International Consumption - Consumers perspective Consumer Behaviour 1 Internation Agrifood Economics MIBE
2 Materials Obligatory: slides published on the course website after the lessons (the only material required for the final exam) Optional readings (not required for the exam): Solomon, M. (2006). Consumer behavior: European perspective. Harlow: Pearson Education. Wilkie, W. (1990). Consumer behavior. New York: John Wiley & Sons Market Segmentation and Positioning at http://www.oup.com/uk/orc/bin/9780199290437/baines_ch06.pdf
3 Consumer Behaviour Consumer behaviour is the study of when, where, how, why (why not) and who does or does not buy a product. It involves elements from psychology, sociology, social antropology and economics; It attempts to understand the decision making process (individually and in groups) It studies characteristics of individual consumers such as demographics and behavioural (SEGMENTATION) It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general; Internal Processes External Processes Desisive Procesess
4 Consumer Behaviour Internal Processes External Processes Desisive Procesess Perception Learning & Memory Motivation, Values, Involvemen Attitudes The self group influence, culture, opinion leaders Decisive processes
5 Perceptual Map
6 The perceptual process Refers to response of sensory receptor (5 senses) SENSATION Stimulus Perception Sensory Receptors Reponses Attention Interpretation MEANING The meaning is interpreted by each person in an individual way, thus may differ EXAMPLE: perceptual maps of products or brands presenting in 2D placement of products/brands in psychological space
7 Sensory Perception Sensory inputs evoke historical imagery, in which events that actually occurred are recalled. advertising, store design, packaging, product s size, styling, brightness and distinctiveness compared with competitors COLOURS
8 Sensory Perception Bring back memories Reduce stress 1 2 3 Fresh baked bread Pizza Coffee Chicken Jingles Music Sound Northern Europeans touch less than southern Europeans Factor in sales interactions. Wool & Silk vs Denim different sweetness / country New Coke Food companies make sure that their products taste as they should
9 Perception - Gestalt one part of a stimulus (the figure) will dominate while other parts recede into the background. Incomplete picture as a whole group together objects that share similar physical characteristics
10 Perception Just Noticibale Difference (JND) known as Weber s Law Symbolism Signs, icons etc
11 Learning & Memory Classical conditioning Operant / instrumental conditioning When a stimulus (food) that elicits a response (salivation) is paired with a stimulus (a bell) which originally does not elicit a response (salivation). Over time, this second stimulus (bell) causes a similar response because it is associated with the first stimulus. When an individual learns to perform behaviours that produce positive outcomes and to avoid those that yield negative outcomes. POSITIVE REINFORCEMENT NEGATIVE REINFORCEMENT FIXED INTERVAL REINFORCEMENT VARIABLE INTERVAL REINFORCEMENT PUNISHMENT FIXED RATIO REINFORCEMENT
12 Sales Promotions Price discounts Direct 20 % off 50% off Coupons issued by the manufacturers or supermarkets Discounts via supermarket loyalty cards Collecting Collecting food labels/beverage container tops in return for gift Extra-product price promotions Buy-one-get-one-free Reduced price with-purchase (buy one and get another at 0,1 Euro / 50% off) Multi-purchase (e.g., three for the price of two) 1. significant sales over the short-term 2. lead to changes in food-consumption patterns 3. Or not (lead to changes in consumption) 1) product testing leading to the consumption of a product not previously consumed, and, therefore, increased consumption 2) increased consumption of the product category
13 Learning & Memory COGNITIVE LEARNING Cognitive learning occurs as a result of mental processes. In contrast to behavioural theories of learning, cognitive learning theory stresses the importance of internal mental processes.
14 Motivational Conflicts Approach - Approach by The Pizza Review 1 by imwearingcons 2 by gnuf Approach - Avoidance by Charlotte Astrid 3 4 5 Avoidance - Avoidance by johnsu01 by isafm edia
15 Motivation Needs Need for affiliation (to be together with others) Need for power (to feel supremacy or matery over the surrounding - cars) Need for uniqueness (to perform individual identity)
16 Motivation Needs Need for affiliation (to be together with others) Need for power (to feel supremacy or matery over the surrounding - cars) Need for uniqueness (to perform individual identity) Self actualisation (fullfilment) Ego needs (prestige, status) Belonging (love, friendship, acceptance) Safety (protection, security) Physiological (hunger, thirst, sleep) Maslows s hierarchy of needs Gourmet foods, foreign cars, vodka, perfume Ice cream (to feel like a loved child again), full home baking, hospital care
17 Strategies 1) Appeal to the consumers hedonic needs (sensory appeal - higher levels of attention) 2) Use novel stimuli, unexpected situation / ending 3) Prominent stimuli (loud music and fast action) in print formats, larger ads increase attention (look longer at coloured pictures as opposed to black and white) ORGANIC 4) Include celebrity endorsers 5) Involve
18 Case Study Attituted towards functional food in Finland: Reward from using (price, what I get from) Necessity (about needs) Confidence (trust, lack of trust)
19 In Finland Reward from using FF Functional foods help to improve my mood My performance improves when I eat Functional foods Functional foods make it easier to follow a healthy lifestyle I can prevent disease by eating functional foods regularly The idea that I can take care of my health by eating functional foods gives me pleasure Functional foods can repair the damage caused by an unhealthy diet I am prepared to compromise on the taste of a food if the product is functional I actively seek out information about functional foods Necessity for FF Functional foods are completely unnecessary It is great that modern technology allows the development of functional foods The growing number of functional foods on the market is a bad trend for the future I only want to eat foods that do not have any medicine-like effects Functional foods are consumed mostly by people who have no need for them It is pointless to add health effects to otherwise unhealthy foods For a healthy person it is worthless to use functional foods Health effects are not appropriate in delicacies Confidence in FF I believe that functional foods fullfil their promises Functional foods are science-based top products If used in excess, functional foods can be harmful to health In some cases functional foods may be harmful for healthy people Using functional foods is completely safe
Thank you Next class : 15/11/11 20