Sod Marketing at the Consumer Level

Demand and consumption relationships for sod at the consumer level of the market were estimated. The price of sod, lot size and property value had significant impact on sod purchases. Consumers were responsive to sod price changes with a 1% change in price resulting in a 1.83% change in quantity demanded, other factors being held constant at mean levels. An evaluation of data for purchasers and nonpurchasers of sod indicated that income, house age, interest in landscaping and occupation had significant impact on purchases. Income elasticities for households having an annual income in excess of $31,000 were found to be elastic; that is, these households respond to income increases with larger purchases of sod. The market participation (entry-exit) phenomenon was credited with at least 70% of the total market adjustment by purchasers. These relationships emphasize the need for careful examination of advertising and pricing efforts of sod producing and marketing firms and also the potential growth of the industry as incomes and the general standard of living increase.