Progress 10/01/02 to 09/30/07
Outputs
OUTPUTS: The project involved surveys of both small local grocers throughout Maine and of households in eight rural retail areas within the state. The research findings lead to two major strategies for food retailers. One was to identify consumer attitudes toward locally produced foods and to characterize the segments of the population most inclined to seek locally produced products. This efforts led to the formation of two regional agricultural producer groups which are working to develop the necessary structures and relationships to supply local grocers in their area with products that meet consumers' demand. This effort will continue beyond the termination of this project. The other major finding was to examine broader food shopping behavior and preferences and to identify niche opportunities for small local grocers to attract and maintain a customer base. There was an outreach program conducted by the Maine Small Business Development Centers (SBDC) to work with volunteer grocers
to develop strategic business plans to improve their efforts to better meet the needs of local customers. The SBDCs worked with approximately 40 grocery owners and managers to identify their current customer base, to assess their business' strengths and weaknesses, and to develop business plans to address current and anticipated market conditions.
PARTICIPANTS: Dr. Stewart Smith, Professor, and Andrew Files, Assoc. Scientist in the School of Economics have contributed to this project through their efforts to organize and work with the producer groups. The Maine Small Business Development Centers and their staff of business counselors provided the educational outreach and strategic planning assistance to the Maine small grocers who participated in the program.
Impacts
This project has led to the effort by approximately 40 small grocers to develop business plans to improve their economic viability and potential for continued operation. A significant part of their self assessment and market analysis relied on research stemming from this project. In addition, two producer groups have formed to examine their opportunities to work with local retailers to market their products to consumers. It is believed that each of these efforts will contribute to the stability of these businesses in a climate where both small producers and retailers are being forced out of the market at an alarming rate.
Publications
- No publications reported this period
|
Progress 10/01/05 to 09/30/06
Outputs
The research to date has identified the need for business skill training risk analysis and strategic planning. Through the Maine Small Business Development Centers, a program was established specifically for grocery retailers. Workshops entitled Marketing and Other Strategic Pieces were presented in 2005 in Portland, Bangor, and Augusta, Maine. A 12-week, 36 hour series of courses entitled Calculated Risk was begun in each of the 3 cities in November. A total of 40 business people attended these courses. The Maine SBDC provided an additional 174 hours of one-on-one business counseling to course and workshop participants. Maine's Governor personally honored course graduates with Certificates of Completion in May 2006. SBDC counselors participated in workshops in the eight targeted communities to look for opportunities to link local producers and local retailers. As a result of these cluster workshops, two networks continue to develop opportunities for marketing local
foods through local grocers. Andrew Files is preparing case study reports of models for marketing locally produced foods that will be used with current and potential future networks that have emerged as a result of this study.
Impacts
The specialized training for grocery retailers will help them with their business planning and marketing efforts. We expect the greatest impacts to occur in those areas where local producer networks can work more closely with retailers. In these areas we anticipate that consumers will frequent small retailers more regularly in order to access fresh and value added products from local producers.
Publications
- No publications reported this period
|
Progress 10/01/04 to 09/30/05
Outputs
Previously collected survey data were analyzed to identify grocery store characteristics that consumers identified were important in their choice of stores for shopping trips. Factor analysis identified seven factors from 42 store characteristic variables. The factor scores that were the direct output of factor analysis were cross-tabulated with demographic characteristics to identify vital segments. In addition, a count data model was built to estimate consumers number of shopping trips to a grocery store. The seven factors were identified as: comfortable shopping; fresh produce; nonfoods, takeouts, and alcoholic products; natural and environmental products; in-store services; low-priced items; and store convenience. The results identified the socio-demographic characteristics of shoppers for whom the factor was important in making their store selection. For example, variables which loaded heavily on the store convenience were courteous and friendly personnel,
helpful staff, comfortable shopping environment, skilled and knowledgeable workers in their respective departments like deli, meat, bakery, etc and finally the overall atmosphere of the store that invites customers to come and shop. When this factor was cross-tabulated with demographic characteristics, we found a significant relationship between gender, age, income, employment and education. Females were over-represented in this group and a large number of low and medium income people rated high on this factor. Respondents who have only high school degrees are also rated high on this factor as compared to people having bachelors or graduate degrees. Household sizes with children aged 17 and above were found also found to be significant on this factor. A logit model was used to predict the number of weekly grocery shopping trips made per household. Results of this analysis are being prepared into two manuscripts which will be submitted to journals.
Impacts
The results will be of use to grocery business owners in the development of their business plans in that they help them identify their current clientel groups and assess their current and potential marketing strategies. The results will also be useful to local and regional economic development specialists who are interested in the role of grocery stores in local and regional economies.
Publications
- Kumar, A. Determining Consumer Food purchasing Behavior in Maine. M.S. thesis, University of Maine. August 2005.
|
Progress 10/01/03 to 09/30/04
Outputs
A survey was conducted to determine consumer attitudes toward locally grown foods in Maine and to develop knowledge to help local food producers market improve their marketing. A staff paper has been prepared and is currently being reviewed for publication. Over 50% of respondents indicated that it is "very important" to purchase Maine-grown foods, while only 37% thought the same about products grown within their region of the state and 28% thought it was very important to purchase New England-grown foods. Household income is significantly related to their attitudes with lower income households believing buying locally produced foods is important. Women also place a higher priority on locally-grown than do men. Respondents also generally view local foods to be of high quality. Perceptions of quality varied by respondent gender, age, income, and education. Women, individuals aged 65 and over, and those with the lowest incomes and least education were the most likely to
"strongly agree" that the quality of Maine foods is superior to other foods. Maine shoppers generally felt that local foods cost somewhat more than other products. Mearly 44% of respondents "somewhat agreed" that "the cost of food grown or produced in Maine is higher than other foods." Unlike the importance of buying local foods and perceived quality, respondents saw few differences with regard to cost across local, state, or regional definitions of "local" foods. Purchasing behavior was closely related to attitudes about the importance of buying local foods. Respondents who indicated that purchasing Maine foods was "very important" were 1.1 to 2.2 times more likely to "always" or "often`" buy nine of the twelve Maine-grown and produced products identified in the survey than were respondents who indicated buying locally was only "somewhat important." These nine products include cheese, ice cream, beef, poultry, seafood, eggs, jams and jellies, bread, and fresh vegetables. While 45% of
fresh vegetable buyers purchased Maine-grown products at a supermarket or grocery store, 31% bought them most often at farmers markets, and 18% purchased them directly from the grower.
Impacts
The results will provide a basis for evaluating the market viability of retail stores with various physical, service, and product selection characteristics. This information will be of use to business owners in their decisions to locate, expand, or cease operations. The results will also be of use to local and regional economic development specialists who are interested in the role of grocery stores in a retail region's economy.
Publications
- No publications reported this period
|
Progress 10/01/02 to 09/30/03
Outputs
Consumer surveys were developed to evaluate 42 grocery retailer and product selection characteristics with respect to their importance to consumers when deciding where to purchase their household groceries. The survey also generated data describing household shopping behavior during the preceding month and demographic characteristics of the respondent. A SAS cluster analysis procedure has been used to group respondents according to the importance of the 42 characteristics. These results are currently being combined with demographic and other variables for use in a model to predict the probability of household retailer selections.
Impacts
The results will provide a basis for evaluating the market viability of retail stores with various physical, service, and product selection characteristics. This information will be of use to business owners in their decisions to locate, expand, or cease operations. The results will also be of use to local and regional economic development specialists who are interested in the role of grocery stores in a retail region's economy.
Publications
- No publications reported this period
|
|