1. Leaders in Local: Exploring Consumers‘ Purchase Intentions of Locally Produced Foods Dr Gary Mortimer QUT Business School |Z1058 - Queensland University of Technology | www.qut.edu.au/businesswww.qut.edu.au/business Phone: + 61 7 3138 5084 | Mb: 0448 048 433 | Fax: +61 7 3138 1811 | Email: gary.mortimer@qut.edu.au | CRICOS No. 00213Jgary.mortimer@qut.edu.au

2. Table of contents Project Background 3 Methodology6 Sample Demographics7 Construct Validity8 Determining Local Food – Description11 Determining Local Food – Geographic, Size of Business and Location of Business14 Determining Local Food – Product Features29 Ethnocentrism37 Attitudes: Benefits of Buying Local 46 Attitudes: Supporting Local and Small Business59 Awareness80 Subjective Norms87 Connectedness94 Intentions to Purchase101 Importance of ‘Local’ across Categories108 Factors that Influence the Purchase of Local Foods115 Conclusion and Summary141 2

3. Project Background Local foods are growing in importance in the mind set of the consumer – “the new organic” (McKenzie-Minifie, 2007) Consumers are becoming more active in choosing alternative channels to purchase locally grown/produced foods – Growth of farmer’s markets, roadside stalls, community gardens and *CSA programs Supermarkets and grocers continue to tailor their assortments to include, ethnic, organic, natural and local foods to meet changing consumer needs Australian research is limited, although one early study has found ‘buying locally produced foods’ was considered an important attribute (Lea & Worsley, 2007) International research has tended to focus on COO effects, rather than region or local effects. (Insch & Florek, 2009) Emerging research is beginning to explore consumer interest in ‘local’ over simply ‘domestic’ – although not specifically in food. (Hustvedt, Carroll & Bernard, 2013) One study has examined differences in attitudes, subjective norms and intentions toward the purchase of locally produced foods. (Campbell, 2013) 3

4. What do we know? There is a continuing push to ‘buy local’ – governments, interest groups, etc Growth in Farmers (alternative) Fresh Food Markets (www.daff.gov.au) – Doubling 2004 to 2011 to 150 nationally – 69% of markets reported increased stall holders – 64% of markets reported increased shopper numbers Consumer Ethnocentric Tendencies (CET) has been used to explain consumer behaviour towards local products (Shimp & Sharma, 1987) – Ethnocentricity describes consumers who feel strongly about purchasing product from within the country or region. Consumers are willing to pay (WTP) more for locally produced/grown foods (Darby, Bette, Ernst & Roe, 2008) Consumers express a preference for locally produced/grown foods (Onken, Bernard & Pesek, 2011) 4

5. What remains unclear? What is ‘local’ in the mind of the shopper? Is it regionally bound or state bound? (Patterson et al., 1999; Darby et al. 2008) Do differences between genders, education and generational cohorts on local food purchase intentions exist? If they do, who should we be marketing to? Creating one marketing message may be futile. What salient factors influence the purchase of locally produced foods? How do we best market ‘local’? Do we focus on the ‘social family-friendly aspect (subjective norms) to connect with customers? Or, promotions and loyalty programs? To what extent is ‘local’ and important attribute across categories? Strategically, should product placement/layouts be adjusted to facilitate a ‘local’ message? 5

6. Methodology An online survey questionnaire was distributed to 1065 respondents that reported to be the ‘primary grocery shopper’. Respondents were EDR Card shoppers The survey questionnaire screened and removed those respondents under the age of 18 years. The online survey questionnaire was operationalised to ensure all responses were required before progressing, this aided in cleaning the data. Data was exported to Excel for cleaning and then to SPSS Version 18 for analysis. Analysis included descriptive, frequencies, t-tests, Analysis of Variation (ANOVA) and Multiple Regression 6

7. GENDER Female 72% Male 28% AGE 18-24 yrs: 1% 25-35 yrs: 16% 36-45 yrs: 17% 46-55 yrs: 20% 56-65 yrs: 23% 65+ yrs: 23% LEVEL OF EDUCATION High School/Secondary 33% TAFE/Trade Certificate 29% Undergraduate 19% Postgraduate 19% RELATIONSHIP STATUS Single/Living alone 12% Married/De facto/ 77% Living together Separated/Divorced 8% Widowed 3% HOUSEHOLD TYPE No kids 59% Have kids all the time 37% Have kids some of the time 5% Source: QUT Local product shopping behaviour study, (June 2013) Base: All respondents who have purchased local products (n= 1,065). Grocery shopper profile (%) respondent Sample Demographics

8. Construct Validation ConstructItemsCronbachs’ Alpha Attitudes- Benefits of Buying Local 1. Locally produced products are better for the environment. 2. By buying locally I am supporting the Australian economy. 3. It is important to support our local farmers and local business community. 4. I am worried that local farms are going out of business because most food purchased in supermarkets is grown on larger farms across Australia. 0.66 Attitudes- Supporting local and small business 1. The government do not provide much support to Australian farmers. 2. The farming sector in Australia is suffering great hardship at the current time. 3. Australian farmers deserve greater support from the large supermarket chains. 4. Australian farmers deserve greater support from the government. 5. The supermarket chains do not provide much support to Australian farmers. 0.87 Construct Validity: Constructs are developed from multiple items to ensure a robust measure is defined. Constructs should produce a Cronbachs’ Alpha of over.60 to be considered valid.

9. Construct Validation ConstructItemsCronbachs’ Alpha Subjective norms 1. Friends think I should buy locally produced foods. 2. People who are important to me think I should buy locally produced foods. 3. People who influence my buying behaviour think I should buy locally produced foods. 4. My family thinks I should buy locally produced foods. 0.92 Connectedness 1. When I buy locally produced foods I feel like I connect with the community. 2. When I buy locally produced foods I feel like I connect with the producer. 3. When I buy locally produced foods from a supermarket I feel more favourable towards them. 0.87 Construct Validation

10. ConstructItemsCronbachs’ Alpha Ethnocentrism 1. Australians should always buy Australian products instead of imports. 2. We should buy from foreign countries only those products that we cannot obtain within our own country. 3. Only those products that are unavailable in Australia should be imported. 4. Curbs should be put on all imports. 5. Buy Australian-made products. Keep Australia working. 6. A real Australians should always buy Australian-made products. 7. Australian products, first, last and foremost. 8. Purchasing foreign products is un-Australian. 9. Foreign products should be taxed heavily to reduce their entry into Australia. 10. It is not right to purchase foreign products, because it puts Australian out of jobs. 11. We should purchase products manufactured in Australia instead of letting other countries get rich off us. 12. Australians should not buy foreign products, because this hurts Australian business and causes unemployment. 13. It is always best to purchase Australian products. 14. Australian consumers who purchase products in other countries are responsible for putting their fellow Australians out of work. 15. Foreigners should not be allowed to put their products on our markets. 16. There should be very little trading or purchasing of goods from other countries unless out of necessary. 17. It may cost me in the long run but I prefer to support Australian products. 0.95 Construct Validation 10

11. Determining ‘Local’ Food There is no legal stipulation of what constitutes ‘local food’, nor is there a widely accepted definition (Jones et al., 2004; Feagan, 2007). The most commonly used approach defines ‘local food’ on the basis of the distance that the food travels from production to consumption. Distances vary between 30 miles (as used for Certified Farmer’s Markets, UK) and 100 miles (US). Other descriptors include within a county (i.e.“Direct from Dorset” where Dorset is one of the 70 or so well recognised counties in the UK) or region (i.e. South East Qld) or sub-region (Sunshine Coast Hinterland, Qld) Other groups have developed different approaches to describing the notion of ‘local food’ (i.e. Soil Association in the UK) considered ‘local food’ as a process, or aspiration, encouraging steps towards shortening the food supply chain. Pearson, D., Henryks, J., Trott, A., Jones, P., Parker, G., Dumaresq, D. & Dyball, R. (2011) 11

12. Determining ‘Local’ Food A complication for ‘local food’ emerges with processed and multi-ingredient products. This raises the question of what percentage of all the ingredients and/or processing needs to be deemed ‘local’ for the final product to maintain its status as a local food. Clarity surrounding what constitutes local food presents major difficulties, the most obvious of which is that the actual size of the ‘local food’ market is difficult to determine. UK market size; – Using a purely geographic definition (i.e. food that is sold within 30 miles of where it is produced) the local food market has been estimated at around 1.5 per cent of the total food market (Brown & Geldard, 2008). – Using a broader geographic definition, such as food produced and consumed within a region, the local food market is much larger, with an estimate published in 2003 suggesting that it was around 6 per cent of the total food market (Defra, 2003). 12

13. Determining ‘Local’ Food Considering the discord around a widely accepted definition of ‘local food’, this project captured responses from 1065 respondents on the following measures; A determination of ‘local food’ based on; – Geographic nature of local food – Size of enterprise – Nature of business and location – Product features 13

14. Determining Local - Geographic When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 14

15. Determining Local-Geographic When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 6-7 scale responses (%) ‘Statistically significant difference’ (p <.05) Females are more likely to define local products as products sourced from anywhere within Australia compared to males. There were no significant difference between gender and other measures; region, town or city, state or within 100klms.

16. Determining Local-Geographic When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) Shoppers’ age group did not affect how they defined ‘Local’.

17. Determining Local-Geographic When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 1-7 scale responses (%)

18. Determining Local - Geographic 88% of responses (agree/strongly agree) determined ‘local food’ to be food products sourced within their region, town or city. 73% of responses (agree/strongly agree) determined ‘local food’ to be food products sourced within 100klms from their home region, town or city. This suggest most people would rather food and products sourced within their provenance and three quarters of shoppers are willing to consider distances of at least 100klms. There were no differences between age or gender in relation to determining ‘local food’ from a geographical perspective, however female respondents also considered ‘local food’ more broadly to be ‘Australian Made’. 18

19. Determining Local - Business Other than geographic distances, this research sought to identify the type of business and the location of those businesses, mostly associated with ‘local foods’. Respondents' (n=1065) were asked to identify business size and location. 19

20. Determining Local-Business When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 20

21. Determining Local-Business When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 6-7 scale responses (%) ‘No statistically significant difference’ ’ (p >.05) Shoppers’ gender did not affect how they defined local-business. 21

22. Determining Local-Business When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) Shoppers’ age group did not affect how they defined local-business. 22

23. Determining Local-Business When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 1-7 scale responses (%) 23

24. Determining Local-Business & Location When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 24

25. Determining Local-Business & Location When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 6-7 scale responses (%) ‘No statistically significant difference’ ’ (p >.05) Shoppers’ gender did not affect how they defined local-business & location. 25

26. Determining Local-Business & Location When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) Shoppers’ age group did not affect how they defined local-business & location. 26

27. Determining Local-Business & Location When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 1-7 scale responses (%) 27

28. Determining Local – Business & Location Analysis was conducted on responses (Agree/Strongly Agree). Most responses identified that ‘local food’ would be sourced from a small businesses. However, attitudes towards this measure were not strong; 19% of respondents had no opinion/didn’t care, 21% only somewhat agreed. This suggests that other factors influence a determination of ‘local food’ other than size of business. There were no differences identified between age or gender in relation to this measure. When location of business was added, responses (Agree/Strongly Agree) were more pronounced. 84% of responses indicated ‘local food’ should be sourced from small, family owned businesses within their own region, town or city. Once again, there were no differences between gender and age in relation to this measure. Accordingly, marketing messages should highlight links with well known, small local, family own businesses. 28

29. Determining Local – Product Features In contrast to previous research that had tended to focus on geographic location to determine ‘local food’, this research explored product features and attributes. This research sought to identify if product aspects, attributes or aesthetics, effected shoppers’ perceptions of ‘local foods’. 29

30. Determining Local-Product Features When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 30

31. Determining Local-Product Features When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 6-7 scale responses (%) ‘No statistically significant difference’ ’ (p >.05) Shoppers’ gender did not affect how they defined ‘local’ in relation to food and grocery products. 31

32. Determining Local-Product Features When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 6-7 scale responses (%) ‘No statistically significant difference’ ’ (p >.05) Shoppers’ age group did not affect how they defined ‘local’ in relation to food and grocery products. 32

33. Determining Local-Product Features When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 1-7 scale responses (%) 33

34. Determining Local-Product Features When you think of the term ‘Local’ in relation to food and grocery, how would you describe local? 1-7 scale responses (%) 34

35. Determining Local – Product Features Two themes emerge from the data; Health & Wellbeing and Aesthetics. Measuring only strong responses (Agree/Strongly Agree); – Health & Wellbeing - Quality (42%) and Good For You (37%) – Aesthetics – Crafty/Homely Packaging (41%) and Gourmet (32%) There were no significant statistical differences between age or gender in relation to these measures. Respondents reported that ‘local food’ products should meet these parameters. These findings will inform suppliers of ‘local food’ products, Local Purchasing Managers and Category Managers to enable successful product implementation and launch. Aesthetically, packaging and printed information should be ‘imperfect, rustic, home- made style and hand written’, such as one may find with a simple ‘white chalk on blackboard’ image. Marketing appeals should convey messages like; organic, pesticide-free, ‘from your local area’, ‘I’m a Local’. These findings may also influence POS imagery decisions. Further test marketing of treatments would be required. 35

36. How do Australian Shoppers determine local? Our sample of 1065 respondents determined ‘local food’ in several ways; Geographically – the product should be sourced from within a well known region or sub-region linked to their provenance (i.e. Gippsland Region, Adelaide Hills, Margaret River, Sunshine Coast Hinterland) – WOW Marketing would need to identify and isolate significantly well known areas and strategically source products from those areas. Distance – to a lesser extent, shoppers accepted products sourced within 100klms to still be considered locally. – This is an important consideration for WOW stores that are not located close to well know and easily identified regions, and therefore are not able to identify closely with these areas. Size of business was not important, however, ‘business & location’ was. Shoppers do not consider the size of enterprise that produces the local product, but the connection between the supplier (producer) and the region was vital. – This finding is important for Local Purchasing Managers when selecting appropriate suppliers. Such suppliers need to demonstrate strong links and brand equity with their community, region or sub- region. Local products and POS should appear aesthetically authentic, not necessarily perfect. Home-style, rustic and convey a message of product integrity, health and wellbeing. 36

37. Ethnocentrism As a factor in consumer behaviour, the construct of consumer ethnocentrism has been empirically established through the development and use of the CETSCALE instrument (Shimp & Sharma, 1987) In times of severe competition, firms are highly interested in consolidating their position in their domestic market (Porter, 1990) While consumer ethnocentrism, national identity and economic nationalism all reflect a level of discrimination against foreign products, the underlying reason is a domestic preference rather than negativity towards any country in particular (Josiassen, Assaf & Karpen, 2011) Academic research has discovered important differences in consumer cognitive processes and behaviour of three demographic characteristics ; age, gender and income (Cooil et al., 2007; Lambert-Pandraud et al., 2005) 37

38. Ethnocentrism Most recent research published in the International Marketing Review in 2011 identified the following; – Older consumers are more ethnocentric than younger consumers – Female consumers are more ethnocentric than male consumers – Level of income has no effect on consumer ethnocentric tendencies – Effect of consumer ethnocentric tendencies on willingness to buy is not significantly influenced by income – The relationship between consumer ethnocentric tendencies and willingness to buy is stronger for younger consumers 38

39. Ethnocentrism ‘Statistically significant difference’ (p <.01) Shoppers aged 46 and over are more likely to feel strongly about purchasing local products compared to those under 46 years of age.

40. Ethnocentrism ‘Statistically significant difference’ (p <.01) Females are more likely to feel strongly about purchasing local products compared to males. 40

41. Ethnocentrism ‘Statistically significant difference’ (p <.01) Shoppers with low levels of education (high school/secondary and TAFE/Trade Certificate) are more likely to feel strongly about purchasing local products compared to those with higher levels of education (undergraduate and postgraduate).

42. Ethnocentrism ‘No statistically significant difference’ (p >.05) Shoppers’ relationship status did not affect ethnocentrism.

43. Ethnocentrism ‘No statistically significant difference’ (p >.05) Shoppers’ household type did not affect ethnocentrism.

44. Ethnocentrism Results provide managers with a detailed understanding of which consumer groups are the most consumer ethnocentric – Such knowledge will be essential for segmentation, targeting and product positioning efforts. – Not all domestic consumers express the same extent of ethnocentric tendencies While measuring consumer ethnocentrism levels is important, it is not sufficient to understanding the impact of such ethnocentric tendencies on purchase behaviour. – For example, target segments should not just be selected based simply on levels of consumer ethnocentricity, as some groups may have a low willingness to let their consumer ethnocentric tendencies influence their willingness to purchase. – Research has found willingness to buy was stronger for younger consumers, although older consumers reported higher levels of ethnocentric tendencies. It is suggested older consumers are more experienced shoppers and are able to separate their ethnocentric views from their buying needs and wants. 44

45. Ethnocentrism This research identifies the following; Older consumers are more ethnocentric than younger consumers – Supported by international research (Josiassen, Assaf & Karpen, 2011) Female consumers are more ethnocentric than male consumers – Supported by international research (Josiassen, Assaf & Karpen, 2011) Shoppers with low levels of education are more likely to feel strongly about purchasing local products compared to those with higher levels of education – Supported by international research (Nisha, 1990) Consumer status had no effect on level of consumer ethnocentric tendencies Household type (kids/no kids) no effect on level of consumer ethnocentric tendencies 45

46. Attitudes: Benefits of Buying Local Extant research has indicated that other than ethnocentric tendencies, consumers are motivated to choose ‘local food’ for other reasons, such as; – Economic factors – Environmental factors – Ethical factors (Supporting small and local businesses) This research collected data pertaining to these constructs. 46

47. Attitudes: Benefits of Buying Local 47

48. Attitudes: Benefits of Buying Local ‘Statistically significant difference’ (p <.01) Females are more likely to think that it is important to support their local farmers and local business community compared to males. 48

49. Attitudes: Benefits of Buying Local ‘Statistically significant difference’ (p <.01) Shoppers aged 46 and over are more likely to think about benefits of buying local in terms of supporting the Australian economy compared to those aged less than 46 years. 49

50. Attitudes: Benefits of Buying Local ‘No statistically significant difference’ (p >.05) The education level of shoppers did not affect attitudes towards benefits of buying local. 50

51. Attitudes: Benefits of Buying Local 1-7 scale responses 51

52. Attitudes: Benefits of Buying Local Worried that local farms will go out of business because food grown for supermarkets is grown on big farms 52

53. Attitudes: Benefits of Buying Local Worried that local farms will go out of business because food grown for supermarkets is grown on big farms 6-7 scale responses ‘No statistically significant difference’ (p >.05) Shoppers’ gender did not affect the concerns for the survival of local farmers. 53

54. Attitudes: Benefits of Buying Local Worried that local farms will go out of business because food grown for supermarkets is grown on big farms ‘No statistically significant difference’ (p >.05) Shoppers’ age group did not affect the concerns for the survival of local farmers. 54

55. Attitudes: Benefits of Buying Local Worried that local farms will go out of business because food grown for supermarkets is grown on big farms ‘Statistically significant difference’ (p <.01) Shoppers with low education levels (high school/secondary) are more likely to be concerned with the survival of local farmers than those with high education levels (undergraduate and postgraduate). 55

56. Attitudes: Benefits of Buying Local Worried that local farms will go out of business because food grown for supermarkets is grown on big farms 1-7 scale responses (M = 5.46) Correlations between ‘concerns for the survival of local farmers’ and ‘availability ‘ ‘Concerns for the survival of local farmers’ has a positive correlation with ‘locally produced foods should be more available in supermarkets’ (r = 0.42, p < 0.01). 56

57. Attitudes: Benefits of Buying Local Analysis was conducted on responses (Agree/Strongly Agree). Supporting the local economy (2 x measures) was determined to be the most important motivation to encourage consumers to purchase ‘local foods and products’. – 91% of responses reported supporting ‘local farms and businesses’ was a distinct benefit of purchasing local foods and products. – 89% of responses reported that by buying local food and products, they perceived they would be supporting the local economy. – Environmental factors were more disbursed (22% of responses reported ‘don’t care’) There were significant differences detected in age and gender, identifying older female consumers were more concerned with the relationship between purchasing ‘local food and products’ and ‘local economic dynamics’. There were no significant differences detected within levels of education. Marketing appeals should convey messages linked to local economy, regional commerce, local economic development and investment, not necessarily (to a lesser extent) environmental issues, green supply chains and shortened distribution. 57

58. Attitudes: Benefits of Buying Local Analysis was conducted on responses (Agree/Strongly Agree) on concerns that local farms will go out of business because of the perception food grown for supermarkets is grown on big farms. This appears to be an underlying theme – 53% of responses indicated agreed/strongly agreed with this statement, 47% to a lesser extent. There was no difference between age or gender in relation to this perception, however, there was a significant statistical difference with ‘level of education’. – Less educated consumers had the perception that all food grown for large supermarkets, was sources from large commercial operations and that there was a real chance smaller family owned operations would close. Correlations indicated a 42% variance between ‘local foods being made available in supermarkets’ and ‘ survival of small local farms’. – A positive, strong belief that if local foods and products were more readily available in major supermarkets, small family owned farms and businesses will survive. A consumer education campaign may be necessary to dispel the widely held belief that WOW only sources from large commercial operators and overlooks smaller independent operations. 58

59. Attitudes: Supporting local and small business An emergent theme relating to ‘local food’ was support for local farms, businesses and economies. Accordingly, this research examined these items more thoroughly ; – Perceptions of current hardship in the farming community – Perceptions of government support for farming communities – Perceptions of supermarket support for farming communities 59

60. Attitudes: Supporting local and small business Hardship and farming communities 60

61. Attitudes: Supporting local and small business Hardship and farming communities ‘No statistically significant difference’ (p >.05) Shoppers’ gender did not affect the concerns for the hardship of farming communities. 61

62. Attitudes: Supporting local and small business Hardship and farming communities ‘Statistically significant difference’ (p <.01) Shoppers aged 56 and over are more likely to be concerned with the hardship of local farming communities compared to those aged 25-35 years. 62

63. Attitudes: Supporting local and small business Hardship and farming communities ‘Statistically significant difference’ (p <.01) Shoppers with low education levels (high school/secondary) are more likely to be concerned with the hardship of local farming communities than those with higher education levels (TAFE/trade certificate, undergraduate, and postgraduate). 63

64. Attitudes: Supporting local and small business Hardship and farming communities 1-7 scale responses (M = 5.88) 64

65. Attitudes: Supporting local and small business Government support 65

66. Attitudes: Supporting local and small business Government support 6-7 scale responses ‘Statistically significant difference’ (p <.05) Females are more likely to think Australian farmers deserve greater support from the government compared to males. 66

67. Attitudes: Supporting local and small business Government support 6-7 scale responses ‘Statistically significant difference’ (p <.01 and p <.05) Shoppers aged 56 and over are more likely to think the government do not provide much support to Australian farmers compared to those aged less than 56 years. Shoppers aged 56-65 years are more likely to think Australian farmers deserve greater support from the government compared to those aged 25-35 years. 67

68. Attitudes: Supporting local and small business Government support 6-7 scale responses ‘Statistically significant difference’ (p <.05) Shoppers with low levels of education (high school/secondary) are more likely to think Australian farmers deserve greater support from the government compared to those with higher level of education (postgraduate). 68

69. Attitudes: Supporting local and small business Government support 69

70. Attitudes: Supporting local and small business Supermarket support 70

71. Attitudes: Supporting local and small business Supermarket support 6-7 scale responses ‘Statistically significant difference’ (p <.05) Females are more likely to think Australian farmers deserve greater support from the supermarkets and the supermarkets do not provide much support to Australian farmers compared to males. 71

72. Attitudes: Supporting local and small business Supermarket support 6-7 scale responses ‘No statistically significant difference’ (p >.05) Shoppers’ age group did not affect shoppers’ attitudes towards supermarket support. 72

73. Attitudes: Supporting local and small business Supermarket support 6-7 scale responses ‘Statistically significant difference’ (p <.01) Shoppers with low levels of education (high school/secondary) are more likely to think Australian farmers deserve greater support from supermarkets compared to those with higher level of education (TAFE/Trade Certificate). 73

74. Attitudes: Supporting local and small business Supermarket support 74

75. Attitudes: Supporting local and small business Government Support VS Supermarket Support The correlation values between government support and supermarket support were from r = 0.45 to r = 0.70, p < 0.01. 75

76. Attitudes: Supporting local and small business Government Support VS Supermarket Support 6-7 scale responses. ‘No statistically significant difference’ (p >.05) Gender did not affect shoppers’ attitudes towards government and supermarket support of Australian farmers. 76

77. Attitudes: Supporting local and small business Government Support VS Supermarket Support 6-7 scale responses ‘Statistically significant difference’ (p <.01) Shoppers aged 56-65 years are more likely to have attitudes towards government support of Australian farmers compared to those age 25-45 years. 77

78. Attitudes: Supporting local and small business Government Support VS Supermarket Support 6-7 scale responses ‘No statistically significant difference’ (p >.05) Shoppers’ levels of education did not affect their attitudes towards government and supermarket support of Australian farmers. 78

79. Attitudes: Supporting Local and small business Responses indicate a genuine and significant concern of the viability of farming in Australia – Nearly 70% of responses indicated strong agreement that the Australian farming sector is suffering from great hardship. – This concern was more pronounce in older (+56), less educated consumers 57% of responses (agree/strongly agree) – Governments are not doing enough to support farmers – 71% of responses (agree/strongly agree) – Governments should do more 50% of responses (agree/strongly agree) – Supermarkets are not doing enough to support farmers – 83% of responses (agree/strongly agree) – Supermarkets should do more Correlations indicated consumers considered both government and major supermarkets need to do more for the farming community. WOW leadership team should engage with all levels of government and other industry groups (NFF) and develop programs around sourcing, seed funding and education programs. Respondents indicate the support of Australian farming communities will require a joint effort. 79

80. Awareness It has been previously identified in this research that consumers perceived supermarkets were not doing enough to support local farmers and a very strong belief that supermarkets should do more. This research now examines the level of awareness in relation to the availably of local foods and products. Specifically, this research measures; – Locally produced foods should be more available in my supermarket – Locally produced foods are available in my supermarket – I can find locally produced foods in my supermarket 80

81. Awareness 81

82. Awareness 6-7 scale responses ‘Statistically significant difference’ (p <.01) Females are more likely to believe locally produced foods should be made more available in supermarkets compared to males. 82

83. Awareness ‘No statistically significant difference’ (p >.05) Age group did not affect shoppers’ awareness of buying locally produced foods. 83

84. Awareness 6-7 scale responses ‘No statistically significant difference’ (p >.05) Levels of education did not affect shoppers’ awareness of buying locally produced foods. 84

85. Awareness 85

86. Awareness There was a very strong position expressed that ‘local foods and products’ should be made more available in supermarkets – 86% of responses indicated strongly agree/agree to this statement. Less than half (47%) (strongly agree/agree responses) indicated locally produced foods were easy to find in their supermarket Alarmingly, only 20% (strongly agree/agree responses) advised major supermarkets currently provided a good range of locally produced foods and products. There was no significant differences in responses across age or education, however, female respondents were more likely to believe local foods and products should be made more available. These findings will influence POS imagery decisions. It is recommended that shelf striping, wobblers, barker cards should be affixed to locally produced foods and products to raise awareness. Messages, that convey connectedness will be important, i.e. “Hi, I’m a Local”. A national roll out of such POS may negate, to some extent, excessive cost associated with sourcing and ranging of new products. Increasing awareness of current local ranges may produce increased levels of consumer loyalty. 86

87. Subjective Norms Consumer behaviour research indicates that ‘others’ around us may influence our purchase decisions. This research sought to examine the extent subjective norms influenced ‘local food’ purchase behaviour; – Friends – People who are important to us (public leaders, celebrities, athletes) – Family – People who influence my buying behaviour (work colleagues, children) 87

88. Subjective norms 88

89. Subjective norms 6-7 scale responses ‘No statistically significant difference’ (p >.05) Shoppers’ gender did not affect subjective norms. 89

90. Subjective norms 6-7 scale responses ‘Statistically significant difference’ (p <.01 and p <.05) Shoppers aged 46-55 years are more likely to think their friends influence their purchase compared to those aged 25-45 years. Shoppers aged 46-55 years are more likely to think their family influence their purchase compared to those aged 36-45 years. 90

91. Subjective norms 6-7 scale responses ‘No statistically significant difference’ (p >.05) Shoppers’ levels of education did not affect subjective norms. 91

92. Subjective norms 92

93. Subjective Norms Results indicated family and friends more heavily influenced purchase decisions of ‘local food’ There was no significant differences in relation to gender or education, however, older consumers (+45) were more heavily influenced. These findings will influence POS imagery, TVC’s and advertising content. It is recommended that creative briefs should convey messages and images of family and friends, sharing fresh locally grown foods. Emotional linking possibly a parents’ job (fruit picking or harvesting produce) at a local farm with eating that food at dinner with their family and friends. Messages that buying local creates and sustains local jobs. 93

94. Connectedness Previous literature that suggested ‘connectedness’ as a factor in alternative food networks such as those defined as ‘locally produced’ (Coit, 2008; Holloway and Kneafsey, 2004 Local community engagement provides a vehicle for social connectedness and enables members to achieve common goals. Social connectedness is linked not only an individual consumers’ wellbeing, but the wellbeing broadly of the whole community. This research sought to examine the extent of reported connectedness when shoppers buy ‘local food’ with; – Their community – The producer – Their supermarket 94

95. Connectedness 95

96. Connectedness 6-7 scale responses ‘No statistically significant difference’ (p >.05) Shoppers’ gender did not affect connectedness. 96

97. Connectedness 6-7 scale responses ‘Statistically significant difference’ (p <.01) Shoppers aged 46 and over are more likely to feel they connect with the community compared to those aged 36-45 years. 97

98. Connectedness 6-7 scale responses ‘No statistically significant difference’ (p >.05) Levels of education did not affect connectedness. 98

99. Connectedness 99

100. Connectedness Interestingly, higher responses (agree/strongly agree) indicated that after purchasing locally produced foods, consumers felt a greater connectedness with their community. This may relate to economic ethnocentric tendencies, that it; ‘I buy local, I support my community’s economy. There were favourable (positive responses - agree/strongly agree) toward a connection with both the producer and the supermarket selling ‘local food’. No differences detected between gender or education, however, older consumers more likely to feel they connect with the community compared to younger. These findings will influence POS imagery, TVC’s and advertising content. Linked to Social Norms, it is recommended that creative briefs should convey messages and images of the connectedness to broader community appeals. Linking buying local products from their supermarket, with local charity groups, sporting clubs, etc... Explaining how shoppers can ‘connect’ with their local community, buy simply buying local products and supporting farmers and family owned businesses. 100

101. Intentions to purchase This research captured both ‘Intentions to purchase local foods and products’ and the antecedents of intentions. – There is a risk in measuring intentions, as opposed to actual purchase behaviours, as unforseen barriers may exist between those positive attitudes (intentions) and behaviours (purchases). Such barriers may be, lack of knowledge, financial constraints, lack of awareness, lack of supply or lack of experience with the local product. More importantly, this research measured drivers (antecedents) of intentions to purchase ‘local food’. 101

102. Intentions to Purchase 102

103. Intentions to Purchase ‘Statistically significant difference’ (p <.01) Females are more likely to intend to buy locally sourced products compared to males. 103

104. Intentions to purchase ‘Statistically significant difference’ (p <.01) Shoppers aged 46 and over are more likely to intend to buy locally sourced products compared to those aged less than 46 years. 104

105. Intentions to purchase ‘Statistically significant difference’ (p <.01) Shoppers with low education levels (high school/secondary) are more likely to intend to buy locally sourced products than those with higher education levels (undergraduate). 105

106. Antecedents of Intentions to purchase Significance level: * p<0.05, ** p<0.01, ***p<0.001 The correlation coefficient values were from r = 0.16 to r = 0.65, p < 0.01. 106

107. Intentions to purchase 95% of responses indicated a willingness to by locally produced foods and products, if they were readily available in their supermarket. No respondents indicated they would not purchase. Older less educated female shoppers were more likely to make purchases. ‘Extent of connectedness’ was the largest driver of purchase intentions, followed by ‘Benefits of buying local’. The five constructs measured for this research captured 78% of the drivers leading to purchase intentions of ‘local food’. These findings will influence POS imagery, TVC’s and marketing content. WOW should develop campaigns around community engagement (connectedness) and the broader benefits of buying local (supporting local farmers and small businesses). Other antecedents, such as awareness and subjective norms, effected purchase intentions to a lesser extent. 107

108. How important is ‘Local’ across categories Major supermarkets today carry a broad range of product and foods – Some of these products are considered low involvement purchases, others high involvement – Extent of involvement is to stable and will change across demographics It is suggested that within some categories, ‘local’ will be a important attribute effecting choice, whereas in other categories, ‘local’ may be consider less important. This research sought to identify which categories consumers considered to be vitally important to be sourced locally. 108

109. How important is ‘Local’ across categories Shoppers prefer to have bakery products sourced from within their region, town or city. 109

110. How important is ‘Local’ across categories Shoppers prefer to have dairy products sourced from within their state. 110

111. How important is ‘Local’ across categories Shoppers prefer to have wine & beer sourced from anywhere in Australia. 111

112. How important is ‘Local’ across categories Shoppers prefer to have wine & beer as well as chocolate & confectionery products sourced from overseas. 112

113. How important is ‘Local’ across categories Shoppers don’t care where chocolate & confectionery products are sourced from. 113

114. How important is ‘Local’ across categories Within the closest proximity (town, region and city) consumers the following three categories should be sourced locally; – Bakery products (82%), Eggs (68%) and Fresh Fruit and Vegetables (57%) Within the consumers’ home state; – Dairy (58%), Meat (56%) and Fresh Fruit and Vegetables (50%) Within Australia; – Wine and Beer (68%), Jams/Spreads (65%) and Confectionery/Chocolate (65%) Bakery products and Eggs significantly decrease the further away from locality. Wine/Beer and Confectionery/Chocolate categories is not effected by locality. These findings will influence decisions regarding which categories to increase the proportion of local product range in as a priority. A progressive approach to driving ‘local’ awareness in Bakery, Eggs, Fresh Produce, and too a lesser extent, Dairy and Meat, may limit excessive costs associated with sourcing and ranging of new products. 114

115. Factors that influence the purchase of ‘Local’ foods Finally, this research sought to identify and confirm any other factors that influenced the purchase of local foods and product. The following items were measured; – Location of production – Brand, cost, convenience, safety and quality – Taste/flavour, product aesthetics and packaging – Novelty and community 115

116. Factors that influence the purchase of ‘Local’ foods Product origin 116

117. Factors that influence the purchase of ‘Local’ foods Product origin 6-7 scale responses (%) ‘No statistically significant difference’ ’ (p >.05) Shoppers’ gender did not affect product origin. 117

118. Factors that influence the purchase of ‘Local’ foods Product origin 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) Shoppers’ age group did not affect product origin. 118

119. Factors that influence the purchase of ‘Local’ foods Product origin 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) The education level of shoppers did not affect product origin. 119

120. Factors that influence the purchase of ‘Local’ foods Product origin 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) The relationship status of shoppers did not affect product origin. 120

121. Factors that influence the purchase of ‘Local’ foods Product origin 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) The household of shoppers did not affect product origin. 121

122. Factors that influence the purchase of ‘Local’ foods Brand & reputation, cost, convenience, safety, and quality 122

123. Factors that influence the purchase of ‘Local’ foods Brand & reputation, cost, convenience, safety, and quality 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) Shoppers’ gender did not affect brand & reputation, cost, convenience, safety, and quality. 123

124. Factors that influence the purchase of ‘Local’ foods Brand & reputation, cost, convenience, safety, and quality 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) Shoppers’ age group did not affect brand & reputation, cost, convenience, safety, and quality. 124

125. Factors that influence the purchase of ‘Local’ foods Brand & reputation, cost, convenience, safety, and quality 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) The education level of shoppers did not affect brand & reputation, cost, convenience, safety, and quality. 125

126. Factors that influence the purchase of ‘Local’ foods Brand & reputation, cost, convenience, safety, and quality 6-7 scale responses (%) ‘Statistically significant difference’ (p <.05) Shoppers who are separated/divorced are more likely to think safety is the factor that influences their purchase decisions compared to those who are single/living alone and married/defacto/living together. 126

127. Factors that influence the purchase of ‘Local’ foods Brand & reputation, cost, convenience, safety, and quality 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) The household of shoppers did not affect brand & reputation, cost, convenience, safety, and quality. 127

128. Factors that influence the purchase of ‘Local’ foods Taste and Aesthetics 128

129. Factors that influence the purchase of ‘Local’ foods Taste and Aesthetics 6-7 scale responses (%) ‘Statistically significant difference’ (p <.05) Females are more likely to think taste/flavour is the factor that influences their purchase decisions compared to males. 129

130. Factors that influence the purchase of ‘Local’ foods Taste and Aesthetics 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) Shoppers’ age group did not affect taste and aesthetics. 130

131. Factors that influence the purchase of ‘Local’ foods Taste and Aesthetics 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) The education level of shoppers did not affect taste and aesthetics. 131

132. Factors that influence the purchase of ‘Local’ foods Taste and Aesthetics 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) The relationship status of shoppers did not affect taste and aesthetics. 132

133. Factors that influence the purchase of ‘Local’ foods Taste and Aesthetics 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) The household of shoppers did not affect taste and aesthetics. 133

134. Factors that influence the purchase of ‘Local’ foods Novelty and Community 134

135. Factors that influence the purchase of ‘Local’ foods Novelty and Community 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) Shoppers’ gender did not affect novelty and community. 135

136. Factors that influence the purchase of ‘Local’ foods Novelty and Community 6-7 scale responses (%) ‘Statistically significant difference’ (p <.01) Shoppers aged 46 and over are more likely to think supporting small business is the factor that influences their purchase decisions compared to those aged 36-45 years. 136

137. Factors that influence the purchase of ‘Local’ foods Novelty and Community 6-7 scale responses (%) ‘Statistically significant difference’ (p <.05) Shoppers with low levels of education (High school/Secondary) are more likely to think supporting small business is the factor that influences their purchase decisions compared to those with high levels of education (undergraduate and postgraduate). 137

138. Factors that influence the purchase of ‘Local’ foods Novelty and Community 6-7 scale responses (%) ‘No statistically significant difference’ (p >.05) The relationship status of shoppers did not affect novelty and community. 138

139. Novelty and Community 6-7 scale responses (%) Factors that influence the purchase of ‘Local’ foods ‘Statistically significant difference’ (p <.05) Shoppers who have no kids and have kids some of the time are more likely to think supporting small business is the factor that influences their purchase decisions compared to those who have kids all the time. 139

140. Factors that influence the purchase of ‘Local’ foods Responses (agree/strongly agree) were captured Product origin – Must be made in Australia and preferably, within local town, region or city Quality, safety, brand and reputation of local product important – No significant statistical differences between gender, age, education, stats or household type Taste and look of product and packaging – important, but not as important as quality, safety, brand and reputation – Female consumers more concerns with taste and flavour Novelty (newness of local product) and community – important, but not as important as quality, safety, brand and reputation These findings will guide the selection of products and local suppliers Brand and reputation will be determined from local market research. i.e. Within each town or region, what is the most well known, trust local brand. 140

141. Conclusion Responses from 1065 primary grocery shoppers, relating to consumer purchase intentions of locally produced and grown foods and products, where captured and analysed. A summary of recommendations follows; Well know, SME’s, with strong local brand equity, should be strategically targeted and recruited The packaging of newly sourced, or re-launched, local products should look aesthetically authentic, rustic, artisan or home-made, as should ‘Local’ POS. POS should keep messages short, but link to ‘connectedness’, such as barker cards, shelf striping and wobblers, with the message, ‘I’m a Local’ A national roll out of such POS may raise consumer awareness of currently available local foods and product. There is a risk that excessive sourcing of local products may negatively impact supply chain efficiency. A progressive approach to driving ‘local’ awareness in Bakery, Eggs, Fresh Produce, and to a lesser extent, Dairy and Meat, may limit excessive costs associated with sourcing and ranging of new products. 141

142. Conclusion Emotionally linking possibly a parents’ job (fruit picking or harvesting produce) at a local farm with eating that food at dinner with their family and friends A consumer education campaign may be necessary to dispel the widely held belief that large supermarkets only source from large commercial operators WOW leadership team should engage with all levels of government and other industry groups (NFF) and develop programs around sourcing, funding and education programs Purchase intentions of local food appear most driven by ‘connectedness’ and the broader ‘benefits of buying local’, accordingly; Marketing appeals should convey messages linked to local economy, regional commerce, local economic development and investment, not necessarily (to a lesser extent) environmental issues, green supply chains and shortened distribution. Creative briefs should convey messages and images of family and friends, sharing fresh locally grown foods together. 142