P&P Report: Florist Communication Modes As Drivers To Business Success‏

In response to a recent Prince & Prince (P&P) report on florist shop adoption of social media, and other florist communication modes (see “Florists Broadly Adopt Social Media, Payoff Somewhat Nil, Now What?”), P&P was queried whether florist Open House events had previously been such a driver to business success.    In this reporting, P&P applies a similar structural equation model (SEM) to year 2005 florist survey data to assess communication drivers to Florist Business Success in that year, and makes comparisons with the latter 2011 SEM model.   Model comparisons over time identify salient changes in florist market behavior prior to and after the U.S. recession.  

In 2005, the florist shop Web Site was the sole communication driver to Florist Business Success, in comparison with Own 800 Number, E-mail Promotions, and Open House events.   Thus, Open House events had no significant impact on Florist Business Success in 2005.   In 2011, all surveyed communication modes, including Social Media (e.g. Facebook/ Twitter), but excluding Own 800 Number, showed a small, yet statistically significant impact on Florist Business Success.   Florists’ success with Web Sites in 2005 may have set high expectations for Social Media later on.   Analysis of model correlations among the communication modes over time suggests that E-mail Promotions may have contributed to the success of florist Open House events in 2011, especially for the largest-sized florist shops.

Historical comparisons of the factor structure of “Florist Business Success” reveals that the florist market perception of “success” likely changed before and after the U.S. recession, with florist profitability weighted more in its contribution to the factor prior to the recession, and sales growth weighted more after the recession.   Factor Analysis (a sub-set of SEM) and the full SEM modeling framework are useful tools for market researchers in revealing how the market (survey respondents) define a particular construct or factor, and how those factors may drive an outcome measure (such as Florist Business Success), which provides valuable information about the “mind-set” of a market and market priorities.

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