Dr. Pornsri Laurujisawat 9April 09 1Dr.Pornsri Laurujisawat8/25/2015

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? 2Dr.Pornsri Laurujisawat8/25/2015

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: 3Dr.Pornsri Laurujisawat8/25/2015

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 activities Internal influences Needs, motives and emotions Perceptions and memory Personality and lifestyle Attitudes Situational influences Physical, time, social, task and antecedent Decision-process influences Problem recognition Information search Alternative evaluation Outlet selection Purchase Post purchase processes Marketing decisions Market segmentation Target segment (S) Single- or multiple-target Segments Product positioning Key product-differentiation Variables Marketing mix Product features Price level Promotional appeal Place (distribution) To study whether consumer perception influence consumer s’ purchasing decision Source: Neal, Quester, and Hawkins, 1999, p.1.9 4Dr.Pornsri Laurujisawat8/25/2015

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 Dr.Pornsri Laurujisawat8/25/2015

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: 6Dr.Pornsri Laurujisawat8/25/2015

Conceptual Framework of the research Independent VariablesDependent Variable 7Dr.Pornsri Laurujisawat8/25/2015

The matrix form in three different situations : The Equation Y = Bo + B1 X1+ B2X2+ B3X3 8Dr.Pornsri Laurujisawat8/25/2015

Methodology The research applies quantitative methodology by gathering questionnaires during consumers’ shopping. The statistic uses Multiple Regression with 400 valid questionnaires. 9Dr.Pornsri Laurujisawat8/25/2015

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 F Value Price perception Product Quality Perception0.354 Place of purchase or stores Perception Risk Perception Source: Calculation and summary from the hypothesis test 10Dr.Pornsri Laurujisawat8/25/2015

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 F Value Purchasing a reputed brand Buying government certified/labeled products Purchasing from a reliable shop Purchasing chicken meat from a traceable farm Avoiding buying at unusually cheap price Personal Control Source: Calculate from details of collected data 11 Dr.Pornsri Laurujisawat 8/25/2015

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 = II- During the last bird flu crisis Risk perception = III- If another bird flu crisis occurs again Risk perception = Source: calculated from the data details from the results of questionnaire 12Dr.Pornsri Laurujisawat8/25/2015

The Findings Different demographic factors have difference purchasing decisions in different situations with different ways. 13Dr.Pornsri Laurujisawat8/25/2015

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 14Dr.Pornsri Laurujisawat8/25/2015

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. 15Dr.Pornsri Laurujisawat8/25/2015

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. 16Dr.Pornsri Laurujisawat8/25/2015