International Consumption - Consumers’ perspective
Consumer Behaviour 1
‘Internation Agrifood Economics’ MIBE
What, Where, How? 2
Classes: Wednesday 16:00-18:00
Advances in consumer studies with an application to food market – 08 November 15 November 22 November (13:00-14:00)
E-mail: [email protected]
Receiving Hours: Tuesday (13:00-14:00) – PhD Room
Obligatory for 9 ECTS
Materials 3
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
Outline 4
1
Beahvioural
economics /
economic
psychology
1. Internal processes such as perception, learning,
attitudes etc
2. External processes such as group influence, culture,
opinion leaders etc
3. Decisive processes
2 Segmentation &
branding
Types and levels of segmentation, exemplification.
Introduction to the concept of branding.
3 Globalisation Globalisation (with focus on the third wave)and local
responses (Fair Trade, Bio, Organic, country labelling)
4 Food security Food security in terms of over nutrition and economic and
social reasons for & consequences of obesity.
5 Consumption
patterns
Comparison between developed and developing countries.
Global and regional food consumption patterns (data set)
Consumer Behaviour 5
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 antropoogy 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
Consumer Behaviour 6
• Perception • Learning & Memory • Motivation, Values, Involvemen • Attitudes • The self
Internal Processes
External Processes
Desisive Procesess
• group influence, • culture, • opinion leaders
Decisive processes
The perceptual process 7
Stimulus Sensory Receptors
Attention
Interpretation Reponses Perception
SENSATION
MEA
NIN
G
Refers to response of sensory receptor (5 senses)
The
mean
ing is in
terpreted
by
each p
erson
in an
ind
ividu
al w
ay, thu
s may d
iffer
EXAMPLE: perceptual maps of products or brands presenting in 2D placement of products/brands in psychological space
Sensory Perception 8
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
Sensory Perception 9
Fresh baked bread Pizza
Coffee Chicken
Bring back memories Reduce stress
Jingles Music Sound
Wool & Silk vs Denim
Factor in sales interactions.
Northern Europeans touch less than
southern Europeans
Food companies make sure that their products
taste as they should
• different sweetness / country
• New Coke
Perception - Gestalt 10
Incomplete picture as a whole
group together objects that share similar physical characteristics
one part of a stimulus (the figure) will dominate while other parts recede into the background.
Perception 11
Just Noticibale Difference (JND) – known as Weber’s Law
Symbolism
Signs, icons etc
Learning & Memory 12
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.
Classical conditioning Operant / instrumental
conditioning
When an individual learns to perform behaviours that produce positive outcomes and
to avoid those that yield negative outcomes.
FIXED INTERVAL REINFORCEMENT
POSITIVE REINFORCEMENT
NEGATIVE REINFORCEMENT
PUNISHMENT
VARIABLE INTERVAL REINFORCEMENT
FIXED RATIO REINFORCEMENT
Sales Promotions 13
Price discounts
Direct ‘20 % off’ ‘50% off’ Coupons issued by the
manufacturers or supermarkets
Discounts via supermarket loyalty cards
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)
Collecting
Collecting food labels/beverage container tops in
return for gift
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
Learning & Memory 14
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.
COGNITIVE LEARNING
Motivational Conflicts 15
Approach - Approach by imwearingcons
by The Pizza Review
by gnuf
by johnsu01
Approach - Avoidance
Avoidance - Avoidance by isafmedia
by Charlotte Astrid
1
Fake furs, weight-watchers, ‘because I’m worth it’
Motivation → Needs 16
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)
Motivation → Needs 17
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) Physiological (hunger, thirst, sleep)
Safety (protection, security)
Belonging (love, friendship,
acceptance)
Ego needs (prestige, status)
Self actualisation (fullfilment)
Maslows’s hierarchy of needs
Ice cream (to feel like a loved child again), full home baking,
hospital care
Gourmet foods, foreign cars, vodka, perfume
Case Study
• Attituted towards functional food in Finland:
– Reward from using
– Necessity
– Confidence
18
In Finland 19
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
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
In Finland 20
Necessity for 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
Confidence in FF