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Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Chapter 12 Consumer.

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Presentation on theme: "Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Chapter 12 Consumer."— Presentation transcript:

1 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Chapter 12 Consumer Behavior and Research

2 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.1. A Simple Model of the Motivational Process

3 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.2. Maslow’s Hierarchy of Needs

4 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.3. Values in Rokeach Value Survey Instrumental ValuesTerminal Values AmbitiousA comfortable life Broad-mindedAn exciting life CapableA sense of accomplishment CheerfulA world of peace CleanA world of beauty CourageousEquality ForgivingFamily security HelpfulFreedom HonestHappiness ImaginativeInner harmony IndependentMature love IntellectualNational security LogicalPleasure LovingSalvation ObedientSelf-respect PoliteSocial recognition ResponsibleTrue friendship Self-controlledWisdom

5 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.4. Means-End Chain

6 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.5. Prominent Means-End Chains for French Buyers of Fair Trade Coffee LocationChainAttributeConsequence Instrumental Value Terminal Value Supermarket1TasteGoodSatisfaction Supermarket2Fair tradeEconomic AidRespectfulEquality between humans Specialty Store 1Fair tradeParticipate in alternative economy ResponsibleA sense of accomplishment Specialty Store 2Fair tradeEquality of tradeEquality between humans Specialty Store 3OrganicRespect for environment A world of beauty

7 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.6. Effect of Means-End Chain on Involvement

8 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.7. Zaichkowsky Involvement Scale (using organic pork chops as an example) To me, organic pork chops are (circle a number corresponding to which word or phrase best describes your feelings) Important 7 6 5 4 3 2 1Unimportant Interesting7 6 5 4 3 2 1Boring Relevant7 6 5 4 3 2 1Irrelevant Exciting7 6 5 4 3 2 1Unexciting Means a Lot to Me7 6 5 4 3 2 1Means Nothing Appealing7 6 5 4 3 2 1Unappealing Fascinating7 6 5 4 3 2 1Mundane Valuable7 6 5 4 3 2 1Worthless Involving7 6 5 4 3 2 1Uninvolving Needed7 6 5 4 3 2 1Not needed

9 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.8. Example of the Relationship between Beliefs, Belief Evaluation, and Attitude

10 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.9. Intention to Buy French Fries as Determined by the Theory of Reasoned Action

11 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.10. Link between Attitudes and Value

12 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.11. Decision Making Process

13 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.12. Structure of Consumers’ Consideration Set for Meat

14 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.13. Evaluation of Fast Food Alternatives Attribute Attribute Importance Weight Alternative 1: McDonalds Alternative 2: Burger King Alternative 3: Dairy Queen Belief Desirability of Attribute Level Belief Desirability of Attribute Level Belief Desirability of Attribute Level Price8$4.00$4.500$5.001 Speed of Drive Through 65 minutes 3 minutes14 minutes 0 Taste of Burger10fairexcellent1good0 Accuracy of Order Delivery 390% accurate 085% accurate 95% accurate 1 Unweighted Utility-312 Weighted Utility-241311

15 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.14. Market Demand Curves are the Horizontal Summation of Individual Demand Curves

16 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.15. Means-End Chain for Genetically Modified Yogurt in Denmark

17 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.16. Means-End Chain for Genetically Modified Yogurt in the United Kingdom

18 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.17. Questions Used to Measure Italian’s Beliefs about Eating Genetically Modified Tomatoes Belief Questions Extremely Unlikely Extremely Likely Positive Issues AHow likely do you think that the application of genetic engineering in the production of tomatoes will result in increased food production 1234567 BHow likely do you think that the application of genetic engineering in the production of tomatoes will result in possibilities of production in several environments (e.g., arid lands) 1234567 CHow likely do you think that the application of genetic engineering in the production of tomatoes will result in reduced use of pesticides 1234567 Negative Issues DHow likely do you think that the application of genetic engineering in the production of tomatoes will result in ecological damage 1234567 EHow likely do you think that the application of genetic engineering in the production of tomatoes will result in reduction of biodiversity 1234567 FHow likely do you think that the application of genetic engineering in the production of tomatoes will result in an increase in food allergies 1234567

19 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.18. Questions Used to Measure Italian’s Evaluations of Beliefs about Eating Genetically Modified Tomatoes Belief Evaluation Questions Strongly Disagree Strongly Agree Positive Issues EAI think that increased food production is desirable1234567 EBI think that possibilities of production in several environments (e.g., arid lands) is desirable 1234567 ECI think that reduced use of pesticides is desirable1234567 Negative Issues EDI think that ecological damage is desirable1234567 EEI think that reduction of biodiversity is desirable1234567 EFI think that an increase in food allergies is desirable1234567

20 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.19. Product Profiles used in Baker and Burnham (2001) Conjoint Analysis Study of Consumer’s Cereal Preferences Product Profile Price ($/18 oz box) BrandType of Corn 1$2.75Kellogg’sGM 2$2.75Kellogg’sNon-GM 3$2.75StoreGM 4$2.75StoreNon-GM 5$3.50Kellogg’sGM 6$3.50Kellogg’sNon-GM 7$3.50StoreGM 8$3.50StoreNon-GM 9$4.25Kellogg’sGM 10$4.25Kellogg’sNon-GM 11$4.25StoreGM 12.$4.25StoreNon-GM

21 Norwood and Lusk: Agricultural Marketing & Price Analysis © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 12.20. Distribution of Willingness-to-Pay to Exchange a Bag of GM for Non-GM Corn Chips

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