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CONSUMER
PREFERENCES FORGREEN RESTAURANT
PRACTICES
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Environment Agriculture Food (EAF) Group at theUniversity of Chicago
Consumer Research Team Green Restaurant Research Team Program on Global Environment at University of
Chicago
WHO WE ARE
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The most important claims to impact willingness to pay are:
1. Local and Organic2. Fair Trade3. Carbon Reduction
Onozaka, Yuko Et. Al., Defining Sustainable Food Market Segments: Do Motivations and Values Vary byShopping Locale, American Journal of Agricultural Economics, January 2011
OTHER FINDINGS
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About 85% of Americans are willing to pay something for greenpractices (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
OTHER FINDINGS
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Survey of 321 patrons from Chicago Area via Surveymonkey 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 you purchased
food from any of the following types of restaurants?
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 do you
spend when you eat out?
Amount Paid
Meal Amount
Breakfast $7.97
Lunch $10.93
Dinner $21.28
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KEY QUESTIONS
On a scale of 1-10,when choosing to visita restaurant for
DINNER, howimportant are thefollowingcharacteristics aboutthe restaurant?
Restaurant Characteristics
Characteristic Score
Menu 8.4
Value for Money 8.2
Convenient Location 7.5Informed 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 do
you expect green
restaurants to exhibit?
From most to least common:
Tasty
Modern
Vegetarian Friendly
Independent
New
Artisanal
Expensive
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KEY QUESTIONS
How do you usually find
out that a restaurant is
engaged in
environmentally friendly
practices?
From Most to Least Common
While Dining
Restaurant WebsitePublicity
Friends/Family
Social Media
Another WebsiteCommunity Outreach
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Who are you serving?
We divided patrons into three clusters- different groupingsbased on data analysis
We segmented these clusters even more to determine theirpreferences with regards to certain environmental factors
CONSUMER SEGMENTATION
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CLUSTER DESCRIPTIONS
1: Not Engagednot engaged with environmental issues; thefood factor is ambiguous
2: Highly Engagedpeople who are highly engaged in theenvironment and food issues
3: Eco-Consciouspeople who are engaged in the environmentbut not food
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Clusters Count Average
Income
Average
Age
Percent
Female
Not Engaged 78 $85,576 47 27
Highly
Engaged
173 $97,398 49 42
Eco-
Conscious
45 $64,444 41 58
Full Sample 296 $89,272 47 40
DEMOGRAPHICS
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Clusters Breakfast Lunch Dinner
Not Engaged $8.42 $10.85 $20.85
Highly Engaged $7.86 $10.99 $21.76
Eco-Conscious $7.65 $10.80 $20.05
Average $7.94 $10.93 $21.28
AVERAGE SPENDING EATING OUT
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On a scale of 1-10, how does the fact that a food item isUSDA Certified Organic affect your decision to buy the
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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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
CONSUMER TRUST
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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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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
CONJOINT DATA RESULTS
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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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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
CONJOINT AGE
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While Chicago ranks 8 for frequency for carry outlunch, it is not in the top 20 for dine in lunch
Chicagoans tend to describe themselves asFoodies more often then other Americans
In terms of WTP for green practices Chicagoans arenot different with the exception of highly educated
consumers have higher WTP in Chicago then
elsewhere
CHICAGO VS USA
Source: Dining Out, Living Social, Washington, September 15, 2011.
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Chicagoans are willing to pay a premium! Communicate: website draws consumers, during dining repeat
business
Consumers are more likely to believe green claims when theyare specific and what they can relate to
Eco-conscious consumers care more about green practicesthan foodies, but foodies care too
Affluent women age 30-44: highest demand for green practices Consumers care most about local food and recycling
GENERAL CONCLUSIONS
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Green Chicago Restaurant CoalitionGreen SealPublic Policy Department at the University of Chicago
Pam CohenNancy HimmelfarbSabina Shaikh
ACKNOWLEDGEMENTS