Brief Summary of Minutes of Annual Meeting

No meeting was held in 2004 during the one year of extension approved for NC-222. The project ended September 30, 2004.

Scientists from 11 states explored the attitudes and behaviors of rural consumers toward a variety of sources -- "bricks and mortar," mail, and electronic -- for information search and purchase of food and fiber products. The main focus of research over the six years of work was longitudinal panel data survey. Other mail survey, experimental, and focus group studies were conducted to support the major objectives and development of panel data collection. The overall objectives of the studies were to identify sources used by rural consumers to acquire and access information about food and fiber products, develop profiles of rural consumers based upon product acquisition patterns, and examine the dynamic process of adoption of emerging communication technologies by rural consumers for the search and acquisition for food and fiber products. Experimental data collected from 358 rural and small town consumers in six states in 1999 indicated that exposure to Internet shopping sources lead to positive changes in attitudes toward the sources, but exposure to television home shopping networks lead to non-significant attitude change. Younger consumers with greater levels of computer experience had more positive attitudes toward shopping and searching for product information via the Internet than did older individuals. Education level was not a significant predictor of attitudes, in contrast to previous research of Internet shopping. Limited evidence indicated that ethnicity may be related to attitudes toward online and TV shopping, warranting further research of rural consumers of minority ethnicity. African American consumers in the South showed positive increases in attitudes toward using the two electronic media after exposure to these methods of shopping. Survey data was collected in 2000 from 2,198 rural consumers living in 11 states in non-metropolitan statistical areas with populations less than 12,500. For the most part, consumers relied on local retail stores, newspapers, and catalogs for information about clothing and home furnishings, and used newspapers and retail stores for food product information. Family and friends, restaurants, and television were the most frequently used sources of information about restaurants. The Internet was, overall, the least used source of information for product information and product purchase (less than 20% of respondents). For purchases, local and nonlocal stores were the most frequently used sources for all products studied. Mail order catalogs were used next in frequency for purchase of clothing and home furnishings. Profiles of age groups indicated that younger age, lower community satisfaction, higher innovativeness, and importance of brand names and convenience were characteristics of consumers who shopped via Internet as well as mail order catalogs for food and fiber products. Mail catalogs were also used more by higher income consumers and by those who used the Internet for shopping and product information. Individuals who shopped via TV were innovative but lower in education. Consumers more likely to shop in local retail stores were innovative but high on community satisfaction, younger, higher in income, and had higher number of people in their households. Among the consumers 60 to 99 years old (about a third of the sample), sources such as newspapers, magazines, friends, and family were important product information sources, particularly for younger consumers in this age group and among those with higher community satisfaction. The radio was used for product information by older consumers with lower education. Local stores were used more by older consumers without physical disabilities, probably because of their greater ease at going out of the house. Overall, rural consumers who shopped via the Internet, versus non-adopters, perceived the process as more advantageous, compatible with their values and lifestyles, easy to try, less risky, and not complex. In 2002/2003, 847 of the 2000 survey respondents completed a follow-up survey designed to examined change in attitudes and product information search and purchase behaviors. Since 2000 there were slight increases in use of the Internet to make purchases. An analysis of the panel data showed a net gain of 79 consumers since 2000 who were using the Internet to purchase clothing, a net gain of 100 who were using the Internet to purchase food, and a net gain of 128 consumers who were using the Internet to purchase home furnishings products. In general, however, rural consumers had not converted to Internet shopping and were using the new mode of shopping for food and fiber products less than average consumers in the U.S. Concern about financial privacy and credit card safety increased by 2003. Overall, rural consumers were more satisfied with local and non-local brick and mortar retailers than other distribution channels such as mail catalogs and TV. Shopping locally for food was rated as somewhat satisfactory, but satisfaction with shopping for clothing and home furnishings was still low. Consumers under age 50 reported less satisfaction with local offerings than did consumers over age 50. Impacts. Results of this project have increase understanding of rural consumers and will facilitate development of programs that familiarize rural consumers with the broad array of product information and convenient sources of food and fiber products. These data will also help rural retailers adjust to the changing marketplace, thereby enhancing economic and community development in small town areas. All consumers purchase food and fiber products, making the project relevant to all areas of the U.S. Specific outcomes of future programs developed on the basis of the findings include the following: a) decrease barriers to consumer use of emerging communication technologies, b) provide basis for development of Extension consumer counseling programs related to survival and quality of life in rural communities, c) inform both product and service providers as well as consumers about access to product information, d) develop Extension and rural community programs that strengthen rural small business development through technology transfer, and e) help small retailers incorporate appropriate technologies into their business operations to adjust to the changing business climate in the 21st century. To date, papers have been published from project related studies. The biggest impact of the project has been the spawning of further studies. Since the inception of the project in 1998, dissertations and theses have been completed that relate to or expand on NC222 research findings. In addition, the project has contributed to development of programs and studies designed to help rural consumers and retailers. For example, scientists from Minnesota have collaborated with faculty from the Minnesota Extension service to determine what strategies are used by successful retailers in rural communities in Minnesota in direct competition with at least one big retailer. Part of this collaboration is focused on assessing consumers in these same communities to determine consumer expectations for product and services from independent retailers. In addition, NC222 researchers at Ohio State University have submitted a grant proposal to fund a study of the gap between what information and services rural consumers want their local merchants to provide online and what local merchants think consumers want from them online. The study will expand on findings from the 2000 mail survey and is part of a larger study of the use of benefit segmentation to improve competitiveness of rural retailers.

Park, J. H., & Lennon, S. J. (2004). Television apparel shopping: Impulse buying and parasocial interaction. Clothing and Textiles Research Journal, 22, 135-144. Worthy, S. L., Hyllegard, K., Damhorst, M., Trautmann, J., Bastow-Shoop, H., Gregory, S., Lakner, H., Lyons, N., & Manikowske, L. (2004). Rural consumers attitudes toward the Internet for information search and product purchase. Family and Consumer Sciences Research Journal, 33, 517-535. Yoh, E., Damhorst, M. L., Sapp, S. G., & Laczniak, R. N. (2003). Consumer adoption of the Internet: The case of apparel shopping. Psychology and Marketing, 20(12), 1095-1118. Publications in press Gregory, S.R., Jasper, C.R., Lokken, S., & Damhorst, M.L. (Accepted for publication). Rural consumers uses of the Internet for search and acquisitions of food and travel services. Journal of Travel and Tourism, 18(1). Park J. H., Lennon, S. J., & Stoel, L. (Accepted for publication). Online product presentation: Effects on mood, perceived risk, and purchase intention. Psychology and Marketing. Published abstracts Johnson, K. P., Lennon, S. J., Jasper, C., & Damhorst, M. L. (2003). Variables discriminating between online purchasers and non-purchasers of apparel and home furnishing products. International Textile and Apparel Association Proceedings 2003. Available at http://www.itaaonline.org [abstract] Johnson, K. K. P., Yoo, J., Rhee, J., & Lennon, S. (2004). Multichannel shoppers: Retail channel usage among rural consumers. International Textile and Apparel Association Proceedings. Available at http://www.itaaonline.org [abstract] Lennon, S., Johnson, K. K. P., Jolly, L., Damhorst, M.L., & Jasper, C. (2004). Online apparel shopping among rural consumers: Changes in shopping adoption. International Textile and Apparel Association Proceedings. Available at http://www.itaaonline.org [abstract]. Refereed presentations Ha, Y., Kwon, W-S., & Lennon, S. J. (2004, November). Online visual merchandising: A cross-national approach. Paper presented at the International Textiles and Apparel Association annual meeting, Portland, OR. Johnson, K. K. P., Lennon, S. J., Damhorst, M. L., & Jasper, C. (2003, November). Predictors of Internet shopping among rural consumers. Paper presented at the International Textiles and Apparel Association annual meeting, Savannah, GA. Johnson, K. P., Lennon, S. J., Jasper, C., & Damhorst, M. L. (2003, November). Variables discriminating between online purchasers and non-purchasers of apparel and home furnishing products. Paper presented at the International Textile and Apparel Association annual meeting, Savannah, GA. Johnson, K. K. P., Yoo, J-J., Rhee, J., & Lennon, S. J. (2004, November). Multichannel shoppers: Retail channel usage among rural consumers. Paper presented at the International Textiles and Apparel Association annual meeting, Portland, OR. Kim, J., & Damhorst, M. L. (2004, November). Effects of perceived apparel merchandise quality on consumer's perception of value, satisfaction, and behavioral intention. Paper presented at the International Textiles and Apparel Association annual meeting, Portland, OR. Kim, M., & Lennon, S. J. (2003, November). The effects of visual and verbal information on attitudes and purchase intent in online shopping (Part II). Paper presented at the International Textiles and Apparel Association annual meeting, Savannah, GA. Kim, M., & Lennon, S. J. (2004, November). Consumer response to product unavailability in online shopping. Paper presented at the International Textiles and Apparel Association annual meeting, Portland, OR. Kim, H., & Lennon, S. J. (2004, November). The effect of website attractiveness on store image and shopping behaviors. Paper presented at the International Textiles and Apparel Association annual meeting, Portland, OR. Lee, H. H., Damhorst, M. L., Campbell, J. R., Parsons, J. L., & Loker, S. (2004, November). Antecedents and consequences of satisfaction with a mass customized Internet apparel shopping site. Poster presented at the International Textiles and Apparel Association annual meeting, Portland, OR. Lennon, S. J., Johnson, K. K. P., Jolly, L. D., Damhorst, M. L., Jasper, C., & Kim, M. (2004, November). Online apparel shopping among rural consumers: Changes in apparel online shopping adoption. Paper presented at the International Textiles and Apparel Association annual meeting, Portland, OR, November 2004. Park, J. H., Lennon, S. J., & Stoel, L. (2003, November). Internet apparel shopping: The effect of product presentation on mood, perceived risk and purchase intention. Paper presented at the International Textiles and Apparel Association annual meeting, Savannah, GA. Stoel, L., Park, J-H., & Lennon, S. J. (2004, November). Cognitive vs. affective responses: The effects of 3-D presentation online. Paper presented at the International Textiles and Apparel Association annual meeting, Portland, OR. Completed Dissertations and Theses Kim, Jihyun. (2004). Effects of perceived merchandise quality and service quality on consumer shopping behavior in the Internet apparel retailing environment. Unpublished doctoral dissertation, Iowa State University, Ames. Kim, Minjeong (2004). The role of negative emotion on consumer response to online apparel product unavailability. Unpublished doctoral dissertation, The Ohio State University, Columbus. Lee, Hyun-Hwa. (2004). Antecedents and consequences of satisfaction with a mass customized Internet apparel shopping site. Unpublished doctoral dissertation, Iowa State University, Ames. Rhee, Jeung Eun (2004). Multi-channel shoppers: Retail channel usage among rural Minnesota consumers. Unpublished Master's thesis, University of Minnesota, St. Paul. Submitted Manuscripts Ha, Y., & Lennon, S. J. (In review). Rural consumers Internet apparel shopping: Innovativeness and perceptions. International Journal of Retail and Distribution Management. Johnson, K. K. P., Lennon, S. J., Yoo, J., Jasper, C., & Damhorst, M. L. (In review). Variables discriminating between purchasers and nonpurchasers of apparel and home furnishing products online. Journal of Retailing and Customer Services. Johnson, K. K. P., Yoo, J., Rhee, J., & Lennon, S. (In review). Multichannel shoppers: Retail channel usage among rural consumers. International Journal of Retail and Distribution Management. Worthy, S. L., Trautmann, J., Miller, B.R., Hyllegard, K., Bastow-Shoop, H., Damhorst, M., Lakner, H., Lyons, N., & Manikowske, L. (In review). Shopping for home furnishings and furniture products online: Rural consumers attitudes toward and use of the Internet. Journal of Retailing and Consumer Services. Stoel, L., Lennon, S. J., & Warrington, P. (2004, December). Internet retailing and rural communities: Using benefit segmentation to improve competitiveness of rural retailers. National Research Initiatives Grant, $257,394 requested.