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7/28/2019 EAF Presentation
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CONSUMER
PREFERENCES FORGREEN RESTAURANT
PRACTICES
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Environment Agriculture Food (EAF) Group atthe University of Chicago
Consumer Research Team
Green Restaurant Research Team Program on Global Environment at University
of Chicago
WHO ARE WE
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The most important claims to impact willingness to pay are:
1. Local and Organic
2. Fair Trade
3. Carbon Reduction
Onozaka, Yuko Et. Al., Defining Sustainable Food Market Segments: Do Motivations and Values
Vary by Shopping Locale, American Journal of Agricultural Economics, January 2011
Summary of Others Findings
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Opportunities to drive demand are:
Recycling
Use of double door
Local sourced menu options
Ray Wang, Investigations of Important and Effective Effects of Green Practices in Restaurants,Procedia : Social and Behavioral Sciences 40 94-98, 2012.
Summary of Others Findings
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About 85% of Americans are willing to pay something forgreen practices (Our survey confirms this for Chicagoans)
Schubert, Kandampully, Solnet, Kralj Exploring Consumer Perceptions of Green Restaurants in the
US, School of Tourism, University of Queensland, 2010
Summary of Others Findings
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Survey of 321 patrons from Chicago Area viaSurveymonkey
General dining characteristics
Consumer environmental concerns
Willingness to pay for green practices
General demographics
OUR SURVEY
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KEY QUESTIONS
In the past MONTH, how many times have youpurchased food from any of the following types ofrestaurants?
Restaurant Purchases Monthly
Restaurant Type Mean SD
WTP
Corr
Fast Food 5.07 3.99 0.095
Fast Casual 2.21 1.87 0.157
Pizza 2.56 1.46
-
0.035
Casual Sit Down 1.83 1.25
-
0.030
Fine Sit Down 2.69 1.31
-
0.018
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KEY QUESTIONS
On AVERAGE, how much doyou spend when you eat out?
Amount Paid
Meal Amount
Breakfast $7.97Lunch $10.93
Dinner $21.28
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KEY QUESTIONS
On a scale of 1-10,when choosing tovisit a restaurant for
DINNER, howimportant are thefollowingcharacteristics aboutthe restaurant?
Restaurant CharacteristicsCharacteristic Score
Menu 8.4
Value for Money 8.2
Convenient Location 7.5
Informed Staff 7.0
Ambiance 6.8
Local Food Choices 5.7
Energy/Water Conservation 3.8
Recycling/Composting 3.8
Organic Food Choices 3.6
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KEY QUESTIONS
What characteristics doyou expect green
restaurants to exhibit?
From most to least common:
Tasty
Modern
Vegetarian FriendlyIndependent
New
Artisanal
Expensive
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KEY QUESTIONS
How do you usually findout that a restaurant is
engaged inenvironmentally friendlypractices?
From Most to Least Common
While Dining
Restaurant WebsitePublicityFriends/Family
Social Media
Another WebsiteCommunity Outreach
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Who are you serving?
We divided patrons into three clusters- different
groupings based on data analysis
We segmented these clusters even more to determinetheir preferences with regards to certain environmental
factors
CONSUMER SEGMENTATION
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CLUSTER DESCRIPTIONS
1: Not Engagednot engaged with environmental issues;the food factor is ambiguous
2: Highly Engagedpeople who are highly engaged inthe environment and food issues
3: Eco-Consciouspeople who are engaged in the
environment but not food
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DEMOGRAPHICS
Clusters Count Average
Income
Average
Age
Percent
Female
NotEngaged
78 $85,576 47 27
HighlyEngaged
173 $97,398 49 42
Eco-Conscious
45 $64,444 41 58
Full Sample 296 $89,272 47 40
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AVERAGE SPENDING EATING OUT
Clusters Breakfast Lunch Dinner
Not Engaged $8.42 $10.85 $20.85
HighlyEngaged
$7.86 $10.99 $21.76
Eco-Conscious
$7.65 $10.80 $20.05
Average $7.94 $10.93 $21.28
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On a scale of 1-10, how does the fact that a food itemis USDA Certified Organic affect your decision to buythe item?
On a scale of 1-10, how much do you trust claims fromrestaurants about environmentally friendly practices?
CONSUMER TRUST SURVEYQUESTIONS
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CONSUMER TRUST
Clusters USDA
Certification
Trusting
Restaurants
Not Engaged 3.58 4.17
Highly Engaged 5.47 5.07
Eco-Conscious 5.00 5.36
Average 4.90 4.87
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Conjoint analysis for entrees between $15 - $19
Tested willingness to pay for: 80% of ingredients organic, 50% or no organic.
Locally sourced ingredients v.s Not local
CONJOINT INTRODUCTION
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CONJOINT DATA RESULTS
Price Premiums
Feature All Male Female
Not
Engaged
Highly
Engaged
Eco-
Conscious
50% Organic $1.58 $1.31 $2.14 $0 $2.07 $2.79
80% Organic 2.52 1.94 3.77 0 3.93 4.47
Local 5.24 4.47 7.16 3.31 7.43 3.54
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Price Premiums
Feature
0
25,000
25,000
50,000
50,000
75,000
75,000
100,000
100,000 or
more
50% Organic $1.31 $1.13 $1.87 $1.72 $1.87
80% Organic 1.94 2.19 2.03 3.44 3.21
Local 2.72 1.95 4.46 10.56 7.73
CONJOINT INCOME
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CONJOINT AGE
Price Premiums
Feature 18 -29 30 44 45 - 60 >60
50% Organic $2.20 $2.00 $1.30 $1.40
80% Organic 4.19 4.51 1.44 1.75
Local 2.51 7.63 4.64 7.32
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While Chicago ranks 8 for frequency for carryout lunch, it is not in the top 20 for dine in lunch
Chicagoans tend to describe themselves as
Foodies more often then other Americans In terms of WTP for green practices Chicagoansare not different with the exception of highlyeducated consumers have higher WTP in
Chicago then elsewhere
CHICAGO VS USA
Source: Dinning Out, Living Social, Washington, September 15, 2011.
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Chicagoans are willing to pay a premium!
Communicate: website draws consumers, during diningrepeat business
Consumers are more likely to believe green claims when
they are specific and what they can relate to
Eco-conscious consumers care more about greenpractices than foodies, but foodies care too
Affluent women age 30-44: highest demand for greenpractices
Consumers care most about local food and recycling
GENERAL CONCLUSIONS
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Green Chicago Restaurant Coalition Green Seal Public Policy Department at the University of Chicago
Pam Cohen Nancy Himmelfarb Sabina Shaikh
ACKNOWLEDGEMENTS