Journal of Food Products Marketing

ISSN: 1045-4446 (Print) 1540-4102 (Online) Journal homepage: http://www.tandfonline.com/loi/wfpm20

Psychographic Segmentation of the Zagreb Apple

Market

Damir Kovačić , Marija Cerjak , Jerko Markovina & Robert Črep

To cite this article: Damir Kovačić , Marija Cerjak , Jerko Markovina & Robert Črep (2010)
Psychographic Segmentation of the Zagreb Apple Market, Journal of Food Products Marketing,
16:3, 293-308, DOI: 10.1080/10454446.2010.485094

To link to this article: https://doi.org/10.1080/10454446.2010.485094

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Journal of Food Products Marketing, 16:293–308, 2010
Copyright © Taylor & Francis Group, LLC
ISSN: 1045-4446 print/1540-4102 online
DOI: 10.1080/10454446.2010.485094

Psychographic Segmentation of the Zagreb

Apple Market

DAMIR KOVAČIĆ, MARIJA CERJAK,

and JERKO MARKOVINA
University of Zagreb, Zagreb, Croatia

ROBERT ČREP
Croatian Agricultural Extension Institute

The objective of this article is to identify market segments based on

psychological traits of consumers in the area of Croatia’s capital,
Zagreb. In February 2006, a face-to-face survey was conducted
on a sample of 426 apple buyers in three Zagreb supermarkets.
Buying behaviour, attitudes toward apples, the importance of apple
attributes, and the importance of information in buying apples
were examined. Data obtained from the survey were analyzed with
univariate analyses, Chi-square test, ANOVA, cluster and factor
analyses. In the Zagreb market for apples, three market segments
were identified: heavy consumers, practical consumers, and indif-
ferent consumers. These segments are different in their buying
behaviour, importance of apple attributes, and sociodemographic
characteristics. Marketing recommendations are given taking into
account the specifics of each segment. Segments of heavy and prac-
tical consumers should be the target of marketing activities since
they are the consumer groups with the biggest potential for further
growth of consumption.

KEYWORDS Psychographic segmentation, Croatia, apple, Zagreb

market

Address correspondence to Jerko Markovina, Department of Agricultural Marketing,

Faculty of Agriculture, University of Zagreb, Svetošimunska 25, 10000 Zagreb, Croatia. E-mail:
jmarkovina@agr.hr

293
294 D. Kovačić et al.

INTRODUCTION

Being at the final stages of negotiations for accession to the European Union,
near future will probably bring many changes to the food market in Croatia.
As Croatia joins the common market, food producers will have significant
opportunities to present their products to a large number of consumers,
but they will also be faced with a strong competition from the European
food industry. In this period, one of the biggest challenges to Croatian food
producers will be the issue of adaptation to significant changes that will
certainly happen once conditions in the market change as a result of EU
membership. The adaptation to new conditions may be difficult as many of
Croatian farmers and small-scale food producers do not know much about
modern approaches to marketing and do not use marketing efforts to gain
a better position in the market and thus better sales and revenues. Today,
Croatian apple producers are still protected from global competition. To
import apples to Croatia, a customs fee of 15% is charged on the value of
imported goods and additional 13.5 Euro per 100 kilograms of imported
apples in the period between September 15 and February 20. The liberal-
ization of import that is expected as a result of entering a single European
market requires a new approach to the market and an adequate marketing
strategy for domestic producers of this fruit. The possibility of using psy-
chographic market segmentation as an approach suitable for Croatian apple
producers will be explored.
Market segmentation, also called benefit segmentation, is a process in
which it is possible to identify market segments based on benefits that
people are seeking in consuming a given product (Haley, 1968). As Haley
describes in his seminal work on segmentation (1968), benefit segmentation
divides a heterogeneous population into homogeneous groups on the basis
of product benefits consumers perceive as important and this approach pro-
vides a direct measure of the differences in preferences among customers
and offers a more action-oriented analysis for managers.
Experience with this approach has shown that benefits sought by
consumers determine their behaviour much more accurately than do demo-
graphic characteristics or volume of consumption. Market segmentation is
based on being able to measure consumer value systems in detail, together
with what consumers think about various brands in a certain product cat-
egory. Market segmentation is a well-established and documented method;
however, several recent works have stated that some modifications to the
approach should be made in order to achieve valuable results. In their
recent account of segmentation studies in Harvard Business Review titled
“Rediscovering Market Segmentation,” Yankelovich and Meer (2006) argue
that segmentation has been an extensively used method over the years but
they also note that, due to unsuitable application, segmentation can also
yield results that are not very useful or meaningful. To avoid getting results
that make no practical sense, Yankelovich and Meer give a set of instructions
 The Zagreb Apple Market 295

for conducting meaningful market segmentation. The main question a seg-

mentation exercise should answer is which benefits and features customers
want in a product and which customers are willing to pay higher prices
or which demand lower prices. Segments that are identified through data
analysis should be then compared to determine which benefits they seek in
a product and how price sensitive they are. This is the approach adopted
in this study, using psychographic variables to identify market segments
and then investigating the differences in their buying and consumption
behaviour. In this way, the results of this study can be useful to develop
further research of consumption of this product, for making of targeted
marketing programs, and for creating agropolicy measures.
The procedure of market segmentation is described in many scientific
publications and it is used as a method for explaining the behaviour of
large and complex groups of people (see Haley 1968, Fearne & Lavelle,
1996, Valli, Loader, & Traill, 1999). Baker (1999) conducted a study of con-
sumer preferences for food safety attributes in fresh apples using conjoint
analysis.
Product characteristics included price, quality, pesticide use, and corre-
sponding cancer risk and type of government inspection. The results showed
a broad preference for reduced pesticide usage and four market segments
of apple consumers were identified: (1) safety seekers who have a strong
preference for product safety; (2) balanced buyers with a balanced desire
for all product characteristics; (3) price pickers who are extremely price sen-
sitive; and (4) the perfect produce segment where consumers put strong
emphasis on product quality. Comparison between these segments showed
that consumers in each segment differ significantly in psychographic and
demographic characteristics. In a similar research, Richards (2000) used a
household panel data set to investigate consumers’ choice among apple
varieties and their decision on quantities purchased. Several other market-
ing variables such as price, promotion and advertising were used for market
segmentation. The results showed four distinct market segments for different
apple varieties. Buyers and marketing recommendations are made regarding
price sensitivity, brand loyalty, responsiveness to promotion, and advertising
and other characteristics.
Shim, Gert, & Lotz (2001) explored the Japanese fruit market regard-
ing possible implications for fruit exporters. Researchers used the method of
market segmentation based on fruit-specific lifestyle factors. Results revealed
three segments: creative/highly involved; practical/moderately involved;
and aesthetic/uninvolved consumers. These segments of the everyday fruit
consumption market are characterized in terms of fruit shopping, fruit con-
sumption, and socioeconomic factors. The highly involved segment is older
and more traditional and represents Japan’s heavy apple consumers. The
segment of uninvolved consumers is made up of mostly young people and
its demographics suggest that this segment can be a challenge for exporters
and that marketing efforts should be focused on this group.
296 D. Kovačić et al.

RESEARCH PROBLEM AND HYPOTHESES

The starting point of this research was a desire to conduct an investigation

that would enable Croatian apple producers to be competitive in the market,
especially after Croatia’s accession to the European Union. There are not
many papers published in Croatia dealing with the consumption of apples
and they are usually descriptive (Radman et al., 2002; Sušić, 1988; Kolega,
1978.).
Consumer demands can be identified through research of buying and
consuming behaviour and through research of consumer attitudes toward
certain products or groups of products (Haley, 1968; Marušić & Vranešević,
2001.).The main research question is to identify the apple consumers in the
Zagreb market, what their basic demands are, and determine their attribute
preferences when buying apples. The main goal of the research is to identify
different market segments based on psychological traits of consumers and
the description of these segments by using characteristics of their buying
and consumption behaviour as well as geographic and sociodemographic
variables. The collected data will give an informational basis for targeted
marketing.
The basic hypothesis of the research is that there are significant dif-
ferences between types of apple consumers in the market of Zagreb city
regarding their psychographic characteristics. Furthermore, we assume that
these segments are also different regarding the following characteristics:

● preferences for apples

● characteristics of buying behaviour (frequency of buying, intensity of
buying, and the importance of information),
● intensity of consumption
● geographic and sociodemographic characteristics (age, gender, education
level, income level)
● importance of different criteria in buying apples (intrinsic attributes:
taste, smell, variety, appearance, colour and size of apple; and extrinsic
attributes: production method, origin, price, brand, and packaging).

METHODOLOGY AND DATA ANALYSIS

In order to construct a measuring instrument, a preliminary research was

conducted. Griffin and Hauser (1993) in their article “Voice of the Customer”
have suggested that two focus groups can identify most of consumers’
needs regarding a product, therefore, two focus group interviews (n1 = 8;
n2 = 9) with the topic of buying and consumption of apples were per-
formed. Participants of these focus groups were different regarding their age,
gender, and occupation. The results of focus groups were used to create
 The Zagreb Apple Market 297

the final version of the questionnaire by including the most frequently

mentioned statements related to attitudes toward apples. These statements
formed a separate item pool. The item pool consisted of 11 statements:

1. I give a lot of attention to buying apples.

2. The apple is an interesting product.
3. When I buy apples I know exactly what I want.
4. People who regularly eat fruit feel better and stay vital for a long time.
5. I never remember to eat some fruit.
6. A good salad is better than any piece of meat.
7. I am generally very careful about my health.
8. Apples are a part of my lifestyle.
9. All sorts of apples offered in the market are the same.
10. Of all the sorts of apples offered in the market it is not important which
ones I buy.
11. The apple is a useful product.

The attitude statements were a part of a structured questionnaire, which

included several other groups of questions: demographic characteristics,
characteristics of buying behaviour, the importance of different attributes
in buying apples, and the importance of information in buying fruit.
Before the beginning of the phase of main data collection, the ques-
tionnaire was tested on a sample of 15 respondents (University of Zagreb
students).
The main data collection phase started with a face–to-face survey that
was conducted on a sample of 426 apple buyers in three Zagreb super-
markets (Konzum, Mercator, and Kaufland). The survey was conducted in
February 2006. Generally speaking, the target population was all citizens of
Zagreb who buy apples in supermarkets. Supermarkets were chosen as the
venue of the research because according to expert estimates, supermarkets
today comprise about 40% of the Zagreb fruit market and it is expected
that in the future they will become the most important retail channel. These
particular three supermarkets were chosen because they belong to different
trade chains and their offer of apples differs in quality, assortment, prices
and the way apples are displayed in the shop. Also, it is a fair assumption
that the customers of each supermarket may be different in their shopping
habits, level of income, and other characteristics and in this way we tried to
cover a broad spectrum of shoppers.
In the selection of respondents in supermarkets we used random sys-
tematic sampling. Every second consumer who bought apples was included
in the sample, provided that he/she agreed to participate in the research.
Respondents received a symbolic gift (a bottle of apple juice) for their
participation so the cooperation rate was satisfactory (67% agreed to partici-
pate). By reviewing similar research to date, we decided that the appropriate
298 D. Kovačić et al.

sample size for each of the three supermarkets would be n = 130 and with
some backup surveys the total size of our sample was 426 consumers.
Market segmentation was done by using factor and cluster analysis.
The respondents’ attitudes about buying and consuming apples and the
importance of fruit for maintaining good health were used as criteria for
forming clusters. The attitudes were presented in the form of an item pool
of 11 statements.
Respondents’ task was to rate them on a Likert-type scale from 1 to 5,
where 1 meant full disagreement and 5 meant full agreement with a partic-
ular statement. Out of 426 participants in the sample, the data of 421 were
valid for factor analysis. Principal component extraction method was used
with Varimax rotation and Kaiser normalization. Factor loadings higher than
0.4 were used in order to place original variables into a specific factor.
Extracted factors were used as entry variables for the cluster analysis.
Cluster analysis was conducted in two steps. In the first step, Single link-
age (nearest neighbour) method (see Backhaus, Erichson, Plinke, & Weiber,
1996.) was used. Based on these results, seven respondents were eliminated
from further analysis. In the second step, Ward procedure was used. In
both steps, squared Euclidian distance was used. Using the “elbow” crite-
rion, three segments were found. Discrimination analysis was used to assess
the suitability of factors for cluster analysis, and t-values were used for the
interpretation of clusters.
For a detailed description of clusters, variables of respondents’ buying
behaviour were used. The differences between segments, depending on the
type of variable, were tested with the following parametric and nonparamet-
ric tests: Chi-square test, ANOVA, LSD (Fisher’s LSD) test, and Games-Howell
test. All analyses were calculated using SPSS statistical software (Version 13.0,
2004, SPSS Inc, Chicago, IL).

RESULTS
Sample Characteristics
Sample characteristics are presented in Table 1.
More than half of respondents (55%) have a favourite apple variety. The
biggest proportion of respondents prefer Idared (16%) and Golden Delicious
(14%), followed by Granny Smith (6%) Jonagold (4%) and Jonathan varieties
(4%). Almost 90% of participants buy apples at least once a week. More than
half of the sample buy apples in the supermarkets (55%), one-third at city
markets (31%) and only 3% directly from producers.
Regarding the frequency of consumption, close to half of respondents
eat apples every day, while only 7% eat apples less frequently than once a
week. Apples are most frequently consumed fresh (96%), as a snack (84%)
and much less as a dessert (16%).
 The Zagreb Apple Market 299

TABLE 1 Sociodemographic Characteristics of the Sample

n %

Total 426 100

Gender
Male 162 38
Female 264 62
Age (y)
18–30 107 25
30–40 72 17
40–50 99 23
50+ 148 35
Education
Elementary school 17 5
High school 199 46
University degree 210 49
Monthly income per household
Up to C 550 110 26
Between C 551 and C 800 126 30
Between C 801 and C 1380 136 32
More than C 1380 49 12

When buying apples, respondents pay highest attention to the taste

of apples, (average rating of 4.76 on a scale from 1 to 5, where 1 means
completely unimportant and 5 means very important attribute), smell (4.35),
variety (4.27), and appearance (4.12). Less importance is given to the colour
(3.80) and the size of apple (3.31).
The most important extrinsic attributes are method of production (4.35)
and origin (4.22), while less important extrinsic attributes are price (3.82),
brand (3.67), and packaging (3.16). Participants were asked to rate their
general attitude toward apples as fruit and they returned the average rating
of 4.22. They also think that apples have a positive influence on health
(4.69) and that the apple is an interesting (4.46) and useful product (4.80).
Respondents think that buying apples does not present a big risk.

Results of Factor and Cluster Analysis

In order to conduct psychographic segmentation, cluster analysis was used.
The attitudes of buyers toward buying and consumption of apples and the
importance of fruit for maintaining good health were used as a criterion for
forming clusters. The attitudes were presented in the form of 11 statements
and the respondents’ task was to indicate their degree of agreement with
each statement on a scale from 1 to 5 (1 = fully disagree 5 = fully agree).
Before running the cluster analysis, the statements were grouped into
four independent factors using factor analysis with Varimax rotation. Figure
1 describes results of factor and cluster analysis. The factors can be described
as follows:
300 D. Kovačić et al.

Attitudes Factors Segments

General attitudes Involvement in buying

about apples apples

Attitudes about Practical

Indifference to apples
buying apples consumers

Attitudes about
General attitude about Indifferent
the importance of
apples consumers
apples for health

Attitudes about
The importance of fruit
consumption of
and vegetables for Heavy consumers
fruit and
maintaining good health
vegetables

FIGURE 1 The results of factor and cluster analyses.

1. Involvement in buying apples

2. Indifference to apples
3. General attitude about apples
4. The importance of fruit and vegetables for maintaining good health

The first factor is dominant and explains 21.75% of the total variance, while
all four factors explain 63.16% of total variance.
The solution with four factors was used as a starting point for cluster
analysis. Three clusters were extracted:

1. Practical consumers
2. Indifferent consumers
3. Heavy consumers

The segments were named according to their characteristics in consumption

and buying behaviour. The result of market segmentation is in accordance
with previous research and theoretical background (Haley 1968, Yankelovich
& Meer, 2006) in the sense that similar results were obtained by other
researchers.
Discrimination analysis has shown that all four factors have a significant
impact on the differentiation of clusters (p < 0.05). Wilks Lambda coefficient
shows that the third factor, general attitude toward apples, has the biggest
impact on the differentiation of clusters. In this research, 93.1% of original
grouped cases in the first cluster were correctly classified, which proves that
the division of respondents into clusters was not accidental.
 The Zagreb Apple Market 301

TABLE 2 Differences between Segments in Buying Behaviour

Practical Indifferent Heavy

consumers consumers consumers
Variables (modalities) (I segment) (II segment) (III segment) Sig.

% of respondents who like apples 83% 69% 98% 0, 000

% of respondents who have a 56% 32% 67% 0, 000
favourite variety of apples
% of respondents who buy apples at 81% 69% 98% 0, 000
least once a week
% of respondents who buy at least 3 13% 11, 7% 31% 0, 001
kg of apples per one shopping
% of respondents who search 38% 36% 68% 0, 000
information before buying apples
% of respondents who consume 28% 19% 71% 0, 000
apples on a daily basis
% older than 50 30% 18% 52% 0, 000
% of respondents with less than 4000 20% 15% 37% 0, 001
Kn (550 C ) of monthly income

Differences between Segments: Buying Behaviour

The segments were tested according to all respondents’ characteristics,
except the 11 statements that were used in the process of psychographic
segmentation (see Table 2).
Regarding the general preference for apples as fruit, the apple is most
liked by heavy consumers (average rating of 4.86 on a preference scale from
1 to 5; 1– I don’t like it at all; 5 – I like it very much), followed by practical
consumers (4.30) and the least liked by indifferent consumers (3.82). The
differences are statistically significant (F = 50.33; df = 2; p = 0.000).
Preference for one or more apple varieties may indicate the involvement
of buyers. The majority of involved buyers is grouped in the segment of
heavy consumers (67%), and in the segment of indifferent consumers there
is only 32% of involved buyers (χ 2 = 20.6; df = 2; p = 0.000).
Moreover, 68% of heavy consumers make the effort of searching for
information when buying apples, while in other segments this share is
significantly smaller, 36% and 38% respectively (F = 28.9; df = 4; p = 0.000).
The third segment, heavy consumers, is significantly different from the
other two segments in their buying behaviour. Regarding the frequency of
purchase, respondents in this segment are the most frequent buyers—98%
of them buy apples at least once a week (χ 2 = 62.8; df = 6; p = 0.000).
They also buy the largest quantities of apples. About 31% of respondents in
this segment buy at least 3 kg of apples in one shopping (χ 2 = 23.8; df = 6;
p = 0.001). Buyers in the third segment are the heaviest consumers of
apples, because 71% of them eat apples on a daily basis (χ 2 = 79.9; df = 4;
p = 0.000). Figure 2 illustrates the differences between segments regarding
the frequency of apple consumption.
302 D. Kovačić et al.

Every day

2–3 times a week

segment 3
segment 2

Once a week segment 1

Less than once a week

0% 20% 40% 60% 80%

FIGURE 2 Differences between segments regarding the frequency of consumption of apples.

Differences between Segments: Intrinsic Attributes of Apples

If we examine intrinsic apple attributes (Figure 3), segments are statistically
different regarding the importance of variety (F = 15.42; df = 2; p = 0.001),
taste (F = 3.195 df = 2; p = 0.001), and smell of the apple (F = 9.295; df = 2;
p = 0.001).
For practical consumers, the most important intrinsic attributes of apples
are taste (average importance rating 4.8), smell (4.3), and apple variety
(4.17). The least important attribute is the size of the apple (3.3).

FIGURE 3 Differences between segments regarding the importance intrinsic attributes of

apples.
 The Zagreb Apple Market 303

Taste is also the most important attribute for indifferent consumers (4.6).
However, more importance is given to the appearance of the apple (4.1) than
the smell (4.0). The lowest ratings are given for the colour (3.8) and size
(3.2) of the apple. Generally, this segment shows lower ratings for intrinsic
attributes of apples than other two segments.
Respondents in the third segment (heavy consumers) show high ratings
for all intrinsic attributes. The most important attributes for them are the
taste and smell of the apple (4.8 and 4.6 respectively). They also place
more importance to variety (4.6) and appearance of the apple (4.2), and less
importance to the colour (3.7). Similar to other segments, they also give the
least importance to the size of the apple (3.3).

Differences between Segments: Extrinsic Attributes of Apples

There is a statistically significant difference between segments regarding the
importance of origin (F = 8,588 df = 2; p = 0.000), method of production
(F = 7,328 df = 2; p = 0.001), price (F = 3,795 df = 2; p = 0.001) and
brand of apples (F = 8,927 df = 2; p = 0.000). Practical consumers place
the biggest importance to the method of production (4.3) and product origin
(4.2), and the least for packaging (3.14) and brand of apples (3.57). They
also express a relatively low importance of price (3.7). (See Figure 4.)

FIGURE 4 Differences between segments regarding the importance of extrinsic attributes of

apples.
304 D. Kovačić et al.

For respondents in indifferent consumers segment the most important

attributes are the method of production (3.97) and product origin (3.8). The
least important attributes are packaging and brand (2.9 and 3.2 respectively),
while the price is of medium importance (3.52).
Heavy consumers place more importance to all extrinsic attributes
compared with respondents in two other segments. The most important
attributes for them are the method of production and product origin (4.5 and
4.6 respectively), and the least important attribute is packaging (3.3). Heavy
consumers give equal importance to brand and price of the apple (4.0).

Differences between Segments: Sociodemographic Variables

There is a statistically significant difference between segments considering
the age of respondents (χ 2 = 43.4; df = 8; p = 0.000). Most young buyers,
up to 30 years of age, are grouped in the segment of indifferent consumers
(53%), and the smallest proportion is in the segment of heavy consumers
(14%). On the contrary, older respondents, over 50 years of age, are
mostly grouped in the segment of heavy consumers (52%), and the smallest
proportion of them is in the segment of indifferent consumers (18%).
The largest proportion of respondents with highest monthly income is
grouped in the segment of indifferent consumers (59%), while the highest
proportion of respondents with lowest monthly income is in the heavy con-
sumers segment (37%) (χ 2 = 23.7; df = 6; p = 0.001). Regarding other
tested characteristics (the occasion of consumption, the mode of consump-
tion, willingness-to-pay and the usual point of purchase); no significant
differences between segments were found.

Description of Segments
Practical consumers are the largest consumer segment (43.3%) found in this
research. They mostly have a positive attitude toward apples, but they are
not highly involved in buying. A similar group of consumers was identi-
fied in Shim et al (2001) in the Japanese fruit market—practical consumers
who are moderately involved in buying fruit. This name for the segment is
appropriate because it reflects the “mainstream” group of consumers who
fall between the extremes of indifferent and heavy consumers.
In their diet, practical consumers prefer fruit and vegetables and con-
sider them to be important for maintaining good health. Practical buyers
mostly prefer Golden Delicious (21%) and Idared (14%) varieties of apples
and they buy them often. For practical consumers the most important intrin-
sic attribute of apples is the taste (4.82), while the most important extrinsic
attributes are the method of production (4.31) and origin of apples (4.18).
They mostly prefer domestic apples and reduced use of chemical pro-
tection means (ecoproduction). They are less price sensitive than heavy
consumers.
 The Zagreb Apple Market 305

Consumers in this segment are younger than the segment of heavy

consumers and they pay less attention to the brand of apples. Their monthly
income is lower than in the group of indifferent consumers.
Indifferent consumers are the smallest consumer segment (18.5%) and
the least frequent consumers of apples. One-third of respondents in this
segment are indifferent toward this product, i.e., they do not like apple as
a fruit and their involvement in buying process is low. In their diet they
prefer meat to fruit and vegetables. Buyers in this segment do not search
for information when buying apples. For them, the appearance of the apple
is more important (4.11) than its smell (4.00). They prefer apples produced
with minimal use of chemical protection means and apples of Croatian ori-
gin. Buyers in this segment give less importance to the brand of apples
(3.15). On average, this is the youngest consumer segment with the highest
personal income.
Heavy consumers are the second biggest group in the sample (38.2%)
and the most frequent consumers of apples. They have a very positive
attitude toward apples and they are highly involved in buying. They are
more health conscious than consumers in other segments. These consumers
prefer a balanced diet, where besides fruit and vegetables they also often
consume meat. Most heavy consumers have a favourite variety of apples,
mostly Idared (18%) and Golden Delicious (15%). They buy apples more
often than respondents in other segments andthey make the effort to
search for information during the buying process. When choosing apples
the most important attributes are taste (4.80) and smell (4.56). Regarding
extrinsic attributes they give the biggest importance to the method of pro-
duction (4.55) and origin (4.47) of apples. Most of them prefer Croatian and
branded apples. They place higher importance on price than buyers in other
segments. It is the oldest segment with the lowest personal income.

Discussion and Marketing Recommendations

Psychographic segmentation conducted in this research revealed the exis-
tence of three distinct market segments in the Zagreb market for apples.
The segments of practical, indifferent, and heavy consumers are significantly
different in their buying behaviour, sociodemographic variables, and in their
evaluations of extrinsic and intrinsic attributes of apples.
Based on the results of the research it is possible to give some market-
ing recommendations for fruit suppliers in order to meet the requirements
of apple buyers in Zagreb supermarkets. From a business point of view,
segments of heavy consumers and practical buyers can be interesting for
the domestic producers of apples. The segment of indifferent buyers is the
smallest one and these consumers rarely buy apples so the economic justi-
fication of marketing targeted to this segment is questionable, therefore, we
will concentrate on the two segments most likely to be profitable for apple
producers.
306 D. Kovačić et al.

Practical and heavy consumers pay most attention to taste and smell
of apples, therefore the sensory quality of apples is the basic requirement
for serving these consumer segments. Competitiveness can be achieved by
clearly designating the origin—an apple produced in Croatia. Furthermore,
apples produced by biological or integrated methods of production should
be targeted to practical consumers. The satisfaction of heavy consumers can
be increased by offering branded apples. Buyers in these two segments
prefer standard apple varieties, Golden Delicious and Idared. However, the
assortment should eventually include other varieties of similar taste in order
to reduce the space for imported apples.
Heavy consumers are more price sensitive and with them there is
not much space for price differentiation of supply. However, it would be
possible to achieve higher prices with practical consumers by offering high-
quality apples, and apples produced with “eco” and integrated production
methods. Labelled and adequately displayed apples are the basic assump-
tion for differentiation of the 443 offer in the supermarket. Traders should be
offered additional beneficiations in order to get them to pay more attention
to an adequate display of products, meaning that apples should be neatly
presented at all times to avoid the confusion between different producers’
packaging.
Media advertising, taking into consideration the cost/benefit ratio can
be used in the situation when an apple producer is being introduced in a
trade chain for the first time. Advertising can also be used in the situation
of assortment expansion, introducing “eco”or integrated production apples
and/or introducing a new brand of apples. The best way to encourage sales
in supermarkets is promotional tasting and promotional discounts.
It would also be useful to set up displays and to organize the distri-
bution of promotional fliers from time to time. Activities that contribute to
establishing the trust between producers and buyers, such as Open Days
and Apple Festivities are the best way to build and maintain a positive
image. All these marketing efforts could also draw the attention of the
indifferent segment of the market and thus create an even wider buying
population.
Based on the results of this research and authors’ previous experi-
ences, it is possible to estimate future developments of apple retail market
in Zagreb, as well as in Croatia. However, we should take into consideration
the fact that these estimates are based on complex relations and relatively
uncertain indicators. Nevertheless, it is possible to predict the following:

● Further liberalization of the market will probably increase the competition

in the domestic market for apples due to free access of foreign produce
to Croatian markets.
● The sales of apples through large trade chains will increase.
 The Zagreb Apple Market 307

● Demand for high-quality apples will increase as many buyers express the
need for quality and safety of fruit.
● The key criteria for buying apples will be their quality, price/quality
ratio, information about the product, displaying and labelling of apples
at the point of purchase, shopping convenience and salesperson-buyer
relationship.
● Competitive advantage can be achieved through differentiation of the
supply and innovation: introduction of extra quality apples, expand-
ing the assortment, introducing new varieties of apples, introduction of
domestic and eco apples, offering apples from integrated production, and
introduction of branded apples.

Finally, we should mention some limitations of the study and possible future
directions of similar research.
The limitations of this study are mostly tied to sampling issues. First,
in conducting the cluster analysis it was not possible to clearly separate
consumers into groups but only to make an approximation. The main reason
for this is the method of respondents’ selection. In our research, respondents
were exclusively those who buy in Zagreb supermarkets and they may be
a more homogenous group than other consumer groups. A similar problem
was encountered by Mahler (1991).
Second, respondents in our sample have a higher education level
(49.8% with completed college education) than city of Zagreb average of
22.5% (Croatian Census, 2001). Probably the reason for this is that highly
educated respondents are more communicative and more likely to partic-
ipate in the survey. Furthermore, we did not include a direct measure to
determine if respondents buy apples only for themselves or for a small or
large family which can also be very valuable information.
Regarding the future directions for similar studies, it would be inter-
esting to include a sample of respondents who currently do not consume
apples in order to understand the reasons why they are nonconsumers and
how they can be persuaded to become consumers.

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