Abstract:
This research examines how marketing strategies of produce managers affect
consumer expenditures for fresh apples and pears. The objective of this study is to
determine how display size, point-of-purchase material, product origin, product
information and display placement impact consumer expenditures for fresh apples
and pears. These variables were incorporated into a non-linear Almost Ideal Demand
System with share equations for Gala, Fuji, Red Delicious, Other Sweet Apples, Tart
Apples, and Pears. Forty-four weeks of data on weekly store sales were collected
from two grocery stores in the Portland, Oregon metropolitan area. Share influences
and elasticities are provided for price inputs and for other variables where
appropriate. Product origin, e.g. state and national, influenced consumers'
expenditures for Red Delicious apples and pears; it was insignificant in other share
equations. Product information, e.g. tart or sweet, only influenced expenditures on
apple varieties that are less familiar to the consumer. The size of point-of-purchase
material had a significant effect on expenditures as did display sizes to a lesser extent.
This research provided valuable information to produce managers and apple and pear
producers on factors that influence consumers' expenditures at the retail level.
