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Testing a consumer barrier to farmers' market attendance: a randomized controlled trial design

Date

2019

Authors

Didero, Nicole M., author
Jablonski, Becca B.R., advisor
Costanigro, Marco, advisor
Sullins, Martha, committee member
Rhoades, Ryan, committee member

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Abstract

This study investigates the efficacy of an informational coupon in attracting new farmers' market customers. Direct-to-consumer (DTC) market sales in the United States (U.S.) have declined since 2007, raising concern about the future viability of DTC markets overall. Farmers' market sales are one of the larger contributors to DTC sales. Previous research suggests that the limited range of products available, and thus the inability to get all of a household's at home food needs through shopping at the farmers' markets may impede sales growth. This research is timely given limited empirical evidence about successful marketing methods for farmers' market. It contributes new analysis for considering DTC marketing approaches for attracting new consumers. Specifically, this study tests the efficacy of an informational nudge (a kind of information delivery that serves as an alternative to regulations and requirements aimed at changing social behavior) on consumer attendance at a farmers' market in Northern Colorado. To test the effectiveness of the informational nudge at promoting attendance a winter farmers' market (WFM), we mailed 6,000 physical coupons redeemable for $10 to households in Fort Collins, Colorado during the 2017-2018 market season. Following a randomized controlled trial (RCT) design, half of the coupons emphasized the wide range of products sold at the WFM, while the control coupons presented a generic picture. One hundred and eleven coupons were redeemed (1.85%), of which 58 were treatment and 53 control. A two-proportion z-test was utilized to detect a difference in redemption rates between both coupon types. While the coupon was somewhat effective at attracting new customers (36% had never attended the WFM), there were no statistically significant differences in redemption rates between treatment and control.

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