Medical marijuana dispensary customers did not match the demographics of their surrounding neighborhoods
A survey of 132 patients at four Long Beach dispensaries found significant differences in race and medical conditions across locations, with patients often traveling from other areas, suggesting market segmentation.
Quick Facts
What This Study Found
Researchers applied niche-marketing theory to medical marijuana dispensaries, testing whether dispensaries attract different populations rather than simply serving local medical need. They surveyed 132 patients at four dispensaries in Long Beach, California.
Significant differences emerged between dispensaries in terms of patient race and medical conditions treated. Patients at different dispensaries had different demographic profiles, and these profiles did not match the demographics of the surrounding census tracts.
Patients often traveled from outside the immediate area to reach their chosen dispensary, further suggesting that factors beyond simple proximity and medical need drove dispensary selection. This pattern is consistent with market segmentation, where dispensaries target specific customer types rather than serving the general medical population.
The findings raise questions about whether some dispensaries may be oriented toward recreational users seeking medical cards rather than genuinely targeting medical need.
Key Numbers
132 patients surveyed at 4 dispensaries. Significant associations between dispensary and race (chi-squared = 31.219, p < 0.05). Significant associations between dispensary and medical condition (chi-squared = 22.123, p < 0.05). Patient demographics differed from surrounding community demographics at all 4 dispensaries.
How They Did This
Exit surveys of 132 patients at four medical marijuana dispensaries in Long Beach, CA. Data collected included demographics, purchase information, medical condition, and home address. Patient demographics were compared across dispensaries and against census tract data for dispensary locations using chi-squared tests.
Why This Research Matters
As medical marijuana programs expand, understanding whether dispensaries serve genuine medical needs or function as de facto recreational outlets has policy implications. Evidence of market segmentation suggests that dispensary placement and regulation decisions should consider the actual customer base rather than assuming all dispensaries serve the same population.
The Bigger Picture
Market segmentation in medical marijuana dispensaries mirrors patterns seen in alcohol and tobacco retail. If dispensaries are marketing to specific demographics rather than serving medical need, this has implications for regulation, taxation, and public health surveillance.
What This Study Doesn't Tell Us
Only 132 patients across 4 dispensaries in one city were studied. The small sample size limits generalizability. Exit survey methodology may not capture all customers. The study cannot definitively distinguish between medical need-driven and market-driven dispensary selection. Self-reported medical conditions were not verified.
Questions This Raises
- ?Do dispensary marketing practices violate the spirit of medical marijuana legislation?
- ?Should dispensary placement regulations consider demographic targeting?
- ?Would these patterns change in states with separate recreational and medical markets?
Trust & Context
- Key Stat:
- Patient demographics differed significantly across dispensaries and from local neighborhoods
- Evidence Grade:
- This is a small cross-sectional survey at 4 dispensaries in one city, providing preliminary evidence of market segmentation.
- Study Age:
- Published in 2018 with data from Long Beach, CA. The dispensary landscape has changed significantly since.
- Original Title:
- Examination of Market Segmentation among Medical Marijuana Dispensaries.
- Published In:
- Substance use & misuse, 53(9), 1463-1467 (2018)
- Authors:
- Cooke, Alexis(2), Freisthler, Bridget(6), Mulholland, Elycia(2)
- Database ID:
- RTHC-01627
Evidence Hierarchy
A snapshot of a population at one point in time.
What do these levels mean? →Frequently Asked Questions
Do different dispensaries attract different types of patients?
Yes. This study found significant differences in the race and medical conditions of patients across four dispensaries, with patient demographics not matching the surrounding neighborhoods. This suggests dispensaries may be marketing to specific customer segments.
Do dispensary patients live nearby?
Not necessarily. Patients often traveled from outside the immediate area to their chosen dispensary, suggesting that factors beyond proximity, such as product selection, atmosphere, or marketing, influenced their choice.
Read More on RethinkTHC
Cite This Study
https://rethinkthc.com/research/RTHC-01627APA
Cooke, Alexis; Freisthler, Bridget; Mulholland, Elycia. (2018). Examination of Market Segmentation among Medical Marijuana Dispensaries.. Substance use & misuse, 53(9), 1463-1467. https://doi.org/10.1080/10826084.2017.1413391
MLA
Cooke, Alexis, et al. "Examination of Market Segmentation among Medical Marijuana Dispensaries.." Substance use & misuse, 2018. https://doi.org/10.1080/10826084.2017.1413391
RethinkTHC
RethinkTHC Research Database. "Examination of Market Segmentation among Medical Marijuana D..." RTHC-01627. Retrieved from https://rethinkthc.com/research/cooke-2018-examination-of-market-segmentation
Access the Original Study
Study data sourced from PubMed, a service of the U.S. National Library of Medicine, National Institutes of Health.
This study breakdown was produced by the RethinkTHC research team. We analyze and report published research findings without making health recommendations. All interpretations are based solely on the published abstract and study data.