The fallacy of the heavy buyer: Exploring purchasing frequencies of fresh fruit and vegetable categories

Journal of Retailing and Consumer Services

9 Pages Posted: 11 Oct 2018 Last revised: 24 Jun 2022

See all articles by Zachary Anesbury

Zachary Anesbury

University of South Australia - Ehrenberg-Bass Institute

Danielle Talbot

University of South Australia - Ehrenberg-Bass Institute

Chanel Andrea Day

Nielsen

Tim Bogomolov

University of South Australia - School of Mathematics and Statistics

Svetlana Bogomolova

Ehrenberg-Bass Institute for Marketing Science

Date Written: September 21, 2018

Abstract

‘Avocado lover,’ ‘banana lover,’ or ‘berry lover’ – these words are starting to dominate the contemporary marketing campaigns for fresh fruit and vegetable categories. Such campaigns assume that there are sizable buyer segments who purchase a particular fresh category more frequently, who are contributing a larger portion of sales, and who will continue to do so into the future. Yet, an established body of empirical evidence from consumer packaged goods (CPG) categories suggests that these assumptions could be false. The current study empirically examines fresh category purchasing behavior (through a large Nielsen US panel data) by applying three known models: the Negative Binomial Distribution, the Pareto share, and the stability over time analysis (buyers and sales contribution). This study compares the results and finds that despite many differences between fresh and CPG categories, buyers’ purchasing behavior follows the same established benchmarks patterns as those observed in CPG contexts. There are many more infrequent or light buyers than heavy ‘lovers’; the heavy buyers contribute roughly 60% of sales; they are purchasing less frequently, and contributing fewer sales as time goes by. These findings carry important implications for marketers, retailers, and farmers of fresh categories. Specifically, the results show which marketing campaigns (i.e., those highly targeted at ‘lovers’ or those with a mass marketing appeal) are better grounded in the empirical evidence about buyer behavior which has the highest probability of increasing consumption.

Keywords: Fresh fruit and vegetable categories, Negative Binomial Distribution, Pareto share, heavy buyers

Suggested Citation

Anesbury, Zachary and Talbot, Danielle and Day, Chanel Andrea and Bogomolov, Timofei and Bogomolova, Svetlana, The fallacy of the heavy buyer: Exploring purchasing frequencies of fresh fruit and vegetable categories (September 21, 2018). Journal of Retailing and Consumer Services, Available at SSRN: https://ssrn.com/abstract=3252849 or http://dx.doi.org/10.2139/ssrn.3252849

Zachary Anesbury (Contact Author)

University of South Australia - Ehrenberg-Bass Institute ( email )

Level 4 Yungondi Building
70 North Terrace
Adelaide, South Australia 5000
Australia

Danielle Talbot

University of South Australia - Ehrenberg-Bass Institute

GPO Box 2471
Adelaide, 5001
Australia

Chanel Andrea Day

Nielsen

11 Talavera Rd
Macquarie Park, 2113
Australia

Timofei Bogomolov

University of South Australia - School of Mathematics and Statistics ( email )

Australia

Svetlana Bogomolova

Ehrenberg-Bass Institute for Marketing Science ( email )

GPO Box 2471
Adelaide, 5001
Australia

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
80
Abstract Views
568
Rank
551,205
PlumX Metrics