Why Customers Shop at Farmers` Markets in Nevada

Fact Sheet-09-32
Why Customers Shop at Farmers Markets in Nevada
Margaret W. Cowee, Research Analyst, Department of Resource Economics, College of Agriculture,
Biotechnology and Natural Resources, University of Nevada, Reno
Kynda R. Curtis, Agricultural Marketing Specialist, University of Nevada Cooperative Extension; and Assistant
Professor, Department of Resource Economics, College of Agriculture, Biotechnology and Natural Resources,
University of Nevada, Reno
Holly Gatzke, Lincoln County Extension Educator, University of Nevada Cooperative Extension, University of
Nevada, Reno
Introduction
Farmers markets are an increasingly popular alternative to traditional grocery stores for consumers. In the
decade between 1998 and 2008, the U.S. Department of Agriculture’s Agricultural Marketing Service (USDAAMS) estimated that the number of farmers markets in the U.S. increased 71 percent from 2,746 to 4,685
(USDA-AMS, 2008). As such, farmers markets provide an excellent direct marketing opportunity for
producers in Nevada.
During the 2008 farmers market season, more than 600 farmers market customers were surveyed at 12 markets
across Nevada. Respondents were asked questions about their primary motives for attending the market, the
market attributes they value the most, the fruit and vegetable attributes they most prefer, whether they have a
favorite vendor and what they like about that vendor, and how they hear about the market. This publication
presents the results of these questions by region (southern and northern Nevada) as well as statewide. Vendors
and market managers may use this information to better understand their customers and to help them create the
purchasing experience their customers are looking for. Results of the full study, including results for each of
the 12 individual markets, can be found in University Center for Economic Development Technical Report
2008/09-24, “Who is Shopping at Nevada’s Farmers’ Markets and Why?” (Curtis et al., 2009).
Motives for Attending Farmers Markets
Survey respondents were asked to describe their primary motive for attending the farmers market. In southern
Nevada, northern Nevada, and statewide, purchasing produce was the most common response to this question,
highlighting that overall customers are most likely to attend a market to buy fresh fruit and vegetable products.
In southern Nevada, respondents’ other highly rated motives for attending the market on average were to
purchase ready-to-eat foods, for social interaction, and for events and activities hosted by the market. In
northern Nevada, social interaction was rated higher than events and activities and purchasing ready-to-eat
foods, while statewide, social interaction was rated higher than purchasing ready-to-eat foods followed by
events and activities. These results indicate that respondents in northern Nevada value the social and
entertainment aspects of farmers markets more than respondents in southern Nevada. Vendors who want to
capitalize on this may consider bringing the entertaining aspect of the market to their booth by making it fun
and engaging through the use of signs, color and interaction with customers.
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Primary Motive for Attending Farmers Market
Southern Nevada
Purchase produce
Ready-to-eat food
Social interaction
Events/activities
Purchase arts/crafts
Concerts/music
Packaged foods
Northern Nevada
Purchase produce
Social interaction
Events/activities
Ready-to-eat food
Concerts/music
Purchase arts/crafts
Packaged foods
Statewide
Purchase produce
Social interaction
Ready-to-eat food
Events/activities
Purchase arts/crafts
Concerts/music
Packaged foods
Farmers Market Attributes
By region and across the state, product variety was the most valued farmers market attribute. This was followed
by some combination of convenient location, free parking, hours of operation and number of vendors. The
ratings for product variety and number of vendors show that some customers are approaching the market with
an eye out for options. Such customers might be more motivated to select only one or two items from each
vendor rather than purchasing many items at one location. The other results indicate that customers seem to
view the farmers market in the same light as they view their preferred grocery outlet, in terms of wanting to
purchase farmers market products at a convenient, easily accessible location.
Farmers Market Attributes
Southern Nevada
Northern Nevada
Statewide
Product variety
Product variety
Product variety
Convenient location
Convenient location
Convenient location
Free parking
Free parking
Free parking
Hours of operation
Number of vendors
Hours of operation
Number of vendors
Hours of operation
Number of vendors
Food/Beverage vendors
Certified market
Certified market
Certified market
Food/Beverage vendors Food/Beverage vendors
Child/Family activities
Cultural events
Cultural events
Cultural events
Concerts/Music
Educational events
Educational events
Educational events
Concerts/Music
Concerts/Music
Child/Family activities Child/Family activities
Fruit and Vegetable Attributes
By region, across the state and at every individual market, the produce attributes that were most highly valued
were some combination of taste, freshness and quality. Local producers have the perfect outlet for advertising
the freshness of their products at farmers markets. In most cases, produce was recently picked, possibly even
the day of the market. Farmers market vendors should not hesitate to tell customers how fresh their produce is.
Quality is an attribute that might be easily detected from visually inspecting a product, but taste is not. Samples
are an excellent way to advertise the taste and quality of products, while consistently providing high-quality
products will help to ensure that customers will make repeat purchases in the future.
Value was also given a high rating at all markets. While a farmers market vendor might not be able to compete
with grocery store prices, they can likely provide products that are fresher than those at grocery stores, and
many consumers may be willing to pay the extra money for high-quality, locally produced items. For example,
Hu et al. (2009) found that consumers in Kentucky were willing to pay a higher price for blueberry products
that had been grown and produced in Kentucky over products grown/produced elsewhere. Emphasizing the
aspects that cause farmers market products to be priced higher, such as local, high quality, freshness, organic,
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supporting local agriculture, etc., may encourage customers to accept premium pricing. It should be noted that
although many attributes were rated higher than price, price was rated higher than organic and local production,
knowing the grower or farmer, and specialty items. Although this may be a reflection of the preferences of
survey respondents, it may also be a reflection of a lack of understanding of these attributes. Vendors may
consider providing additional information about the benefits of local and organic production and make a special
effort to explain any specialty items he/she sells to encourage customers to purchase these different items.
Fruit and Vegetable Attributes
Southern Nevada
Taste
Freshness
Quality
Value
Appearance
Variety
Price
Organic
Locally grown (NV)
Know grower/farmer
Specialty items
Northern Nevada
Freshness
Taste
Quality
Value
Appearance
Variety
Price
Locally grown (NV)
Organic
Know grower/farmer
Specialty items
Statewide
Taste
Freshness
Quality
Value
Appearance
Variety
Price
Locally grown (NV)
Organic
Know grower/farmer
Specialty items
Preferred Vendor Attributes
Respondents were asked whether they have a favorite vendor and, if so, what makes them value this vendor
over other vendors. In all cases, approximately one-third of respondents said they had a favorite vendor, with
this figure slightly higher in southern Nevada than in northern Nevada. In southern Nevada, northern Nevada,
and statewide, vendor attributes were rated in the same order with product offering as the most important
aspect, followed by friendliness and approachability, free samples and providing product information. Taken
with the results for fruit and vegetable attributes, the ratings for product offering and free samples show that
allowing customers to experience for themselves the taste and quality of products could be of value to both
growers and customers. According to the survey, 14 percent of respondents said they value free samples from
vendors.
In addition to being rated highly by region, friendliness and approachability were listed as a preferred vendor
attribute at every individual market as well. This highlights the importance of consistently providing excellent
service and making market booths a place customers feel welcome. Having product information available was
also a preferred vendor attribute at many markets, so it may be beneficial to create a brochure about the
products being sold, including information about how and where the product was produced (including any
information about differentiated production practices such as organic, especially if the products are organic but
are not certified as such), storage and preparation information, and recipes. Additionally, the brochure should
contain information about the vendor and his/her operation. This will encourage customers to view vendors as
more than just salespeople, developing a relationship that might foster repeat sales.
Respondents Who Have a Favorite Vendor
Southern Nevada
33.4%
Northern Nevada
28.1%
Statewide
29.2%
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Preferred Vendor Attributes
Southern Nevada
Product offering
Approachability
Free samples
Product information
Discounts
Other services
Northern Nevada
Product offering
Approachability
Free samples
Product information
Discounts
Other services
Statewide
Product offering
Approachability
Free samples
Product information
Discounts
Other services
Advertising Methods
Knowing how customers hear about a market may help vendors and market managers prioritize promotional
options. At all markets, word-of-mouth was the most common way a respondent had heard about the market.
Drop bys and roadside signs were also popular and indicate that many respondents attended the market at the
last minute. This information, taken into account with the number of respondents who indicated the importance
of location, free parking, and hours of operation, reinforces the importance of markets being located in an area
that is easy to access and in a convenient location.
How Respondent Heard About Market
Southern Nevada
Word-of-mouth
Drop by
Roadside sign
Internet/e-mail
Newspaper
Flyer/poster
Radio
Television
Northern Nevada
Word-of-mouth
Roadside sign
Newspaper
Drop by
Internet/e-mail
Flyer/poster
Radio
Television
Statewide
Word-of-mouth
Roadside sign
Drop by
Newspaper
Internet/e-mail
Flyer/poster
Radio
Television
Conclusion
The information presented here is a brief overview of a full study conducted at 12 farmers markets in Nevada
and may be used to help vendors and market managers better understand their customers and what they are
looking for from their farmers market experience. Results for each individual market can be found in UCED
technical report 2008/09-24, “Who is Shopping at Nevada’s Farmers’ Markets and Why?” (Curtis et al., 2009),
and additional marketing ideas can be found in UNCE special publication SP-09-10, “Marketing Farmers
Markets: Ideas for Market Vendors & Managers in Nevada” (Cowee et al., 2009).
References
Cowee, M., K. Curtis and H. Gatzke. 2009. “Marketing Farmers Markets: Ideas for Market Vendors &
Managers in Nevada.” University of Nevada Cooperative Extension Special Publication SP-09-10.
Curtis, K., M. Cowee and H. Gatzke. 2009. “Who is Shopping at Nevada’s Farmers’ Markets and Why?”
University of Nevada Center for Economic Development Technical Report 2008/09-24. Available online:
http://www.cabnr.unr.edu/UCED/Reports/Technical/08-09-24%20Farmers'%20Market%20report-UCEDFinal.pdf.
Hu, W., T. Woods and S. Bastian. 2009. “Consumer Acceptance and Willingness to Pay for Blueberry
Products with Nonconventional Attributes.” Journal of Agricultural and Applied Economics (41)1: 47-60.
USDA-AMS. 2008. “Farmers’ Markets Growth: 1994-2008.” Available online:
http://www.ams.usda.gov/AMSv1.0/farmersmarkets.
Copyright © 2009 University of Nevada Cooperative Extension
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