Consumption and Consumer Behaviour - Essay Example

Consumption and Consumer Behaviour Introduction: Perner (n.d cites an 'official' definition of consumer behaviour as "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." We may draw a number of corollaries from this: behaviour is influenced by the social or organisational group to which an individual belongs; the study of consumer behaviour maps how a product is bought and used and helps marketers appropriately position their products to best advantage and increase consumption. An important application of consumer behavioural studies is to design effective marketing campaigns, for e.g. scheduling food products advertising when the target audience are hungry in the late afternoon. Similarly it is important to please initial customers who may influence subsequent buyers. (Perner n.d.) Researchers in sociology argue that consumption is both a cultural as well as an economic phenomenon; therefore participation in consumer culture is not restricted to those with financial resources to actually purchase goods. The new middle classes, gender, race and youth influence the development of consumer culture. In her seminal work Consumer Culture, Celia Lury argues that consumer culture should be considered as a subset of material culture; that in its current form consumer culture is characterised by 'stylization', following notions of the 'aestheticisation' of everyday life; the ability of subordinate social groups to influence development of consumer culture. This in turn suggests their relative autonomy form dominant structures of economic and social power and to an extent breaks down the distinction between high and low culture, thus levelling or augmenting social change (cited in Bowlby 1997 and Horrocks 1997). The implications of Lury's theses to marketers are obvious. Aesthetics in product presentation are as important as contents. Children, youth and other subordinate groups, which do not form dominant structures of economic and social power, determine or influence consumption. Marketers have data, analytical ability, practical tools and experience to understand consumer behaviour and presumably have the ability to influence it. Yet marketers influencing consumer behaviour on such a scale as to make their company's gigantic successes are an exception rather than the rule, the honourable exceptions being companies like Tesco, Dove, Innocent and iPod. Professor Andrew Ehrenberg observed "that keeping things the same would represent a reasonable success for most promotional campaigns." (Marketing theory2007). On the other hand from a consumer's viewpoint is buying a simple process Is it just that people recognise the need for a product, locate a place to buy it, buy it and consume it According to the post-modern approach, there are a lot of influences that affect the 'simple process'. The experience of Wal-Mart's Latin America operations have important lesson for marketers. The retail chain designed its stores the way they are in the US, with narrow aisles broad parking areas and red, white and blue banners. Latin Americans like wide aisles because they visit super markets with their large families; large parking lots do not appeal to them, as many do not own cars and the banners appeared to them as 'Yankee imperialism'. Consumer's buying behaviour is influenced by cultural, social, personal and psychological factors but in this mix cultural factors dominate. (Kotler 2003, p.183). The following diagram depicts the stimulus-organism-response model of buying behaviour: Model of buyer behaviour- Adapted from Kotler 2003, p. 184 According to Kotler, culture, subculture and social class largely determine the consumer's buying behaviour. (Kotler 2003, p. 183). Culture or civilisation is an individual's highest form of identification with the society. Each culture has within itself - sub-cultures - smaller components such as national groups, religious groups and geographical demarcations. Social classes are hierarchically arranged generally based on economic criteria, for e.g. upper, middle and lower strata of the society. Consumers' buying behaviours are also determined by other factors such as reference groups, family, social rules and statuses and personal factors etc. Consumers' buying behaviours are motivated by a variety of factors, which were originally described by Abraham Maslow in his Motivation and Personality: These motivational factors in their order of importance are physiological, safety, esteem and self-actualisation needs, which means a person will try to satisfy his most important needs first and so on. (Cited in Kotler 2003, p. 196) The buying process starts when the consumer recognises that there is a need such as hunger or thirst. The consumer or prospective consumer then scans the environs for more information either through personal sources (family, friends etc.); commercial sources; public sources or experimental sources. The buying decision process takes the following path: Kotler 2003, p. 204 This paper will focus on consumption of food/health beverages with particular emphasis on "Complan" marketed in Europe and America by Complan Foods Ltd a joint venture company of Heinz and Sachinvest. The need for food supplements: In Maslow's hierarchy of needs food is listed as the most prime need. The motives for purchasing food / beverages are nutritional, health, enjoyment (taste/diversity/social events), convenience, safety, compliance with the norms of a reference group etc. The motivation to purchase food depends on two consumer related variables: the norms of the society/family/reference group and socio-economic status of the consumer. For e.g. the health motive is influenced by the age of the consumer. The desire to control the intake of food to reduce overweight makes people conscious about the nutritional values of foods. This may vary with sex and age, for e.g. fitness freaks and women are more concerned about weight seeking nutritionally balanced foods that do not add calories and older people looking at nutritionally balanced foods to cope with health problems. Wansink, Cheney and Chan (2003) represent the relationship between food preferences of men, women and age as follows: (Wansink, Cheney and Chan 2003, p. 742) Whereas motives and 'consumption experience' determine a consumer's motives to purchase a product, they are also determined by consumer perception and its properties. The tricky thing about perception is that it is likely to be distorted. The consumer's positive or negative attitudes towards a product are likely to influence his perceptions of the features of a product. Product presentation to create perception: On the other hand product presentation plays an important role in forming a 'perception' about the product. According to Wansink while too much information on packs can confuse consumers, too little also can mislead them. A study the researcher conducted to find out 'consumer understanding of product claims' has established that the front and back panels of a product pack may be put to good use, with the front side to present a short claim to generate "greater number of specific attribute-related thoughts, more inferences more believable and positive images in the consumer's mind." The back panel might be used to provide complete nutritional details. This will enable a casual shopper to skim through the front panel for basic information and the more involved shopper to learn fuller information at the back. Wansink's study sought to learn how a consumer reacts to a message on the package labels by requesting the consumers to write down all thoughts and feelings that the 'message' evokes and then coding them. The coding may be by individually noting whether the: Thoughts evoked are attribute-specific (e.g. "Complan Boosts Nutrition" pertaining to our present study) which explicitly refer to the product's attributes or health consequences Thoughts that restate the attribute-related fact Thoughts generally evaluative but which are not attribute-related thoughts (the pack seems good, or I think I would try it) Consumers in whom the message evoked 'attribute-specific' thoughts are considered more involved with 'processing' the message than those who make commonplace remarks. Variations such as age, sex and income level did not seem to affect the findings of the study. The researcher concludes, "on the other hand, using only one side of the panel appears to handicap a product's ability to communicate its health benefits to both the less involved and the more involved shopper." (Wansink 2003). We can see the relevance of Wansink's recommendation with regard to the use of front and back panels in the pack of Complan's latest offering Complan Shake: The front panel just informs the consumer that the product is a "Nourishing vitamin-rich milk based drink mix", enough to "communicate its health benefits to both the less involved and the more involved shopper" and generate "greater number of specific attribute-related thoughts, more inferences more believable and positive images in the consumer's mind." The consumer can obtain more detailed information from the data sheet supplied with the pack, which is a statutory requirement for prescription brands. The story of Complan: The nutritional supplement Complan was introduced by Glaxo Pharmaceuticals in the early 40s. British soldiers were reported to have carried packs of Complan when they landed on the beaches of Normandy during the Second World War. Glaxo marketed the product around the world. In the early years the product was marketed as an ethical prescription formulation to doctors as a convalescence drink. Subsequently, the company moved it on to an OTC platform in some countries and marketed it as a nutritional food supplement. Glaxo exited the non-pharmaceuticals business in 1994 and sold Complan along with the company's other OTC products to Heinz. Complan is marketed as a nutritional supplement for the mal-nourished in the UK. Heinz hived off 51% of its stake in Complan to Sachinvest and the joint venture Complan Foods Ltd was formed to market Complan. The new company decided to direct it away from the staid and under-performing market of the sick and the elderly towards a younger market by promising 'complete nourishment when you need it'. It saw brand extension opportunities and has launched Complan breakfast cereal, and other brand extensions for the children and the elderly. In some countries it is positioned as a growth drink for children. The product's marketing communications highlight this by showing a little boy who outgrows his pants and even gets into his father's shirt. "Why" because, "I'm a Complan boy." There is a similar "I'm a Complan girl" advertisement too. Complan range: The product is available in a variety of flavours and additions such as Complan Original, Chocolate, Strawberry, Vanilla, Banana, Chicken, Vegetable and Complan + Oats to suit a variety of palates and needs. The company introduced Complan Active Chocolate Bar in 2003, backed by a 1 million ad campaign, but later discontinued it. The entire range is promoted with the single theme, 'health'. In 2005, the company launched the Complan Active Hypotonic Energy Drink that contains glucosamine, calcium, magnesium and vitamin-D in two flavours, lemon & lime and mixed berry which has multiple benefits: re-hydrant, energy drink and useful for the elderly to relieve them from arthritis. In 2007, the company launched a prescription product called Complan Shake, designed with more vitamins and minerals than the OTC product, to help the problem of malnutrition in elderly patients. It is available in three variants chocolate, vanilla and strawberry. Complan Shake approved by the Advisory Committee on Borderline Substances is launched into the new territory - the prescription market, which is far larger than the OTC segment. The oral nutritional supplements market in the UK is estimated to be 85 million. Malnourishment affects one in eight people and reportedly costs the nation 7.3 billion with some estimated 30% per cent of patients in hospitals and nursing homes clinically malnourished and more than ten per cent of individuals in the community over the age of 65. At any given time more than three million people in Britain are estimated to be malnourished, visit GPs more often, require long-term care and more intense nursing, stay in hospitals longer and may even succumb to infections. The company projected to the NHS that a switch to Complan would entail in an estimated savings of up to 36 million or 6% of the department's deficit of 570 million in the year 2007. This was reported in the "Scottish Primary Care" ("Complan shakes." 2007, p. 6) How Complan is promoted: Complan is promoted for the malnourished especially, for people with long-term conditions, those with and following an acute illness or infection, the elderly, recently discharged hospital patients, and those with mental health and socio-economic problems. The brochure advises these target groups that the consequences of malnourishment include: Prolonged recovery from illness Impaired immune response Delayed wound healing Muscle wasting and weakness affecting mobility, cardiac and respiratory function Increased risk of pressure sores Increased tiredness, lack of concentration, apathy Depression, self-neglect and reduced social interactions The promotional brochure, "A Guide to Complete Nourishment - Complan", addresses health professionals as well its target customers - consumers with "busy and demanding lifestyles" - that even healthy people can "quickly become malnourished when they don't make time to eat a full and balanced diet on a regular basis" especially because busy lifestyles make eating a low priority item in their timetable. The company's target audience in this segment includes: Business executives (people managing heavy work schedules or enduring periods of intense stress) Students (enduring periods of intense study) Athletes (usual day-to-day diet may not be able to provide their increased nutritional needs) What Complan does: The company claims that Complan is fortified with a full range of essential vitamins, minerals and antioxidants: Full range of essential vitamins and minerals Rich source of anti-oxidant vitamins A, C and E Rich source of essential minerals Calcium for healthy, strong bones; Iron to help maintain physical stamina, strength and mental alertness Source of protein (based on two servings) and Contains no artificial colourings, preservatives or sweetener. As a part of its promotional tools, the product offers "Malnutrition Universal Measuring Tool" and other physiological tables / ready reckoners useful for the healthcare professionals and the target customers, useful tips for restoration of appetite, nutritional diet charts and tasty recipes. The company launched aggressive marketing campaigns in May 2003 with a 1 million budget for ad campaigns, repositioning Complan as a contemporary nourishment drink brand, with a revamped identity and packaging by PI Global. The re-launch campaign, which the company called the biggest investment in the brand and category for 20 years, involves a communications strategy focusing on an advertisement deal with Classic FM. The advertisement campaign airs competitions during weekend breaks in Classic FM's major European city channels. The strategy was to tap into tap into the demand from time-poor consumers for healthy lifestyles, targeting existing and younger consumers as well as healthcare professionals; the positioning broadened consumption opportunities with the tagline, 'Complete nourishment when you need it'. Breakfast cereals comprise 62% of the 1,577-million breakfast foods market that has been growing at 3.4%. Oats attract new consumers and cereal manufacturers have been looking at cold variants to add to the ready-to-eat market. In a bid to capture a slice of the breakfast foods market, the company launched the new line Complan+oats. In 2004, the company carved out for Complan a market share of 51.8% by value in its sector. In 2005, the company appointed Williams Murray Hamm to re-brand Complan, the meal replacement product, with a radical new look that aims to counter 'clinical' and 'elderly' perceptions. The brand's 2007 launch of Complan Shake into the prescription nutritional supplement market estimated at 85 million was a strategic move. An important issue with 'oral sip feeds' is poor compliance because of palatability. This can occur in a third of the patients and the Royal College of Physicians reported that only 14.9% of patients on nutritional supplements continue to use them past the first week. Therefore flavour, taste, aroma and after taste are important factors to ensure compliance. In controlled taste tests, Complan Shake was rated as both more pleasant and on a 'higher willingness' scale to take compared with other prescription nutritional supplements. ("Complan shakes" 2007, p.6) Targeting the 50-Plus Market: In the next twenty-five years the population of the mature consumers, those over 50 is expected to increase to 115 million in the western world. This segment represents a whopping $2 trillion market which is expected to grow by a phenomenal rate of 29% in the next few years. Marketers who have been obsessed with youth obviously cannot ignore such magnitude and wealth any longer. The mature consumers erroneously stereotyped earlier as grandmas and grandpas now call the shots. They make buying decisions based on life style not on age. Companies like Pfizer feature them as living life to the fullest (a woman travelling around the world, a former swimming champion ready to compete again!) because of the company's medications. A Nike commercial has a senior citizen proclaiming, "I'm not strong for my age; I am strong." (Kotler 2003, p. 185). The marketers of Complan too fell in line and in 2003 made a course shift in their positioning, targeting the over 50s to rejuvenate the brand and make it more relevant to older demographic groups. The consumption of the product: Complan brand has been accepted as a nutritional supplement over a long period of time in several countries in Europe, Australia and New Zealand. It has been listed with its proprietary/brand name in NHS guidelines for nutritional supplements, in health insurance advisories and in curricula of dietetic and nutrition courses. For e.g. it is listed in the "Abstracts - Dietetic Practicum Reports 1996" published by the Department of Human Nutrition, University of Otago, for its Post Graduate Diploma in Dietetics. ("Abstracts 1996" p.19); "Community nutritional Risk Scoring Tool and Information Pack for use in Nursing Homes for the Elderly within the Northern Health and Social Services Board Area" (p. 14) and Nutritional Guidelines for Older People-Good Practice guidelines for carers of older people in Tayside published by the Directorate of Public Health, Specialist Health Promotion Service. (p.7). From a review of the various promotional campaigns and positioning of the brand, Complan from "time poor consumers for healthy lifestyles", to children, to younger consumers and the over 50s generation we understand that the brand has a variant for all age groups and sexes. A quarter of the cereal bars consumed in the UK were by females aged between 17 and 44 because of 'lunch box addiction'. This is also the largest segment after the ready-to-east cereals market and has been growing at 11% year on year. The consumption of cereal bars is indicative of a changing trend in the consumer behaviour: earlier two thirds of purchases from the cereals section as consumers saw them as breakfast substitute but of late shoppers have been increasingly buying them from the biscuit aisle indicating that they are seeking a healthier snack option. Therefore the (now discontinued) Complan Active Chocolate Bar would have completed the spectrum of offerings and a foothold for the brand in the snack-bar segment. The proof of the pudding, it appears, is in eating it. Complan verifies this adage by the 51.8% market share (by value) it notched in 2004 in its sector. The new middle classes - the 'time-poor' urban professionals, youth of both the sexes all conscious of their physical appearance and appeal, all in quest of nutritional supplements sans calories - drive the consumer culture pertaining to the foods market in the new millennium. Children, youth and other subordinate groups, which do not form the dominant structures of economic and social power, determine or influence consumption in the food sector as in others. As Celia Lury argued in her seminal work Consumer Culture, this is a subset of the material culture pervading humanity more so in the industrialised countries. The culture characterised by 'stylization', following notions of the 'aestheticisation' of everyday life, craves for products with visual appeal. The brand has certainly been designed for an aesthetic appeal. In addition the pack is designed to "inject some fun and energy" into the designs because Complan is all about helping the "consumer feel good and get the most out of life". As in other spheres of consumerist society, the foods market too points to the ability of subordinate social groups to influence the development of a consumer culture, suggestive of their relative autonomy form dominant structures of economic and social power and breaking down the distinction between high and low culture for levelling and augmenting social change (cited in Bowlby 1997 and Horrocks 1997). As we have seen earlier, the motives for purchasing a food related product are primarily nutritional needs but also health, enjoyment and taste. The list may be extended and ranked according to Maslow's hierarchy of needs, to include social events, convenience, safety, transparency, compliance with the norms of a reference group, prestige and environmental/political motives. These motives depend on consumer related variables such as general norms and values of the society and the family or reference group and the socio-economic situation of the consumer. For example the age of the consumer may influence the motive - the health motive in this case, which affects demand. The motive may also be determined by the attractive product presentation, rather than the perceived value of the product. This is because attitude towards a product and the perceived product values are linked variables. However, the attitude to consume - or the desire to consume the product is strengthened by the positive experience of its usage. Complan satisfies all these conditions, the attractive product presentation and perceived value to evoke a favourable attitude or the desire to consume and a positive consumer experience. The latter is obvious because without the 'positive experience' of consumers the brand would not have stood the test of time for over fifty years. In creating the positive food experience, taste plays no minor role. Even the best nutritiously balanced formulation may not be acceptable to consumers over long periods of time except perhaps in conditions when the taste buds are not at their best. This has been verified if verification other than common sense was needed in the controlled taste tests conducted by the Royal College of Physicians. The study revealed that poor compliance is a problem with a variety of 'oral sip' feeds because of their palatability. This occurs in one third of the patients during the first week of supplementation and only 14.9% of patients continue to take the feed. The study attributes the difficulty to "palatability resulting from various causes such as lack of flavour, as well as taste, aroma and aftertaste". As patient-compliance was so important in treating malnutrition, Complan Shake was found to be not only tastier than the other brands used for comparison, but scored higher on another parameter - 'willingness to take daily' in the controlled taste tests. The study is very relevant especially for healthcare professionals who find patient-compliance with prescribed volume of nutritional supplements difficult. This in addition to the brand's nutritional content will assist in making life easier for the healthcare professionals including GPs and nurses and the patients themselves. The continued patronage of the consumer to Complan 'for over fifty years', as the company claims, should therefore be attributed not only to its presentation, perceived and intrinsic value but also to its taste. With increased human longevity brought about by advances in life sciences, vitality and glowing health are no more seen to be the privilege of youth. Changing life-styles of the time-poor urban professionals or students, the middle aged and the elderly all demand healthy well-balanced diets for continued activity and fitness even in 'later life'. Compaln offers such balanced diets either through milkshakes, soups or cereals that can be enjoyed hot or cold and providing a rich source of protein energy, the richness of essential vitamins and minerals - the perfect way to give nutrition a boost. It does not matter whether the person is recovering from an illness or just want to stay on top form; the demand is the same: nutritionally balanced diet sans calories that add to the waistline. Bibliographic References: "Abstracts - Dietetic Practicum Reports 1996" Post Graduate Diploma in Dietetics Department of Human Nutrition, University of Otago. 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