Nov. 25, 2011 - In today’s economy, many business owners are looking for ways to increase profits. A new study conducted by the American Floral Endowment has tips for doing just that. The study, conducted by Chengyan Yue, Ph.D., at the University of Minnesota; with support from Alicia Rihn, University of Minnesota; Bridget Behe, Ph.D., Michigan State University; and Charles Hall, Ph.D., Texas A&M University seeks to examine the consumer impact of longevity guarantees.
Many industries have long used guarantees to entice consumers to purchase products, but they are rarely used in the floriculture industry. Based on the results of this study, online and retail storeowners might consider using guarantees on flowers more frequently. Below are just a few key findings from the study:
- Seventy-six percent of participants indicated that a longevity guarantee on flowers would impact their purchasing decisions.
- The experiment results for participants purchasing the floral arrangement show that they are willing to pay three percent more for the arrangement if it is guaranteed, compared to the same arrangement with equal longevity but no guarantee.
- Compared to flowers that last five to seven days, participants are willing to pay seven percent more for flowers that last eight to 10 days, and they are willing to pay 17 percent more for flowers that last 11 to 14 days.
- Figure 1 illustrates participants’ opinions about cut flower longevity guarantees.
Full reports from this five-part study can be downloaded from the Public Benefits Reports section of the AFE website.
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