November 25, 2011 By American Floral Endowment
Nov. 25, 2011 – A new study conducted by the American Floral Endowment
seeks to examine the role that longevity guarantees play in floral
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.
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