How Do Sales of Organic Produce Compare to Traditional Produce?

Group MR06:

Mitchell Gibson

Stefany Ostoin

Canna Hunt

MARK 4380.001

23 April 2018

Dr. Kay Byun

 Table of Contents

Executive Summary …............................................................................................................. 1

Introduction …................…......................................................................................................2

Method …......................….......................................................................................................2

Sample Description …..............................................................................................................2

Measurement …........................................................................................................................6

Results …..................................................................................................................................7

Summary / Implications …........................................................................................................13

Conclusion ................................................................................................................................13

Appendix: Survey Questions …................................................................................................14

Group MR06
MARK 4380
April 26, 2018

Survey Report & Questionnaire

 Executive Summary

With an increasing focus on health and environmental issues in our society, organic foods have
become much more popular, particularly organic produce. This experiment was conducted with
hopes to gather important data of how people viewed organic and traditional produce when
compared to certain variables.

 Introduction

This survey was conducted to gain a deeper insight into the variation, organic or non-organic,
produce that consumers prefer to purchase.

 Method

The survey was conducted on a self-administered voluntary basis by respondents and was
conducted for a two-week period. Our research team distributed the survey through social media
platforms, and via e-mail.

 Sample

Through data collection, our sample size was 83. The age demographic for the sample was
between 21-74. Although the survey garnered predominately female respondents, there was a
total of 19 male respondents. We used a convenience sampling method. The following tables
are demographic details of the sample.

Sample Income Demographic by Education Level and Race:

High school graduate (high school diploma or 7

equivalent including GED)
Black or African American 1
Female 1
$40,000 to $49,999 1
White 6
Female 5
$10,000 to $19,999 1
$20,000 to $29,999 2
$50,000 to $59,999 1
$80,000 to $89,999 1
 Male 1
$20,000 to $29,999 1
Some college but no degree 29
American Indian or Alaska Native 2
Female 2
$100,000 to $149,999 1
Less than $10,000 1
White 26
Female 19
$10,000 to $19,999 2
$100,000 to $149,999 1
$20,000 to $29,999 3
$30,000 to $39,999 3
$40,000 to $49,999 2
$50,000 to $59,999 2
$60,000 to $69,999 1
$70,000 to $79,999 4
$80,000 to $89,999 1
Male 7
$10,000 to $19,999 2
$20,000 to $29,999 1
$60,000 to $69,999 2
$70,000 to $79,999 1
$80,000 to $89,999 1
White,American Indian or Alaska Native 1
Male 1
$30,000 to $39,999 1
Associate degree in college (2-year) 19
Black or African American 1
Female 1
$20,000 to $29,999 1
Other 1
Male 1
Less than $10,000 1
White 16
Female 15
$10,000 to $19,999 1
$100,000 to $149,999 2
$20,000 to $29,999 3
$30,000 to $39,999 2
$40,000 to $49,999 3
$60,000 to $69,999 1
$80,000 to $89,999 2
Less than $10,000 1
Male 1
$20,000 to $29,999 1
White, American Indian or Alaska Native 1
Female 1
$30,000 to $39,999 1
Bachelor's degree in college (4-year) 21
Black or African American 1
Male 1
$30,000 to $39,999 1
Other 1
Female 1
Less than $10,000 1
White 18
Female 15
$100,000 to $149,999 2
$150,000 or more 1
$20,000 to $29,999 1
$30,000 to $39,999 2
$50,000 to $59,999 1
$70,000 to $79,999 2
$80,000 to $89,999 1
$90,000 to $99,999 2
Less than $10,000 3
Male 3
$20,000 to $29,999 1
$40,000 to $49,999 1
$90,000 to $99,999 1
White,Other 1
Female 1
$50,000 to $59,999 1
Master's degree 7
White 7
Female 3
$100,000 to $149,999 1
$50,000 to $59,999 1
$70,000 to $79,999 1
Male 4
$100,000 to $149,999 1
$30,000 to $39,999 2
Less than $10,000 1
Grand Total 83

Sample Household Demographics by Marital Status:

Never Married (Single) 33

HH Size 1 5
HH Size 2 16
 Kids: No 12
Kids: Yes 4
Number of Children: 1 4
HH Size 3 3
Kids: No 2
Kids: Yes 1
Number of Children: 3+ 1
HH Size 4 4
Kids: No 2
Kids: Yes 2
Number of Children: 1 1
Number of Children: 2 1
HH Size 5+ 5
Kids: No 1
Kids: Yes 4
Number of Children: 1 1
Number of Children: 3+ 3
Married 38
HH Size 1 1
HH Size 2 13
Kids: No 13
HH Size 3 6
Kids: No 1
Kids: Yes 5
Number of Children: 1 4
Number of Children: 2 1
HH Size 4 13
Kids: No 2
Kids: Yes 11
Number of Children: 1 1
Number of Children: 2 10
HH Size 5+ 5
Kids: No 1
Kids: Yes 4
Number of Children: 1 1
Number of Children: 3+ 3
Separated 5
HH Size 2 1
Kids: Yes 1
Number of Children: 1 1
HH Size 3 1
Kids: Yes 1
Number of Children: 1 1
HH Size 4 2
Kids: Yes 2
Number of Children: 3+ 2
HH Size 5+ 1
Kids: Yes 1
Number of Children: 3+ 1
Divorced 7
HH Size 2 4
Kids: Yes 4
Number of Children: 1 4
HH Size 3 1
Kids: Yes 1
Number of Children: 1 1
HH Size 5+ 2
Kids: Yes 2
Number of Children: 3+ 2
Grand Total 83

Demographic of Gender and Race:

Female 64
American Indian or Alaska Native 2
Black or African American 2
Other 1
White 57
White,American Indian or Alaska Native 1
White,Other 1
Male 19
Black or African American 1
Other 1
White 16
White,American Indian or Alaska Native 1
Grand Total 83

 Measurement

A 5-point Likert scale was used for the quantitative research. The survey consisted of short
questions with few open text options to encourage participation.

The following table is the Descriptive Statistics of the sample, including the sample size, min,
max, mean, and standard deviation of each survey question.

Measurement: Descriptive Statistics

N Min. Max. Mean Std.
Deviation
How important are produce prices to you? 83 1 5 3.70 .907
How important is it to you to choose organic produce when 83 1 5 2.75 1.267
available?
How often do you purchase the following: - Non-Organic 83 1 6 3.58 1.191
produce
How often do you purchase the following: - Organic 83 1 6 4.19 1.401
produce
Based on your selection, why do you not purchase organic 83 1 4 2.27 .813
produce? - Selected Choice
How satisfied are you with your grocer's produce section? 83 1 5 3.54 .915
How satisfied are you with your grocer's produce prices? 83 1 5 3.25 .867
How satisfied are you with the quality of produce at your 83 1 5 3.43 .965
grocer's?
Are you a vegan? 83 1 1 1.00 .000
Are you a vegetarian? 83 1 2 1.02 .154
Do you have any dietary restrictions based on your 83 1 1 1.00 .000
religious beliefs?
How important is health to you? 83 2 5 4.02 .780
How important are environmental issues to you? 83 1 5 3.63 .946
Have you bought organic produce within the last month? 83 1 2 1.70 .462
How do you feel about organic foods? 83 1 7 5.45 1.467
How do you feel about following trends? 83 1 3 1.55 .610
Who is mostly responsible for the household grocery 83 1 3 1.69 .910
shopping?
What is the highest level of education you have completed? 83 2 6 3.90 1.133
Choose one or more races that you consider yourself to be: 76 1 1 1.00 .000
- Selected Choice White
Choose one or more races that you consider yourself to be: 3 1 1 1.00 .000
- Selected Choice Black or African American
Choose one or more races that you consider yourself to be: 4 1 1 1.00 .000
- Selected Choice American Indian or Alaska Native
Choose one or more races that you consider yourself to be: 0
- Selected Choice Asian
Choose one or more races that you consider yourself to be: 0
- Selected Choice Native Hawaiian or Pacific Islander
Choose one or more races that you consider yourself to be: 3 1 1 1.00 .000
- Selected Choice Other
What is your gender? 83 1 2 1.77 .423
Information about income is very important to understand. 83 1 12 5.51 3.183
Would you please give your best guess?Please indicate the
answer that includes your entire household income in
(previous year) before taxes.
Are you now married, widowed, divorced, separated or 83 1 5 2.94 1.876
never married?
How many people live in your household? 83 1 5 2.99 1.254
Do you have any children in your household? 77 1 2 1.44 .500
How many children are in your household? 43 1 3 1.84 .843
Which statement best describes your current employment 83 1 7 2.12 2.045
status? - Selected Choice
Please indicate your occupation: - Selected Choice 83 1 11 6.31 4.087
Which of the following industries most closely matches the 83 1 21 13.20 5.719
one in which you are employed? - Selected Choice
Valid N (listwise) 0

 Results
o Frequency charts
o chi-square or t-test results for group differences

o regression results for main dependent variables

  Summary/Implications

Key Findings:

1. Strong correlations exist between people who view health and environmental
issues as important, and positive attitudes about organic produce
2. Marital status plays a role in the importance of purchasing organic produce
3. There is no "superior product," when it comes to organic or traditional produce.
Views on the two categories of products depend on many different variables
including education level achieved, geographical location, and income.

After viewing our results, we were able to find several significant relationships between
variables. For example, a P-value of .002 was reported among respondents who said that
environmental issues were important to them. The results also showed significant differences in
how people view organic produce based on their marital status. Married respondents were much
more likely to purchase organic produce than people who were single or even divorced. This
could be due to the fact that married couples are often more established in their adult lives and
careers, and may be able to afford the slightly higher cost of eating organic.

 Conclusion
o Our goal when conducting the experiment was to determine how people viewed
organic produce when compared to traditional produce. We knew that there
would be varying views, based on different variables, and our test results
confirmed that. The data that was collected is potentially very valuable to
marketers, and business that need to determine which produce category to focus
on. By studying the data, we are able to see differences in attitudes and opinion
based on geographical location, marital status, income, and more. This research,
and the data it produced could help determine where in a city to build a Whole
Foods store, and where a store like Walmart Neighborhood Market might be the
better option, since the two have very different target markets. In summary, the
data collected gives valuable insight on the views of consumers when it comes to
produce type, and can be used for a grocery store to adjust accordingly, in order to
maximize profit.
Appendix: Survey Questionnaire

Price How important are produce prices to you?

 Extremely important (5)

 Very important (4)
 Moderately important (3)
 Slightly important (2)
 Not at all important (1)

OrganicProduce How important is it to you to choose organic produce when available?

 Extremely important (5)

 Very important (4)
 Moderately important (3)
 Slightly important (2)
 Not at all important (1)

PurchaseFrequency How often do you purchase the following:

Daily (1) 4-6 times a 2-3 times a Once a once a never (6)
week (2) week (3) week (4) month (5)
Non-
Organic
produce (1)
Organic
produce (2)

Skip To: whynot If How often do you purchase the following: =

whynot Based on your selection, why do you not purchase organic produce?

 I do not believe in the benefits of organic (1)

 Price (2)
 Not a large enough selection variety (3)
 Other (4) ________________________________________________

Selection How satisfied are you with your grocer's produce section?

 Very Dissatisfied (1)

 Dissatisfied (2)
 Neutral (3)
 Satisfied (4)
 Very Satisfied (5)
PriceSatisfaction How satisfied are you with your grocer's produce prices?

 Very Dissatisfied (1)

 Dissatisfied (2)
 Neutral (3)
 Satisfied (4)
 Very Satisfied (5)

QualitySatisfaction How satisfied are you with the quality of produce at your grocer's?

 Very Dissatisfied (1)

 Dissatisfied (2)
 Neutral (3)
 Satisfied (4)
 Very Satisfied (5)

Vegan Are you a vegan?

 Yes (2)
 No (1)

Vegetarian Are you a vegetarian?

 Yes (2)
 No (1)

Restrictions Do you have any dietary restrictions based on your religious beliefs?

 Yes (1)
 No (1)

Health How important is health to you?

 Extremely important (5)

 Very important (4)
  Moderately important (3)
 Slightly important (2)
 Not at all important (1)

Environmental How important are environmental issues to you?

 Extremely important (5)

 Very important (4)
 Moderately important (3)
 Slightly important (2)
 Not at all important (1)

Month Have you bought organic produce within the last month?

 Yes (2)
 No (1)

Opinion How do you feel about organic foods?

 like a great deal (7)

 like a moderate amount (6)
 like a little (5)
 Neither like nor dislike (4)
 Dislike a little (3)
 Dislike a moderate amount (2)
 Dislike a great deal (1)

TrendFollowing How do you feel about following trends?

 I am always up to date on the most current trends. (3)

 I eventually catch on to the newest trends. (2)
 I set my own rules and never follow trends. (1)
BirthYear What is your year of birth? (YYYY)

________________________________________________________________

Groceryshopping Who is mostly responsible for the household grocery shopping?

 Myself (1)
 Other adult in the household (2)
 50/50 responsibility, shared with other household adult (3)

Education What is the highest level of education you have completed?

 Less than high school degree (1)

 High school graduate (high school diploma or equivalent including GED) (2)
 Some college but no degree (3)
 Associate degree in college (2-year) (4)
 Bachelor's degree in college (4-year) (5)
 Master's degree (6)
 Doctoral degree (7)
 Professional degree (JD, MD) (8)

Race Choose one or more races that you consider yourself to be:

 ▢ White (1)
 ▢ Black or African American (2)
 ▢ American Indian or Alaska Native (3)
 ▢ Asian (4)
 ▢ Native Hawaiian or Pacific Islander (5)
 ▢ Other (6) ________________________________________________
gender What is your gender?

 Male (1)
 Female (2)

Income Information about income is very important to understand. Would you please give your
best guess?Please indicate the answer that includes your entire household income in (previous
year) before taxes.

 Less than $10,000 (1)

 $10,000 to $19,999 (2)
 $20,000 to $29,999 (3)
 $30,000 to $39,999 (4)
 $40,000 to $49,999 (5)
 $50,000 to $59,999 (6)
 $60,000 to $69,999 (7)
 $70,000 to $79,999 (8)
 $80,000 to $89,999 (9)
 $90,000 to $99,999 (10)
 $100,000 to $149,999 (11)
 $150,000 or more (12)

Zip What is your ZIP code?

________________________________________________________________

Marriage Are you now married, widowed, divorced, separated or never married?

 Married (1)
 Widowed (2)
 Divorced (3)
 Separated (4)
  Never Married (5)

HouseholdSize How many people live in your household?

 1 (1)
 2 (2)
 3 (3)
 4 (4)
 5+ (5)

Skip To: Employment If How many people live in your household? = 1

Children Do you have any children in your household?

 Yes (1)
 No (2)

Skip To: Employment If Do you have any children in your household? = No

Children# How many children are in your household?

 1 (1)
 2 (2)
 3+ (3)

Employment Which statement best describes your current employment status?

  Working (paid employee) (1)
 Working (self-employed) (2)
 Not working (temporary layoff from a job) (3)
 Not working (looking for work) (4)
 Not working (retired) (5)
 Not working (disabled) (6)
 Not working (other) (7) ________________________________________________

Occupation Please indicate your occupation:

 Management, professional, and related (1)

 Service (2)
 Sales and office (3)
 Farming, fishing, and forestry (4)
 Construction, extraction, and maintenance (5)
 Production, transportation, and material moving (6)
 Government (7)
 Retired (8)
 Unemployed (9)
 Student (10)
 Other: (11) ________________________________________________

Occupation2 Which of the following industries most closely matches the one in which you are
employed?

 Forestry, fishing, hunting or agriculture support (1)

 Real estate or rental and leasing (2)
 Mining (3)
 Professional, scientific or technical services (4)
 Utilities (5)
 Management of companies or enterprises (6)
 Construction (7)
 Admin, support, waste management or remediation services (8)
 Manufacturing (9)
 Educational services (10)
 Wholesale trade (11)
 Health care or social assistance (12)
 Retail trade (13)
 Arts, entertainment or recreation (14)
 Transportation or warehousing (15)
 Accommodation or food services (16)
 Information (17)
 Other services (except public administration) (18)
 Finance or insurance (19)
 Unclassified establishments (20)
 Other: (21) ________________________________________________