This document discusses a study on consumer preferences for cut flowers and the potential for a "vase life guarantee" to add value in the Netherlands flower supply chain. Stakeholders in the industry felt a guarantee would not interest Dutch consumers or increase sales, as consumers prioritize lower price over quality. However, consumer surveys found that most Dutch and British consumers were unaware of the widely used vase life guarantee in UK supermarkets. This suggests the guarantee alone did not cause the doubling of UK flower consumption, as stakeholders believed. The researchers aim to better understand what attributes consumers truly value to create a higher value supply chain.
LEARNING OBJECTIVESAfter reading this chapter you should b.docxsmile790243
LEARNING OBJECTIVES
After reading this chapter you should be able to:
Explain how the study of consumer behaviour has evolved.
Show how consumer behaviour relates to marketing decision-making.
Explain why relationships are harder to establish in business-to-con-
sumer situations than in business-to-business situations.
Describe the scope and nature of psychology and sociology.
Describe the scope and nature of anthropology.
Describe the relationship of economics with the study of consumer
behaviour.
Explain the role of exchange in improving people’s welfare.
Explain how the terms ‘luxury’ and ‘necessity’ relate to consumer
behaviour.
Introduction
Every day we buy things. We exchange our money for goods and
services, for our own use and for the use of our families: we choose
things we think will meet our needs on a day-to-day basis, and we
occasionally make buying decisions which will affect our lives for
years to come. At the same time, we make decisions about disposing
of worn-out or used-up possessions. All these decisions and exchanges
have implications for ourselves, our families, our friends, the environ-
ment, the businesses we buy from, the employees of those businesses,
and so on.
The key concept of marketing is customer centrality: we cannot ignore
customer decision-making. Understanding the processes involved in
making those decisions is central to establishing policy.
Consumer behaviour, and industrial buyer behaviour, have been
studied by marketers since the time before marketing itself became
CHAPTER CONTENTS
Introduction
Defining Consumer Behaviour
Consumer Behaviour in Context
Consumer Behaviour and the
Marketing Mix
Consumers and Relationship
Marketing
Consumers and Marketing Planning
Antecedents of Consumer Behaviour
Neuroscience
Psychology
Sociology
Summary
Key points
Review questions
Case study revisited: Pizza
Case study: Center Parcs
Further reading
References
CHAPTER 1
The importance of understanding
consumer behaviour
Customer Someone who makes
the decision to buy a product
01-Blythe-Ch-01-Part-1.indd 3 26/02/2013 7:46:00 PM
INTRODUCTION TO CONSUMER BEHAVIOUR4
an academic subject. The academic subjects that preceded marketing include eco-
nomics (the study of supply and demand), sociology (the study of group behaviour),
psychology (the study of thought processes), neurology (the study of brain function)
and anthropology (the study of what makes us human). Each of these disciplines has
looked at the problem from a different angle, and each will be discussed in greater
detail throughout the book. The study of consumer behaviour combines elements
from all these disciplines: as marketers.
Case study: Pizza
P izza was originally invented in Naples in the 16th century as a cheap, filling food for the poor. During the latter half of the 20th century, pizza spread throughout the world, with many regional variations: in
Australia the basic tomato and cheese topping is ...
LEARNING OBJECTIVESAfter reading this chapter you should b.docxsmile790243
LEARNING OBJECTIVES
After reading this chapter you should be able to:
Explain how the study of consumer behaviour has evolved.
Show how consumer behaviour relates to marketing decision-making.
Explain why relationships are harder to establish in business-to-con-
sumer situations than in business-to-business situations.
Describe the scope and nature of psychology and sociology.
Describe the scope and nature of anthropology.
Describe the relationship of economics with the study of consumer
behaviour.
Explain the role of exchange in improving people’s welfare.
Explain how the terms ‘luxury’ and ‘necessity’ relate to consumer
behaviour.
Introduction
Every day we buy things. We exchange our money for goods and
services, for our own use and for the use of our families: we choose
things we think will meet our needs on a day-to-day basis, and we
occasionally make buying decisions which will affect our lives for
years to come. At the same time, we make decisions about disposing
of worn-out or used-up possessions. All these decisions and exchanges
have implications for ourselves, our families, our friends, the environ-
ment, the businesses we buy from, the employees of those businesses,
and so on.
The key concept of marketing is customer centrality: we cannot ignore
customer decision-making. Understanding the processes involved in
making those decisions is central to establishing policy.
Consumer behaviour, and industrial buyer behaviour, have been
studied by marketers since the time before marketing itself became
CHAPTER CONTENTS
Introduction
Defining Consumer Behaviour
Consumer Behaviour in Context
Consumer Behaviour and the
Marketing Mix
Consumers and Relationship
Marketing
Consumers and Marketing Planning
Antecedents of Consumer Behaviour
Neuroscience
Psychology
Sociology
Summary
Key points
Review questions
Case study revisited: Pizza
Case study: Center Parcs
Further reading
References
CHAPTER 1
The importance of understanding
consumer behaviour
Customer Someone who makes
the decision to buy a product
01-Blythe-Ch-01-Part-1.indd 3 26/02/2013 7:46:00 PM
INTRODUCTION TO CONSUMER BEHAVIOUR4
an academic subject. The academic subjects that preceded marketing include eco-
nomics (the study of supply and demand), sociology (the study of group behaviour),
psychology (the study of thought processes), neurology (the study of brain function)
and anthropology (the study of what makes us human). Each of these disciplines has
looked at the problem from a different angle, and each will be discussed in greater
detail throughout the book. The study of consumer behaviour combines elements
from all these disciplines: as marketers.
Case study: Pizza
P izza was originally invented in Naples in the 16th century as a cheap, filling food for the poor. During the latter half of the 20th century, pizza spread throughout the world, with many regional variations: in
Australia the basic tomato and cheese topping is ...
The Luxury Watch Industry & the Gray market : Changing consumer behaviour due...Vivek Sharma
This thesis focuses on the Luxury Watch Market in Europe and the USA and tries to concentrate on the parallel market that co-exists in this economy. The main point of discussion being the Gray Market and the effects it has on consumer behavior and the way the consumers perceive the brand image due to the existence of this parallel market.
The data for this research had been gathered from various sources including researches from books dedicated to Luxury & Market studies, Online portals, articles or case studies, and primary data including interviews with respondents linked with the Luxury Watch Industry and survey conducted from the consumers of the particular market. More people, especially young people, have online access to Gray market dealers who are hampering the image of brands. With this, the market not only has adverse effects on the customers but also poses a great threat in maintaining the market standing of the companies involved.
The thesis will commence with the different theories and surveys to explain consumer behavior with respect to the market qualitatively. And in the second half, the interpretation from the interviews and surveys will help create analysis with different business concepts. All the suggestions formed are entirely dependent on the way the companies take them into account and try to help eliminate this parallel market to revamp the Watch Industry back to what it was.
Stemming the tide ofgreenwashEd Gillespie of Futerrade.docxwhitneyleman54422
Stemming the tide of
'greenwash'
Ed Gillespie of Futerra
defines 'greenwash'and
shows how the apparent
'greening' of the market
could have adverse effects
on the environment
In recent years the marketplace for consumer
goods and services has become ostensibly
'greener', as manubcturers and providers target
consumers by promoting their environmental
credentials. Ed Gillespie argues that this market
change has been accompanied by the use of
'greenwash' - advertising or marketing that is
misleading to consumers with regards to the eco-
logical impact of the products they buy - and con-
dudes that in the long term this may have a
negative impact on public engagement with
wider environmental issues.
The world has gone green, at least superficially. Itseems we cannot turn a comer without beinglambasted by the 'eco' credentials of yet another
product or service scrabbling to portray itself as another
small step to saving the planet, 'Green consumerism is
the answer!' is a message we are being sold repeatedly.
But is the truth so simple? In many cases, the 'greening'
of the marketplace is worryingly little more than a
hastily applied thin veneer of dubious substance. We
have all seen and most of us have bought environmental
products, fairly traded, co-operativeiy produced organic
coffee or environmentally benign washing detergents,
but since when did airlines and oil companies trumpet
their supposed eco-credentials and get away with it?
Welcome to the age of 'greenwash.''
But what actually is greenwash and how can we
define it? The Oxford English Dictionary tells us that
greenwash is 'disinformation disseminated by an organ-
isation, etc, so as to present an environmentally respon-
sible public image; a public image of environmental
responsibility promulgated by or for an organisation, etc,
but perceived as being unfounded or intentionally mis-
leading.'^ But perhaps a more informal interpretation
might be 'advertising or marketing that misleads the
public by stressing the supposed environmental creden-
tials of a person, company or product when these are
unsubstantiated orirrelevant.'
Greenwash is nothing new. Veteran environmentalist
David Bellamy first used the term over 2 0 years ago and
it was in the early 1 9 9 0 s that use of the word 'green-
wash' took off. It was relatively unsophisticated back
then, using crude juxtapositions of 'eco' imagery such as
frolicking dolphins or lush, Utopian jungle-scapes to
imply a product's environmental 'friendliness' (itself a
now taboo description of sustainability due to its wilful-
ly vague meaninglessness). Looking back these efforts
appear extremely dated, though it is also worth noting
that one of the first reports on greenwash. by
Greenpeace USA back in 1 9 9 2 , highlighted a petro-
chemical company (who shall remain, for the sake of
legal reasons, anonymous), whose advertising implied
that using the waste of one industrial refinement process
as fuel for another was an 'important recycling initia.
PATRICK DE PELSMACKER, LIESBETH DRIESEN,AND GLENN RAYP.docxherbertwilson5999
PATRICK DE PELSMACKER, LIESBETH DRIESEN,
AND GLENN RAYP
Do Consumers Care about Ethics? Willingness to
Pay for Fair-Trade Coffee
Consumers’ buying behavior is not consistent with their positive
attitude toward ethical products. In a survey of 808 Belgian respond-
ents, the actual willingness to pay for fair-trade coffee was measured.
It was found that the average price premium that the consumers were
willing to pay for a fair-trade label was 10%. Ten percent of the sample
was prepared to pay the current price premium of 27% in Belgium.
Fair-trade lovers (11%) were more idealistic, aged between 31 and
44 years and less ‘‘conventional.’’ Fair-trade likers (40%) were more
idealistic but sociodemographically not significantly different from
the average consumer.
The purpose of this study was to investigate to what extent consumers
were willing to pay for the fair-trade attribute when buying coffee, and
how consumers differed in terms of their willingness to pay. First, we will
describe fair trade within the context of ethical consumer behavior. Sub-
sequently, the research questions used in our study will be examined.
Consumers can express their concern about the ethical behavior of com-
panies by means of ethical buying and consumer behavior. In general, the
ethical consumer feels responsible toward society and expresses these feel-
ings by means of his or her purchasing behavior. Doane (2001) defined
ethical consumption as the purchase of a product that concerns a certain
ethical issue (human rights, labor conditions, animal well-being, environ-
ment, etc.) and is chosen freely by an individual consumer. There are
several dimensions of ethical consumer behavior. Some forms of ethical
consumption benefit the natural environment (e.g., environmentally friendly
products, legally logged wood, animal well-being), while others benefit peo-
ple (e.g., products free from child labor, fair-trade products). Cutting across
this distinction, ethical consumption may benefit people or the environment
close to home (e.g., some types of green products or organic food), or
Patrick De Pelsmacker ([email protected]) is a marketing professor at the University of
Antwerp. Liesbeth Driesen was a researcher at the Ghent University. Glenn Rayp ([email protected])
is a professor in international economics at the Ghent University.
Financial support of the University Development Cooperation of the Flemish Interuniversity Council
is gratefully acknowledged. The authors wish to thank the participants of the 33rd European Marketing
Academy (EMAC) conference for their useful comments and suggestions. All remaining errors are ours.
The Journal of Consumer Affairs, Vol. 39, No. 2, 2005
ISSN 0022-0078
Copyright 2005 by the American Council on Consumer Interests
WINTER 2005 VOLUME 39, NUMBER 2 363
conversely in a faraway part of the world (e.g., fair-trade products or legally
logged wood). Consumers can translate their ethical concerns by means.
Garments and Textiles industry for top class clothes fabrics of fashion industry
Clothes fabrics and related blog headings or keywords
on April 06, 2022
(All pages)
Home page
Clothes fabrics and related blog headings or keywords
All your Needs ! Just visit and find what you want to get ....
Needs of Life to get in just one click !
What are the consumers of garments and textiles?
What are the most famous clothing designs and trending fabrics ?
What are the garments and textiles industry related business ?
What are the sources of clothes fabrics and related accessories ?
Home page
(All pages)
Location: NORTH CAROLINA, USA
What are the consumers of garments and textiles ?
on May 29, 2022
What are the consumers of garments and textiles.. ?
*2.(1).Customer for cloths & fabrics: (Top of current page)
In this sector customer depends on product. There have huge no. of products for so many perspective. What you are going to sell it will direct the customer type. There have end user with different age & culture, industrial user based on sector, retailer based on fashion types and so more.
Retail customer: You are selling your finished products to a person or a end user in limited range is your retail customer.
Corporate customer: If you are getting huge qty. order from a company or entrepreneur is your corporate customer as like you are selling raw goods.
The Many Faces of Consumers of Garments and Textiles.. There are many people all over the world who consume garments and textiles on a daily basis. This includes everything from pajamas to work uniforms to formal dresses and much more. The following list of consumers will show you just how many people consume garments and textiles every day in their lives!
Retail buyers
Customers who buy clothes in stores at malls, outlet centers, and factory outlets. Retail buyers tend to be categorized by their area of expertise (clothing buyers are experts on clothing) or what category they cover (the toy buyer is an expert on toys). If you’re a new designer looking to score retail placement for your clothing line, contact one or more buyers—there’s almost always a Buyer Contact link or email address somewhere on a retailer website.
End users
The end user is typically a consumer, but not always. End users often represent specific industries or businesses that buy in bulk to meet their own needs. For example, a retail store may use textiles to create their clothing items. In another instance, an automotive company may use upholstery fabric for car seats.
This is an integrated marketing campaign for Glidden Paint at Walmart. It was entered into the NSAC AAF Competition. The campaign was created as part of my capstone class for college and was completed with the helped of my whole class.
The market for green household cleaning products in the U.S grew at a blistering pace between 2007 and 2010, cooled off, and actually declined from 2010 to 2014 at a compound annual growth rate (CAGR) of 2%. Packaged Facts estimates total retail sales, including both household cleaners and laundry products, at $600 million in 2014. The green market remains a niche, accounting for about 3% of the total household cleaner and laundry product market.
Over the last two decades, more and more people around the world, primarily in industrialized countries, have become better informed and more aware of the origins of the goods they basically purchase on a day-to-day basis, the buying policies and practices of the shops they visit and the policies and principles of the services they buy (Gabriel et al., 1995 In a growing number of cases, this aggrandized awareness and knowledge is affecting consumer practices and may be the Difference between someone buying a particular product or service or not. There are a various reasons for this development, which is usually referred to as ―ethical consumerism‖, or also ―ethical consumption‖, ―ethical purchasing‖, ―moral purchasing‖, ―ethical sourcing‖, ―ethical shopping‖ or ―green consumerism
In a growing number of cases, this aggrandized awareness and knowledge is affecting consumer practices and may be the Difference between someone buying a particular product or service or not. There are a various reasons for this development, which is usually referred to as ―ethical consumerism‖, or also ―ethical consumption‖, ―ethical purchasing‖, ―moral purchasing‖, ―ethical sourcing‖, ―ethical shopping‖ or ―green consumerism
The Luxury Watch Industry & the Gray market : Changing consumer behaviour due...Vivek Sharma
This thesis focuses on the Luxury Watch Market in Europe and the USA and tries to concentrate on the parallel market that co-exists in this economy. The main point of discussion being the Gray Market and the effects it has on consumer behavior and the way the consumers perceive the brand image due to the existence of this parallel market.
The data for this research had been gathered from various sources including researches from books dedicated to Luxury & Market studies, Online portals, articles or case studies, and primary data including interviews with respondents linked with the Luxury Watch Industry and survey conducted from the consumers of the particular market. More people, especially young people, have online access to Gray market dealers who are hampering the image of brands. With this, the market not only has adverse effects on the customers but also poses a great threat in maintaining the market standing of the companies involved.
The thesis will commence with the different theories and surveys to explain consumer behavior with respect to the market qualitatively. And in the second half, the interpretation from the interviews and surveys will help create analysis with different business concepts. All the suggestions formed are entirely dependent on the way the companies take them into account and try to help eliminate this parallel market to revamp the Watch Industry back to what it was.
Stemming the tide ofgreenwashEd Gillespie of Futerrade.docxwhitneyleman54422
Stemming the tide of
'greenwash'
Ed Gillespie of Futerra
defines 'greenwash'and
shows how the apparent
'greening' of the market
could have adverse effects
on the environment
In recent years the marketplace for consumer
goods and services has become ostensibly
'greener', as manubcturers and providers target
consumers by promoting their environmental
credentials. Ed Gillespie argues that this market
change has been accompanied by the use of
'greenwash' - advertising or marketing that is
misleading to consumers with regards to the eco-
logical impact of the products they buy - and con-
dudes that in the long term this may have a
negative impact on public engagement with
wider environmental issues.
The world has gone green, at least superficially. Itseems we cannot turn a comer without beinglambasted by the 'eco' credentials of yet another
product or service scrabbling to portray itself as another
small step to saving the planet, 'Green consumerism is
the answer!' is a message we are being sold repeatedly.
But is the truth so simple? In many cases, the 'greening'
of the marketplace is worryingly little more than a
hastily applied thin veneer of dubious substance. We
have all seen and most of us have bought environmental
products, fairly traded, co-operativeiy produced organic
coffee or environmentally benign washing detergents,
but since when did airlines and oil companies trumpet
their supposed eco-credentials and get away with it?
Welcome to the age of 'greenwash.''
But what actually is greenwash and how can we
define it? The Oxford English Dictionary tells us that
greenwash is 'disinformation disseminated by an organ-
isation, etc, so as to present an environmentally respon-
sible public image; a public image of environmental
responsibility promulgated by or for an organisation, etc,
but perceived as being unfounded or intentionally mis-
leading.'^ But perhaps a more informal interpretation
might be 'advertising or marketing that misleads the
public by stressing the supposed environmental creden-
tials of a person, company or product when these are
unsubstantiated orirrelevant.'
Greenwash is nothing new. Veteran environmentalist
David Bellamy first used the term over 2 0 years ago and
it was in the early 1 9 9 0 s that use of the word 'green-
wash' took off. It was relatively unsophisticated back
then, using crude juxtapositions of 'eco' imagery such as
frolicking dolphins or lush, Utopian jungle-scapes to
imply a product's environmental 'friendliness' (itself a
now taboo description of sustainability due to its wilful-
ly vague meaninglessness). Looking back these efforts
appear extremely dated, though it is also worth noting
that one of the first reports on greenwash. by
Greenpeace USA back in 1 9 9 2 , highlighted a petro-
chemical company (who shall remain, for the sake of
legal reasons, anonymous), whose advertising implied
that using the waste of one industrial refinement process
as fuel for another was an 'important recycling initia.
PATRICK DE PELSMACKER, LIESBETH DRIESEN,AND GLENN RAYP.docxherbertwilson5999
PATRICK DE PELSMACKER, LIESBETH DRIESEN,
AND GLENN RAYP
Do Consumers Care about Ethics? Willingness to
Pay for Fair-Trade Coffee
Consumers’ buying behavior is not consistent with their positive
attitude toward ethical products. In a survey of 808 Belgian respond-
ents, the actual willingness to pay for fair-trade coffee was measured.
It was found that the average price premium that the consumers were
willing to pay for a fair-trade label was 10%. Ten percent of the sample
was prepared to pay the current price premium of 27% in Belgium.
Fair-trade lovers (11%) were more idealistic, aged between 31 and
44 years and less ‘‘conventional.’’ Fair-trade likers (40%) were more
idealistic but sociodemographically not significantly different from
the average consumer.
The purpose of this study was to investigate to what extent consumers
were willing to pay for the fair-trade attribute when buying coffee, and
how consumers differed in terms of their willingness to pay. First, we will
describe fair trade within the context of ethical consumer behavior. Sub-
sequently, the research questions used in our study will be examined.
Consumers can express their concern about the ethical behavior of com-
panies by means of ethical buying and consumer behavior. In general, the
ethical consumer feels responsible toward society and expresses these feel-
ings by means of his or her purchasing behavior. Doane (2001) defined
ethical consumption as the purchase of a product that concerns a certain
ethical issue (human rights, labor conditions, animal well-being, environ-
ment, etc.) and is chosen freely by an individual consumer. There are
several dimensions of ethical consumer behavior. Some forms of ethical
consumption benefit the natural environment (e.g., environmentally friendly
products, legally logged wood, animal well-being), while others benefit peo-
ple (e.g., products free from child labor, fair-trade products). Cutting across
this distinction, ethical consumption may benefit people or the environment
close to home (e.g., some types of green products or organic food), or
Patrick De Pelsmacker ([email protected]) is a marketing professor at the University of
Antwerp. Liesbeth Driesen was a researcher at the Ghent University. Glenn Rayp ([email protected])
is a professor in international economics at the Ghent University.
Financial support of the University Development Cooperation of the Flemish Interuniversity Council
is gratefully acknowledged. The authors wish to thank the participants of the 33rd European Marketing
Academy (EMAC) conference for their useful comments and suggestions. All remaining errors are ours.
The Journal of Consumer Affairs, Vol. 39, No. 2, 2005
ISSN 0022-0078
Copyright 2005 by the American Council on Consumer Interests
WINTER 2005 VOLUME 39, NUMBER 2 363
conversely in a faraway part of the world (e.g., fair-trade products or legally
logged wood). Consumers can translate their ethical concerns by means.
Garments and Textiles industry for top class clothes fabrics of fashion industry
Clothes fabrics and related blog headings or keywords
on April 06, 2022
(All pages)
Home page
Clothes fabrics and related blog headings or keywords
All your Needs ! Just visit and find what you want to get ....
Needs of Life to get in just one click !
What are the consumers of garments and textiles?
What are the most famous clothing designs and trending fabrics ?
What are the garments and textiles industry related business ?
What are the sources of clothes fabrics and related accessories ?
Home page
(All pages)
Location: NORTH CAROLINA, USA
What are the consumers of garments and textiles ?
on May 29, 2022
What are the consumers of garments and textiles.. ?
*2.(1).Customer for cloths & fabrics: (Top of current page)
In this sector customer depends on product. There have huge no. of products for so many perspective. What you are going to sell it will direct the customer type. There have end user with different age & culture, industrial user based on sector, retailer based on fashion types and so more.
Retail customer: You are selling your finished products to a person or a end user in limited range is your retail customer.
Corporate customer: If you are getting huge qty. order from a company or entrepreneur is your corporate customer as like you are selling raw goods.
The Many Faces of Consumers of Garments and Textiles.. There are many people all over the world who consume garments and textiles on a daily basis. This includes everything from pajamas to work uniforms to formal dresses and much more. The following list of consumers will show you just how many people consume garments and textiles every day in their lives!
Retail buyers
Customers who buy clothes in stores at malls, outlet centers, and factory outlets. Retail buyers tend to be categorized by their area of expertise (clothing buyers are experts on clothing) or what category they cover (the toy buyer is an expert on toys). If you’re a new designer looking to score retail placement for your clothing line, contact one or more buyers—there’s almost always a Buyer Contact link or email address somewhere on a retailer website.
End users
The end user is typically a consumer, but not always. End users often represent specific industries or businesses that buy in bulk to meet their own needs. For example, a retail store may use textiles to create their clothing items. In another instance, an automotive company may use upholstery fabric for car seats.
This is an integrated marketing campaign for Glidden Paint at Walmart. It was entered into the NSAC AAF Competition. The campaign was created as part of my capstone class for college and was completed with the helped of my whole class.
The market for green household cleaning products in the U.S grew at a blistering pace between 2007 and 2010, cooled off, and actually declined from 2010 to 2014 at a compound annual growth rate (CAGR) of 2%. Packaged Facts estimates total retail sales, including both household cleaners and laundry products, at $600 million in 2014. The green market remains a niche, accounting for about 3% of the total household cleaner and laundry product market.
Over the last two decades, more and more people around the world, primarily in industrialized countries, have become better informed and more aware of the origins of the goods they basically purchase on a day-to-day basis, the buying policies and practices of the shops they visit and the policies and principles of the services they buy (Gabriel et al., 1995 In a growing number of cases, this aggrandized awareness and knowledge is affecting consumer practices and may be the Difference between someone buying a particular product or service or not. There are a various reasons for this development, which is usually referred to as ―ethical consumerism‖, or also ―ethical consumption‖, ―ethical purchasing‖, ―moral purchasing‖, ―ethical sourcing‖, ―ethical shopping‖ or ―green consumerism
In a growing number of cases, this aggrandized awareness and knowledge is affecting consumer practices and may be the Difference between someone buying a particular product or service or not. There are a various reasons for this development, which is usually referred to as ―ethical consumerism‖, or also ―ethical consumption‖, ―ethical purchasing‖, ―moral purchasing‖, ―ethical sourcing‖, ―ethical shopping‖ or ―green consumerism
A Profile of The Conscious Consumer by Telltale Research
Consumer Acceptability In Flower Chains
1. Consumer Acceptability in Flower Chains: How Can We Determine
What the Final Customers Really Want?
O. van Kootena and E. Kuiper
Wageningen University
Wageningen
The Netherlands
Keywords: consumer preference, ornamental supply chain, vase life guarantee, flower
quality
Abstract
When we look at the ornamental supply chain in the Netherlands as a Value
Chain (Porter, 1998) it strikes us that most actors in the chain are obsessed by the
product and have no idea how the value of these products is developed throughout
the entire production and supply chain. Any value chain starts with the value a group
of consumers attributes to the product. So it all starts with finding out what
consumers want and then finding the most cost effective way of delivering that
product with the desired attributes to these consumers. In the USA the South
American producers expected to be able to compete with the local production by
offering the product (cut flowers) at a lower price (Reid, 2002). In the first instance
this worked very well and the local production virtually disappeared. However the
quality of the imported product was a dismal failure and while imports surged, total
flower consumption plummeted in the 90s. In the UK the retail chains such as
Sainsbury’s and Tesco wanted to improve their ornamental categories. They invented
the ‘Vase Life Guarantee’ and improved their quality considerably. This resulted in
an increase in market share from 18 to 60% over 15 years, while the total flower
consumption in the UK doubled in the past 15 years.
A research will be shown on the response of stakeholders in the ornamental
industry and consumers on the question whether they would see the ‘Vase Life
Guarantee’ as a value addition in the supply chain. This research was done in the UK
and the Netherlands (where no vase life guarantee was used explicitly in the retail) at
the turn of the millennium. It clearly shows the difference between the judgements of
the stakeholders versus the opinions of the consumers.
If we want to create Value Added Chains in the ornamental industry it is
about time to find out what the consumer really wants!
INTRODUCTION
On the continent of Europe the major outlet for cut-flowers are the florist shops
and the outdoor vending stalls. This is in contrast to the USA and the UK where the
supermarket is the major outlet for cut flowers. In the USA this has always been the case
in the past 35 years. In the UK however the situation was similar to the continent in 1992
with a total market share for cut-flowers of around 15 to 20%, this is still the case to date
for most continental Europe. However the present situation in the UK has changed
dramatically. At present the market share of the supermarket for the sales of cut-flowers is
close to 60%, while the total consumption counted both in number of flowers as well as in
the total turnover has more than doubled since 1992. The big question is then: “How did
they do it?” And the most eye-catching answer is the introduction of the concept of a
‘Vase Life Guarantee’.
In the beginning of the 90s the supermarket chains Tesco and Sainsbury’s decided
to augment their ornamental categories. They changed their floor layout to make the in-
house flower shop more appealing for the consumers. They trained their personal to
handle the flowers professionally and tried to source their flowers from trustworthy
a
olaf.vankooten@wur.nl
Proc. IX th Int’l Symp. on Postharvest Quality of Ornamental Plants
Eds.: C.-O. Ottosen et al. 17
Acta Hort. 847, ISHS 2009
2. wholesalers. But after having implemented all that their sales did not increase by the
predicted amounts. Consumer research taught them that the average consumer did not
think highly of the flowers being sold through supermarkets. In order to win the trust of
the consumer the 7 days vase life guarantee was invented. Why 7 days and not 6 or 10,
was mainly because most consumers with kids and double incomes only went shopping
once a week and if the flowers lasted that long it was expected to fit in the expectations of
the consumers. One wholesale company in the Netherlands was found willing to deliver
the mixed bouquets and take responsibility for this vase life guarantee. From then on all
flower straight lines and mixed bouquets carried a 2 inch sticker with “7 days vase life
guarantee” printed on it. The result is defined above and the question that arises is
whether this sticker did the job or whether something else influenced this major change in
the flower market in the UK? When we looked at this situation in the start of the year
2000 we wanted to know whether the application of a vase life guarantee by the Dutch
supermarket chains could illicit the same effect in our consumers market. By studying
both stakeholders in the chain and consumers we found their responses to be rather
different and the results show that the answer to what caused the major market change in
the UK is not as direct and simple as was expected from the start.
MATERIALS AND METHODS
Stakeholder Interviews
On the level of wholesalers, retail category managers, the auctions and suppliers
of vase life enhancing sachets open interviews were held to determine their opinion on the
possibilities of introducing a “7 Days Vase Life Guarantee” in the Netherlands. Nine
persons where interviewed and they were selected on the basis that they operated both in
the Netherlands as well as in the UK and were expected to have a good overview of the
present day market (around the millennium). They were interviewed in depth (the
interview taking over 1.5 h) with open questions. For this report the main questions were:
1) Do you think a vase life guarantee on cut-flowers like the one in the UK, could be
developed in the Dutch market? 2) Do you think the Dutch consumer will appreciate a
vase life guarantee? 3) Do you think that a vase life guarantee will give added value to the
cut-flowers sold with this certificate?
Consumer Interviews
One hundred four consumers in both countries were asked to take part in a
conjoint analysis test for their preference for different cut flowers. A special room at a
shopping mall in the UK and in the Netherlands was equipped for this. Consumers that
agreed to take part in the test were given a questionnaire to fill out their demographic
constituency and answer questions on their knowledge and expectations regarding quality
in cut flowers.
Conjoint Analysis
In a special room at a shopping mall different flower bouquets were on display.
For the research 4 varying attributes where chosen, price, colour, exclusivity and
guarantee as can be seen in Table 1. Each attribute has two levels except the attribute
price that had 4 levels. These 4 levels were chosen at the time from very cheap to
reasonably dear. The interaction price × guarantee was studied explicitly to see whether
the price itself would hinder or stimulate the buy of a guaranteed bouquet. In each room
20 real bouquets have been placed on long tables along the walls of the room. As an
example the 20 different bouquets used in the Dutch analysis are shown in Table 2. Of all
bouquets only 16 were used for the analysis and 4 were kept apart as hold-outs. After the
analysis was done with the 16 bouquets then the model predicted certain results for these
4 bouquets and they were compared with the actual values found. This is standard
procedure in conjoint analysis to ensure that the model and the data are consistent. On the
flower bouquets that were endowed with a vase life guarantee the following massage was
18
3. placed in clear view (in the Netherlands a similar sign was placed in Dutch).
Guaranteed for 7 days
These flowers have a guaranteed vase life of 7 days after
purchase. If the flowers are not conform to this
guarantee, we will replace your purchase.
RESULTS
Stakeholder Interviews
All stakeholders held quite equal views on the questions pertaining to the present
report. They were all convinced that it would be technically possible to introduce a 7 days
vase life guarantee in the Netherlands. However they all agreed upon the idea that the
Dutch consumer would not be interested. The consumer wouldn’t be averse to the idea,
but it would not be acceptable to raise the price. It would influence the overall quality
level of the flowers in the outlets, but the costs would also go up. It would not enhance
sales and if the price remained constant then it would turn out to be a useless investment.
The fact that it did work out in the UK market was explained mainly by the cultural
differences between Dutch and UK citizens. The British were said to be prepared to pay
more for quality, while the Dutch were more prone to go for a lower price.
Consumer Interviews
The 102 citizens that were randomly asked to participate in each country, while
they walked around a mall, were first asked to answer a range of questions. These were
closed questions where they were only allowed to answer yes or no or answer on a Likert
scale. The most important question pertaining to this report was if the person had ever
heard of a vase life guarantee before (Fig. 2). The fact that only 11% of the Dutch had
ever heard of it was not astonishing as there was only a vase life guarantee at the Shell
gas stations at that time (delivered by the same wholesaler as the one delivering to the UK
retailers). However it was astonishing to find out that only 28% of the UK citizens had
heard of a vase life guarantee before, implying that 78% had not heard of it while they
had been buying these flowers for at least 6 years by then. And each bouquet (nearly all
UK retailers had copied the guarantee by then) had a 2 inches sticker on its sleeve stating
“7 DAYS VASE LIFE GUARANTEE”.
Conjoint Analysis
One hundred two persons per country were asked to determine which flower
bouquet they preferred and put the 20 bouquets in order of their preference. The results of
16 bouquets were used for the development of a conjoint analysis model. This led to the
following model for the Netherlands (for the meaning of the attribute subscripts see Table
1):
Y = −0.336317 − 0.408989 X12 − 0.636069 X13 − 0.698082 X14 + 1.344359 X3 +
0.108116 X4 + 0.271318 X12 X2 + 0.232601 X13 X2 − 0.137004 X14 X2
where Y is the use of the function and the first constant is a base factor that has no
physical meaning. In Figure 3 we can see what the outcome of this model means for the
use people attribute to the different bouquets when comparing no vase life guarantee with
the presence of a vase life guarantee. It is clear that the Dutch consumers give a much
higher use to the presence of a vase life guarantee in the two intermediate price classes
(normally the price classes found in supermarket stores) compared to the absence of a
19
4. vase life guarantee. It is also clear from the coefficient α3 = 1.3 of the exclusivity attribute
(X3), that Dutch citizens attribute much use to the exclusivity of a bouquet.
For the UK the following model was found:
Y = −0.084766 − 0.133863 X12 − 0.556161 X13 − 1.154572 X14 + 0.226272 X2 +
0.908335 X3 + 0.082796 X4 − 0.184096 X12 X2 − 0.318195 X13 X2
Here the emphasis on exclusivity is less than in the Dutch case, however the high
price (X14) has much more negative impact than in the Dutch case. When we look at the
comparison between with and without guarantee related to price (Fig. 4) we see that in the
intermediate price range there is not much difference. However in the lowest and highest
price the British do prefer a vase life guarantee.
In Figure 5 the hold-out bouquets are compared to the model for the Dutch (NL)
and the British (UK) case. The comparison appears to be quite accurate giving us
confidence that the model is not caused by arbitrary correlations.
CONCLUSIONS
If we compare the results from the interviews with the conjoint analysis models
we can come to the following conclusions: The Dutch are more prepared to buy flowers
with a high price than the British, i.e. the α14 is less negative in the Dutch case than in the
UK case. The British consumers prefer a vase life guarantee either when the flowers are
expensive or when they are very cheap. With the Dutch it is the other way around. They
probably expect an implicit vase life guarantee when the flowers are very expensive, or
they consider it to be a sign of weakness of the shop. And they don’t want to bother with
it when the flowers are very cheap. However in the intermediate price category they do
appreciate the presence of a vase life guarantee. This is in contrast with the stakeholder
interview outcomes. Where all stakeholders were of the opinion that Dutch consumers are
more price oriented than British consumers and were not prepared to pay more for the
presence of a vase life guarantee. It appears that Dutch consumers were prepared to pay
more for a vase life guarantee when looking for flowers in the average price classes.
But the main question remains why the flower consumption increased so much in
the UK while it stayed more or less the same on the continent? Especially now that we
know that the majority of the British were not aware of the vase life guarantee despite the
fact that this was strongly advertised. Apart from the vase life guarantee the wholesaler
actually succeeded in creating flower bouquets that would last at least 7 days once they
reached the consumer homes. This was the case for more than 99% of the flowers sold in
British supermarket stores. This in itself was a major change of quality in the market as a
significant percentage of flower bouquets did not reach the 7 days vase life previously.
Thus if the consumer was not aware of the vase life guarantee, he or she would still have
the repeated experience of a discernable quality attribute of the flowers bought at the
supermarket outlet.
As far as I can see the US flower market has been more or less destroyed by
continuous input of bad quality flowers (see Fig. 1), while the UK market has doubled its
consumption in 15 years by a continuous input of high quality product over a prolonged
period of time. In the US case it was believed that price was the driving factor and quality
was not really an issue. In the UK case the quality was brought up to an unprecedented
level and the consumer’s expectations were satisfied or exceeded without fail.
It is about time we start thinking of the consumer and not just cater to the wishes
of the next customer downstream the supply chain.
ACKNOWLEDGEMENTS
We would like to thank Mieke van Kester for performing the consumer research
and the interviews. We would like to acknowledge the Dutch Horticultural Product Board
(Productschap Tuinbouw) for financing the consumer research. And we would like to
acknowledge John Pouw of Florpartners for supporting this project.
20
5. Literature Cited
Porter, M.E. 1998. Harvard Business Review. Nov/Dec, 76:6.
Reid, M.S. 2002. How can we sell more flowers? In: U.C. Cooperative Extension, Davis,
California.
Tables
Table 1. Four attributes have different levels in the Netherlands as compared to the UK
due to the currency difference but also the type of bouquets where optimised to the
local consumer preferences (see pictures).
Attribute Level NL Guarantee×price Level UK Guarantee×price
Guarantee Without X2=0 Without X2=0
With X2=1 With X2=1
Price € 3.50 X11=1/0 X2×X11 £ 1.99 X11=1/0 X2×X11
€ 4.50 X12=1/0 X2×X12 £ 2.99 X12=1/0 X2×X12
€ 6.75 X13=1/0 X2×X13 £ 4.99 X13=1/0 X2×X13
€ 9.00 X14=1/0 X2×X14 £ 6.99 X14=1/0 X2×X14
Exclusivity Not excl. X3=0 Not excl. X3=0
Exclusive X3=1 Exclusive X3=1
Colour Single X4=0 Single X4=0
Multiple X4=1 Multiple X4=1
Table 2. List of attributes and levels used in the Dutch conjoint analysis experiment. The
hold-outs where not used in the analysis, but used later to test the validity of the model.
Number Profile description Type of profile
Price Guarantee Exclusivity Colour
(€)
1 3.20 Without Exclusive Yellow-red Hold-out
2 6.75 Without Not excl. Yellow Normal
3 6.75 With Exclusive Yellow Hold-out
4 9.00 With Not excl. Yellow Normal
5 9.00 With Exclusive Yellow-red Normal
6 9.00 Without Exclusive Yellow Normal
7 4.50 Without Not excl. Yellow Normal
8 9.00 Without Not excl. Yellow-red Normal
9 6.75 Without Exclusive Yellow-red Normal
10 3.20 Without Not excl. Yellow-red Normal
11 4.50 Without Not excl. Yellow-red Hold-out
12 6.75 With Not excl. Yellow-red Normal
13 9.95 With Exclusive Yellow Normal
14 6.75 With Exclusive Yellow Normal
15 4.50 Without Exclusive Yellow-red Normal
16 9.00 With Not excl. Yellow Hold-out
17 4.50 With Not excl. Yellow-red Normal
18 3.20 Without Exclusive Yellow Normal
19 3.20 With Not excl. Yellow Normal
20 3.20 With Exclusive Yellow-red Normal
21
6. Figurese
Gross domestic product per capta (USA)
50000
40000
30000
20000
10000
0
1970 1975 1980 1985 1990 1995 2000 2005
Consumptions in stems (capita/year)
16,0
14,0
12,0
Stems per person
10,0
8,0
6,0
4,0
2,0
0,0
1970 1975 1980 1985 1990 1995 2000
Year
% import into USA
100
90
80
70
60
50
%
40
30
20
10
0
1970 1975 1980 1985 1990 1995 2000 2005
Fig. 1. A The gross domestic product per capita in the USA from 1970 till 2004 showing
an eight-fold increase in income over that period. B The consumption of cut
flowers per capita per year in the USA from 1970 till 2002 showing two-fold rise
in consumption between 1970 and 1990 and a 50% decrease from 1993 till 2002.
C The percentage of cut flowers that have been imported into the USA compared
to the total sales from 1970 (virtually nil) to more than 90% nowadays.
22
7. 100
The Netherlands
90
England
80
70
60
% answer
50
40
30
20
10
0
yes no
Fig. 2. Response to the question: Do you know what is implied by a 7 days vase life
guarantee? The positive response is higher in the UK than in the Netherlands,
which is to be expected. However the fact that 72% of the British citizens did not
know was astonishing, as they had been buying these flowers with a sticker on
them for the past 6 years at least!
Fig. 3. Comparison of the model with (dotted line) and without (continuous line)
guarantee at different price levels in the Netherlands (NL). Both at low and at high
prices the differences are small or even negative for the guarantee. At intermediate
prices (expected in the supermarket outlets) the Dutch consumer does attribute a
positive use to the addition of a vase life guarantee.
23
8. Fig. 4. Comparison of the model with (dotted line) and without (continuous line)
guarantee at different price levels in the United Kingdom (UK). Both at low and at
high prices the differences are significant. At intermediate prices the British
consumer does not attribute a positive use to the addition of a vase life guarantee.
24
9. 1,5
1 Predicted
hold-outs
0,5
Use 0
-0,5
-1
The Netherlands
-1,5
1 2 3 4
hold-out profile
1,5
1 Predicted
hold-outs
0,5
Use 0
-0,5
-1
England
-1,5
1 2 3 4
hold-out profile
Fig. 5. Comparison of the hold-out use levels found with the levels predicted by the
model both in the Netherlands (upper panel) and in the UK (lower panel). The
found values do not differ significantly from the values predicted by the model,
indicating the reliability of the model.
25