RELATIONSHIPS OP MERCHANDISING PRACTICES AMD OTHER FACTORS TO THE SALES OF GREENHOUSE TOMATOES IN RETAIL FOOD STORES DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By THEODORE WILLIAM LEBD, B. S., M. S. ****** The Ohio State University 1956 Approved by: Advis er Department of Agricultural Economics and Rural Sociology ACKNOWLEDGEMENT S The author wishes to acknowledge and express his appreciation to those whose cooperation and assistance made this manuscript possible. To Dr. Ralph W. Sherman and Dr. Mervin G. Smith who contributed helpful criticism and suggestions. Especially to Dr. M. E. Cravens, who gave generously of his time and who provided encouragement and valuable counsel and guidance throughout the study and preparation of the manuscript. To the Kroger Company, Columbus Branch, and Big Bear Stores Incorporated, Columbus, Ohio, whose cooperation made the study possible. To the Dobeckmun Company, Cleveland, Ohio, who generously furnished the bags used in the study. To my wife, Doris, whose patience, understanding and encourage­ ment contributed immeasurably to the completion of this manuscript. ii TABLE OP CONTENTS INTRODUCTION ..................................... Importance of Greenhouse Tomato Production in Ohio Marketing Greenhouse Tomatoes in Ohio ........... PURPOSE OP THE STUDY ............................. Retail Merchandising ........................... Method of display ............................ Promotion .................................... Spoilage loss ................................ Supply-Price Relationships ...................... SECTION I ........................................ RETAIL MERCHANDISING ............................. Pall Crop Study - 1953 ......................... Methodology.............. '................... 1. Selection of stores and time period ...... 2. Selection of treatments .................. 3. Experimental design ................. 4. Procedure ............................... a. Non-test variables ............. ....... b. Record taking .......................... Analysis and Results ......................... 1. Method of display ....................... a. Non-test variables ..................... b. Analysis of variance .................. TABLE OP CONTENTS (Continued) Page (1) Size of display ............ 27 (2) Price ...................................... 23 (3) Carryover .................................. 29 2. Spoilage loss .............. 30 Conclusions and Recommendations .................... .. 34 Spring Crop Study - 1954 ............................... 36 Methodology.......................................... 36 1. Experimental design ............................. 36 2. Selection of stores ............................. 37 3. Selection of treatments (methods of display) ...... 38 4. Methods of promotion ............................ 40 5. Non-test variables .............................. 42 6 . Control period .................................. 42 (a) Procedure .................................... 43 Analysis and Results ................................. 49 1. Methods of display .............................. 49 a. Non-test variables ............................ 53 (1) Price ...................................... 54 (2) Quality.................................... 56 (5) Size of displa~y......... 57 2. Promotion ............................ 58 a. Size of display ............................... 67 b. Cost of "salad bowl" promotion..... 71 iv TABLE OF CONTESTS (Continued) Pege c. Conclusions ................................... 72 3. Spoilage loss ..................................... 75 Conclusions and Recommendations ......................... 80 1. Method of display ............................... 80 2. Promotion .......................................... 83 3. Spoilage loss ...................................... 85 4. Other recommendations .............................. 85 SECTION II .................................................. 87 WHOLESALE PRICE ANALYSIS .................................... 87 Purpose ................................................... 87 Source and Nature of the Data ............................. 87 Analysis and Results ...................................... 88 1. Greenhouse tomato supply and price ................... 90 (a) Spring crop ....................................... 90 (h) Fall crop ......................................... 92 2. Tubed tomato supply and price ................... 94 3. Tubed and greenhouse tomato price (a) Spring crop .................................... 95 (b) Fall crop ...................................... 97 4. Tubed tomato price, greenhouse tomato supply and price 99 Conclusions .............................................. 100 APPENDIX ................................................... 103 BIBLIOGRAPHY ............................................... 152 AUTOBIOGRAPHY .............................................. 153 y LIST OF TABLES Table Page 1 Importance of Greenhouse Tomato Production in Ohio, by County Areas, 1949 .... .......................... 2 2 Methods of Display for Greenhouse Tomatoes During Two, Three Week Experimental Periods, November 2-21 and November 30-December 19, 1953 ....................... 11 3 Double Change-over Latin Squares and Test Treatments in Six Reta.il Food Stores, November 2-21, Columbus, Ohio, 1953 ......................................... 14 4 Double Change-over Latin Square and Test Treatments in Six Retail Food Stores, November 30-December 19, Columbus, Ohio, 1953 ............................... 15 5 Sales of Greenhouse Tomatoes in Pounds, by Method of Display, Six Retail Food Stores, Columbus, Ohio, November 2-21, 1953 ................................ 19 6 Sales of Greenhouse Tomatoes in Pounds, by Method of Display, Six Retail Food Stores, Columbus, Ohio, November 30-December 19, 1553 ....................... 20 7 Average Greenhouse Tomato Sales as a Percentage of Average Tubed Tomato Sales, by Method of Display, Stores One to Three and Four to Six, November 2-21, 1953 ............................................... 21 8 Average Greenhouse Tomato Sales in Pounds Per $1,000 of Total Produce Sales, by Method of Display, Stores One to Three and Four to Six, November 2-21, 1953 .... 22 9 Average Greenhouse Tomato Sales as a Percentage of Average Tubed Tomato Sales end Per $1,000 of Total Produce Sales, by Method of Display, Stores One to Six, November 2-21, 1954 ........................... 22 10 Average Greenhouse Tomato Sales as a Percentage of Average Tubed Tomato Sales, by Method of Display, Stores One to Three and Four to Six, November 30- December 19, 1953 .................................. 23 vi LIST OF TABLES (Continued) Table Page 11 Average Greenhouse Tomato Sales in Pounds Per $1,000 of Total Produce Sales, by Method of Display, Stores One to Three and Four to Six, November 30-Decemher 19, 1953.................................................... 23 12 Average Greenhouse Tomato Sales as a. Percentage of Average Tubed Tomato Sales and Per $1,000 of Toted Produce Sales, by Method of Display, Stores One to Six, November 30-December 19, 1954 ..................... 24 13 Pounds of Greenhouse Tomatoes Sold in Cellophane Bags as a Percentage of Total Greenhouse Tomato Sales in Pounds, Treatment B, Six Retail Food Stores, November 2-31, 1953 ................................ 27 14 Average Number of Square Feet in Displays of Greenhouse and Tubed Tomatoes Per Week, by Treatments, Six Retail Food Stores, Columbus, Ohio, November 2- December 19, 1953 .................................. 28 15 Spoilage Loss of Greenhouse and Tubed Tomatoes as a Percentage of Sales, Six Retail Food Stores, November 2-21, November 30-December 19, 1953 ......... 31 16 Experimental Design, Including Four Week Control Period and One Week Special Promotion Period, Twelve Retail Food Stores, Arranged in Three Latin Squares, with Treatments, April 26-June 26, Columbus, Ohio, 1954 ............ 37 17 Array of Radios of C-reenhouse Tomato Sales in Pounds to Number of Units of Tubed Tomatoes Sold, Tv/elve Retail Food Stores, Columbus, Ohio, April 26-May 22, 1954 ............................................... 44 18 Ratios of Greenhouse Tomato Sales in Pounds to Tubed TomatoeSales in Number of Units, Arranged in Three Latin Squares, Twelve Retail Food Stores, Columbus, Ohio, April 26-May 22, 1954 ......................... 45 19 Index of Greenhouse Tomato Sales (in Pounds) , ana Index of Ratios of Greenhouse Tomato Sales to Tubed Tomato Sales (in Number of Tubes), Twelve Retail Food Stores, Columbus, Ohio, April 26-May 22, 1954 ........ 47 vii LIST OF TABLES (Continued) Table Page 20 Average Greenhouse Tomato Sales Per Store, in Pounds, and Index of Average Sales, by Method of Display, Two Store Groups, Eight Retail Food Stores, Columbus, Ohio, June 1-26, 1954 ........................... 51 21 Average Greenhouse Tomato Sales Per Store, in Pounds, Adjusted by Control Period Index, and Index of Average Sales, by Method of Display, Two Store Groups, Eight Retail Food Stores, Columbus, Ohio, June 1-26, 1954 .. 52 22 Average Ratios of Greenhouse to Tubed Toma,to Soles Per Store, and Index of Average Ratios, Adjusted by Control Period Index, Two Store Groups, Eight Retail Food Stores, Columbus, Ohio, June 1-26, 1954 ............ 54 23 Index of Greenhouse Tomato Sales in Pounds and in Dollars, by Method of Display, Two Groups of Stores, Eight Retail Food Stores, Columbus, Ohio, June 1-26, 1954 ...................................