intention for Bagged Apples vs. Bulk Apples Table 19 Overall Appeal for Bagged Apples vs. Bulk Apples viii 40 40 55 61 67 68 73 76 78 79 81 84 86 86 9O 90 91 94 99 LIST OF FIGURES Figure 1 Production Concept vs. Marketing Concept Figure 2 Michigan Apple Industry Strategic Planning Task Force Figure 3 Michigan Apple Industry’s Internal Environment Figure 4 Organizational Structure of the Fresh Apple Marketing Value Chain Figure 5 Michigan Apple Production 1960 - 1997 Figure 6 Michigan Fresh Apple Sales 1970 - 1997 Figure 7 Michigan Fresh Apple Sales 1960 - 1997 Figure 8 Michigan Apple Industry’s External Environment Figure 9 US Apple Production 1960 - 1996 Figure 10 Apple Production in Top Four Producing States 1960 - 1996 Figure 11 California Apple Production 1970 - 1996 Figure 12 New York Apple Production 1960 - 1996 Figure 13 Apple Production in MI, CA, and NY 1960 — 1996 Figure 14 Fresh Apple Sales in MI, CA, and NY 1970 - 1996 Figure 15 Relative Importance of Crispness, Color, and Size Figure 16 Purchase Intention for Crispness of Red Delicious Figure 17 Purchase Intention for Crispness of Empire Figure 18 Purchase Intention for Color of Red Delicious Figure 19 Purchase Intention for Color of Empire Figure 20 Size Perception for Red Delicious ix 10 13 14 16 17 21 23 25 26 28 29 30 31 60 69 74 77 82 Figure 21 Purchase Intention for Size of Red Delicious Figure 22 Size Perception for Empire Figure 23 Purchase Intention for Size of Empire 83 87 89 app. Chapter 1 THE MICHIGAN APPLE INDUSTRY - - COMPETING FOR MARKET SHARE 1.1 Introduction. Consumer market research is an important element of the strategic planning efforts of the Michigan apple industry. As part of the long—run strategic planning efforts for the industry, the Michigan Apple Industry Strategic Planning Task Force identified the need to compete effectively with the western producing states of Washington and California, and New York state. To this end, the Task Force determined that strategic planning and marketing efforts must center around high performance in meeting changing consumers’ needs, preferences, and desires. In partnership with the Michigan apple industry, a series of consumer market research studies conducted by Michigan State University’s Department of Agricultural Economics focused on providing information about consumers’ needs, preferences, and buying behaviors for fresh apples. The success of the Michigan apple industry will depend on the ability of the industry to provide products that effectively meet consumers’ preferences. Those industry participants that have high performance in meeting customer needs will likely continue to have a superior competitive market position and growing demand for their products. The research project summarized in this thesis provides the Michigan apple industry more detailed, up to date information about consumer preferences. It is intended that such information be used to improve operations at various levels of Michigan’s fresh apple marketing system in order to gain strategic advantage in the fresh apple market. The research project reported in this thesis continues Michigan State University’s consumer market research efforts on apples. Primary research emphasis of the project included visual and taste tests of flesh apples in several metropolitan market areas. Additionally, consumer preferences for certain apple attributes, buying behaviors, and attitudes towards merchandising and marketing of apples were analyzed. The remainder of this chapter discusses the purpose and objectives of this research project, the background of the research project and the initiatives by the apple industry that led to the development of this research project. Finally, the organization of the remaining chapters of the thesis will be outlined. 1.2 Purpose and Objectives. The overall objective of this research study is to add to information about consumer preferences and behavior regarding flesh apples. This project is a part of a continuing series of market research studies which are intended to add to the Michigan apple industry’s information about consumer preferences for flesh apples. Some specific objectives of this research project are: 1. To identify specific consumer perceflions with regard to three product attributes: fluit condition, fluit color, and fluit size. 2. To determine consumer preferences and purchase intentions for apples based on fluit condition, fluit color, and fluit size. 3. To investigate other attributes of flesh apples that are important to consumers in their buying decisions. These specific objectives are expected to contribute to the general overall goal of providing useful consumer market research information to the Michigan apple industry. 2 More specifically, the research summarized in this thesis is intended to add to the consumer market research component of the industry’s strategic planning process by providing relevant information to growers, shippers, packers, and researchers. These segments of the industry will hopefirlly benefit flom these on-going research efforts within a broad strategic planning context. 1.3 Background on the Research Project. Consumer market research has been given high priority by the Michigan apple industry, including the Michigan Apple Committee and the Michigan Apple Industry Strategic Planning Task Force. The Michigan Apple Industry Strategic Planning Task Force has facilitated development of certain overall strategies and problem solving for the apple industry in Michigan. The group consists of representatives flom all parts of the apple marketing chain: growers, shippers, packers, processors, researchers, and organizational and promotional bodies. This group has outlined several strategic priorities as being vital to an improvement in Michigan’s competitive position. These priorities, which are quite relevant to this research project include, an expansion of flesh apple markets, and a strengthening of the industry’s focus towards a “marketing orientation” rather than a “production orientation” and an expansion of consumer research efforts. The relevance of these priorities to this project will be further discussed in the next three sections. 1.3.] Expansion of Consumer Research Projects. Detailed, up to date information about consumers’ preferences and behavior is a crucial element of the strategic commitment of Michigan to improve competitiveness. By pinpointing the specific attributes of apples that are desired by consumers, consumer market research projects, 3 d! the 13 111d: Corn {199; such as the one reported in this thesis, can help the Michigan apple industry to implement strategic changes and appropriate marketing strategies based on these preferences. Prior work by Michigan State University in the area of consumer research for flesh apples included a set of focus groups and a telephone survey which investigated consumer preferences for flesh apples in general. Some findings flom that research led to the design of the project reported in this thesis. 1.3.2 Expansion of Fresh Markets. Because a priority of the Michigan Apple Industry Strategic Planning Task Force is to expand flesh markets, this research specifically focuses on consumer preferences for flesh apples. High quality flesh apples often return higher prices to growers than prices received for apples sold for the juicing or peeler processing markets. Thus, the flesh market, with its potential for relatively higher returns, deserves priority for consumer market research. It is hoped that consumer research results can help the industry, including growers, packers, and shippers, to improve their performance in providing the desired types and quality of flesh apples. This project has a goal of assisting in determining those consumer desires, and communicating them to the various segments of the apple industry. 1.3.3 “Production” vs. “Marketing.” One priority identified by the Michigan Apple Industry Strategic Planning Task Force has been to emphasize the concept and commitment to a “marketing “ approach rather than a “production” approach. Kotler (1994, 16-19) describes a “production” or selling concept as a marketing philosophy 4 where firms “sell what they make rather than make what the market wants.” A “marketing” concept philosophy “holds that the key to achieving organizational goals consists in determining the needs and wants of the target markets and delivering the desired satisfactions more effectively and efficiently than competitors.” Figure 1 (an adaptation of Kotler’s model) illustrates how these phi1030phies differ relative to the apple industry in terms of organizational strategy. Startingflrint Focus Means Ends Production Concept + Orchard Apple Low cost Profit goals through volume. Production efficiencies. Production and cost High yields. efficiencies. Marketing Concept % Consumers Customer Coordination Profit goals attained through Trade customers preferences in supplying high performance in customers’ marketing and effectively preferences. satisfying customers’ preferences. Figure 1: Production Concept vs. Marketing Concept The findings of this research project, detailed consumer preferences for flesh apples, can provide important information to all participants in the flesh apple marketing chain. In addition, these findings are intended to contribute to continuous improvement in industry performance and acceleration of an emphasis on a marketing orientation rather than a production approach. f0 1.4 Organization of the thesis. In addition to this chapter, the rest of this thesis is divided into nine chapters. Chapter 2 discusses some broad perspectives on the Michigan apple industry in terms of key industry features and strategic directions. A large portion of chapter 2 is dedicated to an overview of various elements of the internal and extemal strategic environments of the Michigan apple industry that are of importance to consumer market research. Chapter 2 also contains a review of previous consumer market research relevant to the Michigan apple industry and other market research findings which are related to certain aspects of this project. Chapter 3 explains the methodology and planning of the project. Planning of the project is described as well as methodologies used to measure consumer preferences and purchase intentions. Chapter 4 includes general overall findings of the research project , including the relative importance of crispness, color, and size to consumers. Chapters 5, 6, and 7 present summaries of the project’s results of the consumer visual and taste tests. Chapter 5 focuses on preferences for crispness as found flom the taste tests and focus group discussions. Chapter 6 details consumers’ color preferences as found flom the visual tests and focus group discussions. Chapter 7 reviews consumers’ size preferences as found flom the visual tests and focus group discussions. Chapter 8 reviews results of the visual test and discussion of bagged apples. These results include purchase intention and a comparison of research findings for bagged apples versus tray-pack apples. Chapter 9 reviews important findings from the consumer focus group phase of the project which may have strategic implications for the Michigan apple industry. The final chapter of the thesis, Chapter 10, provides an overview of the research findings, and resulting important implications for the Michigan apple industry. Chapter 2 STRATEGIC ANALYSIS OF THE MICHIGAN APPLE INDUSTRY IN RELATION TO CONSUMER MARKET RESEARCH 2.1 Introduction. This research project was developed as part of recent strategic planning efforts by the Michigan apple industry. A primary goal of this research project is to provide more detailed consumer market research information to the Michigan apple industry, specifically to help in the development of certain aspects of strategic plans for the industry. Therefore, this chapter will include an analysis of some of the key elements that relate to the industry’s strategic planning efforts. This will include highlights of some of the driving forces and important elements of the internal and external competitive environments which influence and impact the Michigan apple industry. Analysis and understanding of these driving forces and competitive environments are crucial to sound strategic planning, and hence, to how the development of consumer research projects such as this fit into the industry’s broad strategic planning goals. These driving forces affect the performance and future strategic decision-making of the Michigan apple industry. Consumer research findings, supported by a strong knowledge of the strategic directions of an industry, can assist an industry in securing an improved competitive position. Consumer research results may help to identify certain industry strengths, weaknesses, future opportunities and threats, or to modify certain aspects of previous strategic analysis. Sim: cfibr indug Cat-i“ This chapter describes some key features of the Michigan apple industry, as well as a summary of the industry’s strategic planning efforts. Secondly, it includes an analysis of important elements of the competitive environments of the industry. An extensive amount of this analysis is devoted to analysis of consumer preferences, a part of the industry’s external environment, and an important element of this project. 2.2 Importance and Organization for Apple Industry Strategic Planning. In order for an industry to have top performance and to improve its competitive position, the industry should be aided by some level of strategic planning and coordination. Strategic planning is generally used at the firm level, and thus most of the established body of research and literature refer to strategic planning efforts at that micro, firm level. In addition, certain aspects of strategic planning can, and have been, undertaken by entire reg'onal agricultural industries, such as the Michigan apple industry. The early stages of the strategic planning initiative of the Michigan apple industry included the formation of the Michigan Apple Industry Strategic Planning Task Force. As evident in Figure 2, the Task Force brings together industry leaders who represent all major apple industry organimtions in the state and all industry segments such as growers, packers, shippers, and processors. These industry leaders who serve on the Task Force share ideas and analyze emerging issues facing the Michigan apple industry. A major industry need and a component of the industry’s strategic planning efforts developed by the Task Force has been to determine how the Michigan apple industry can consistemly and most efl‘ectively serve consumer needs in a changing market environment. Thus, continued research on consumer preferences for flesh apples, such as 9 ' higan App Committee Micgggpmw ”$323" Per8 . Association Commrttee Michigan Food Fig.3., Processors . . . . Association Michigan Apple Apple DIVISIOII Industry Strategic Planning , Task Force 1‘ $ ' hi8“ APPk| Michigan State - Promote" Horticultural Society U.S. Apple 4 Association] Michigan State International Pomesters Apple Institute Association i Michigan State University Figure 2: Michigan Apple Industry Strategic Planning Task Force 10 (Ir 8“ indu was undertaken in this project, can contribute significantly to the industry’s strategic planning prom- The Michigan Apple Committee, a key participant on the Task Force, is the industry’s organization for growing consumer demand through advertising, promotion, and merchandising efforts. The Michigan Apple Committee was a key organization in the early development of the industry - tmiversity partnership approach to the overall strategic planning efforts, including the important component of consumer market research efforts. The Michigan Apple Committee, the Task Force, and other leaders requested that this thesis project be undertaken. The Michigan Apple Committee played a very important role in the development of this project. They also provided financial assistance for this work. 2.3 Strategic Analysis of the Michigan Apple Industry. As mentioned earlier, an important aspect of strategic planning that has been quite usefirl to the Michigan apple industry and to this project is situational and competitive analysis. Situational analysis involves a thorough examination of the internal and extemal environments facing the Michigan apple industry. Utilization of this type of analysis can clarify and update previous analysis of its strengths, weaknesses, opportunities and threats, and thus aid future strategic planning to capitalize on opportrmities and diminish threats by utilizing strengths, and improving upon weaknesses. Certain elements of the Michigan apple industry’s internal and external environments, relative to the flesh apple market, have implications for firture strategic 11 decisions and the design of this consumer research project. Analysis and description of each of these elements for the design of this research project follow in this chapter. 2.4 Internal Elements of the Michigan Apple Industry. Elements of the Michigan apple industry’s internal environment (Figure 3) which were relevant to the development of this consumer research project, include; an understanding of the flesh apple marketing chain, apple production trends, variety trends, technological and management processes, and marketing utilization. An understanding of these elements helped to clarify the content of this project. In addition, findings of consumer market research projects such as the one described in this thesis may have implications for each of these elements. These elements are described and analyzed in the following sections. 2.4.] The Fresh Apple Marketing Value Chain. Apples are marketed through several channels as they proceed flom orchard to end-consumer. The vertical links along the ' marketing channels can be referred to as the “marketing value-chain” because each stage in the chain creates some added-value to the products. For instance, packers sort, clean, grade, and pack the apples for shipment. As Figure 4 illustrates, apples proceed through three major channels before reaching consumers; grocery retailers (the largest), food service and export markets, both of which are smaller but expanding. Knowledge of consumer preferences is very important to all firms and levels in the chain in order to provide desirable products to end consumers. Consumer needs and desires are communicated, to some degree, to the other end of the chain (growers and packers) by retailers, wholesalers, shippers, or brokers. Industry-based consumer 12 Micpyg’ an Apple Indusm’s Internal Environment Relative to the Fresh Apple Market [Michigan Apple Industoj I Production Trends | Fresh Apple Marketing Value Chain Variety Trends 1 Technological and Management Processes I Marketing Utilization Figure 3: Michigan Apple Industry’s Internal Environment 13 /\ Fresh Apple Marketing Value Chain Cousin-D a E 5 Grocery Retailers F0011 Service : l Outlets lExport Markets l E 'g 9 f I t i 5 Food Service : : Wholesalers Wholesalers Fresh Apple Shippers ‘ Fresh Apple Packers Fresh Apple Growers gig-re 4: Organizational Structure of the Fresh Apple Marketing Value hain 14 d: s») M 3C PR of; research projects such as this one can add significantly to this information on consumer needs and preferences. In the best scenario, market information about consumer preferences is transferred between each stage in the chain: trade buyers communicate consumer and trade customer needs to shippers, shippers communicate customer needs to packers, and packers commrmicate needs to growers. Consumer information flom projects such as this can add to the needed information at various levels through the chain. Industry organizations like the Task Force and Michigan Apple Committee can also use this information in the development of marketing, advertising, and promotional programs. 2.4.2 Production and Fresh Sales Trends of the Michigan Apple Industry. Total apple production in Michigan has trended upward since the 1970’s (Figure 5). Michigan’s average production increased flom 16.3 million bushels in the early 1970’s to a crop of 29 million bushels in 1995, and an estimated 1997 crop of 25 million bushels. As Figure 6 indicates, flesh apple sales in Michigan have increased as well as production on average since the mid 1970’s. Michigan’s flesh sales grew flom an average of 5.7 million bushels in the early 1970’s to an average of 9.5 rrrillion bushels in the early 1 990’s. A continued increase in flesh sales has been identified in the strategic planning process as a priority for the Michigan apple industry. Consumer market research projects can help the industry to improve performance in flesh apple sales by providing information about specific product attributes of flesh apples which are desired by consumers. To growers and others in the industy, knowledge about what types of 15 Fio e Michigan Apple Production 1960 - 1997 U Q N UI >- > V Millions of bushels ; '5’ ii? \i *3: K S l Lllllllllllllllllljéj 141I111111111+111 Year Figure 5: Michigan Apple Production 1960-1997 16 F i Michigan Fresh Apple Sales 1970 -1997 p—r I-l an a >- 7‘ %’ Millions of bushels unmetxrce / <\ < T ‘ {9'76‘ T '1'9'3’2' 'Ii9’ss ' '1'9'921' Year 1936 ' Figure 6: Michigan Fresh Apple Sales 1970-1997 17 apples consumers are most likely to buy can aid in providing those products, and thus boost performance in flesh sales. 2.4.3 Varieties. Although Michigan’s total acres of Red Delicious have decreased over the last several years, Michigan apple growers devote the largest amount of total and bearing acres to this variety. Varieties with the largest increases in bearing acres flom 1991 to 1994 were Empire (+590), Gala (+530), Golden Delicious (+390), Rome (+360), and Jonagold (+230). Red Delicious was chosen for this project because it is the variety with the largest acreage and production and hence, has the potential to greatly impact Michigan’s performance in the flesh apple market. Since Red Delicious provides the majority of the flesh apple crop in Michigan, specific consumer preferences for attributes of Red Delicious are of great importance to growers. Competing western states and New York also grow a large amount of Red Delicious. Thus to be competitive, Michigan must have top performance in the marketing and production of Red Delicious. Empire was chosen because it is a variety with substantial potential to increase in production volume in Michigan and was planted primarily for the flesh market. As evident by the increase in acreage devoted to Empire, growers are nmking substantial investments in the Empire variety. Because of these investments in Empire by farmers, consumer preferences for Empire attributes will be very important over the next several years as the production of Empire increases. 2.4.4 Technological and Management Processes. Improved technological and management processes in several areas have allowed for improvements in harvesting, pest 18 management, sorting, and storage. Some of these improvements include; the development of information on “harvest windows” for each variety to insure top condition at harvest for improved storage and shelf life, IPM efforts to reduce pesticide use, improved controlled atmosphere storage technologies, and sorting equipment which use computers and electronic scanning to sort apples by color and size. Technology developments like these, described in detail in the following paragraphs, contribute to competitive success and help to provide higher quality apples. Pest-management techniques such as IPM (integrated pest management) have been developed and are continuing to evolve in order to enable growers to reduce the amount of pesticides used while producing the high quality apples demanded by consumers and trade customers. These IPM techniques often involve scouting of orchards for pests and applying pesticides once pests meet a threshold level which may reduce crop quality. Researchers at Michigan State University in post-harvest physiology and orchard management have completed numerous maturity studies which identified “harvest windows” for growers to accurately gauge optimum harvest time for top condition apples. These “windows” are calculated each year for many varieties of apples grown commercially in Michigan. With such improved harvest tools, growers have better information on ideal harvest times for optimum quality levels. Uniformity of size and color of apples is very important to trade buyers. Advanced technology in sorting equipment allows for separation of apples based on size and color at the packing house. Such advancements create greater efficiencies and quality consistency in packing. Improvements in controlled atmosphere storage technology and 19 facilities allow for a larger amount of apples to be stored at reduced oxygen and high carbon dioxide levels, while maintaining top condition throughout a long storage and marketing season. These technological advancements can be used to help produce and market high quality flesh apples, improving such quality characteristics as crispness, color, and size to meet consumer preferences. Knowledge of consumer preferences for attributes of flesh apples is very important in helping growers and others in the industry produce these desired attributes. Thus, increased knowledge of consumer preferences in combination with technological advancements may aid the Michigan apple industry in providing apples with attributes that consumers most desire, thus improving Michigan’s performance in the flesh apple market. 2.4.5 Marketing Utilization of Michigan Apples. Michigan apples are used for flesh markets, canning, slicing, or juicing. Of these form the largest is flesh with 35% of the Michigan crop sold as flesh. Ten percent are used for slicing, for instance, for sales to food manufacturer customers for pies. Twenty-four percent are used for canning, and 31% forjuice. A goal of the Michigan Apple Industry Strategic Planning Task Force is to increase Michigan’s flesh sales volume substantially, with an increase in average flesh sales of 36% over 5 years. Figure 7 depicts the recent gradual growth trend of the sales of Michigan’s flesh apples. After dropping steadily in the 1960’s and early 1970’s, Michigan began to increase flesh sales of apples in the rrrid 1970’s. The dotted line in 20 Michigan Fresh Apple Sales 1990 - 1997 11 i ,,, ro - - 1 2:: 9 l\ I\ / g 8!\A All ” 1V"l 3 7 V V\ [fit A [111] U ...... .. . A I L .5 6 W \[LU V V E 5 fl 2 4 V 1 91610H ‘119165 111917101 ‘1 191715] 1119180 11 191851 111919.01 T995: 2000 Year Figure 7: Michigan Fresh Apple Sales 1960-1997 21 Figure 7 depicts these trends. The arrow indicates the Michigan apple industry’s aggressive goal of increased performance in flesh market sales through the year 2000. The Michigan apple industry is increasingly aware, in an overall sense, of the importance of quality of flesh market apples to consumers. Producers and others in the industry need information on what levels of quality parameters (condition, color, and size) are most desired by consumers. Such information can help the industry to plan strategies for developing the quality levels which are most desired by the industry’s customers. 2.5 External Elements of the Michigan Apple Industry. Elements of the Michigan apply industry’s extemal environment (Figure 8) which are relevant to this project include, among others, competitive pressures, consumer preferences for flesh apples, trade buyers preferences for flesh apples, and changing governmental policies. The behavior of each of these elements significantly impacts the performance of the Michigan apple industry. Analysis of these external elements follows in the next several sections. 2.5.1 Competitive Pressure. Although Michigan has long been a leading apple producing state, substantially increasing apple production in Washington and California has intensified the competitive atmosphere of apple markets. This competitive situation accentuates the need for consumer research projects which can help indicate weaknesses and strengths and thus influence industry performance. Total apple production in the US. has increased over the last 40 years flom an average of 137.2 million bushels in mid 1960’s to an average of 250 million bushels in 22 Michg’ an Apple Indusfl’s External Environment Relative to the Frggh Apple Market [ Consumer _ f Preferences l Trade Buyers Preferences lMichigan Apple Industry l A l r Competition 1 [Governmental Policies] Figure 8: Michigan Apple Industry’s External Environment 23 1990’s, as indicated by Figure 9. This growth was gradual flom the early 1960’s through the early 1970’s, and has increased substantially since the mid-1970’s. A majority of this increase in US production is due to the exceptional growth of Washington state’s production. Washington’s production grew flom an average of 28 million bushels in the 1960’s to an average of 119 million bushels the 1990’s (Figure 10) due to a heavy expansion of apple growing acres in the 1980’s. This average increase of 91 million bushels over thirty years represents a 325% increase in annual production. As evident in the graph, Washington’s annual production has exceeded the combined annual productions of Michigan, New York, and California every year since the late 1980’s Michigan has also increased total annual apple production since the 1960’s (Figure 5). Michigan increased flom an average of 15 million bushels per year in the early 1960’s to an average of 24 million bushels per year in the early 1990’s, an increase of 9 million bushels, representing a 60% increase in production. In addition, California has significantly increased production in recent years, flom an average annual production of 11 million bushels in the early 1960’s to an average of 21 million bushels per year in the early 1990’s (Figure 11). This increase of 10 million bushels represents a 91% increase in production. New York’s increase has been quite gradual, fluctuating in annual production over the past twenty years (Figure 12). In the early 1960’s, New York’s annual production averaged 21 million , growing to 25 million in the early 1990’s, an increase of 4 million bushels or a 19% average increase in production. 24 US Apple Production 1960 - 1996 300 N VI 6 pr VI 9 Millions of bushels 3 G 00 liiiuiiiiiiiiii:HHHiiiiiiiiiiiih 1960196419681972197619801984198819921996 Year Figure 9: US Apple Production 1960-1996 25 Apple Production in Top Four States 1960 - 1996 140 ,\ / / / \/ E 120 ,fi\\ //\*\ /// Q) I \. a 100 flr’ 3 I as: 80 g C /\ /“‘\ / /\/\ m / x .N a .8 60 WWW" E 40 . x r\ e 2 /\\'/ \\// \‘/ 20 v/ 0 HHHH++HH i.ii::i::::+i+i::ii4 1960 1965 1970 1975 1980 1985 1990 1995 -—- WA Year — MI,CA,andNYcombined Figure 10: Apple Production in Top Four Producing States 1960-1996 26 California Apple Production 1970 - 1996 26 ”524 1.322 §20 ‘8 18 316 £14 3‘ 12 10 8 1970 1976 1982 1988 1994 Year Figure 11: California Apple Production 1970-1996 27 New York Apple Production 1960 — 1996 lllllllllllllllllllllllllllllllllllll Year Figure 12: New York Apple Production 1960-1996 28 Presently the three states of Michigan, California, and New York are nearly equal, on average, in total apple production. Over the recent three-year period flom 1994 - 1996, Michigan and California each averaged 23.4 million bushels per year. New York averaged 25.8 million bushels per year in the same period. The similar level of apple production, as illustrated in Figure 13, is one indication of the competitive situation between the three states of Michigan, California, and New York. As indicated by the graph, in terms of total apple production, New York has lost competitive position to Michigan, most notably over the last ten years. In those same ten years, California has expanded production and apparent overall competitive position relative to Michigan and New York. Because of continued investment in new trees, California is likely to continue to expand production and improve its competitive position into the future. Fresh apple sales have increased in Michigan, New York, and California since the mid 1970’s (Figure 14). In terms of sales of flesh apples, New York has slightly increased its competitive position, relative to Michigan over the last 20 years. New York increased flesh sales of apples by 58% flom the mid 1970’s to the early 1990’s flom an average of 7 million bushels to 11.2 million bushels. Over that same time period, Michigan increased flesh sales of apples by 51%, flom 5.3 million bushels to 8 million bushels. Califomia’s growth in flesh apples sales began in the late 1980’s. Although California’s flesh sales have fluctuated, it remains competitive in the flesh apple market. California sold an average of 8.13 million bushels of flesh apples per year in the early 29 Apple Production: MI, CA, and NY 1960 - 1996 N UI E / e. N 9 ~\‘? / / \ \ \ / ,\ ”,5 \\\\ i: > r ( >’,,..u >714 >< \ \ \ \ . l,‘ -. ‘ j, *1 1\ \I/ ., / V V U V U. V Mlllrons of bushels S G T ' --- NY — MI ----------- CA rrrrriirnllrrrlrrirlreriirrrr_i rrrrrr I[ITIIIIIIIITIITIITIIIITITH II l TTTTTTTT 5 1960 1965 1970 1975 1980 1985 1990 1995 Year Figure 13: Apple Production in MI, CA, and NY 1970-1996 30 Fresh Apple Sales: MI, CA, and NY 1970 - 1996 he .3 p-A N .‘~ A o s \ r l' s‘ o ’ p—i G .h a . a a , . a r., r 1 v p I 0 'ol 1 . u I n p s s s . u n . o . n o . o n . a - o o . I u c n . 0 a I: on "‘ ' -.,-“. " '\ I, ‘\ / V\. .. / \ I ‘l I ’ V V,» V / “F * “\/J W v .‘» Millions of bushels ' n L 4 r \f ........... NY _ MI ...... CA 1 1414 l l 1 %1 19'76 ' ‘ i9‘7‘5 ' ‘ i9'sfi 19335 F i9'9f ' 1'9'9W Year GNAQ‘ Figure 14: Fresh Apple Sales in MI, CA, and NY 1970-1996 31 1990’s, compared to its mid-1970’s average of 2.2 million bushels. This increase represents a 273% increase in average annual sales over the last 20 years. The threat of strong and increased competitiveness in the fresh apple market fi‘om Washington, and to a lesser degree from California and New York, accentuates the need for Michigan to aggressively continue strategic planning and implementation of well- targeted strategies in order to achieve growth in these markets. Vital to such competitive expansion of the fresh market is the marketing of apples with characteristics that meet consumers needs effectively versus the competition. The competitive marketing of such apples with these appropriate characteristics can be aided by market information about consumer preferences and vertical coordination by all stages of the fresh apple marketing channels to communicate and provide those preferences. 2.5.2 Consumer Preferences for Fresh Produce. Consumer preferences continue to be of great importance to all levels of the flesh apple marketing value chain. Consumers are demanding more fresh fruits and vegetables, more variety, and higher quality products than ever before. In addition, consumers tend to have less time to search for specific attributes. Considering this increase in demand for freshness, variety, quality and convenience by consumers, those industries which provide desired attributes to consumers, and communicate that value efi'ectively to consumers will more likely have top performance in terms of consumer responses. Thus, identification of desired consumer preferences is one crucial element to competitive success. The following sections focus on reviewing some of these changing consumer preferences and reviewing previous consumer market research results. 32 In The Packer’s “Fresh Trends 1996” survey (Vance Publishing 1997), consumers were asked, on an unaided basis, to identify the three most important characteristics they look for when selecting flesh produce. The top three responses were fleshness and ripeness, quality and appearance, and price. Eighty-four percent of surveyed consumers reported looking at the freshness and ripeness of an item, while 71% noted quality and appearance. Forty-six percent of surveyed consumers indicated they look at price when selecting produce. A mere 7% of the consumers indicated size was an important factor. When consumers were asked a similar questions in “Fresh Trends” 1992 survey (Vance Publishing 1993), 97% of consumers rawd appearance as being “extremely important” or “very important” to the produce buying decision. Interestingly, price was found to be the number one reason consumers may decide ngt to buy a particular produce item. Numerous other studies have indicated the importance of quality of flesh produce to consumers. In the “Fresh Trends” 1993 survey (Vance Publishing 1994), consumers were asked about their most common complaints regarding purchasing flesh fluits and vegetables. Quality was again an issue, with 34% of the surveyed consumers saying that quality was a problem. Of these consumers, the top three quality complaints regarding quality were that “[produce is] underripe or overripe,” “shelf life is too short,” and “produce is not flesh enough.” Because different questions were asked each year in the “Fresh Trends” survey regarding quality, these results cannot be directly compared. Yet several things are evident 33 flom these survey results. Over the past decade, quality and price continue to be of concern to consumers. These findings reinforce the importance of quality, appearance, and freshness or condition of flesh produce to consumers. The analysis of previous consumer research studies which investigated specific attributes of quality and appearance, relative to flesh apples, was an important part of this project. An overview of the findings flom these studies follows in the next section. 2.5.3 Research Findings: Consumer Preferences for Fresh Apples. Although there has been some research in the area of determining consumer preferences for flesh apples, a majority of this previous research focused on the determination of general overall preferences for flesh apples. For instance, the telephone survey conducted at Michigan State University sought to determine what characteristics of apples were most important to consumers. The project reported in this thesis attempts to investigate beyond such overall preference findings to identify spec-vie levels of preference by consumers for individual attributes of condition, color, and size. These three attributes were found to be of relative importance in previous research efforts, which are described in the remainder of this section. The benefits and limitations of specific methodologies are reviewed in Chapter 3. 2.5.33 A Study at The University of New Hampshire A study of consumer preferences of flesh apples by Manolo (I 989) at the University of New Hampshire found Mar to be “very important” to 96% of respondents, followed by crispness (89%), color (61%), size (38%), and price (26%). These findings are similar to the findings of the telephone survey conducted earlier at Michigan State University. (Ricks et 34 al. 1995) In that survey, crispness, color, and size were found to be “very important” to high percentages of surveyed consumers. Manolo’s use of conjoint analysis in the University of New Hampshire study allowed for a measurement of relative importance of each attribute. Results indicated that crispness is the critical attribute to consumers, almost twice as important as either size or color. Price was found to be of least importance. 2.5.3.b A Study at The University of Connecticut. A study in the early 1980’s at the University of Connecticut (Leonard and Wadsworth 1989) investigated consumer preferences for apples. Consumers were asked to rank attributes in order of importance. The study found appearance to be the most important factor to consumers, with 76.5 % of consumers making it as “very important.” Almost as many, 72% ranked texture as “very important.” Price and state/country of origin were of least importance to consumers. Consumer were asked to rank several apples with various attribute levels of price, percentage of color, size, existence of wax, and bruising. This test revealed an overall preference for low price, a high percentage of red color, large size, wax and tmbruised apples. 2.5.3.c A Study at California Polytechnic State University. A study conducted by Ahern and Provost (1991) investigated consumer preferences for Empire apples. Consumers evaluated “early-harvest” and “normal harvest” Empire apples. This was done because the difference in harvest times results in apples with different levels of sugar, color, and crispness. Although “early-harvest” apples were less red than “normal- harvest” apples, it was hypothesized that the superior texture (higher crispness level) of 35 “early-harvest” might be preferred by consumers despite the fact that “early-harvest” apples have less sugar or red color than “normal-harvest” Empires. Overall, 59% of consumers surveyed preferred the “normal-harvest” apples, while 40% preferred the “early-harvest” apples. One percent were indifferent. This indicates that although the “early-harv ’ apples were slightly crisper, consumers preferred the redder color and higher sugar level of the “normal-harvest” apples. In this study, consumer taste test respondents were first asked about general preferences for apples, and the relationship of certain attributes to quality. A large number of consumers, 88.3%, reported they “strongly agree” or “agree” that texture of an apple is related to quality. Far less, 50.2% “strongly agreed” or “agreed” that color was related to quality. These results are again similar to the telephone survey conducted by Michigan State University where apple crispness was found to be considerably more important to consumers than color or size. Seventy-three percent of consumers ranked flavor as the “ most important” aspect in apples they purchased. Although only 9.4% ranked texture as “most important,” 44.6% ranked it as “second most important.” Seven percent of consumers ranked color as “most important,” while 24% said it was “second most important.” Size and price were of significantly less importance. 2.5.3.d A Study at The University of Maine. A study at the University of Maine (Criner et al. 1995) investigated consumer preferences for McIntosh, Red Delicious and Empire apples. Taste tests and visual tests were used to compare Empire versus Red Delicious, Empire versus McIntosh, and McIntosh versus Red Delicious. 36 Although the results of the taste tests indicated that consumers preferred Empire to McIntosh and McIntosh to Red Delicious, little explanation was given as to what attributes consumers preferred with each variety. In the tests for visual preference, McIntosh was preferred over Red Delicious, 78% to 22%. No statistically significant differences were found between the other pairs of varieties. These results indicate that some attributes of the McIntosh variety were preferred over the attributes of the Red Delicious variety. 2.5.3.c A Study at Washington State University. Researchers at Washington State University (McCracken ct al. 1993) investigated the differences in the sensory quality of 11 apple varieties and used sensory analysis to determine the consumer attitudes towards each variety. This research was in response to changing consumer preferences toward different varieties of apples. Results indicate that price and color of apples were the most important Dre-purchase attributes of apples, with texture and flavor most affecting post-purchase evaluation. An important element of the Washington State study was the separation in testing of Dre-purchase and post-purchase attributes. This separation provides useful results in some respects to various groups in the apple marketing chain. For instance, although crispness may be an “important” attribute to consumers, it is unlikely that consumers can ascertain the crispness or flavor of an apple before they buy it, yet appearance can clearly influence purchase. Pre-purchase attributes are important because they can stimulate initial purchases. Post-purchase attributes of apples are likely to have significant implications for subsequent or repeat purchases of apples. 37 Therefore, consumer research needs to investigate and define both the importance of pre-purchase and post-purchase attributes. In addition, market research results need to give implications for various market stages of the marketing value chain in terms of providing desired pre-purchase and post-purchase attributes, as both are important to competitive success. 2.5.3.f Previous Studies at Michigan State University. Research completed by Ricks et al. (1995) and Beggs (1996) provides part of the foundation flom which this thesis project was developed. Beggs extensively investigated consumer preferences for flesh apples through focus groups and a telephone survey. Research results were helpfirl in providing the Michigan apple industry with consumer preferences information flom which to formulate specific strategic plans. A number of strategies and industry action plans are being implemented which are based in part on these research results. Previous research included focus groups and an extensive telephone survey of consumers in three major metropolitan markets for Michigan apples, Detroit, Chicago, and Kansas City. Important findings of this research are detailed in Consumer Perceptions and Attitudes Related to Michiga_n Apples (1995) and Consumer Perceptions for Fresh Market Apples (1996). The results of this telephone survey show that very high percentages (80-92%) of the surveyed consumers in all three cities said that the three factors of (1) flavor, (2) unbruised and unblemished, and (3) crispness were very important factors in making their apple purchase decisions (Ricks et al. 1995, 2). Factors of color, variety and price were 38 ranked considerably lower by consumers in all three cities than were the factors of flavor, crispness, and unblemished apples. Consumers who were surveyed in the Kansas City market were asked detailed questions about preferences for apple color and size. F orty-five percent of Kansas City consumers said they prefer apples which are all red, but 33% of consumers said color didn’t matter, indicating an openness to less traditionally colored of apples, such as Gala, and Fugi. In terms of size, 78% of Kansas City consumers said they prefer “medium” size apples, and only 22% indicated that they prefer large apples. Therefore, although trade buyers often prefer “large” apples, consumers in this study were more likely to prefer a “medium” sized apple. These findings were instrumental to the design of the consumer research project described in this thesis. In the telephone survey, consumers indicated a preference for certain types of apples, such as “medium” size. The research conducted in this thesis attempts to investigate what size apple consumers perceive as “medium,” and what specific levels of color and crispness are most preferred. 2.5.4 Synops'n of Research Findings. There are numerous similarities in the previously reviewed findings of consumer preferences for flesh apples among US consumers. In general, the aspects of flavor, texture crispness, and appearance of apples are very important to consumers. Consumers indicate that price, size and origin of apples tend to be of less importance. A limitation of a majority of this earlier research is that the parameters of attributes such as quality are not clearly defined, and thus the results are difficult to 39 implement into strategic planning by growers or industry. These findings do not demonstrate specifically what M quality or appearance is important to consumers. The study at Washington State University has some helpful implications for continuing research efforts. This research team realized that consumers are affected by both pre-purchase and post-purchase attributes of apples. A useful way to review the findings of previous consumer market research efforts regarding flesh apples is to separate them in terms of pro-purchase and post-purchase attributes. This analysis is fotmd in Table l and Table 2. Table 1: Important pre-purchase attributes: Attribute Study - Appearance 0 The University of Connecticut 0 Price - Washington State University 0 Color 0 Washington State University 0 Unbruised and unblemished - Michigan State University Table 2: Important post-purchase attributes: Attribute Study - Crispness - Michigan State University - Flavor 0 Michigan State University a Flavor 0 University of New Hampshire - Crispness - University of New Hampshire - Texture - The University of Connecticut 0 Flavor - California Polytechnic State University - Textrne - Washington State University 0 Flavor 0 Washington state University As evident flom Table 2, post-purchase attributes were more often formd to be an important attribute to consumers. Thus it may be the “after purchase experience” has the most impact on the consumers, and most likely guides firturc purchases. Pre- purchase atflibutes were mentioned less in the previous consumer market research 40 studies, but the majority of those mentioned included aspects of appearance including color and the absence of bruises and blemishes. Size was rarely mentioned as being important by consumers. An important finding is that, although aspects of flavor and texture/crispness/condition seem to be the overall most important attribute to consumers, the appearance of an apples is likely to influence purchases as well. Continued consumer research efl'orts, including the taste tests and visual tests of this project should investigate what specific levels of pre-purchase attributes, such as color, are most preferred. In addition, this research should investigate what levels of post-purchase attributes such as crispness and condition are most preferred as these attribute impact firture sales. 2.5.5 Trade Buyer Preferences for Fresh Apples. Trade buyers are very powerful in the flesh apple marketing value chain because of their key position for access to consumers, that is, their “gatekeeper” position related to consumers. Large retail- wholesale firms are especially important because of the large volume of apples that they buy. Trade buyers’ interpretations of consumer preferences are often commrmicated, at least to some varying degree, through the flesh apple marketing chain by the types of apples that trade buyers purchase. Previous consumer research, discussed earlier in this chapter suggests that actual consumer preferences for flesh apples may difl‘er flom trade buyers perceptions’ of those consumer preferences. Because of this potential discrepancy, additional consumer research may be useful in order for the Michigan apple industry to strategically orient marketing efl‘orts and achieve top performance. 41 Although consumer research results indicate consumers’ primary preference for the crispness of apples, a recent study of trade buyers, funded by the Michigan Apple Committee, indicated that these buyers believe other factors such as appearance of apples, in-store displays, and the variety of apple are the most important factors in the consumer buying decisions. Findings flom the study provide more detail as to the attributes of apples which are important to buyers. Quality was found to be the most influential factor of purchase. Quality was indicated by the trade respondents as being more important than deep color, taste, crispness, price, and appearance. More specifically, the three most important factors regarding buyers’ purchasing of apples were condition of apples upon receipt, color of apples, and perceived freshness of the apples. When asked about which factors have the most influence on consumers when deciding which types of apples to purchase, produce buyers rated “the outward appearance of the apples” as the most influential, or important, factor to consumers, followed by “in-store displays,” and “the variety of apples available.” Again, this study did little to define what exactly about the appearance of the apples, the in-store displays, or varieties of apples were important to consumers. The study indicates that trade buyers have differing perceptions about what is important to consumers compared to what was shown by previous consumer research studies. Consumer research results detailed earlier overwhelmingly indicate that post- pmchase attributes of apples, such as crispness, flavor, and textme are most important to consumers and affect future purchasing decisions. 42 Although trade buyers generally express the importance of high percent of color and large size when buying apples, little research exists about the specific levels of crispness, color, size that are preferred by consumers. This thesis project will provide more detailed information on these aspects. The results can also serve, in some respects, as a comparison to trade buyers’ perceptions’ of consumer tastes. 2.5.6 Governmental Actions and Policies Affecting the Fresh Apple Industry. Changes in policy and regulation by domestic and foreign governing bodies could have severe impacts on the production and marketing activities of the Michigan apple industry. The continued threats of increased regulation of pest control methods and removal of the availability of crucial pesticide tools are significant in their potential to severely impact the industry. Such removal of existing pest control methods and tools would severely reduce the quality level of Michigan apples in contrast to the very high quality demanded by consumers and the trade. This reduction in quality would be due to insect and disease damage. Consumer research results can assist the Michigan apple industry in preparing for changes in consumer attitudes towards pesticides. For instance, if consumer research reveals that consumers are not as concerned about the appearance of flesh apples in regard to pest damage, but more concerned about food safety and pesticide residues, alternative efl‘orts to reduce the use of chemical controls can be developed before governmental action requires compliance. In addition, consumer research projects could measure the amount of damage, if any, that would be acceptable to consumers. 43 2.6 Conclusion. The internal and external environments of Michigan’s flesh apple market provide a useful flamework flom which to develop consumer research. These elements of the competitive environment must be understood for consumer research projects to be well designed. Consumers are an integral part of the external environment, and actions by the internal forces of the industry affect consumers through the market. Consumer research projects undertaken by the Michigan apple industry continue to be important to the long term understanding of consumer preferences, and thus to the long-term success of the industry. For these consumer projects to be most helpfirl to the industry, they must be undertaken with a solid understanding of the Michigan apple industry, and the competitive environment in which it functions. The purpose of this chapter was to briefly review some elements of both the internal and external environments of the Michigan apple industry and explain how those environments affected and influenced the design of this thesis. Chapter 3 RESEARCH METHODOLOGIES 3.1 Introduction. Consumer market research resulting in the determination of clearly defined attributes of flesh apples that are preferred by consumers may help the Michigan apple industry improve its performance in meeting consumer preferences. Such consumer market research may aid growers, packers, shippers, distributors, and retailers in modifying strategies and quickly adapting to changing consumer needs by changing production, marketing, storage, or transportation processes. This thesis focuses on research of this nature. Working in close collaboration with the Michigan apple industry was crucial to the overall success of this research project. The tmique collaboration between Michigan State University, the Michigan Apple Committee, and Michigan apple indusuy leaders aided in the design of the project as well as helping to assure the relevance of the research questions, focus, and results. The project involved the use of a number of types of methodologies. This combination of methodologies was chosen in order to provide the most usefirl results for the apple industry. This blending of several methodologies along with the on-going coordination with the Michigan apple industry dining the project produced consumer market information which is hoped to be useful and applicable to industry strategies. In the first section of this chapter, I will review the steps involved in the development and planning of this research project. Secondly, I will briefly review 45 methodologies used in pervious consumer market research projects. Finally, I will review in detail the methodologies used to collect the information for this project regarding consumer preferences for flesh apples. 3.2 Planning and Evolution of the Research Project. This research project involved extensive communication and coordination between the Michigan State University research team and members of the Michigan apple industry. This sections details some of the major steps involved in developing and completing this project. 3.2.] Initial Discussions with the Michigan Apple Committee (MAC) Staff. This research project evolved out of discussions with the Michigan Apple Committee staff regarding changing industry needs and their desire to build onto results flom a series of previous consumer market research projects conducted by Michigan State University, one of which was a telephone sm'vey (Ricks et al. 1995). MAC staff members and their advertising agency executives, and other apple industry leaders expressed the need for firrther consumer market research on specific quality characteristics of apples which would enrich these earlier research findings. Specifically, in these discussions, the issues of crispness, size, and color were designated as most important for this research project. Although the earlier research findings indicated that these attributes were important to consumers, the exact levels of these attributes most preferred by consumers needed further investigation. It was proposed dming several meetings with the MAC and other industry leaders that a research project be developed to investigate specific consumer preferences for these attributes of crispness, color, and size. 46 3.2.2 Development of the Research Project Plan Along with Industry Input. A research plan for the project was developed based on the industry’s needs and priorities. The plans for the project were then reviewed and discussed with the MAC staff. These discussions included their suggestions of most useful categories for crispness, fluit size, and color to be studied. The industry also suggested the specific varieties to be studied. A plan outlining the research project was presented to the Board of the Michigan Apple Committee after the initial discussions with the staff. The research plan included conducting focus group sessions in two metropolitan areas, and conducting taste and visual tests within each consumer focus group. The plan included a set of proposed questions for the focus groups and the various levels of crispness, color, size of apples that would be tested in the visual and taste tests. After review, the Board had some relevant suggestions to increase the usefulness of the project. They indicated their support of the project plan. Due to the potential strategic implications of the findings of the proposed research project, it was discussed with the Michigan Apple Industry Strategic Planning Task Force, which represents all segments of the Michigan apple industry. This was done to build broad industry support and integrate this research with overall industry strategies for market growth and increased competitiveness. The proposal was presented at a Task Force meeting. The Task Force provided input, specific suggestions, and gave overall support of the project for its potential to contribute to needed industry strategies. 47 Two shipper members of the Task Force generously agreed to provide apples for the project. They provided important assistance in obtaining the different qualities of apples needed for the taste and visual tests. 3.2.3 Use of a Market Research Firm for Certain Phases of the Project. In order to efficiently recruit consumer participants for the project, outsourcing for this recruitment of participants was suggested. Several market research firms in the Lansing area were contacted and evaluated. Based on cost and previous work experience, a market research firm in East Lansing was selected. Several meetings were conducted with them to discuss the screening questions related to participant selection and desired demographic make-up of each group. In addition, the firm agreed to confirm each consumers’ agreement to participate before the scheduled test session. The firm also sent a questionnaire to recruited consumers which they were instructed to bring to the test session. 3.2.4 Collaboration with Post-Harvest Research Expert. A professor in the Department of Post-Harvest Physiology, Dr. Randy Beaudry, was consulted in order to gain needed technical information about apple condition aspects. This included information on how to store the apples before the tests, how to adjust the temperature of the apples in order to have three different condition levels of apples for tasting, and how to measure the condition of the apples using a pressme tester. Dr. Beaudry generously provided one of his pressure testers for use throughout the duration of the study. In addition, he provided storage room in two coolers for the apples used in this project. 3.2.5 Procuring the Apples for the Research Sessions. The apples were picked up florn the apple packer several weeks before the research sessions. The apples were 48 separated by color and size by the packer and labeled by the packer (i.e. 80% color, 72 CT. etc.) in accordance with the research prcject requirements. The apples were then transported back to MSU and placed in coolers in the Departrrrent of Horticulture. The boxes of apples were labeled with various numbers or letters that were used as codes during the visual and taste tests (see Table 3). Each day, the apples labeled 1, 2, 3, 1T, 2T, 3T (apples that were evaluated in the taste tests based on crispness level) were measured to record condition levels. Some of these apples were removed flom cold storage to room temperature in order to reduce condition level. The lowest pressure apples, 1 and 1T, were removed first, and the medium pressure apples, 2 and 2T, were removed approximately 5 days before the tests session in which those apples were used. 3.2.6 Transportation of Apples to the Research Site. On the day of research sessions (two sessions were held per day), the apples were transported to the research site. In addition, the apple pressure tester, gold stickers, pens, surveys, tape recording equipment, additional research materials, and a notebook were taken to the site. For the apples that were used in the taste tests, each apple was measured with the apple pressure tester. A gold sticker was placed over the intrusion made by the device. If the apple’s condition level fell within the 8-11 pounds pressure (PP) level, it was placed in the 1T basket. If the apple’s condition level fell within the 12 - 15 PP level, it was placed in the 2T basket. Finally, if the apple’s condition level fell within the 16 - 18 PP level, it was placed in the 3T basket. 49 The apples which were used for the visual test, and had been sorted by the packer based on color and size, were placed in separate baskets on long tables. 3.3 Methodologies Used in Previous Apple Research. Several studies, reviewed in Chapter 2, investigated consumer preferences for apples using highly technical analytical methods. In the University of New Hampshire study, Manalo (1990) used conjoint analysis to asses the importance to consumers of certain apple attributes. A basic principle underlying conjoint analysis is that a product, in this case an apple, is composed of attributes, and that each of these attributes may have two or more levels (e.g. for size, small, medium, and large) (Manolo 1990, 118). In conjoint analysis theory, consumers’ preferences for products are assessed by estimating the importance of those product attributes to consumers. In Manolo’s survey, consumers were presented with eighteen cards, each card describing an apple of certain attribute levels. (e.g. small, green, crisp, tart, $0.99/LB) Then the consumers were asked to rank those eighteen attribute alternatives flom highest to lowest preference. This making data was then analyzed with OLS regression to ascertain the overall importance of each of the attributes (size, color, crispness, flavor, and price) to surveyed consumers. This type of conjoint analysis methodology has the advantage of providing detailed information about the relative importance of each of these attributes. For instance, conjoint analysis can determine whether or not a consumer would sacrifice apple size for apple flavor or vice versa. 50 Although this type of methodology could have useful implications for the Michigan apple industry because it ranks the relative importance of each apple attribute, the results can be a bit misleading. Primarily, the methodology of conjoint analysis is unrealistic. Consumers are asked to rank written descriptions of various apples without seeing the actual fluit. In addition, the terms of the descriptions are ambiguous. A “small” apple to one consumers may be “large” to another consumer. For research to have meaningful results, which can truly help provide an informational background for producers in strategic marketing efforts, it is necessary for research methodology to clearly define, for example, what a “small,” “crisp,” or “red” apple represents. A study at the University of Connecticut (Leonard and Wadsworth 1989) investigated consumer preferences for apples in the late 1980’s. Consumers were asked about the importance of certain apple characteristics, and asked to rank eight apples, each with a different set of attributes. Although investigators used a methodology similar to conjoint analysis, consumers were shown actual apples with a given set of attributes, then asked to rank the apples in order of preference. Each apples was only labeled with variety, price, and state of origin. The interviewers were strictly interested in which apple was most preferred, and the order of preference, thus consumers were not asked about how they perceived each apple in terms of size, crispness, or color. In other words, consumers were not asked to define each apple as “small” “medium”, or “large”, rather , the apples were already labeled such by the interviewers. The limitation is that size, color, and crispness are defined and assigned by the interviewers. For instance, the interviewer categorized a 100 size Red 51 Delicious as “large” and a 125 size as “small” without any knowledge of what the surveyed consumers perceived the size of the apple to be. 3.4 The Research Question. This research project attempts to add to previous research findings by determining specific consumer preferences for flesh apples. This research will provide findings which may be utilized by the Michigan apple industry to improve strategic marketing and production efforts. Previous consumer research indicates that although appearance is important to consumers, crispness is also very important in the buying decision, and may affect the firture purchase of certain varieties more so than other attributes of the apple. This thesis research involved ascertaining and defining specific preference threshold levels for apple condition, color, and size. 3.5 Research Setting. This research project included taste tests and visual tests of two varieties of flesh apples, Red Delicious and Empire. Consumer participants were asked to taste and evaluate apples of various prc-measured pressure, color, and size levels. Thus, the research methodology was designed to pinpoint which pressure levels, color levels, and sizes are most desired by consumers at the point of consumption. A research setting similar, in some respects, to a focus group was used to conduct the taste and visual evaluations of fire apples. In addition, the group was used as a focus group to facilitate discussion by consumers of the importance of apple attributes and apple buying behaviors. Kruger (1994) refers to a focus group as a special type ofgroup in terms of purpose, size, composition, and procedures. A focus groups generally consists of 7 to 10 52 participants who are selected because they have certain characteristics in common drat relate to the topic of the focus group. Participants are encouraged to discuss their attitudes, purchase behaviors, and opinions, but are not forced to reach a consensus on topics Further, the focus group is repeated several times with different people. Carefirl analysis of the discussions provides clues and insights as to how a product, service, or opporttmity is perceived. (Kruger 1994, 6) Focus group interviews are widely accepted within marketing research because they produce believable results at a reasonable cost (Kruger 1994, 8). In addition, focus groups place people in natural, real-life situations as opposed to the controlled experimental situations typical of quantitative studies (Kruger 1994, 34). This focus group research methodology was used to provide a forum florn which to conduct the taste and visual tests. In addition, the focus groups were used to investigate in more detail what aspects of the quality of an apple are important to consumers and other aspects related to consumers’ apple preferences and buying behaviors. 3.6 Research Methodologies: Taste Tests, Visual Tests, and Focus Group Discussions. In total, testing was completed with 16 different groups of consumers in the spring and fall of 1996. Each grcup consisted of taste tests and visual tests. Each group concluded with a focus group discussion. A total of 127 participants completed the tests and discussions, 65 consumers evaluated Red Delicious apples, and 62 consumers evaluated Empire apples. 53 Participants were recruited through a marketing research firm. These participants were chosen according to several criteria: Each participant was the primary purchaser of groceries in the household; had purchased apples in the last month; and represented an annual household income of over $20,000. Eight focus groups were completed in metropolitan Detroit with Red Delicious apples, and eight were completed in metropolitan Chicago with Empire apples. Before attending the focus group, each participant completed a short questionnaire inquiring about the importance to them of an apple’s crispness, size, and color in their apple buying decisions. This questionnaire was collected at the beginning of each focus group. The questionnaire can be found in Appendix A. Visual Tests For both Red Delicious and Empire, consumer participants visually examined apples of various crispness levels, color levels, and sizes. The apples were placed in baskets on tables. The baskets were labeled with only a letter, which identified it to the researcher as containing apples with a specific attributes. For example, Red Delicious basket “A” contained apples that were 72 size, 15 pormds pressure, and 80% color (Table 3). 54 Table 3: Apples used for Visual and Taste Tests Red Delicious Empire A-72CT/lSPP/80%Color A-l00CT/15PP/80%Color B-100CT/15 PP/80%Color B-125CT/15 PP/80%Color C-125CT/15PP/80%Color C-148 CT/15 PP/80%Color D - BAGS (2.5” minimum) D - BAGS (2.5” minimum) 1 - 8- ll PP/125 CT / 80% Color 1 -8- ll PP/125 CT/80% Color 2 - 12 - 15 PP/125 CT / 80% Color 2 - 12 - 15 PP/125 CT / 80% Color 3 - l6 - 18 PP/ 125 CT / 80% Color 3 - 16 - 18 PP/ 125 CT / 80% Color M-90%Color/15 PP/125 CT M-80% Color/15 PP/l25CT N-80%Color /15 PP/125 CT N-60% Color /15 PP/125 CT O-60% Color/ 15 PP/125 CT O-40% Color/ 15 PP/125 CT 1T - 8- ll PP/100 CT / 80% Color 1T - 8- 11 PP /1 00 CT/80% Color 2T - 12 - 15 PP/ 125 CT / 80% Color 2T - 12 - 15 PP/ 125 CT / 80% Color 31' - l6 - 18 PP/ 125 CT / 80% Color 3T - l6 - 18 PP/ 125 CT / 80% Color As evident in Table 3, consumers evaluated three different crispness levels of apples, 1, 2, and 3. Consumers evaluated three difl‘erent color levels of apples in samples lettered, M, N, and 0. Although the color levels differed, the size and pressure levels were equal for the various colors, as a control. Similarly, consumers evaluated three different size levels of apples in samples A, B, and C, though these were all equal in color and pressure level. Consumers were asked to indicate purchase intention for each basket of apples, choosing flom “definitely would buy” to “definitely would not buy” on a five point scale. Additionally, consumers were asked to rate each basket of apples on crispness, choosing florn “extremely crisp” to “extremely soft” on a five point scale. Consumers were likewise asked to rank each basket of apples on color, size, and “goodness” of the apples 55 on a five point, bi-polar scale. A sample of this questionnaire can be found in Appendix B. Taste Test In the taste test part of the session, consumers tasted three apples of different levels of crispness or fluit condition. Each participant chose an apple out of the basket which contained that level of crispness. The consumers did not know the level of crispness or pressure before tasting the apple, since the apples were only labeled with a code letter. As shown in Table l, the apples used for this taste test were labeled 1T, 2T, and 3T. As with the visual tests, the apples were rated by the consumers on their purchase intentions. The consumers ranked the apples flom “definitely would buy” to “definitely would not buy” on a five point scale. Focus Group Discussion After the taste and visual tests were completed, consumers also participated in a focus group discussion. In this phase, participants discussed the apples they had evaluated, and talked about how and where they typically purchase apples, how they select the apples they choose to purchase, and what apple merchandising tools are most preferred. A list of the questions asked in the focus group can be found in Appendix C. Conversation in the focus groups centered around questions asked by the discussion leader. In addition, interesting and relevant issues which emerged in the focus group setting were pursued further. Often times, conversation would continue on a 56 certain topic when the leader would probe for more detailed answers on especially interesting aspects brought out by the consumer participants. This focus group setting allowed for a better understanding of why the consumers perceive, react, and behave as they do. Although the discussions varied somewhat between each group, over the series of consumer focus groups, certain trends and key words begin to emerge. These trends will be discussed later in this thesis in Chapter 9. 3.7 Advantages of Research Methodologies Used in this Project. Although quite extensive, the planning and coordination of various research methodologies resulted in research which made use of a combination of research methodologies. This combination had several beneficial outcomes. 0 These methodologies provide data on purchase intentions of consumers for difl‘erent quality attributes that can be helpfirl to the Michigan apple industry in planning future strategies. 0 This set of methodologies allows for participants to evaluate actual apples versus evaluating written or verbalized descriptions of apples, as were used in other studies, making the tests very realistic. - These methodologies provide a way to categorize consumer perceptions of size, color, condition, and overall appeal of apples. - These methodologies provide meaningfirl results which can be applied to future marketing and strategic plans by giving a more specific portrait of the consumers’ preferences and behavior in regard to apple purchases. 57 3.8 Limitations of Research Methodologies Used in this Project. - Because of a focus group setting, a small sample of consumers was surveyed. In a focus group setting, it is diflicult for large numbers of consumers to have a discussion. A larger number of consumers for the visual and taste tests would provide more reliable results, but would be more expensive. - The measurement of purchase intentions and preferences by a questionnaire assumes that there is a definite relationship between what a person says and what a person does. Although a person may say they “would buy” a certain apple, this doesn’t guarantee that they will actually buy such an apple. 0 Unlike conjoint analysis, these methodologies do not allow for the relative comparison of the importance of attributes. 58 Chapter 4 RELATIVE IMPORTANCE TO CONSUMERS OF APPLE CRISPNESS, COLOR, AND SIZE 4.1 Introduction. Before the taste and visual test study began, consumer participants were asked to rate the relative importance to them of the three apple characteristics which were evaluated: crispness, color and size. They were asked about this information through a one-page questionnaire which was mailed to them after they agreed to take part in the study (see Appendix A). This completed questionnaire was brought to the visual and taste test session. The results of this questionnaire are reviewed in this chapter. As shown in Figure 15, 63% of the consumer participants indicated that crispness is “extremely important,” to them in their apple purchase decisions. A considerably lower percentage, 25%, stated that color is “extremely important.” Only 8% indicated size as being “extremely important” in their apple purchase decision-making process. These findings are similar to the relative rating results of the earlier telephone survey.1 'InthatstudyCRicksetal.1995),crispnessrankedconsiderablyhigherthaneithercolor, orsirainterms of importance to consumers’ apple purchase decisions. 59 lmpolance of Apple Characteristics Percentage of consumer participants who ranked characteristic as "Extremely Important" Crispness 63 % Figure 15: Relative Importance of Crispness, Color, and Size 60 ____ 4: Im: u__nce of A la Characteristics - Tast & Visual Crispness ' ° (% of consumers) “Extremely Important” 1 63% “Somewhat Important” . 35:1: Combined j 98% “Indifl’erent” 2% I “Somewhat Unimportant” ' 0% “Extremely Unimportant” 3 9']: _ _7 Combined i 0% 4.2 Importance of Cr'mpness. Results of the latest project regarding the relative importance of crispness, color, and size, are summarized in Table 4. As shown, in addition to the 63% of consumers who said that crispness is extremely important to them, an additional 35% of consumer participants said that crispness is “somewhat important.” Thus, a combined total of 98% of the consumer participants said that the crispness characteristic was either “extremely” or “somewhat important.” These results are similar to the findings of the earlier telephone survey (Ricks et al. 1995) where 95% of surveyed consumers indicated that crispness was either “very important” or “somewhat important” to the buying decision. 4.3 Importance of Color. Although a relatively low 25% of the consumer participants said that color was “extremely important,” another 55% of the consrnners said that color is “somewhat important.” Thus, a total of 80% of consumers said that color is either “extremely” or “somewhat important.” Again, these findings are similar to the earlier consmner market research conducted at Michigan State University (Ricks et al. 1995). In that telephone survey, 76% of 61 consumers said that color was either “very important” or “somewhat important” to the buying decision. 4.4 Importance of Size. While only 9% of the consumers said that size is extremely important, a majority, 55%, said that size is “somewhat important.” Thus, nearly two- thirds, 63 %, of the consumers, said that size is either “extremely” or “somewhat important” to their apple purchase decision. When relating these findings to the telephone survey, these results are similar to those found by Ricks et al (1995). In the telephone survey, 64% of surveyed consumers said that size was either “very important’ or “extremely important.” These results document that, as found in the previous telephone survey and in other previous research findings reviewed in Chapter 2, consumers overwhelmingly emphasize the importance of crispness in their overall evaluation of quality for flesh apples. This is one reason why crispness, or fluit condition, was chosen as a characteristic to emphasize in this consumer market research project. 4.5 Importance of Separating “Pm-Purchase” and “Post-Purchase” Attributes. Although it is a very important quality characteristic, the crispness of an apple is a “post-purchase” attribute. That is, it is an attribute that is mainly able to be evaluated by the consumer afler the apples are purchased and eaten. Most consumers cannot accurately distinguish an apple’s condition visually in a pre-purchase setting. This was documented in the visual test phase of this project. Because consumers cannot judge the crispness of apples acctnately before they purchase and taste them, other pre-purchase attributes such as overall appearance, color, 62 and size are important. Yet, if a consumer experiences superior quality in the “post- purchase” attribute of crispness, that experience, according to consumers, is likely to influence the consumer to purchase similar apples again. Many consumers who took part in this research project indicated this behavior pattern in the focus group discussions. For example, some mentioned a preference for Granny Smith because of its “consistency in crispness” in regard to repeated pin-chases. 4.6 Summary. As the Michigan State telephone survey suggested, although crispness is stated by consumers to be the most important attribute to consumers, color and size are also somewhat important in buying decisions at store level. The initial findings flom this thesis assist in confirming the findings of the telephone survey, and providing the grounds for firrther investigation and discussion of what specific levels of crispness, color and size of apples are most preferred by consumers. 63 Chapter 5 CRISPNESS PREFERENCES BASED ON TASTE TESTS 5.1 Introduction. As discussed in the previous section, this project, as well as previous research at Michigan State University, document the importance of apple crispness to consumers. Further, the Michigan apple industry is also interested in knowing more about the specific levels of crispness that are required or most preferred by consumers. Such knowledge can be helpful in developing strategies to improve the performance of the industry, including all levels of the vertical marketing chain for flesh apples between growers and consumers. Consumers who participated in this project evaluated, via taste tests, the crispness of two varieties of flesh apples. Consumers rated three different crispness levels of Red Delicious apples. These were: Low (8-11 pounds pressure), Medium (12 - 15 pounds pressure), and High (16-18 pounds pressure). These levels of crispness or fluit condition were based upon recommendations of apple industry leaders. Consumers also rated the same three different crispness levels of Empire apples. The results flom these taste tests are reviewed in this chapter. The indicated consumer preferences for crispness are those condition levels, as measured by pressure tests, at which consumers say they prefer to eat the apples. The industry, including growers, storage operators, packers, shippers and retailers need to manage production and marketing in ways that as closely as possible, provide flesh apples that are within the preferred range at the time of consumer pmchase. This goal of 64 meeting consumer preferences is, however, complicated and diflicult to achieve at all levels of the apple production and marketing value chain. It requires efficient technical management and coordination as the apples are harvested, stored, packed, etc. in order to achieve consistency and high quality in regard to the condition or crispness attribute. The consumer preferences, as outlined in this report, indicate the needed target levels to strive for in this process. 5.2 Crispness Preferences for Red Delicious. In the taste tests for apple crispness, the consumers who participated in this project expressed a high purchase intent for at least the medium pressure (12 - 15 PP) Red Delicious apples. About the same percentage of consumers said they “definitely would buy” the higher pressure apples (1 6 - 18 PP) as well. As shown in Table 5 and Figure 16, 94% of consumers said that they either “definitely would buy” or “maybe would buy” the medium pressure (12-15 PP) Red Delicious apples. This very high percentage of consumers who indicated that 12 - 15 PP for Red Delicious is adequate to meet their expectations for crispness seems especially significant. This indicates that Red Delicious of 12 - 15 PP at purchase are sufficient to meet the desires of most consumers. 65 Purchase Intentions of Consumers Apple Crispness - Visual Test RED DELICIOUS Medium (12-15) pp /////////¢/////W/// /./,, 0 20 40 60 80 100 Percentage of Consumers I Definitely Would Buy Maybe Would Buy I Combined Figure 16: Purchase Intention for Crispness of Red Delicious 66 Table 5: Purchase Intentions Related to Crispness of Red Delicious firms— are Pressug'gh Press ' (% of consumers) : (% of consumers) ' (% of consumers) . § “Definitely Would Buy” 1 20%» 47% 49% “Maybe Would Buy” are .424 22:4 Combined 38% 94% 69% 18% 2°/o 13% 24% 20% 44% 13% ‘ :4 ; i 18% _ J f‘ “Maybe Would Not Buy” '2 ' “Definitely Would Not As Table 5 shows, the consumer participants indicated they are much less willing to purchase the low pressure apples (8 - 11 PP) than the 12-15 PP apples. F orty-four percent of consumers said they either “definitely would _n_o_t buy” or “maybe would n_ot buy” these lower pressure (8 - 11 PP) apples. This can be compared to the 4% who said that they “maybe would not buy” the medium pressure (12 - 15 PP) apples. This indicates a substantial threshold level or breakpoint for consumer preferences on condition. For the high pressure (16 - 18 PP) Red Delicious, 49% of the consumer participants said they “definitely would buy” while another 20% of consumer participants said they “maybe would buy” these apples. This combined percentage, 69%, can be compared to the 94% who said they either “definitely would buy” or “maybe would buy” the medium pressure Red Delicious. The somewhat lower purchase intentions for the high pressure Red Delicious is interesting. In discussions following the 67 “l taste tests, some consumer participants indicated they thought the high pressure apple tasted immature, and some said the high pressure Red Delicious had “a tough, bitter skin.” These results indicate that the Michigan apple industry needs to strive to provide apples of medium to high pressure at the time of consumer purchase. The consumer participants indicated that the low pressure apples are not likely to stimulate a repeat purchase. By contrast, the better condition apples of at least 12 -15 pounds pressure will likely induce consumers to make repeat purchases of apples based on this crispness level. 5.3 Crispness Preferences for Empire. The taste tests for Empire showed that the greatest percentage of the consumer preferred the Empires with at least the medium pressure of 12 - 15 pormds pressure. As shown in Table 6 and Figure 17, 59% of the consumers said that they “definitely would buy” the medium pressure Empires. Another 24% said that they “maybe would buy” the Empires of this pressure. Thus a combined 83% of the consumer participants said that they either “definitely would buy,” or “maybe would buy” the Empires of medium pressure. bl 6: Purchase Inttions Related to Cris ness fEmllireA les .. Low Pressure Q h Pressure . i (% of consumers) g (% of consumers) , (% of consumers) “Definitely Would Buy” ; 29% * 59% g 42% “Maybe Would Bur” ; _ 9 M : fl’é Combined ; 67% g : 75% I “Indifferent” f ‘ 10% “Maybe Would Not Buy” j E 13% 3 “Definitely Would Not . _ 2 _2_°/: 68 Purchase Interntions of Consumers Apple Crispness - - Taste Test EMPIRE r High (16-18) pp WW 1 l l I 1 Medium (12-15) pp ’ Low (8-11) pp l 0 20 40 60 80 1 00 Percentage of Consumers Definitely Would Buy % Maybe Would Buy Combined % Figure 17: Purchase Intention for Crispness of Empire 69 The consumer responses to the lower pressure Empire (8 - 11 PP) showed that only 29% said that they “definitely would buy” these low pressure apples. This can be compared to the 5 9% who said that they “definitely would buy” the medium pressure (12 - 15 PP) Empire. On the other hand, 38% of the consumers said that they “maybe would buy” the lower pressure Empire. Thus, 67%, of the consumer participants said they either “definitely would buy” or “maybe would buy” these lower pressure Empires. Twenty—seven percent of the consumers indicated that they either “definitely would not buy” or “maybe would n_ot_ buy” the low pressure Empires. Comparing the consumer responses of the medium pressure Empire (12 - 15 PP) to the lower pressure (8 - 1 1 PP) seems to indicate that the greatest consumer satisfaction would be attained if the industry can deliver Empires at the 12 - 15 PP level of condition On the other hand, there seems to be an acceptance by a significant percentage, 67%, of the consumer participants for the lower pressure Empire. Comparing the consumer responses to the medium pressure Empire (12 - 15 PP) to the higher pressure apple ( 16 - 18 PP) provided some interesting results. That is, while 75% of the consumers said they either “definitely . . .” or “maybe would buy” the higher pressure Empire, a somewhat higher number of consumers, 83%, said they either “definitely . . .” or “maybe would buy” the medium pressure Empire. The difference was especially noticeable for the “definitely would buy” category with 59% of the consumer indicating this for the medium pressure Empire, and 42% saying they “definitely would buy” the Empires of higher pressure. 70 Perhaps these results were related to some of the consumers’ perceptions that the taste or maturity levels of the higher pressure Empires were not quite as good. On the other hand, the combined difference was not great, with the combined responses of “definitely . . .” and “maybe would buy” at 83% for the medium pressure Empire and 75% for the higher pressure Empires. 5.4 Comparison of Empire and Red Delicious Regarding Crispness. The acceptance of the lower condition for the Empire by some consumers is especially noteworthy when compared to the consumers’ responses to the lower pressure Red Delicious. That is, while 67% of the consumers said that they either “definitely would buy” or “maybe would buy” Empires of 8 - 12 pounds pressure (see Table 6), only 38% of consumers said they either “definitely would buy” or “maybe would buy” Red Delicious apples at this level of condition. In addition, 44% of consumers said they either “definitely would not buy” or “maybe would not buy” these lower pressure Red Delicious, while only 27% said they either “definitely would not buy” or “maybe would not buy” the lower pressure Empires. This indicates an acceptance by some consumers for a somewhat lower level of condition for Empire than for Red Delicious. 71 6.1 ll chart OH(X COHSI SOUR provi IDOSI numb mail appea. Red D were 8 based L WCTE re; Chapter. Chapter 6 COLOR PREFERENCES BASED ON VISUAL TESTS 6.1 Introduction. Fruit color is, as discussed in an earlier section of this report, a quality characteristic of importance to consumers and trade customers. Although earlier research on consruncr preferences, such as fiom the telephone survey as well as focus group reactions from this project, indicate that the color of fresh apples is less important to consumers than crispness; a majority of consumers have indicated that color is at least somewhat important to them. Thus one important objective of this project was to provide information on the extent of color that is acceptable or preferred by consumers. One objectiveofthevisualtestswasto identitywhatcolor(percentagered)was most preferred by consumers. This aspect seems to be especially relevant in light of a number ofnew varieties, some ofwhich are not highly colored but seem to be accepted, and purchased, by consumers. For the visual test phase of this project, consumers were asked about their reactions to the level of fruit color, their purchase intentions for each color, and the overall appeal to them for each level of color. Consumers rated three different color levels for Red Delicious, 90% red, 80% red, and 60% red color. For Empire, color levels tested were 80% red, 60% red, and 40% red. These levels of color for the two varieties were based upon the recommendations of industry leaders, Who believed mat these color ranges were realistically what could be produced by Michigan growers, and what is generally accepted by trade buyers. The results ofthese visual tests for color are reviewed in this chapter. 72 6.2 Color Preferences for Red Delicious. Results of the visual tests for Red Delicious showed that about the same percentage of consumer participants, 25 - 28%, said they “definitely would buy” either the 80% color or the 90% color apples (Figure 18 and Table 7). A substantial percentage, 53%, of the consumer participants said that they “maybe would buy” the 90% color Red Delicious compared to 42% of the consumer participants who said that they “maybe would buy” the 80% colored apples. Combining these two categories, 81% of the consumers said they either “definitely would buy” or “maybe would buy” the 90% color while 67% said they either “definitely would buy “ or “maybe would buy” the 80% color apples. T_eabl 7: Purcha_tlselntenon for Color Red Delicious A les 607. Color . ('/o of consrnners) (%of consumers) “Definitely Would Buy” 257. 14°/e “Maybe Would Buy” : _ a 14.7.- Combined 1 67% z 48% “lndifl’erent” ; 14% . 22% ‘ “Maybe Would Not Buy” ‘ 13% . “Definitely Would Not ‘ ' _ __-_0Mmd_____ The relatively small difference in the percentage ofconsumers who indicated a preference for 90% color apples versus 80% color apples is very interesting. The similarity in the percentage of consumers who said they would buy either the 80% color or90% coloris surprising inview ofthetraditionally strongtradepreference forvery high colored Red Delicious apples. That is, these results indicate that though trade buyers often insist on buying Red Delicious apples with 90% or better red color, many 73 e E 0.914% yo 50.00 Figur Purchase Intentions of Consumers Apple Color - Visual Test RED DELICIOUS 60% Color pie 80% Color Color of Ap 90% Color 0 20 40 60 80 100 Percentage of Consumers I Definitely Would Buy %// Maybe Would Buy I Combined Figure 18: Purchase Intention for Color of Red Delicious 74 consumers are accepting of somewhat less red color. Two-thirds of consumers said they “definitely would buy” or “maybe would buy” 80% color Red Delicious apples. Thus it seems that for these consumers, 80% color is adequate. A bigger division in preference was noticed between the 80% and 60% color Red Delicious than between the 80% and 90% colored Red Delicious That is, only 48% of the consumers said that they either “definitely would buy” or “maybe would buy” the 60% color Red Delicious compared to the 67% who either “definitely would buy” or “maybe would buy” the 80% colored apples (Figure 18 and Table 7). This suggests that 60% color for Red Delicious falls below a decision threshold and is less than adequate for many consumers. Along with their purchase intentions, consumers were asked about which of the different calmed apples had higll overall appeal, or “goodness” to them. This measure of goodness is viewed as an additional measure of consumer satisfaction with the product. The results for this question showed similar reactions to the purchase intention findings for the 90% color and 80% colored Red Delicious. That is, as Table 8 describes, although 64% of consumers thought the 90% color Red Delicious was either “extremely good,” or “somewhat good,” 55% of consumers thought the same of the 80% color apple. An equal amormt, 36%, of consumers were “indifferent” to both the 90% and 80% color Red 75 60% Color ' (% of consumers) 8% 25% 33% - 90% Color (% of consumers) 12% 21- 64% 80% Color (% of consumers) 10% 45% 55% : “Extremely Good” . “Somewhat Good” : Combined 36% 36% 52% “Indifferent” “Somewhat Bad” 0% 9% 15% “Extremely Bad” 2%. 21-. 9:4. 9 Co_ined ___ 0% 9% _ 157 . These data indi that despite the emphasis frequently given to very high color by trade buyers, only a small percentage of consumers are more likely to purchase 90% colored apples over 80% colored apples. In fact, in discussions following the visual tests, consumers commented that some Red Delicious apples in grocery stores are “too red,” or look “too perfect” for their preferences. 6.3 Color Preferences for Empire. Results of the visual tests for color on Empire showed that the 80% color Empire received much higher rating by consumers than the 60% or the 40% color apples.2 This was the case both in terms of indicated consumer purchase intentions and overall appeal ratings of the apples to consumers. As shown in Figure 19 andTable 9, avery highpercentageofthe consumer participants, 85%, indicated they “definitely would buy” or “maybe would buy” the 80% color Empire. By contrast, only 47% of consumers said the same for the 60% color, and 48% said so for the 40% color apple. This indicates that although most consumer participants were willing to buy an 80% color Empire, a substantially lower percentage 2 These levels of the color range, which were lower than those tested with Red Delicious, were suggested by industry leaders because Empire tends to be less completely colored than Red Delicious. 76 Purchase Intentions of Consumers Apple Color - Visual Test 40% Color 2 o. B < "o' 60% Color b 2 O o 80% “'0' ‘ .‘ _, “yg/I gem/H, ,,/,///1/,/ 1/1/ I f l l . I I 0 2° ‘° 5° 80 100 Percentage of Consumers I Definitely Would Buy Maybe Would Buy I Combined Figure 19: Purchase Intention for Color of Empire 77 were willing to buy the 60% or 40% colored Empire. On the other hand, the results also show that almost as many consumers will buy 40% color Empire as the 60% colored apples of this variety. As indicated by Table 9, only 1% of consumers participants said they “maybe would not buy” the 80% color Empire. By contrast, 24 - 28% of the consumer participants were negative toward the 60% and 40% color Empires in terms of purchase intent. 9: Purchase Intention for Color 0 Em ire A lies 80% Color . 60% Color ~ __ 40 Cr , y ' (% of consumers) I (% of consumers) .3 (% of consumers) ] “Definitely Would Buy” 27% r 18% ' 7% , “Maybe Would Buy” 7‘ 56% 297. = 41% Combined 85% 47% § 48% ‘ “Indifferent” 16% 9 ' 24% : “Maybe Would Not Buy” ' 1% ‘ j 18% “Definitely Would Not _ _ ‘ 10% _ As shown in Table 10, when consumers were asked about the overall appeal, or “goodness” of the apples with different levels of color, there was an overwhelming preference for the 80% color Empire. That is, 69% of the consumers thought the 80% color Empire was either an “extremely good,” or a “somewhat good” Empire. Far fewer of the consumer participants, 37%, thought so for the 60% color. An even smaller amount, of consumers, 28%, said the 40% color Empire was either an “extremely good” or a “somewhat good” apple. None of the consumers rated the 80% color Empire negatively 78 in terms of overall appeal, while 12% of consumers rated the 40% color Empire as “somewhat bad” (Table 10). _____e 10: OverallA l - l for Color ofEm ire Ales l 80% Color 7 60% Color ' (°/e of consumers) (% of consumers) (% of consumers) ; 2 12% I 2% . 1% ; “Somewhat Good” § £4 j _ , Combined ; 69% 1 37% f “Indifferent” 31% : “Somewhat Bad” 1 “Extremely Bad” These results indicate that color, as a “pro-purchase” attribute, may stimulate initial ptu'chases of Empire by many consumers. These data indicate that for many consumers, a relatively high level of red color in Empire could significantly influence the decision to pmehase Empire apples. 79 Chapter 7 SIZE PREFERENCES BASED ON VISUAL TESTS 7.1 Introduction. Results fi'om earlier consumer market research projects, which were completed in close cooperation with the Michigan Apple Committee, indicate that a substantial percent of consumers prefer “medium” apples. In the earlier telephone survey (Ricks et al. 1995), when surveyed consumers were asked, “Do you prefer medium or large sized apples?,” 78% said they prefer “medium” size fi'uit. Because of these earlier research findings, an objective of the research project summarized in this thesis is to provide filrther information on what size of apples fits consumers’ perceptions, and hence their preferences for a “medium” apple. Hopefully, this information on consumer preferences for size, including “medium” size apples, can be useful to marketing efforts of the Michigan apple industry. Perhaps with the consumer market research findings, the Michigan apple industry can influence more trade customers to purchase and merchandise more medium sized apples than in the past for fresh sales from Michigan. This could expand demand for Michigan apples, improving overall industry performance and providing consumers with desired attributes. Consumer participants in the visual tests rated three different sizes of Red Delicious apples. Likewise, consumers rated three different sizes of Empire apples. The results fi'om these visual tests for size are reviewed in this chapter. 80 7.2 Size Perceptions and Preferences for Red Delicious. Consumers were asked to categorize the three different sizes (72, 100, and 125) of Red Delicious. The results show that 72% of the consumers rated the 72 size Red Delicious as “extremely large,” while almost all the rest of the consumers, 27%, considered it to be “somewhat large” (Table 11 and Figure 20). For the 100 size Red Delicious, 58% of the consumer participants said this size is “somewhat large,” with 37% rating it as a “medium” apple. A majority of consumers (52%) rated the 125 size as “somewhat small,” while 34% ranked this as “medium” in size. Thus, these results indicate that most consumers consider Red Delicious that are somewhere between 100 and 125 CT as “medium” size apples. Perce tions for Size of Delicious A Lies . 72 Cl‘ = ' (% of consumers) ('1 (% of commas) (% of consumers) — l 72% 2% w 0% “Somewhat Large” 27% j 58% ». 8% ~ +44 l ; “Medium” 1% ‘ 37% : 34% The research findings on consumers’ pluehase intentions for the different sizes seem to be of particular importance. As shown in Table 12 and Figure 21, while 85% of the consumers said that they either “definitely” or “maybe would buy” the 72 size, almost as many, 80%, said that they either “definitely” or “maybe would buy” the 100 size. In addition, 71% of the consumers said that they either “definitely or “maybe would buy” the 125 size. 81 Perceptions of Apple Size Red Delicious - Visual Test 100 80 60 40 Percentage of Consumers 20 72 CT 100 CT 125 CT Size of Apple l. Extremely Large ' 7 Somewhat Large I Medium [Somewhat Small - Extremely Small Figure 20: Size Perception for Red Delicious 82 Purchase Intentions of Consumers Apple Size - Visual Test RED DELICIOUS o 20 40 60 80 100 Percentage of Consumers I Definitely Would auy Maybe Would Buy I Combined Figure 21: Purchase Intention for Size of Red Delicious 83 Table 12. Purchase Intention Related to Size of Red Delicious A les ' 1_2___5 CT ’ (% of consumers) i (% of consumers) (% of consumers) 55% ‘ 39% 3 33% ‘ . 30% m4 an Combined ’ 85% ‘ MW. 71% “Indifferent” : 11% 19% “Maybe Would Not Buy” I 6% 5 6% “Definitely Would Not Buy , , Combined _ g _ ' These relatively small differences in purchase intentions for the different sizes add support to earlier research which shows that many consumers prefer medium size apples. These results also indicate that carrying either 100 or 125 size Red Delicious in grocery stores would be supported by considerable consumer preferences for and purchases of these sizes. This would be favorable for Michigan which, because of its climate conditions, produces fewer 72 size apples. On the other hand, some consumers, as indicated by the results, prefer the larger apples. That is, there were 53% of consumers who indicated that they “definitely would buy” the 72 size compared to 39% who “definitely would buy” the 100 size and 33% who “definitely would buy” the 125 size. This tends to confirm retail grocers’ common practice of carrying only large size tray-pack Red Delicious. In addition, however, the results on consumer purchase intentions provide evidence to support grocers carrying both a larger size such as 72 and a more medium-size such as 100 or 125. In discussions following the visual tests for size, a number of consumers expressed a “lack of trust” for the quality, in regard to crispness, of large size apples, 34 which, they said, often “disappoint” them in this aspect. Consumers also said that medium to smaller size apples are more likely to be found at farm stands, grower markets, and orchards, which are places that consumers associate with “quality apples.” Consumer participants were asked about the overall appeal or “goodness” of the apples. This aspect provided an additional measure of acceptability for each size of apple. For overall appeal of the three apples of different sizes, the larger apples rated the highest, with 79% of consumers rating the 72 size apples as either “extremely good,” or “somewhat good” (see Table 13). On the other hand, the 100 size apples rated almost as high, with 71% of the consumer participants rating these positively. The “goodness” scores for the 125 size were somewhat weaker, with 58% of consumers rating the size as either “extremely good,” or “somewhat good.” Yet, when the ratings of “extremely good,” “somewhat good,” and “indifferent” are combined, the overall appeal scores are very similar; 98% for 72 CT, 96% for 100 CT, and 96% for 125 CT. This indicates that none of the sizes were viewed negatively by consumers. The relatively high ratings by some consumers for medium size apples seems to offer another measure of relatively high consumer acceptance for the more medium sizes which may be of good potential for Michigan. 85 (% of consumers) (% of consumers) ; (% of consumers) z : 34% 16% 6% ' ‘ “Somewhat Good” ' 15% 55% , 52% Combined ; 79% ; 71% = 58% “Indifferent” 19% 25% “Somewhat Bad” i 2% f 4% “Extremely Bad” 2 g » 7.3 Size Perceptions and Preferences for Empire. Despite indicated consumer preference for medium sized apples, consumer participants in this project’s visual tests rated the 100 size Empire considerably higher than the 125 and 148 size apples. Similarly to Red Delicious, consumers were asked to categorize three tested sizes of Empire. For Empire these were 100, 125, and 148. As Table 14 and Figure 22 indicate, over halfof the participants, 54%, perceived the 100 size as “somewhat large.” The results also show that 29% of consumer participants perceived the 100 size as “extremely large,” for a total of 83% of the consumers ranking it in the “large” category. _We tions of . _' 1% _ (% of commas) ' (% of consumers) 1 “Extremely Large” : 29% 0% , “Somewhat Large” 54% _ * m Combined ] $% 2% ; “Medium” % 15% i w 13% ' “Somewhat Small” : 66% ‘ “Extremely Small” 19% ‘ ‘ $70 86 Perceptions of Apple Size Empire - Visual Test 100 E so 5 60 "6 g‘ 40 § 20 n. 0 1oocr 125 er 148 cr Size oprple I Extremely Large I Somewhat Large ‘ ' Medium Figure 22: Size Perception for Empire 87 For the 125 size Empire, over half, 54%, of the consumers ranked this size as “medium,” while 31% perceived this size Empire to be “somewhat large.” Only 15% of the consumers rated the 125 CT Empire as “somewhat small.” These results indicate that consumers perceive 125 size Empire to be medium to somewhat large in size. The reactions to the 148 size Empire were that 66% of consumer participants rated these as “somewhat small,” 13% rated it as “medium,” and 19% perceived it as “extremely small.” These reactions indicate that the 148 size tray pack Empire was perceived as small. Purchase intention results for size indicate flrat consumers are more likely to purchase the largest size Empire tested, 100 size (Table 15 and Figure 23) than either of the smaller sizes. Eighty-eight percent of consumers said they “definitely would buy” or “maybe would buy” the 100 size Empire. On the other hand, nearly two-thirds of the consumers, 65%, said they either “definitely would buy,” or “maybe would buy” the 125 size Empire. For the 148 size, nearly half said they would buy this size. But nearly as many participants, 40%, said they either “maybe would not buy,” or “definitely would not buy” the 148 size Empire. These results indicate that a substantial majority of consumer prefer either the 100 or 125 size Empire. 88 Purchase Intentions of Consumers Apple Size - Visual Test EMPIRE 0 20 40 60 80 100 Percentage of Consumers I Definitely Would Buy Maybe Would Buy I Combined Figure 23: Purchase Intention for Size of Empire 89 . (% of consmners) (°/o of consumers) (% of consumers) E ; “Definitely Would Buy” 50% ' 25% 5 14% ' j “Maybe Would Buy” 38% 40% fl ' Combined 88% 65% 48% ; “Indifferent” 29% 12% “Maybe Would Not Buy” .' 4% ‘ 23% “Definitely Would Not Buy -. _ : 12% ‘ _ined . : - _ _ __ _ _ _ 40% The ratings for overall appeal for different sizes of Empire were similar to the purchase intention results, with 76% of consumers saying the 100 size Empire was either “extremely good,” or “somewhat good.” Although 50% of consumers rated the 125 size Empire positively, 49% were indifferent. Again, the ratings for the smaller, 148 size Empire were lower (Table 16), with 34% of the consumer participants saying the apples were either “extremely good” or “somewhat good.” Thus the consumer responses on overall appeal of the apples again favor the large sizes of Empire. , le 16: 0v (°/o of consumers) : 32% “Somewhat Good” 14% Combined . 76% 7 “Indifferent” I 22% “Somewhat Bad” 5 “Extremely Bad” 90 7.4 Comparison of Empire and Red Delicious Regarding Size. In light of the Red Delicious results for size, results fiorn the Empire tests indicate that size perception is relative by variety. This is evident by comparing the results of both the 100 size Empire and 100 size Red Delicious, as illustrated in Table 17. Table 17: Perce utions for 100 Size A les Em ire vs. Red Delicious EMPIRE RED DELICIOUS (% of consumers) (% ofconsumers) ' “Extremely Large” : 29% 1| 2% “Somewhat Large” ' 54% ’ 58% Combined 83% F 60% 7 “Medium” ‘ 15% 37% “Somewhat Small” 2% 3% “Extremely Small” ; " M Combined I 3% The majority of consumer participants, 54%, rated the 100 size Empire as “somewhat large.” Although a similar percentage of consumers rated the 100 size Red Delicious as “somewhat large,” 37% of consumers said it was “medium,” versus 15% of consumers who rated the 100 size Empire as medium. These data are compared in Table 17. In addition, 29% of consumers said the 100 size Empire was “extremely large, “ while only 2% of consumers said the same for the 100 size Red Delicious. Theseresults indicatethatconsmnerperceptions ofwhat isa“large”or“medium” apple are dependent somewhat upon variety. For instance, with Red Delicious, since consumers are more likely to see larger sizes of apples displayed in tray-pack more ofien, thus the perceptions of size may be based on these previous shopping experiences. 91 Although the results for Empire tend to indicate an overall preference for the larger, 100 size apples, results for the 125 size were generally favorable too. These research results indicate that consumers prefer Empire sizes between 125 and 100. 92 Chapter 8 CONSUMER PREFERENCES FOR BAGGED APPLES BASED ON VISUAL TESTS 8.1 Introduction. Bagged apples are very important to the Michigan apple industry because they represent a large majority of the state’s fi'esh apple sales. Therefore, the opinions and preferences of consumers regarding bagged apples may be quite important to the strategic planning for that sector of the Michigan apple industry. Shippers, packers, growers, and trade customers can hopefirlly use this consumer market information to further improve performance in bagged apple sales. In addition to tray-pack Red Delicious and Empire, consumer participants in this project visually examined and rated bagged Red Delicious or Empire apples on a number of aspects including purchase intentions and overall appeal. The sizes of apples in these bags were a minimum of 2 1/2 inches in diameter, thus approximately between 136 and 148 CT size. In the focus group discussions following these visual tests, consumers expressed their likes and dislikes concerning bagged apples. The results of the visual tests and the focus group discussions follow in this section. 8.2 Purchase Intention for Bagged Apples. As Table 18 indicates, the consumer participants rated tray-pack apples much more positively than the bagged apples. While only 35% of the consumer participants said that they either “definitely would buy” or “maybe would buy” the Red Delicious in bags, 85% of the consumer participants said the 93 Haw—o Hm" 5.3.53 3.2.33. m2. wanna >628 5. 9:: >618 Bow—1H Camera—M Zak—5 9.52:3 man—5263 Snug 29:5 don—:8— cSEE 6339.33 «SEE 9.x $6....— w=K 23 wen 23 FE ax. cm Ae\e om. ax. ax. om. Ae\e 0303:30an ax. 0m Sagnav Ace om. 0035—303 w OOH—magnum ~ Omooamcannm " OOSu—uaofiw ~ OODwEdo—d won :2. meme 3.x. See 3.x. 3.x. 3.x. 3.x. 3.x. ”on Car .5 OH muck. wce\o «MAX. me\e 9X. 9X. 9X. we.— 9:. :5 n... ”3.x. 3.x. 3.x. :ee 9x. “fix. 0.3 Pa 61. Sm OH 3.x. 3.x. 2.x. 3.x. a..\.. 3.x. 8.x. Maura meme qe\e mix. 3X. ”3.x. 3.x. qo\o wax. NEE—6 :5 ha. mee\o ume\e mag oo\e Ae\e ~e\e QX. ESE—d Bu 0H Muck. A:e\o mmfe Meek. fix. No\e 9X. ESE—e In nu, 3.x. mix. 3.x. 3.x. 3.x. 3.x. 3.x. 94 same for the 72 size tray-pack apples. Similarly, 80% of the consumer participants said they either “definitely would buy” or “maybe would buy” the 100 size Red Delicious and 71%, of the participants, said they would buy the 125 size Red Delicious fi'om bulk retail displays. These data indicate a significantly higher purchase intention by the consumer participants for the sizes of tray-pack Red Delicious apples that were evaluated versus the bagged Red Delicious. Compared to the Red Delicious tray-pack apples, 3 larger proportion of the consumer participants, 45%, said they would p91 buy the Red Delicious in bags. Only 9% of the consumer participants said they either “maybe would not buy” or “definitely would not buy” the 72 size Red Delicious. An equal amount, 9%, said the same for the 100 size Red Delicious, and 10% said the same for the 125 size Red Delicious. These data again indicate that consumers are less likely to pmchase bagged Red Delicious apples over tray-pack Red Delicious. In the Empire tests, 45% of the consumer participants said they either “definitely would buy” or “maybe would buy” the Empire in bags. A similar percentage, 48%, said they would buy the 148 size tray-pack apples. As mentioned earlier, the bagged apples varied in size between 136 and 148. Thus, these data indicate that consumers are less likely to purchase these smaller sizes of apples regardless if they are bagged or not. By comparison, a much larger percentage, 88%, said they would buy the 100 size tray-pack Empires. Nearly two-thirds of the consumer participants, 65%, said they either “definitely would buy” or “maybe would buy” the 125 size tray-pack Empires. 95 As with the Red Delicious, the consumer participants indicated they would be less likely to purchase bagged Empires versus tray-pack. While 26% of the consumer participants said they either “maybe would not buy” or “definitely would not buy” the bagged Empires, only 6% of the consumer participants said the same for the 125 size and the 100 size tray-pack Empires. However, a greater percentage of the consumer participants, 40%, said they would not purchase the 148 size apples. These data indicate that although consumers may be more likely to purchase tray-pack apples, there is some threshold size where the acceptance and purchase intention levels for tray-pack apples diminishes. Although the bagged Empire apples were likely to have been between 136 and 148 in size, consumers preferred them over the smaller, tray-pack Empires. This is a significant finding considering the indicated low purchase intention for bags overall. 8.3 Focus Group D'mcussions on Bagged Apples vs. Tray Pack Apples. In the focus group discussions which followed the visual test ratings of the bagged apples, consumer participants further explained their negative attitudes toward bagged apples. Many consumers described previous bad experiences with bagged apples, in terms of condition of apples at the time of purchase. Several consumers mentioned poor quality in association with bags, believing that bagged apples are “lower grade” apples. For example, a woman said although she often buys bagged apples, she “knows she’ll have to throw half of them away.” Many of these comments stemmed from experiences where consumers bought bagged apples, then discovered that many of the apples were bruised. 96 Consumers mentioned that “not being able to see, touch, and smell the apples” hinders the decision to pm'chase bagged apples. Several consumers said it is difficult to see apples in bags because of the colored logos on the bags, thus these consumers were unsure about the quality of the apples inside. Some consumer participants mentioned that bagged apples are good for cooking, because appearance is of less importance. On the other hand, several other consumers said that they were less likely to buy bagged apples for cooking because, since they are smaller, they would have to peel and slice more apples. These consumers said they would rather buy a few large apples for use in cooking. A few consumers said they favor bagged apples. Some of these consumers said they buy bagged apples out of convenience, or because the price is so low. A few consumers mentioned that bagged apples are often featured as a “buy one get one flee” item. Inaddition, several consumers mentionedthatcertainvarietiesareonly sold inbags, andthusmustbeboughtbagged, ifatall. Theseconsumers mentionedthatalthoughthey buy the variety in bags, they would prefer to choose their own apples out of a bulk display because they could be assured of higher quality. When they do buy bags, the consumer participants indicated they are most likely to buy them at certain times of the year. Consumer participants most often mentioned buyingbaggedapplesinthefalleitheringrecerystores,atorchards,andatfarmmarkets. Theseconsumers saidtheybelievethequality ofbaggedapplesisbetterinthe fallthan later in the winter or spring. 97 In addition, some consumers said they are more likely to buy certain varieties in bags more ofien. These varieties tend to be the varieties with smaller sized fi'uit. Some said that they buy them to be given to children or put in school lunches. Some consumers mentioned that varieties like McIntosh are sometimes only found in bags, thus had to be pm'chased in bags. 8.4 Overall Appeal of Bagged Apples. The data from the overall appeal ratings portion of the visual tests reiterate the negative attitudes many consumers have towards bagged apples versus bulk. As evident from Table 19, the consumer participants rated the tray- pack apples more positively in terms of the overall appeal or “goodness.” While 24% of the consumer participants said that the Red Delicious bags were either “extremely good” or “somewhat good,” a much higher, 79%, of the participants said they same for the 72 size Red Delicious. Slightly less, 71%, said the same for the 100 size, and 58% rated the 125 size as good. Therefore, all sizes of the tray-pack Red Delicious were rated much higher by consumers in regard to overall appeal than were the bagged apples. One quarter of the consumer participants, 25%, perceived the bagged Red Delicious as either “somewhat bad” or “extremely bad,” while far fewer of the participants viewed the tray-pack Red Delicious negatively. Only 2% of the consumer participants perceived the 72 size as “bad.” The 100 and 125 sizes of tray pack Red Delicious were rated “somewhat bad” or “extremely bad” by only 4% of the consumer participants. 98 Haw—a G” Cod—s: >35: n2. Wanna.— >E=ee <9 9:.» >628 Bow; H.565 1K meEefiE: 623233 Egan—.2: meant—.3 H533 2K ficgmamm neon Gee.— wlean we; l.|l|l. ax. an ax. ow ax. cm Ae\e an ax. cm Ao\e 2. ax. cm 00—56303 ooawcaoaw 8:95.53 " non—«=33 w coaucaoaw oozwgoaw 839—503“ ”on Car Wane a e\e nae}. Neg MN e\.. M: .x. u o\e Nmfie we; 52. an he uAe\e Amok. flog meek. N .x. 9.x. Ne\e ”an 52. :5 he. —a..\.. mme\o :e\e Mue\o Ae\o coke fix. we. :2. 5m OH a e\e m~e\e m Max. 3.x. u o\e H e\o fix. mus—:2" meme —e\e 3.x. Hex. 3.x. ace co\o 9x. SEE—6 :5 OH. wNe\e h3.x. qae\e NNe\o Nfi. ¢e\e MAX. H.533 “Nu GA. qe\e k3.x. meo\e amok. 7x. cox. ~e\e @523 in 0H. m..\.. Neck. wag mafia HNe\e cox. 5.x. 99 The overall appeal ratings for Empire in bags were similar to the purchase intention results of bagged vs. tray-pack Empires. Less than a quarter of the consumer participants, 23%, said that the Empire in bags were either “extremely good” or “somewhat good,” while over three-quarters, 76% of the consumer participants said the 100 size Empires were good. Though 50% of the participants said the 125 size was good, slightly less, 34% ranked the 148 size Empire in the good category. The Empire in bags were not rated quite as negatively as the bagged Red Delicious. Only 6% of the consumer participants said the Empire bags were either “somewhat bad” or “extremely bad.” Two percent of the consumer participants said the 100 size Empire was bad, and even fewer, 1%, of the consumer participants said the 125 size was bad. Yet 12% of the consumer participants said the 150 size Empire was either “somewhat bad” or “extremely bad.” These data again illustrate that although the bagged Empire apples are generally preferred less than the tray-pack Empires, there is a size threshold to the acceptance level of tray-pack Empires over bagged Empires. This preference for the bagged Empires over the smallest tray-pack Empires may be due to the fact that the bagged Empires were larger in size. 100 Chapter 9 Highlights from the Focus Group Discussions 9.] Introduction. During the focus group phase of this research project, the consumer participants further discussed their preferences and buying behaviors regarding fiesh apples. This focus group format allowed for some expression of ideas and individual preferences as well as synergistic discussions by the consumer participants. During these focus groups, several themes and issues emerged and were repeated. These patterns of consumer perceptions are important to discuss since they indicate possible future preferences, behavior patterns, and concerns of consumers which may help to guide appropriate future strategies of the Michigan apple industry. In the following paragraphs some of the most often mentioned issues and concerns are discussed. 9.2 The Importance of Crispness to Apple Quality. In the focus group discussions, consumer participants were asked about what is most important to them regarding the quality of fresh apples. Clearly, consumer participants most often expressed the overall importance of crispness to the overall quality of an apple. Many consumers said that buying soft, mushy apples is the main reason they would decide to not buy certain apples or an apple variety again. These consumers indicted that soft, mushy apples are often found in the retail environment. Surprisingly, a number of these consumers rmderstood that soft apples may be a result of low or no refrigeration and poor handling at the store 101 level instead of poor handling by growers or shippers. One focus group participant stated these thoughts as follows: . . .even if the grower could grow the perfect apple, it goes on to processing and further handling. There can be a lot of damage done in that process, so I think the overall quality is a function of the whole process, from the picking of the apple to the time it is in the store and handled by the consumer. .. These comments emphasize the need for quality control throughout the production, shipping, and merchandising process. This information can assist the Michigan apple industry in communicating to trade customers the importance of proper refiigeration for apples as they are transported through the marketing chain. For instance, retail produce departments can do more to preserve the quality of apples by refrigerating them. 9.3 Influencing Consumers to Buy a New Variety. Initial purchase of a new variety of apple as well as sustained repeat purchases are very important to the overall long-term success of new varieties in the retail environment. As part of the focus group discussion, consumers were asked, “What would most influence you to buy a new variety of apple?”. In answering this question, consumer participants most often mentioned that they would like to taste or sample the new apple variety. In addition they mentioned wanting information about the new apple’s characteristics as a way to be introduced to a new variety through sampling. Some consumers mentioned that because apples brown so quickly, it would be necessary for a demonstration representative, or store employee to be in the produce department, cutting the apples as people shop. Consumers mentioned 102 that this person should be knowledgeable about the apple in order to discuss it and its characteristics with consumers. In addition, a low price, or special promotion was mentioned by many consumers as a feature that would encourage them buy a new variety of apple. However, these consumers mentioned that low-priced apples must be high in quality, rmblemished, and appear fiesh. In other words, consumers are very unwilling to sacrifice quality for a lower price. Several consumers stressed that they would be much more likely to purchase new varieties of apples from a tray-pack display rather than in bags. These consumers prefer tray-pack because they can only buy a few apples to see if they like the new variety before buying an entire bag. They said that they would be reluctant to buy a whole bag of a new variety the first time they tried it. In general, these consumer comments indicate that high quality information about the variety and a promotional/price campaign are important to the success of a new variety. 9.4 Apples in the Retail Environment. Consumer participants spent a small portion of the focus group sessions discussing how and when apples are purchased and their previous apple buying experiences. Many consumer indicated displeasure with seeing grocery store employees “abuse” apples, causing bruises and blemishes. These consumers said many times they see produce employees literally dumping boxes of apples onto displays. Thus, the consumers were less likely to buy those apples, fearing that the quality would not be 103 good due to this in-store damage. A few consumers also mentioned seeing bags of apples piled “too high.” These consumers perceived that the apples at the bottom of these displays would be bruised. Several consumers said they avoid apple displays if produce employees neglect to remove bad or unappealing looking apples. These consumers mentioned that if they see several bad apples in a display, they perceive that the quality of those apples is low. Thus the saying, “one bad apple spoils the bunch” seems to be what some consumers perceive to be true. A number of consumers mentioned that apples are also often abused in the check- out lane by cashiers or baggers. These consumers mentioned previous retail experiences where apples were placed at the bottom of a grocery bag, with other heavier items placed on top of the apples, bruising the fruit and thus reducing the quality. Many consumers mentioned that they think the treatment of apples at the retail level is often the most important step in quality assurance. For example, a consumer participant noted, “if the apple is abused at the store, or on the way out of the store, the quality is totally gone.” This market information is very important considering that the retail environment is the last step in the apple marketing value chain before the apples reach the consumer. This consumer realized, as the Michigan apple industry has emphasized, that grocery retail employees and trade customers must understand the importance of apple refiigeration and handling as a key to insuring quality handling to the consumers. Thus, this information about how consumers pereeive the retail treatment of 104 apples could be utilized to communicate the importance of quality control to trade customers. In the focus group discussions, consumers were asked to describe aspects of the retail environment which attract them to apples, or influence them to buy apples. Many consumers indicated that although they don’t necessarily choose the more attractive, bright, shiny apples, those apples are often very important in attracting them to the apple section of the produce department. A consumer participant mentioned, for example, that he “looks for the big, shiny, red apples, then goes over and buys the bagged apples.” On the other hand, some consumers mentioned being turned off by apples that look “too perfect” in terms of color and shine. Many consumers said they enter the produce department looking for a certain variety and proceed directly to it. These consumers expressed positive previous experiences with these varieties which they look for because of these consistencies in quality. Granny Smith, Gala, F ugi and McIntosh were mentioned as varieties consumers often look for in the produce section. Most consumer participants said that the overall appearance of apples in apple displays is of greatest importance. Many consumers expressed being turned off by bruisedorblemished fruit. Infactthiswas givenasareasonmany consumersdecidenot to buy certain apples. This result is similar to earlier findings in the telephone survey where consumers said that “unblemished and unbruised” was the second most important factor in the apple purchase decision. 105 9.5 Information for Consumers About Apples- - Needs and Desires. When asked about the need for more information about apples, consumers most often mentioned the need for more information about the characteristics of specific varieties of apples, information about the different uses for apples based on variety, and information about the nutritional quality of apples. In general, consumer participants said they would like more information about apples. Consumers are not only interested in what different apples can be used for (cooking, eating, etc.), but they are also interested in knowing more about the characteristics of apples such as flavor and crispness level of certain apple varieties. Several consumers mentioned that this type of information is more often available in the fall, but should be available year - rotmd. Although a few consumer participants recalled seeing consumer information about apples in larger grocery chains’ produce departments, on small signs, far more of the consumer participants did not mention seeing it in these traditional retail outlets. Yet many consumers did mention seeing consumer information about the different characteristics of varieties of apples, and uses for those varieties at farm markets and orchards. These consumers said that this information was often printed on eye-catching, big, colorful signs, which were attractive and easy to read. In addition, these consumers said that employees at these outlets are more often able and willing to give information about the different varieties of apples than employees of traditional grocery produce departments. 106 This information indicates that the presentation of information about varieties of apples at farm markets and orchards may have more of an impact on consumers than the information presented at traditional grocery stores. 9.6 Variety Preferences. Favorites - Granny Smith - McIntosh 0 Golden Delicious - Older varieties found on orchards (eg. Northern Spy) Most consumers said that they liked the above varieties because of the taste and consistency in high quality condition. Because these consumers had positive buying and eating experiences with these apples, they said that they tend to buy them over and over again Dislikes 0 Red Delicious 0 Soft, mushy apples The dislike for Red Delicious fi'equently was expressed during the Red Delicious taste tests, when consumers said they didn’t like Red Delicious because of previous bad experiences with this variety. These erqreriences were usually associated with phrases like “[Red Delicious have] poor or no flavor,” “[Red Delicious are] mealy, mushy apples,” or “[Red Delicious] apples are too big.” Interestingly, the Red Delicious apples that were tasted in the taste tests were described as “surprisingly good” by a high number of the consumer participants. Many said that they “don’t usually buy Red Delicious of this quality.” This indicates that by 107 the time consumers purchase and eat Red Delicious apples, they are likely below the quality levels preferred in the consumer taste tests, (i.e. 12 - 15 pounds or higher.) 9.7 Purchases from Farm Markets and Orchards. A number of the consumer participants indicated a preference for buying apples directly from farm markets, road- side stands, and U-pick orchards, especially in the fall. Some consumer participants said they prefer apples fi'om these outlets because the apples tend to be better and seem more “natural.” Many consumer participants tend to positively associate these types of retail outlets with freshness, crisp apples, unwaxed apples, knowledgeable employees, and more product information about each variety of apple. Consumers said that at these types of retail outlets, they can taste certain varieties of apples before they purchase them, which helps to influence purchase of those varieties, and give the consumers new information about the variety. This indicates again the importance of tastings and information about certain varieties to influence purchases. 9.8 Dislikes Regarding Fresh Apples. When consumers were asked about what they don ’t like about apples, consumers mentioned the PLU stickers that are placed on individual apples, wax, pesticide residue and the limited availability of organics. Consumers said that they don’t like the PLU stickers for several reasons. Some consumers said that the stickers are hard to remove, or that the apples are damaged when they remove the stickers. Several consumers also said they are not sure what the sticker is made of, or what kind of adhesive is used to apply the sticker. These comments were sometimes from mothers of small children, who were concerned about children accidentally eating the stickers. 108 On the other hand, some consumers mentioned that they rmderstand the need for the stickers in terms of pricing. Because there are so many varieties of apples in grocery stores now, these consumers said they do not want to be charged the wrong price for apples. In addition, several consumers indicated that the stickers with “lift-off tabs” are easier to remove than the other stickers. Some consumer participants mentioned that stickers with more information would be helpful. In this regard, the consumers mentioned several informational aspects such as, variety name, suggested uses, organic (if the label applies), nutritional information, and flavor (sweet or sour) as items that, if placed on a PLU stickers, would make the stickers more informative and helpful to the consumers in their purchase decisions. Although some consumers mentioned that they like shiny, waxed apples, some other consumers mentioned that they don’t like wax, preferring the flesh, nattual look of apples. These consumers mentioned preferring apples flom orchards or “just picked fl'om a tree.” Some consumers said they don’t like fire wax that is applied to apples, they think itmaybebadorharmfirl. Theseconsumers saidtheywantmore information aboutthe safety of the wax, and its ingredients. Many of the consumer participants in the focus groups said they understand the need for pesticides, but were unsure about the safety and long-term effects of their use. Although a large number of consumer participants stressed the desire for unblemished and unbruised fluit, some of these same consumers mentioned concerns about pesticide residues. This dichotomy is interesting and could be an area for future research. It may 109 be helpful to investigate what amount of damage, due to a reduction of pesticide use, would be acceptable to consumers. A few consumers mentioned that they tend to look for “organic” apples when shopping. These consumers mentioned that “organic” apples are hard to find, and, most often, are much more expensive than “non-organic” apples. These consumers said they would buy “organic” apples if they could find them regularly and afford them. The discussion did not include the extent of damage these consumers would accept with “organic” apples. 110 Chapter 10 SUMMARY 10.1 Introduction. In order to effectively compete for flesh market sales, Michigan must continue to provide apples with characteristics that are desired by consumers. The main purpose of this thesis is to provide the Michigan apple industry with more specific information on consumer preferences for flesh apples in regard to various aspects of quality. In this research project, taste and visual tests of apples were used to investigate consumer preferences for crispness, color, and size. 10.2 Review and Implication of Findings. In terms of crispness, consumer participants expressed a high ptu'chase intention for apples with at the least the medium pressure (12 - 15 PP) for both the Red Delicious and Empire apples. At lower pressures (8-11 PP) the consumers’ indicated purchase intention percentages were significantly lower. The results in regard to crispness seem to indicate that the highest customer satisfaction will be attained if the industry can deliver at least 12 - 15 PP apples to consumers at the time of prn'chase. However, during the taste tests, consumer participants were quick to say that they are rarely impressed with the crispness levels of apples they buy at grocery stores. Many consumers mentioned that when they do buy crisp apples, they tend to buy the same variety of apple again, concerned that a new choice may not be as crisp. 111 This information regarding the specific preferences for crispness is especially relevant due to the importance placed upon crispness by both trade customers and consumers. This data indicates that the quality level of apples, in terms of condition, is very important to consumers. The Michigan apple industry can utilize this data to continue to communicate to trade customers the importance of maintaining apple quality throughout the apple marketing process. In terms of color, for Red Delicious, there was very little difl'erence in the percentage of consumers who said they would buy the 90% color versus the 80% color. Though for Empire, consumers indicated they were significantly more willing to buy the 80% color than the 60% or 40% color apples. Newer varieties of apples with less than full red color have, to some degree, expanded the apple color palette for consumers. In focus group discussions, consumers indicated a preference for some of these newer varieties, like Gala and F ugi. Because of positive experiences with these varieties, in regard to quality, many consumers indicated they are more willing to try new, “different” types of apples, regardless of the color. Again this data can be helpfirl to the Michigan apple industry - trade relations, perhaps in influencing trade customers to reduce the historic emphasis on high red color when purchasing apples. Data flcrn this research project indicate that consumers may be about as willing to buy 80% color apples versus 90% color apples. Overall, consumers tend to be more concerned with the outer appearance of apples rather than the extent of red color, desiring apples that are rmblemished and unbruised. In addition, as reported in 112 Chapter 4, only 25% of surveyed consumers consider color to be “extremely important” in the purchase decision. In earlier consumer market research efforts, specifically the telephone survey conducted at Michigan State, consumers indicated an overall preference for “medium” sized apples versus “large” or “small” apples. A priority of the visual tests in this current research project was to estimate what size of apples consumer perceive to be “medium,” and whether they prefer them over “larger” or “smaller” apples in terms of purchase intention. For Red Delicious, consumer participants perceived a “medium” size Red Delicious to be somewhere between 100 and 125 size. On the other hand, 85% of the consumers said they either “definitely would buy” or “maybe would buy” the 72 size apple. This apple, the largest of the three that were evaluated, was perceived by 72% of consumers to be “extremely large.” But, nearly as many consumers, 80%, said they either “definitely would buy” or “maybe would buy” the 100 size apples, and 71 % of the consumers said they would “definitely would buy” or “maybe would buy” the 125 size apples. For Empire, consumer participants indicated they were somewhat more likely to purchase the largest, 100 size Empire versus the 125 or 150 size Empires. Consumers tended to categorize this size apple as “extremely large” or “somewhat large.” Although consumers perceived the 125 size Empire as “medium,” 65% of consumers said they would buy it. 113 In the focus group discussions, consumers indicated that although size is not the most important characteristic which influences purchases, it is somewhat important in the overall appearance of apples. Consumers said that many apples they see in grocery stores are “too large.” In addition, the 72 size Red Delicious apples and 100 size Empires were often indicated by the consumers as “good” or the “favorite” of all the baskets of apples evaluated during the visual tests. These data and the above Empire and Red Delicious results tend to indicate that consumers are not quite as devoted to “medium” size apples as the telephone survey indicated, but they are looking for smaller apples in tray-pack or bulk retail displays. Consumer participants indicated a preference for tray-pm]: apples versus bagged apples which they have purchased in the past. These consumers said they are often disappointed in the poor quality of bagged apples. In addition, they said they prefer to be able to choose their own individual apples, in smaller quantities to insure quality of the ones they select, and to provide variety in selection. The information about consumer preferences for bagged apples is very important considering the volume of apples produced in Michigan that are marketed in bags. However, in recent years, the Michigan apple industry has made it a priority to increase the volume of apples that are sold as tray-pack. In light of this consumer information on bagged apples, this goal seems to be consistent with the preferences of many consumers. Important findings fl'om the focus group discussions included; the repeated importance to consumers of crispness to the overall quality of apples, the importance of in-store tastings and samplings to encourage purchase of new varieties, concerns about the 114 handling of apples at the retail level, the need for more consumer information about the characteristics and uses of apples, the importance and positive retail atmosphere of farm markets and orchards, and consumer concerns about PLU stickers, wax, pesticides, and the availability of “organic” apples. This research project provides information about specific consumer preferences in regard to hit condition, color, and size. These results can be used along with and to build upon the consumer market research results from the earlier telephone survey and consumer focus groups. It is intended that this market information may be used to refine industry strategies to meet these consumer preferences in a high performance fashion. 10.3 Recommended Methodologies for Future Research. The methodologies used for the visual and taste tests and the focus group discussions were somewhat simple, yet effective at gathering a large amount of useful data. I recommend these methodologies, but advise (1) extending them to cover more apple attributes and (2) analyzing the data more effectively through different, more advanced analysis. In terms of additional attributes, in the initial survey which is sent to the consumer participants before the testing sessions (see Appendix A), I advise asking consumers about the importance afl of the attributes that were included in the telephone sm'vey (see Ricks et a1. 1995). This would allow for the studies to be more directly compared. In addition, I would investigate the consumers’ preference for the flavor of the apples that are tasted. Thus the researcher would gain a much richer understanding of consumers indicated purchase intentions, especially in the case of higher pressure apples. For instance in this study, high pressure apples were described to be less flavorful than 115 the medium or low pressure apples, but because flavor was not directly measured, this relationship could not be reliably documented. Finally, I would advise analyzing the consumer preference data with a more advanced conjoint analysis model or a similar method which would allow for an understanding of the relative importance of each attribute tested for each evaluated apple. For instance, such a model could indicate for each category of apples whether color was preferred over size, size over condition, etc. Due to time constraints, this data could not be analyzed with conjoint analysis or a similar model. However, firture researchers could use the consumer preference data fl‘om this study for comparison to future findings in a conjoint analysis model. 10.4 Implications for Future Research Efforts. Although this research project produced results which may be of use to the Michigan apple indusn'y, these results also indicate areas which may be important to future consumer research project planning efforts. In addition, many lessons were learned dming this research project which may assist others when planning consumer research projects involving apples. These ideas and advice follow in this section. 10.5 Areas for Future Research. In this project, detailed, specific information was gathered for two varieties of apples, Red Delicious and Empire. This variety information will be very useful to the Michigan apple industry when planning variety-specific planting and production strategies. However, the responses and consumer preferences varied by variety. Thus it is recommended that additional varieties be evaluated with visual and taste tests. For instance, Granny Smith and Gala were mentioned by many 116 consumer participants as being favorite varieties, and thus more information about specific consumer preferences for them may be helpful to the Michigan apple industry. In addition, it would be useful to test new varieties or varieties that are being developed in order to gain insight into consumer’s preferences for their attributes before the varieties are in full scale production. Such research on emerging varieties could alleviate losses that might occur if the variety was planted by many farmers, but disliked by consumers. 117 APPENDICES 118 APPENDIX A QUESTIONNAIRE 119 28:9 388 38.» 90 2528 £30: com” damage «.9: v2.83— 838. do Ba. :5 slang... cm a: wee—o we” manage—v. moans—Sn Hanan—63 moaoirfi mange—v. H5332: ~83nt €339.32: Camaeonea Ho So. :8 38.. c». we mean mm” managed—v. message: bananas" moans—e: @3357. ~38nt ~33nt diatoms“: deflate—.82 do So. :5 mummlom m: wee—o mm” managed—v. moBairfi 5938:» massacre” Meagan—v. ~Beonm=~ 33833: :35?sz Camaeonma 120 APPENDIX B TASTE TEST AND VISUAL TEST QUESTIONNAIRE 121 won one: peeve eneueunon. vwoaue weaponno «can newton no 60 so «ewe venue we" cxnnmam~< omens sownsmn newme mxnnmsew< venom :mHnSmH venom