Behaviour Of Food Consumers example essay topic

CONSUMER ANALYSIS IN A DYNAMIC FOOD MARKET ABSTRACT Consumer analysis is a very complex matter. There is an increasing interest to study it for more intensively due to the political dimension of some food safety problems in the last decade. The concern on health and nutrition has stimulated the research on different attributes and comparative advantages of consumption habits and diets. However, under a practical point of view, we should focus our attention in a broad horizon, with a mixture of nutrition, culture and traditional values. In this paper we focus the analysis in the new consumer scenario of food safety at the EU, with some views about general methodology and comments about the future, and actions to be taken to increase confidence in the food market. INTRODUCTION Consumer analysis at the EU has been focused lately in the food safety area.

Food scandals (BSE, salmonella, dioxins) in the past decade have provoked a diminish in the consumer's confidence in the food system. The 1998 the Euro barometer showed that only 66% of the European consumers trusted the controls made on food safety at national regional and local levels, and only 43% in European controls. But there are different aspects to be considered. In one way there is a feeling among consumers, specially their organisations, "that interest of food industry have been put before interest of the consumer in the EU" (D. Hutton.

2003). Another interesting issue is the idea that consumers do not get the whole truth about the situation in food safety problems. The Euro barometer survey in 1998 showed only 20% of the consumers believe that European authorities told the whole truth. We should call the attention in the fact that major threats to European consumers come from unhealthy diet more than from dangerous food. Quality controls in the EU food chain are becoming very efficient and enterprises are concerned about the importance of it. Many consumer are increasing the intake of processed products instead of fresh ones, with great increase of saturated fat, calories and other ingredients.

There is a correlation between the decline of the quality of the diet and the health problems. Heart problems and cancers are associated with diets high in fat and low in fruit and vegetables. Although there is a comparative advantage in consumers of Mediterranean countries to follow a "Mediterranean diet" the fact is that in Spain we are losing the traditional way to eat, moving toward more processed products. In this way our nutritional index has a negative trend.

For instance, in 1960, the energy balance was almost the optimum, while in 2001 there was a surplus of 70% in the level of proteins and 50% in the fat. METHODS AND ANALYSIS Consumer habits change, so enterprises and institutions dealing with the food businesses need to adapt. Another question is why and how the consumer preferences change, and in which way can be modified them by advertising and promotion activities. According to Sen auer (1991) a major impact on the economic analysis of consumer behavior came from the models proposed by G. Becker about the 'new household economics' and K. Lancaster with the basic idea that 'products are composed of a bundle of attributes'. Consumption analysis has several ways to deal with: Impacts on Food Markets Added Value: The greater proportion of the economic activity in the food system has been shifted toward the retailers. In situations of scarcity where the supply is lower than the demand, the bargaining power is controlled by the farmers.

With the transformation of the traditional agriculture into a modern one, market oriented, the bargaining power moved toward the manufacturers and later to the traders. In developed countries, the food chain at retail level has the greatest share of the added value in the food system. But even at the production level, innovations are diminishing the farmer share. Scientific technology and genetic research are creating food substitutes of traditional food: such as fat (with fat such as AU Lean), orange juice made with tang, etc.

Environmentalism: The consumers concern about the consequences of production and marketing process on the environment and natural resources is increasing. The possibility to choose biodegradable and non polluting products is a good alternative to many consumers. The quality of water, countryside air, etc., may be affected if we choose recyclable and adequate products. In someway there is a conscious interdependence among consumers in the space and over the time. In the space because we even may collaborate to improve life to people living far away, in other regions and countries. Through the time, because we wish to give better opportunities to the coming generations, living in the future.

As a consequence the whole agribusiness sector should face the challenge to maintain the food quality and quantity supply with the mentioned restrictions. In that way, we may include a sustainable agriculture system, processing, transporting and packaging firms with environmentally friendly technologies. But that actions increase the production costs. The question is: Who should pay that? The Consumers? The Administration and public institutions?

The Enterprises? Convenience: There is an increasing demand for convenience goods, including the preparation and information about health and safety conditions. There is a great variety of convenience goods offered to consumers: take out food, ready to eat, frozen, microwavable dishes, fresh fruits, fresh bakery good, food example. Some studies in USA (Russo, 1992) predict a consumption decline in relative proportions of meat, dairy products and groceries. On the opposite side, it will be an increase in bakery foods, seafood, frozen and fresh products. Others in Europe consider an increasing concern in the importance of Mediterranean diet (olive oil, wine, fruit and vegetables).

In western societies consumers wish to pay more for food products with higher quality, better taste and variety. Therefore, there is a duel to the enterprises in order to meet consumer expectations. Safety is an important factor to be assured, and there is a degree of uncertainty specially in information related with some processes as biotechnology, genetic engineering, irradiation, new chemicals, etc. There is needed an objective information explaining the situation. Another scenario are the fresh product such as fish and meat that will be branded either by private chain store labels, regional or national brand.

Some recent scandals, such as the BSE (or mad cows) in United Kingdom, have increased the demand for a quality control through a brand system. Here there will be greater necessity of government regulations in order to assure accurate information about food product characteristics. International Trade and habits influence: International relations are another engine of consumer's habit's changes. Exports of agricultural products may substitute national food products in another countries. We have significant examples in cereals, like wheat in Central America, or soft drinks in European countries. There are some specific trends in agricultural trade.

For instance, European agricultural exports (wine, cheese, oil) to USA are of higher value than American agricultural products (cereals, soybean) to Europe. However, the American consumers' habit consumption (fast food) are very strong influence in Europe. Factors which influence food choice and consumption There are several models that analysed the factors which influence the behaviour of food consumers (Engel et al 1995, Pilgrim 1957, Steenkamp 1996). In general, there are considered 3 types of factors: a) Properties of the food, b) Person-related factors and c) Environmental factors. a) Properties of the food. We may include here chemical and physical properties, nutrient content energy value, fibre and also physical appearance. b) In the group of person-related factors we may consider: o Biological factors, related with innate characteristics, body weigh, age, etc. o Psychological factors.

According with Steenkamp (1992) we may consider different scenario: o Exploratory buying behavior tendencies, where consumers have the capacity to get novel purchase experiences, specially important in food products. Some measurement index has been developed on this area, such as the Exploratory Buying Behavior Tendencies (E BBT). o Quality-consciousness, as a personality factor which influences the quality perception process. o Consumer ethnocentrism, expressing the 'moral beliefs' of the consumer when purchasing foreign-made products. Steenkamp used an scale (CET SCALE) to analyse consumer ethnocentrism in 4 European countries. o Lifestyles, taken as patterns that people follow in their daily activities may influence consumer behavior. Some methods of segmentation have been developed, such as the Euro-Socio styles. o Socio demographic elements may be significant in consumer behavior.

Size of household, education, age, sex, and stage in the life cycle. Demand for convenience foods is related with employment and size of household. Consumption of frozen foods may be related with women working outside home) In the group of environmental factors may be included: o Cultural Factors: The culture influences food consumption behavior, but also, on the other way around food is a way to transmit cultural values. (McC raker 1986). There is a link between the cultural background and the buyer's attitude. For instant, if we buy a product from developing countries is a way to show our solidarity with those countries.

Buying organic products is a personal attitude in favour of better use of natural resources. There are great differences in food products consumed by different societies. If we take a look at insects, horses, frogs, eggs, seafood, there an influenced cultural background on it. Religion is another important element on this scenario. o Economic Factors: Traditionally price and income have been the two significant factors influencing consumer attitudes.

The 'Law of Engel' established that the 'poorer a family is the greater the proportion of total expenditure on food. Price relationship with food consumption is usually negative, the higher the price, the lower the consumption. There are some exceptions on basic food (cereals, potatoes) where higher prices of those products increase their proportion on total expenditure, due to the reduction of the purchasing power of the poor families. o Marketing Factors: In this chapter there is a group of marketing strategies related with marketing strategies: the 4 P: product, price, promotion and position. Their relationship is very complex, and we will focus only in some of them. o Distribution strategies: logistic, stocks control, concentration in food retailing. o Promotion and Advertising are some of the more dynamic activities in the marketing strategies. o Branding. Quality image It is a way to identify a product and improve the quality image on the consumer. According to K. Grunert (1996 p. 247-248) there are three important scenario of analysis: cross-cultural differences and similarities, consumer's quality perception process and food companies strategy versus retailers.

In the cross-cultural group we should understand that consumers differ in the role that food and eating play in their lives. Therefore, the products they would be interested in, will depend on this role. Consumers' quality perception process is characterised by the problem that quality food can be evaluated after consumption. As a consequence there is an uncertainty in consumer's quality evaluation and considerable divergences between expected and experienced qualities. The increasing importance of credence attributes like organic or ethical will make this even more serious. Quality perception is becoming a question of trust.

Manufacturer branding is the traditional instrument to achieve it. However many food products are unbranded and many retailers have their own labels. The relationship food processors-retailers is another key point in the evolution of food business. The concentration process in the retailing sector and their direct connection with the consumers are increasing their bargaining power, and they are able to establish their own strategic options. The consumer's habits changes may be analysed at an aggregate and at the individual level.

At the aggregate level we may include the food-related lifestyle and the cross-cultural phenomena. Food-related life style gives a mental link between food products and the attainment of life values. Therefore we may use it as an instrument to measure actual buying behavior and also as an instrument to measure values so that a complete value-attitude-behavior hierarchy could be mapped. (Grunert 1996 p. 250). At the individual level, regarding behavior of individual product choices, the Total Food Quality Model can be used, and need more theoretical and empirical work, relating product attributes to underlying purchase motives and the explanation of purchase intention. In some way, food is considered as a group of attributes by processors and marketers following the consumer attitudes.

In fact innovation process try to increase the number of positive attributes. Consumers want more convenient food products, easier to prepare but maintaining the sensorial characteristics. This is the duel to scientific's, to design foods with specific acceptable attributes remaining others unchanged. Another important aspect is the time value to obtain information about products.

The cost of information is increasing due to the complexity and variety of food. The consumer should be well informed. That implies better regulation of information, good labeling system and adequate advertising. Food safety Last but not least, food safety considerations are becoming an important item in consumer behaviour. One area to develop along the food chain is the traceability, as an instrument to get confidence and credibility of consumer and stakeholders (Briz J. 2003). An important area of this chapter is how to deal with food risk, the interface of risk assessment with the risk management and the role of consumer organisation on those matters.

CONCLUSIONS We may rise the question about the consequences and results of this paper if there are any. We do not have an empirical analysis where 'practical results' may be figured out. Perhaps we have many questions and few answers. The broad title covers a general scenario, with the aim to the discussion. Consumer changes in the future will force entrepreneurs to adapt their activities to the new situation.

Food safety and environmental quality concerns will be at the front of concerns. Farming and agricultural policy will have to adapt to new practices trying to preserve environmental and natural resources. Food processing and manufacturing develop a wide scenario of activities. They provide marketing functions such as new product logistics (storing and transporting) and branding. As a response to consumer demands, processors have focused in the development of convenience foods, such as microwavable and refrigerated 'fresh foods', new packaging materials, new processing techniques.

Innovations have been developed in frozen concentrated citrus juices, controlled atmosphere packaging for fresh fruits and vegetables, frozen meals, ultra-high-temperature processing of milk. There is another revolution in the Food Service Retailing. Commercial establishments are opened to the general public and prepare served and sell meals and beverages. We may include in this group of establishments eating, lodging, recreation, and entertainment places. They may provide 'full-service menus's uch as restaurants or 'limited menu service' (cafeterias, fast food).

Some food processors own some restaurant chain, and, on the other way, some chains have their own wholesaling and purchasing facilities. Adequate response to the competition and the consumer preferences will be the key to success in the coming future. The response should include, changes in the production process and services to provide for changes in consumer preferences, maintaining the old and traditional customers and attracting the new ones. It will be a growing importance in food quality, location, menu selection, variety, and differentiation from other establishments, with special services such as drive-up windows and all of them with promotion campaigns.

According to Esther Peterson (1978), the marketing specialist sees consumers as targets of selling efforts and asks questions about consumers in terms of the effectiveness of advertising or pricing techniques. The political scientist sees consumers as a group seeking power and a means of achieving political objectives. The economist talks of groups of consumers making decisions, expressed in shifting demand curves. Therefore, consumer research has to define its purposes and ask that work be done to advance a much more whole concept of consumer's aspirations, goals, problems, and needs. In fact, the first big problem for such research is its own definitions and purpose. We may begin by asking several questions: Do we want to solve practical problems of consumers and / or develop general theories about what consumers believe?

Choosing the second question would emphasise the understanding of consumers while the first would emphasise helping them. It is difficult to predict when consumers ask for help what there are truly looking for is to satisfy their needs or just to give their opinion. Do we want to include all consumer problems or just the ones that are obvious so far to us or to me? Consumer research to some is consumer psychology and personal decision making processes such as in the effects of various advertising appeals on purchases. Others emphasise technical issues. Some would emphasise research into the law and administrative processes such as public participation in government or class action laws.

Others see consumers making trade-offs between costs and benefits. Do we know what things in life are 'consumer'? Certainly, buying and the consumption of private market goods and services are activities that may be included. Do we plan to study 'non-consumer' dimensions of life that affect how people act as consumers? After all, we work because, primarily, we need the income to live. When we are underpaid or unemployed, consumer problems do get worse.

Aspirations in life, our values and religious beliefs, our hates and our loves all are essential to understanding our consumer-behavior. Do we plan to look at our society and its institutions and how these affect the ability of consumers to fulfil themselves? We have seen what progressive businesses can do for consumers voluntarily and still make adequate profits. Consumers do not live only as individuals and households in a world apart from the enormous pressures and influences of government, businesses, and the overall economic structure.

Consumer affairs is far more than buying at the supermarket or read a contract. Administrations, Universities and private enterprises have to co-ordinate their efforts for a better understanding of consumer behaviour.

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