United States Consumers’ Perceptions and Willingness to Pay for Sustainable Environmental Practices in a Retail Floral Provider’s Business Model

Abstract

Research suggests consumers are willing to pay a premium for goods from industries that design products using environmentally sound practices and that these practices lead to customer loyalty. Using environmentally friendly practices can differentiate a business from competitors through branding, which has been known to help increase profit margins and stimulate demand in a saturated market. The main purpose of this study was to gain an understanding of consumer perceptions and willingness to pay as they relate to retail floral providers’ sustainable and environmentally friendly practices. A total of 2172 people responded to an online survey. The sample used in this study was a random selection of individuals 18 years and older living in the United States. Survey responses were collected from 21 Dec 2022 to 27 Jan 2023. Respondents indicated the use of locally sourced flowers followed by the recycling of flower waste through composting as the two sustainable attributes that would increase their willingness to make purchases the most. Respondents indicated the strongest willingness to pay 10% or more for locally sourced flowers (61.7%), followed by flower providers composting their floral waste (59.5%). In addition, 50% or more of all respondents indicated a willingness to pay 10% or more for all the sustainable attributes for which they were asked. The methods in which retail floral providers source floral material, create floral designs, and market and brand their company are important considerations when promoting their services toward environmentally conscious consumers and in creating a valuable repeat customer base.