Examining Attributes of Retailers That Influence Where Cannabis Is Purchased

Author(s)

Donnan J1, Johnston K2, Downey M3, Najafizada M3, Bishop L3
1Memorial University, St. John's, NL, Canada, 2Broadstreet HEOR, Vancouver, BC, Canada, 3Memorial University, St. John's, NF, Canada

Presentation Documents

OBJECTIVES: With the legalization of cannabis in Canada, consumers are presented with numerous purchase options. Licensed retailers are limited by the Cannabis Act and provincial regulations with respect to offering sales, advertising, location, maximum quantities and customer support access in an effort to protect public health and safety. The degree to which these policies influence consumer purchase behavior will help inform regulatory refinement.

METHODS: A discrete choice experiment was used to explore trade-offs consumers make when deciding where to purchase cannabis. Attributes included availability of sales/discounts, proximity, product information, customer service, product variety and provincial regulation. Participants ≥ 19 years old who lived in Canada and purchased cannabis in the previous 12 months were included. A multinomial logit (MNL) model was used for the base model, and latent class analysis to assess preference sub-groups.

RESULTS: 1626 people completed the survey, and the base model showed that customer service carried the most weight in purchase decisions, followed by proximity and availability of sales and discounts. There was considerable heterogeneity in preference patterns, with a five-group latent class model demonstrating best fit. Only one group (15% of sample) placed a high value on the store being provincially regulated, while three groups were willing to make a trade-off with regulation to access better customer service, product information or closer proximity. One group preferred non-regulated sources (24% of sample), this group was also primarily driven by the availability of sales and discounts. Three groups (60.5% of sample) preferred online stores.

CONCLUSIONS: This study highlighted that there exists significant diversity with respect to the influence of consumer experiences in cannabis purchase behaviors. Modifications to cannabis retail regulations that focus on improving access to product information as well as reviewing limitations on sales and discounts could have the most impact for shifting customers to licensed retailers.

Conference/Value in Health Info

2022-11, ISPOR Europe 2022, Vienna, Austria

Value in Health, Volume 25, Issue 12S (December 2022)

Code

HPR105

Topic

Epidemiology & Public Health, Study Approaches

Topic Subcategory

Decision Modeling & Simulation, Public Health

Disease

No Additional Disease & Conditions/Specialized Treatment Areas

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