Dr. Pornsri Laurujisawat9April 09

1Dr.Pornsri Laurujisawat04/20/23

Introduction Statement of the Problem &Four Objectives

1) In Marketing Area:

This paper intends to study whether consumer behaviors influence consumers’ purchasing decision.

New marketing knowledge has shifted from a focus on products to consumers’ satisfaction (Kotler & Armstrong, 2004).

One way to understandUnderstanding consumer behavior leads to recognition of how and why consumers make their purchasing decisions.

 

2) Focus on Agricultural products: Which factors influence consumers buy or eat

chicken meat?

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Introduction Statement of the Problem &Four Objectives

3) In this research inserts ”bird flu” crisis situation for more challenging study.

When there is a risk in food, consumers feel fear, and always ask questions such as;

Can this food be eaten? Will they die from eating this dangerous food? etc During the “bird flu” crisis, consumers’ panic and non-confidence

to whether to buy or to consume chicken meat

4) Application of academic theories to solve the industry’s problems:

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Consumer Behavior Factors In the L/R when study consumers' buying behavior of food products, they always study “ consumer perception”. Consumer perception (an internal factor of consumer behavior)

Consumer influences

External influences

Culture and values Demographics, income and social class Reference groups and households Marketing activitiesInternal influences

Needs, motives and emotions

Perceptions and memory Personality and lifestyle AttitudesSituational influences

Physical, time, social, task and antecedentDecision-process influences

Problem recognition Information search Alternative evaluation Outlet selection Purchase Post purchase processes

Marketing decisionsMarket segmentationTarget segment (S)Single- or multiple-target Segments   Product positioningKey product-differentiation Variables     Marketing mixProduct featuresPrice levelPromotional appealPlace (distribution)

To study whether consumer perception influence consumer s’ purchasing decisionSource: Neal, Quester, and Hawkins, 1999, p.1.9 4Dr.Pornsri Laurujisawat04/20/23

Risk Reduction Strategy is an increasing consumers’ confidence and repurchase factor

The risk reduction model

The research is designed to study which are risk reduction strategies that can increase consumers’ confidence and regain to consume chicken?Source: Yeung, R.M.W. and Morris, J. (2001b), "Food safety risk: consumer perception and purchase behavior", British Food Journal, Vol. 103 No.3, pp.170-187.

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1) Demographic Factors Whether different demographic factors have

different purchasing decision.

2) Situation impact to purchasing decision The risk for food has had a huge impact on the economy and the

livelihood of Thai people. While food risk can occur at any time in Thailand, it is challange to be prepared for the future by applying the bird flu case to solve this type of problem.

To understanding consumers in different situations comparison, the research is also designed to examine purchasing decision in three situations as 1) normal situation, 2) during risk crisis, and 3) if in future risk.

To examine what consumers will do in the three situations to compare and analyze results.

4) Application of academic theories to solve

the industry’s problems:

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Conceptual Framework of the research

Independent Variables Dependent Variable

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The matrix form in three different situations :

The Equation Y = Bo + B1 X1+ B2X2+ B3X3

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Methodology

The research applies quantitative methodology by gathering questionnaires during consumers’ shopping.

The statistic uses Multiple Regression with 400 valid questionnaires.

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Consumers’ perception criteria influencing consumer purchase decisions in three different situations in different ways

Consumer Perception Criteria

Standardized Coefficients

Beta Value

In the current

situation

During the

Last bird flu

crisis situation

If there is

another bird flu

in future

value 0.229 0.738 0.342

F Value 39.128 371.401 103.307

Price perception -0.142 -0.155 -0.172

Product Quality Perception 0.354

Place of purchase or stores

Perception 0.162

Risk Perception -0.184 -0.921 -0.647

Source: Calculation and summary from the hypothesis test 10Dr.Pornsri Laurujisawat04/20/23

Risk reduction has played an important role

in increasing consumer confidence and also has an influence on consumers’ purchasing decision

in three different situations in different ways:Standardized Coefficients

Beta Value

Risk reduction strategies In the

current

situation

During the last

bird flu crisis

situation

If there is

another bird

flu in future

value 0.344 0.646 0.430

F Value 41.410 143.689 49.336

1. Purchasing a reputed brand 0.82 0.408 0.336

2. Buying government certified/labeled

products 1.065 -0.131 0.82

3. Purchasing from a reliable shop 0.75 0.442

4. Purchasing chicken meat from a traceable

farm -0.922 -0.861 -1.064

5. Avoiding buying at unusually cheap price 0.768 0.799

6. Personal Control .420 .827 .268

Source: Calculate from details of collected data11

Dr.Pornsri Laurujisawat04/20/23

Purchasing decision is different in three situations

in different ways

Don't buy, or buy

less, or are not sure

of buying

Buy Buy more

than usual

I-At the current situation:

Risk perception = -0.184 48 352 0

II- During the last bird flu crisis

Risk perception = -0.921

324 54 22

III- If another bird flu crisis

occurs again

Risk perception = -0.647 128 145 127

Source: calculated from the data details from the results of questionnaire

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The Findings

Different demographic factors have difference purchasing decisions in different situations with different ways.

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Implementation:Five Management Practices

1)Producers or marketers suggest to provide more product information.

2)The government suggest to design the “Government controls/Labels”. The “Government controls/Labels” is important to all parties; small farms, big businesses, and international businesses. It means national food safety image.

3)The study shows that “risk reduction” strategies are important to Thai consumers during food risk scares. In order to restore Thai consumers’ confidence, efforts suggest be made to improve the regulation of the production process and the distribution system through the supply chain.

4 

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Implementation:4) The Thai chicken meat marketers would have to always

think about if there will be another bird flu.

5) In this study, personal control factor was also considered an important risk reduction strategy. As a standard precaution, WHO recommends that poultry and poultry products should always be prepared following good hygienic practices, and that poultry meat should be properly cooked. This information needs to be made available to the Thai public, especially to those living in remote districts which are out of range of print and broadcast media.

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Implementation:

Three Business Policies 1) Since a demographic variable there is different to

purchasing decision, marketers should design strategies for different target groups.

2) Producers suggest promote their own brands more.

3) Some communication channels which poultry farmers can use, in cooperation with the Government, are workshops, road shows, telephone hotlines, websites, and information leaflets. Accurate and reliable information can take the role of removing uncertainty and restoring consumers’ confidence during and after bird flu scares.

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