An analysis of Oklahoma direct marketing outlets: Case studies of produce farmers' markets and wheat direct shipments to Mexico

Scope and method of study. There are two studies in this paper. The objectives of the first study were to examine consumer preferences among various marketing channels including direct marketing in Oklahoma; and to analyze the impact of various demographic variables on purchasing decisions. Data from farmers' market consumers' survey in Tulsa, Stillwater, Norman, Shawnee, Muskogee and Oklahoma City was used to analyze consumer preferences using an ordered logistic regression analysis method. Farmers' market producers and market managers were also surveyed to support the finding. The objectives of the second study was to calculate the financial returns-to-investment on unit-train facilities in Oklahoma for direct shipments of wheat to Mexico.; Finding and conclusions. The first paper result shows that the typical Oklahoma farmers' market consumer is female, age 36 or older, highly educated, with a household income at least {dollar}40,000, and coming from a two-person household. Out of 312 respondents, 85 percent said they would expect the produce that they buy at farmers' market would have a higher quality compared to produce at other markets. These findings were also supported by farmers' market's producer survey. The second paper result shows that assuming a price premium of 5 cents per bushel, a discount rate of 3 percent, and transportation cost savings of 10 cents per bushel, the net-present-value is a small positive number and benefit-cost ratio is 1.01. Moreover, at discount rates above 3 percent, calculations show that present value of costs exceed the present value of benefits implying that the benefits would not have covered the costs of the investment on the unit-train facilities. The third indicator, the financial return-to-investment (RTI) assuming base level costs, is around 3.8 percent.