Increasing Profit Margins by Substituting Species in Floral Arrangements

Abstract

Flower species is one of the key determinants of the aesthetic and economic value of floral products. This research study sought to evaluate whether consumer perceptions of the aesthetic appeal and monetary valuations of floral arrangements change by substituting high-cost species with low-cost species of similar appearance. In addition, the researchers explored consumer preferences for flower symmetry, which provides information to assist floral designers in choosing and using species to increase profit margins and improve the economic efficiency of the floral industry. Two experiments were administered through an online survey. For the first experiment, no difference was shown in both willingness to pay and attractiveness ratings for flowers in the high-dollar value vs. low-dollar value comparison groups. For the second experiment, roses (Rosa hybrida) were rated the highest on attractiveness, followed by dahlia (Dahlia hybrida), ranunculus (Ranunculus asiaticus), and anthurium (Anthurium sp.). Radial flowers were considered most appealing, followed by asymmetrical flowers, and last, bilaterally symmetrical flowers. The results of this study lend insight into how the general floral consumer does not differentiate between flower species that are similar in design features such as color, size, or symmetry. This information can be used by floral business operators to sell their bouquets at a higher margin by strategically using lower-cost flower inputs.