Our long standing, trusted partnership with community corner store owners paved the way for innovative practices and evaluation opportunities. Store owners have been our primary data source through ongoing dialogue and the use of evaluation tools with the Alameda County Nutrition Services Healthy Retail Program (HRP) team, with surveying customers as the next data source. In 2021, our focus for evaluation was the HRP Produce Coupon Pilot Program.
Produce Coupon Design
$3, $4, and $5 coupons denominations were printed.
· Front side: “I ❤ California Grown” designed for beauty and to prevent duplication and fraud.
· Back side: Store name, address, and expiration date with the LHD “Healthy Living for Life” and Public Health Department logos.
Figure 1. Front and back of $5 coupon distributed at Dallaq during the first round
Produce Coupon Distribution
In February 2021, owners of seven stores agreed to participate in the Produce Coupon Pilot Program. Each owner received $3,000 in coupons to distribute to customers as they saw fit. Stores had the permission and freedom to try various distribution methods to determine the most effective modality. Some owners offered coupons when a customer purchased $10 or $20 of produce. Gazzali’s discovered that the best distribution method was for the produce clerk to offer the coupons to customers while shopping in the produce section. The redemption rate of this method was close to 100%. At Rancho Market, coupons were offered at the register and customers were encouraged to purchase the produce immediately, resulting in higher redemption rates. After collecting store owners' feedback, we offered a second round of coupons to capture the unredeemed portion of produce coupons. All seven stores received one new refrigerator and Dallaq received two. Below lists the participating stores and produce coupon amount:
1. Dallaq- $5
2. Gazzali’s- $5
3. General Market- $4
4. Holly Market- $3 and $5
5. Rancho Market- $5
6. Royal Foods Market- $5
7. Supermercado La Raza- $3
Distribution and Redemption Data
This data is accurate as of final collection date- August 5, 2021.
First round
· Number of coupons distributed- 4950
· Number of redeemed coupons- 2496
Second round
· Number of coupons distributed- 1645
· Number of redeemed coupons to date- 698
Total
· Number of redeemed coupons- 3194 - 65% coupons redeemed
· Value of redeemed coupons- $13,329.00 - 63% spent by residents.
Unused
· Value of Coupons not redeemed - $5,315 - 25%
The design allowed for unredeemed coupons, and we speculate some coupons were tossed, lost, or never redeemed by customers.
Of the original 4950 coupons awarded in March 2021, 2,496 were redeemed. After collecting the initial redeemed coupons, we asked store owners if they wanted to distribute additional coupons to customers to meet their $3,000 goal. Based on store owner’s request, we printed an additional 1,645 coupons and distributed the coupons in July 2021 to Dallaq, Royal, General, Gazzali’s, La Raza, and Holly. On August 5, 2021, an additional 698 coupons were collected, for a total of 3194 redeemed coupons. We will continue to collect outstanding coupons from La Raza, Dallaq, and General. As of August 5, 2021, $5,315 (only 25%) are not redeemed.
Customer Survey Data
In addition to working with store owners, we also interviewed customers to learn their thoughts about produce coupons. We created and conducted customer surveys to qualitatively measure coupon effectiveness at promoting fresh produce, see survey below.
Purpose of Survey
1. Determine if produce coupons increase customer fruit and vegetable consumption
2. Determine if produce coupon investment significantly increases their produce sales
Survey Questions (Y=Yes; N=No; DK=Don’t Know)
1. Have you seen this coupon before? Y N DK (If no, go to #6)
2. If yes, did you use it? Y N DK
3. Did you consume more produce in your diet as a result of the coupon? Y N DK
4. Would you like to continue receiving produce coupons? Y N DK (if yes, go to #5)
5. If yes, choose the answer that best describes your reason (choose one of the following)
a. Produce is expensive and this would help me buy more produce
b. I would eat more produce if I had more money
c. I don’t like vegetables and wouldn’t buy them
d. I don’t know how to cook vegetables and would buy more with this coupon
e. I don’t have the time to cook vegetables so the coupon wouldn’t help me
f. I know vegetables are healthy but I don’t know how to cook vegetables
g. I wouldn’t buy more produce because it would just go to waste
h. I would like a cooking class to help me learn how to cook vegetables
i. Other_____________________
6. Would you like a produce coupon? Y N DK
Surveys were conducted at all locations over a three-week period and received input from 153 customers. Below lists the percent of customers surveyed at each store. The majority of respondents were from Gazzali’s because it is a larger store with more customer activity.
1. Dallaq- 6.54% - 10
2. Gazzali’s- 41.19%- 63
3. General Market- 9.15%- 14
4. Holly Market- 6.54%- 10
5. Rancho Market-15.3%- 23
6. Royal Foods Market-9.80%-15
7. Supermercado La Raza- 11.76%- 18
Summary of Customer Survey
Of 153 customers surveyed, 22% (34 people) reported previously seeing the coupons. Of those participants, 43% (14 people) used the coupon. When asked if this influenced their fresh produce consumption, 47% (7 people) reported yes. Since the numbers are so small, it is not possible to extrapolate, though it is a positive measure. The most significant finding was that 92% (131 people) said they would like the coupon. In addition, customers shared their thoughts about the produce coupons and eating healthy. Below are a few customer comments:
● “(This is good) for those who can’t get around outside the community for food. There’s always been a food desert around here… (This is a) historically underserved community.”
● “Not everybody can afford fruits and vegetables.”
● “My daughter told me today we don’t have healthy alternatives. How do you think that made me feel? We want to eat better but if prices are high, it’s difficult. Hungry or unhealthy?”
● “Vegetables are expensive… more expensive than packaged snacks and junk food.”
● “Convenient for people in this area, no stores that are walking distance and convenient.”
● “Tough out here for the community, easier on everyone. (The produce coupon) brings people hope.”
Literature Review Confirms Benefits of Coupons
The HRP team conducted a literature review and affirmed that the pilot Produce Coupon Initiative is a viable strategy:
1. Two-for-one deals most effective with customers (Tripp, 2015)
2. Consumers are more likely to respond to a coupon than the equivalent price reduction of a product (Cotton & Babb, 1978)
3. Recommendations for issuing coupons include manipulation of other aspects of coupons such as: a. varying face value, b. physical versus online coupons, c. brand awareness/previous exposure, d. use of visuals. (Tripp, 2015)
4. Coupons have been thought to be effective in tempting prospective consumers to try new products as well as a reward to loyal customers for their continued patronage. Research suggests the higher the coupon value, the higher the incentive for consumers to purchase (Kendrick, 1998)
5. Coupons are more effective than price-discount/other non-coupon promotions in increasing fruit and vegetable purchases (Dong & Leibtag, 2010)
Conclusion and Next Steps
Based on our experience and research, coupon distribution is an effective and viable way to support community members to consume more produce. $21,000 was invested in the community through our partner stores, and to date, customers have purchased $13,329 in produce in underserved neighborhoods, primarily Oakland. Based on HRP engagement in the community and feedback from residents, economic support for residents is key to ensuring produce consumption. Literature confirms that offering coupons incentivizes customers to buy more of a product. Gazzali’s store owner, Mike Algazzali, confirmed sales increased during produce coupon dissemination.
Because of the evaluation results, ACNS HRP is committed to one more round of this pilot and include additional healthy retail partner stores in 2022. Simultaneously, we are collaborating with the City of Oakland’s 7 Councilmembers and the City Administrator to garner the ongoing support of healthy retail work. If a city budgetary allocation is made, the funds in essence would go directly to low-income Oakland residents to purchase fresh produce in small retail stores. To ensure proper distribution of coupons, Alameda County Nutrition Services commits to the oversite of the program. ACNS would provide an annual report on the produce coupon project to City Councilmembers. We have identified stores in each City Council district. Not only would this help community members eat healthier but would reinforce positive relationships between Oakland small business owners, residents, and local city officials: a win-win-win!
As HRP grows and evolves, we continue to find ways to study the impact of our work. In fiscal year 2020, we launched a new retail environment assess tool developed by UC Berkeley to gather baseline data on all partner stores. Moving forward we will use this tool once a year to measure the amount of change that happens in the retail store environment in a quantitative way and collaborate with UC Berkeley on analyzing the results. The results will be used to collaborate with store owners to make further improvements to increase accessabilty of fresh produce for the community.
References
1. Alexander V, Tripp S, Zak PJ. Preliminary evidence for the neurophysiologic effects of online coupons: Changes in oxytocin, stress, and mood. Psychology & Marketing. 2015;32(9):977-986
2. Cotton, B. C., & Babb, E. M. Consumer Response to Promotional Deals. Journal of Marketing, 1978 42(3), 109–113.
3. Kendrick, A. Promotional Products vs Price Promotion in Fostering Customer Loyalty: A report of two controlled field experiments. Journal of Services Marketing, 1998. 12(4), 312–326.
4. Dong, D & Leibtag, E. USDA. Promoting fruit and vegetable consumption: Are coupons more effective than pure price discounts? 2010