Week 1 15 January 2004

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Consumer Behaviour and Food Marketing

• Week 1 15 January 2004

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Consumer Behaviour Food Marketing (AE 613)

• Module convenor
• Mario Mazzocchi (Room 310 ext. 6484
  m.mazzocchi_at_rdg.ac.uk)
• Module is held on Thursday 11am-1pm in room AG
  GU04

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Module content

• Behavioural theories of consumer choice and
  models of consumer decision-making process
• Factors influencing consumer choice with respect
  to foods
• Implications of such factors for marketing of
  food products

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Learning outcomes

• The module aims at providing you with
• An understanding of the consumer decision-making
  process
• An understanding of internal and external
  influences on consumer choice
• An appreciation of the relevance of the consumer
  choice process to food marketing
• An understanding of how market research methods
  relate to elements of the consumer
  decision-making process

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Module structure
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Module assessment

• Coursework (50) Final exam (50)
• The assessment will take the form of a
  presentation (20) essay (80) which relates
  consumer behaviour to the marketing of food
  products.
• Choice among any of the topics covered in the
  course
• Max 2500 words
• Deadline 19 March 2004 (end WK20)

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Presentation and Essay Development

• Presentation will start from week 4
• Essay questions are given (available on the web)
• Each week a 5-people team will give a short
  Powerpoint presentation (20 minutes)
• The presentation will originate the essay to be
  delivered at the end of the course
• Schedule of presentations

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Presentation and essay writing basic guidelines

• Try to be concise and communicative
• Base your answers to essay questions on sources
  given at the end of the lecture, but also make
  use of library resources to research
  independently
• Use your own words to interpret sources through
  a case study
• All sources must be correctly referenced in the
  text

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Essay questions (1)
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Essay question (2)
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Essay question (3)
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Suggested reading

• The course will be mainly based on the following
  textbooks
• East (1997). Consumer Behaviour Advances and
  Applications in Marketing. London Prentice-Hall.
• Further references will be given for each class.
  A reading list is under preparation.
• Food-specific books (in the Library)
• Marshall (1995, ed.). Food Choice and the
  Consumer. London Blackie Academic Professional
• Meiselman and McFie (1996, eds.). Food Choice,
  Acceptance and Consumption. Blackie Academic
  Professional

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Consumer Behaviour (East)

• How and why people buy and use products
• How they react to prices, advertising and other
  promotional tools
• What underlying mechanisms operate to help and
  hinder consumption

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Some consumer behaviour concepts an example

• Information processing
• How do we process a TV advert?
• Salient attributes
• The two things we look for in a product
• Unique selling property
• An advert should focus on a single product
  characteristics which makes it preferable to
  other
• Value-expressive influence
• The desire to conform to a social group
• Cultural influence

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Look at the advert shown and identify

• The attributes that you consider as important in
  this product (salience)1 ______________ 2
  ______________
• What is the unique selling proposition of the
  advert? ______________________
• Which social group/culture is exploited as a
  value-expressive influence? _________________

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The TV AD
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Reserve solution
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Other issues

• Who is the target of the advert?
• Age
• Sex
• Education level

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Other consumer behaviour aspects

• Attitudes, beliefs and behaviour
• Buying environment
• Quality and complaints

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Disciplines in consumer behaviour

• Sociology
• Psychology
• Marketing
• Economics

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Food plays a central role in peoples lives

• Food preferences are culturally bound and
  socially influenced
• Source of nutrition
• Source of hedonistic experience
• Social function
• Cultural function
• Central economic role
• Complexity
• Multidisciplinary approach

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Economic FactorsMicroeconomic theory

• Demand is a function of prices, income and
  preferences - but preference changes are
  difficult to measure
• Effects of income and price changes on demand,
  under given preferences
• Unresolved issue quality and preferences

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The Engel Law

• As income grows, the household expenditure share
  for food decreases
• Share not quantity
• Saturation of food consumption
• Healthy foods
• Functional foods
• Marketing and differentiation (product bundle)

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Food share on Italian household expenditure
Exp. share for food ()
Total expenditure
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Real value of food consumption
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But ...

• How do preferences form?
• Why do they change?
• How are decisions made?
• Do income and prices influence preferences too?
• These questions are central to marketing
  strategies
• How can consumer decisions be influenced?

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Long-term change of consumer preferences
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Foods for which consumption has changed
(1990-2000, NFS)
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Food properties and quality (Hooker, Caswell,
1996)
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