Food Marketing and Consumer Behaviour 2023-2024 PDF

Food marketing and consumer behaviour Academic year 2023-2024 Prof. dr. ir. Wim Verbeke Prof. dr. Christine Yung Hung ir. Fien Minnens Department of Agricultural Economics [email protected]; [email protected]; [email protected] Food marketing and consumer behaviour 1 Chapter 4. Consumer...

Food marketing and consumer behaviour Academic year 2023-2024 Prof. dr. ir. Wim Verbeke Prof. dr. Christine Yung Hung ir. Fien Minnens Department of Agricultural Economics [email protected]; [email protected]; [email protected] Food marketing and consumer behaviour 1 Chapter 4. Consumer Behaviour • Consumer behaviour = Buying behaviour of the target market • Consumer market = – Individuals or – Households – Who buy for personal consumption • 7 O’s of consumer behaviour / research Food marketing and consumer behaviour - Consumer Behaviour 2 Consumer Behaviour The Consumer • 7 O’s of consumer behaviour / research 1. 2. 3. 4. 5. 6. 7. Who buys? What? Why? Who participate? How? When? Where? Occupants Objects Objectives Organisations Operations Occasions Outlets Food marketing and consumer behaviour - Consumer Behaviour 3 Model of Buyer Behaviour Outside stimuli • Marketing mix • The environment Buyer’s Black Box • Buyer characteristics • Buyer decision making process Buyer’s Purchase Decisions • Product, Brand, Outlet choice • Purchase Time, and Quantity (amount) Food marketing and consumer behaviour - Consumer Behaviour 4 The Buying Decision Process • Stages in the Buying Decision Process: 1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Postpurchase behaviour Food marketing and consumer behaviour - Consumer Behaviour 5 The Buying Decision Process • 1. Need recognition Decision making roles: Example – Initiator Wife – Influencer Children – Decider Parents together – Buyer Husband – User All family members Food marketing and consumer behaviour - Consumer Behaviour 6 2. Information search 1. Internal sources = memory, experience 2. External sources = personal or non-personal • • Unknown brands / products = unawareness set Known brands / products = awareness set 1. Inept = unacceptable to me 2. Inert = indifferent to me 3. Choice set = consideration set for evaluation Food marketing and consumer behaviour - Consumer Behaviour 7 3. Evaluation of Alternatives • Choice set = starting point • Evaluation procedure: principles – – Aim = to satisfy a need, search for benefits Product = bundle of attributes, bundle of characteristics Food marketing and consumer behaviour - Consumer Behaviour 8 Evaluation of Alternatives • • • • • Step 1: choice set of products or services Step 2: relevant product attributes Step 3: attribute importance weights Step 4: belief scores (perception) Step 5: determining preference score Food marketing and consumer behaviour - Consumer Behaviour 9 Evaluation of Alternatives • • • • • Step 1: choice set of products or services Step 2: relevant product attributes Step 3: attribute importance weights Step 4: belief scores (perception) Step 5: determining preference score Food marketing and consumer behaviour - Consumer Behaviour 10 Evaluation of Alternatives (Step 1) EXAMPLE ATTRIBUTES CHOICE SET IMPORTANCE WEIGHTS % Brand A Brand B Brand C Total 11 Evaluation of Alternatives • • • • • Step 1: choice set of products or services Step 2: relevant product attributes Step 3: attribute importance weights Step 4: belief scores (perception) Step 5: determining preference score Food marketing and consumer behaviour - Consumer Behaviour 12 Evaluation of Alternatives (Step 2) EXAMPLE ATTRIBUTES CHOICE SET IMPORTANCE WEIGHTS % Brand A Brand B Brand C Price Taste Packaging Total 13 Evaluation of Alternatives • • • • • Step 1: choice set of products or services Step 2: relevant product attributes Step 3: attribute importance weights Step 4: belief scores (perception) Step 5: determining preference score Food marketing and consumer behaviour - Consumer Behaviour 14 Evaluation of Alternatives (Step 3) EXAMPLE ATTRIBUTES CHOICE SET IMPORTANCE WEIGHTS % Price 50 Taste 30 Packaging 20 Total 100 Brand A Brand B Brand C 15 Evaluation of Alternatives • • • • • Step 1: choice set of products or services Step 2: relevant product attributes Step 3: attribute importance weights Step 4: belief scores (perception) Step 5: determining preference score Food marketing and consumer behaviour - Consumer Behaviour 16 Evaluation of Alternatives (Step 4) EXAMPLE ATTRIBUTES CHOICE SET IMPORTANCE WEIGHTS % Brand A Brand B Brand C Price 50 7 2 5 Taste 30 2 4 7 Packaging 20 6 10 9 Total 100 17 Evaluation of Alternatives • • • • • Step 1: choice set of products or services Step 2: relevant product attributes Step 3: attribute importance weights Step 4: belief scores (perception) Step 5: determining preference score Food marketing and consumer behaviour - Consumer Behaviour 18 Evaluation of Alternatives (Step 5) EXAMPLE ATTRIBUTES CHOICE SET IMPORTANCE WEIGHTS % Brand A Brand B Brand C Price 50 7 (3.5) 2 (1.0) 5 (2.5) Taste 30 2 (0.6) 4 (1.2) 7 (2.1) Packaging 20 6 (1.2) 10 (2) 9 (1.8) Total 100 5.3 4.2 6.4 19 Evaluation of Alternatives EXAMPLE CHOICE SET ATTRIBUTES IMPORTANCE WEIGHTS % Brand A Brand B Brand C Price 50 7 (3.5) 2 (1.0) 5 (2.5) Taste 30 2 (0.6) 4 (1.2) 7 (2.1) Packaging 20 6 (1.2) 10 (2) 9 (1.8) Total 100 5.3 4.2 6.4 Belief / Perception scores on 10 Preference scores (weighted average scores) Overall preferred brand = 20 buying intention Potential marketing actions How can marketeers modify or influence the buyer decision ? 1. Modify your own product – – – Redesign, e.g. package, brand name font Improve attributes, e.g. higher nutritional value; lower its price, … Is called: ‘real repositioning’ Food marketing and consumer behaviour - Consumer Behaviour 21 2. Change beliefs about your product – – – Through communication, advertising Is called ‘psychological repositioning’ E.g. try to change attribute (e.g. price) perceptions Food marketing and consumer behaviour - Consumer Behaviour 22 3. Change beliefs about competitors’ brands – – – – “How good we are” vs. “how bad competitors are” Is called ‘competitive depositioning’ Limits on comparative advertising Be aware of legislation ! Food marketing and consumer behaviour - Consumer Behaviour 23 4. Change attribute importance weights – – – – Persuade buyers to ... attach more importance to ... attributes for which your product excels Through communication efforts, e.g. advertising Food marketing and consumer behaviour - Consumer Behaviour 24 5. Call attention to neglected attributes – – – – To attributes on which your product excels But they were overlooked by consumers thus far Attract consumer attention to those attributes Through communication efforts Food marketing and consumer behaviour - Consumer Behaviour 25 4. Choice • • Behavioural intention; based on preference (actual) Behaviour = buying, consuming • Behaviour = (0.5-0.8) * behavioural intention Reasons for non-perfect match: – – – Out of stock ? Promotion on competing brand or product ? Variety seeking behaviour ? Food marketing and consumer behaviour - Consumer Behaviour 26 5. Postpurchase Behaviour • Satisfaction versus dissatisfaction • Satisfaction = f (X1, X2) – X1 = Expectations – X2 = Perceived product performance • Dissatisfation : possible actions – Storage in memory, No repeat purchase – Complaining – Word of mouth advertising ! • Product disposal after use; e.g. recycling Food marketing and consumer behaviour - Consumer Behaviour 27 (Dis-)confirmation model of customer satisfaction Satisfaction Expected performance Positive disconfirmation Experience exceeds expectation Confirmation Experience matches expectation Experienced performance Indifference Negative disconfirmation Experience falls short with regard to expectation Food marketing and consumer behaviour - Consumer Behaviour Dissatisfaction 28 Expectation Word of mouth Distrust Experience Repeat purchase Trust Food marketing and consumer behaviour - Consumer Behaviour 29 Types of consumer behaviour • Extended problem solving – – – – Entire decision-making process A lot of active reasoning High involvement / Low time pressure “Important” decisions: value, cost, risk, personal relevance • Limited problem solving – Some active reasoning – E.g. new product alternative in well-known category • Automated / habitual purchasing – Minimal active reasoning – Brand loyalty / habits • Variety seeking behaviour Food marketing and consumer behaviour - Consumer Perception 30 Factors Influencing Consumer Decision-Making • Product-related factors: 4 Ps • Environment-related factors – Situational factors – E.g. moment, time, occasion • Person-related factors – – – – Cultural factors Social factors Personal factors Psychological factors Food marketing and consumer behaviour - Consumer Behaviour 32 Food marketing and consumer behaviour - Consumer Behaviour 33 Factors Influencing Consumer Decision-Making • Cultural factors: – Culture – Subculture – Social class Food marketing and consumer behaviour - Consumer Behaviour 34 • Culture: – “What was learned from childhood” – “Socialisation process when growing up” – Expositions to particular: • Values : e.g. religion, spiritualism, hedonism • Perceptions : “how people look at things” • Preferences : e.g. insects, reptiles Food marketing and consumer behaviour - Consumer Behaviour 35 • Subculture: – – – – Nationality groups Religious groups Racial groups Geographic groups Food marketing and consumer behaviour - Consumer Behaviour 36 • Social Class: – – – – Hierarchically ordered divisions in the society Similar behaviour within one social class Individuals can move up or down Variables that indicate social class: • Income • Occupation • Education Food marketing and consumer behaviour - Consumer Behaviour 37 • Social factors: – Reference groups – Family – Roles Food marketing and consumer behaviour - Consumer Behaviour 38 • Reference groups: – Membership groups • ‘You are part of this group’ • Primary: informal, family • Secondary: formal, true membership – Aspirational groups • ‘You would like to be part of this group’ • Copying behaviour • Importance of opinion leaders ! – Dissociative groups • ‘You would not like to be part of this group’ • Rejection of similar behaviour Food marketing and consumer behaviour - Consumer Behaviour 39 • Family: – Of orientation: in which you grew up – Of procreation: you create yourself – Importance of • husband / wife relationships • parent / children relationships Food marketing and consumer behaviour - Consumer Behaviour 40 • Roles / Statuses: – How you act, behave in certain circumstances – ‘The role you play’ • in a specific situation • at a certain moment • e.g. student during weekdays, parent during weekend Food marketing and consumer behaviour - Consumer Behaviour 41 Roles in the Purchase Decision-Making Process Initiator User Influencer Purchase / Buying decision Gatekeeper Food marketing and consumer behaviour - Consumer Behaviour Decider Buyer 42 • Personal factors: – – – – – – – Age Gender Life cycle stage Occupation Economic circumstances Lifestyles Personality Food marketing and consumer behaviour - Consumer Behaviour 43 • Psychological factors: – Motivation / motives : Maslow’s theory – Perceptions Food marketing and consumer behaviour - Consumer Behaviour 44 • 10 major motivations for food choice – – – – – – – – – – Health motive : fruits & vegetables Nutritional needs : functional foods Desire to enjoy food : “real” butter, full fat Convenience motive : ready-to-eat meals, fast food Safety motive : organic products Compliance with reference groups : alcohol Prestige motive : champagne Environmental motive : “green” consumerism Political motive : “Fair-trade” products Ethical motive : sustainable goods, animal welfare Food marketing and consumer behaviour - Consumer Behaviour 45 Maslow’s Hierarchy of Needs Seeking for motive satisfaction Self Actualisation Esteem Needs Social Needs Safety Needs Physiological Needs Food marketing and consumer behaviour - Consumer Behaviour 46 The concept and importance of Perception Food marketing and consumer behaviour - Consumer Behaviour 47 Perception There is only one reality, namely the perceived one. Food marketing and consumer behaviour - Consumer Behaviour 48 The largest central cicle ? Indian or Eskimo ? Food marketing and consumer behaviour - Consumer Behaviour 49 P E R C E P T I O N REALITY - FACTS SCIENTIFIC OBJECTIVITY Product attributes Quality Safety Nutritional value Price Manageable, Measurable, Repeatable PERCEPTION HUMAN SUBJECTIVITY Consumer perception F I L T E R Food marketing and consumer behaviour - Consumer Behaviour Preference Choice 50 Example of perceptual bias - Figure and ground Food marketing and consumer behaviour - Consumer Behaviour 51 Exercise - Task 2 Subject: Consumer decision-making process + How to influence this process through marketing? a. Give an overview of your personal decision-making process for a food product of your own choice? This includes your: - Information search process; sources and cues (pieces of information) used - List the products of your Awareness set - Indicate which of these products belong to your Choice set and which are Inert or Inept. Explain why the latter products are Inert of Inept to you. - Personal evaluation of alternatives (attributes, importance, perception or belief scores) - Preference and buying intention - Final choice (and whether this fitted with your intention) b. Building further on your analysis made under a): Indicate three potential marketing efforts that could influence, modify or shift your decision towards another alternative (another brand or shop). Therefore, assume you are a marketing manager of the food company, and that you know how the consumer took (made) his/her decision (as written down in a.) ? 53