The consumer in product development Consumers are the centre of product development in the food industry, directly in the design of consumer products and indirectly in the design of commodity products and industrial products. In industrial product development, the emphasis is on the immediate customer, but consideration needs to be given to the acceptance of the final product by the consumer. It is important in product development to understand basic consumer behaviour and food choice as well as the individual product/consumer relationship(Earle, 1997). Differences among the individual consumers and variations in their environments influence their buying, preparing and eating behaviour. These differences cause variations in food choice and in the degree of acceptance of individual foods. The consumers total concept of a food is related to their individual characteristics and to the environment in which they buy and eat food Consumers are, and will remain, the final arbiters on food product acceptance. The consumer of the new food product gives the ultimate on the product development project and therefore it is crucial that the is a major player in critical evaluation throughout the project. But it is even more important to incorporate the consumer in the creative processes in product development. It is wrong to assume that the product designer, the process developer and the marketer know who are the target consumers and what they want and need. The consumers have to identify themselves, and help to create a product that fits into their life styles and also leads them into their desired future The consumer needs to be involved in all stages of the product development project. At one time, this seemed an expensive, theoretical and time-consuming activity, and was often d in the company. Today, consumer research is more easily coordinated into product development, with the use of modern consumer research techniques to study behaviour and attitudes, develop product
Consumers are the centre of product development in the food industry, directly in the design of consumer products and indirectly in the design of commodity products and industrial products. In industrial product development, the emphasis is on the immediate customer, but consideration needs to be given to the acceptance of the final product by the consumer. It is important in product development to understand basic consumer behaviour and food choice as well as the individual product/consumer relationship (Earle, 1997). Differences among the individual consumers and variations in their environments influence their buying, preparing and eating behaviour. These differences cause variations in food choice and in the degree of acceptance of individual foods. The consumers’ total concept of a food is related to their individual characteristics and to the environment in which they buy and eat food. Consumers are, and will remain, the final arbiters on food product acceptance. The consumer of the new food product gives the ultimate decision on the product development project and therefore it is crucial that the consumer is a major player in critical evaluation throughout the project. But it is even more important to incorporate the consumer in the creative processes in product development. It is wrong to assume that the product designer, the process developer and the marketer know who are the target consumers and what they want and need. The consumers have to identify themselves, and help to create a product that fits into their life styles and also leads them into their desired future. The consumer needs to be involved in all stages of the product development project. At one time, this seemed an expensive, theoretical and time-consuming activity, and was often ignored in the company. Today, consumer research is more easily coordinated into product development, with the use of modern consumer research techniques to study behaviour and attitudes, develop product 5 The consumer in product development
The consumer in product development 195 oncepts and attributes, test product prototypes; and with the use of information technology to set up consumer databases and analyse consumer data 5.1 Understanding consumer behaviour Consumer behaviour can be defined as 'those activities directly involved in obtaining, consuming and disposing of products and services, including the decision processes that precede and follow these actions(Engel et al, 1995) There are environmental influences affecting this behaviour such as ethnicity nd culture, social group, regional preferences, as well as food availability and household technology. There are also differences among individuals, not only their age and sex. their education. their standard of but also the physiological and psychological make-up. Individuals have their own food choice, which to a greater or lesser extent overrides preferences defined by years, mult ocial sciene esearch has increased knowledge of food consumer behaviour and food choice Consumer behaviour occurs in sequential stages and at each stage there is a use of knowledge to make decisions General consumer behaviour has six action stages as shown in Fig. 5. 1(Engel et al., 1995). This sequence can be followed by a further divestment stage where, with food products, the consumer chooses between the options of disposal or recycling of the waste and the packaging Parallel to these seven consumer actions is the information processing conducted by the consumer. When the consumer recognises the need, there is an internal search in their memory and may be an external search of the supermarket shelves, the menu, and information from other people, media or consumer reports. They may also have been exposed to TV advertising or to promotions in the supermarket; or even to the aroma of bacon sizzling or bread baking in the retail outlet. Engel et al. identified five steps in the use of information by the consumer for knowledge building 1. Exposure to information, communication, the product 2. Attention given to the information 3. Comprehension of the information, as it is analysed against the knowledge and the attitudes stored in the memory 4. Acceptance or rejection of the incoming information 5. Retention of the new information in the memory as knowledge Need recognition Search Purch Consumption Fig 5.1 General consumer behaviour in buying and consumption( Source: After Engel er a
concepts and attributes, test product prototypes; and with the use of information technology to set up consumer databases and analyse consumer data. 5.1 Understanding consumer behaviour Consumer behaviour can be defined as ‘those activities directly involved in obtaining, consuming and disposing of products and services, including the decision processes that precede and follow these actions’ (Engel et al., 1995). There are environmental influences affecting this behaviour such as ethnicity and culture, social group, regional preferences, as well as food availability and household technology. There are also differences among individuals, not only their age and sex, their education, their standard of living, but also their physiological and psychological make-up. Individuals have their own food choice, which to a greater or lesser extent overrides preferences defined by culture or religion. In the last 30 years, multidisciplinary social science research has increased knowledge of food consumer behaviour and food choice. Consumer behaviour occurs in sequential stages and at each stage there is a use of knowledge to make decisions. General consumer behaviour has six action stages as shown in Fig. 5.1 (Engel et al., 1995). This sequence can be followed by a further divestment stage where, with food products, the consumer chooses between the options of disposal or recycling of the waste and the packaging. Parallel to these seven consumer actions is the information processing conducted by the consumer. When the consumer recognises the need, there is an internal search in their memory and may be an external search of the supermarket shelves, the menu, and information from other people, media or consumer reports. They may also have been exposed to TV advertising or to promotions in the supermarket; or even to the aroma of bacon sizzling or bread baking in the retail outlet. Engel et al. identified five steps in the use of information by the consumer for knowledge building: 1. Exposure to information, communication, the product. 2. Attention given to the information. 3. Comprehension of the information, as it is analysed against the knowledge and the attitudes stored in the memory. 4. Acceptance or rejection of the incoming information. 5. Retention of the new information in the memory as knowledge. Fig. 5.1 General consumer behaviour in buying and consumption (Source: After Engel et al., 1995). The consumer in product development 195
196 Food product development This knowledge is used to judge the different products; the consumer builds up criteria to judge the products and to compare the different brands and products. These criteria are an important basis for product development. The consumer then decides whether or not to buy the product. After preparing serving and eating the food there is satisfaction or dissatisfaction, and the decision is made to stay with this product/brand or to look again, as nutrition is a continuing need and the questions for consumers are differential ones related to choice norms,the social structures, and also as part of ciety: the culture, the social group, the work group, the leisure group. Food eating, even in the case of the individual eating alone, is strongly influenced by other people, indirectly by social influences or directly with the type of foods available. Different cultures and social groups have different values that are recognised in designing products for different markets. Perhaps the reason why American products can be easily accepted internationally is that it is a new country combining many nationalities and food products are designed/promoted so that they are generally accepted by this wide variety of people Think break The core American values have been identified in two textbooks as (Engel et a., 1995) (Peter and Olson, 1999) Material well being Achievement and success Good/bad moralising Activity Work more important than play Efficiency and practicality Time is money Progress Effort and success are related Material comfort astery over nature Egalitarianism Freedom Humanitarianism External conformity Humanitarianism Youthfulness Fitness and health 1. Study these two versions of American core values, and identify the values that are similar and those that are different. From this develop what you think are your core values Are your core values different from these lists? 2. Choose two major markets for your company and identify the core values of the consumers in these markets 3. Compare the core values for the two markets and identify the similarities and differences
This knowledge is used to judge the different products; the consumer builds up criteria to judge the products and to compare the different brands and products. These criteria are an important basis for product development. The consumer then decides whether or not to buy the product. After preparing, serving and eating the food there is satisfaction or dissatisfaction, and the decision is made to stay with this product/brand or to look again, as nutrition is a continuing need and the questions for consumers are differential ones related to choice. Individuals have to be considered in their society: the culture, the social norms, the social structures, and also as part of a group – the family, the home group, the work group, the leisure group. Food eating, even in the case of the individual eating alone, is strongly influenced by other people, indirectly by social influences or directly with the type of foods available. Different cultures and social groups have different values that are recognised in designing products for different markets. Perhaps the reason why American products can be easily accepted internationally is that it is a new country combining many nationalities and food products are designed/promoted so that they are generally accepted by this wide variety of people. Think break The core American values have been identified in two textbooks as: (Engel et al., 1995) (Peter and Olson, 1999) Material well being Achievement and success Good/bad moralising Activity Work more important than play Efficiency and practicality Time is money Progress Effort and success are related Material comfort Mastery over nature Individualism Egalitarianism Freedom Humanitarianism External conformity Humanitarianism Youthfulness Fitness and health 1. Study these two versions of American core values, and identify the values that are similar and those that are different. From this develop what you think are your core values. Are your core values different from these lists? 2. Choose two major markets for your company and identify the core values of the consumers in these markets. 3. Compare the core values for the two markets and identify the similarities and differences. 196 Food product development
The consumer in product development 197 4. For each of these markets set up a core value checklist to be used throughout future product development projects 5. Discuss how the differences in the core values could lead to different strategies for future product development in the two markets When buying food, the consumer usually wants to keep the decision prod Is simple and quick as possible. Food is consumed two or three times a day, and may be bought every day, so the consumer does not want to spend a great deal of time in buying and today even in consuming food. It is only the special occasion the special meal or the special food that is given detailed analysis. But it is important for the food designer to recognise that there is detailed and critic thought at certain points of time. Consumers receive a great deal of information on food through the media and advertising as well as by word-of-mouth gradually and often imperceptibly this information changes their knowledge base and therefore their food behaviour. If there is a great deal of information on saturated fats in the diet, they will consider and may gradually change to low-fat foods. Sometimes their behaviour is changed by a jolt; this could be a food scare, or it could be food poisoning affecting them directly. These ca cause long-term changes in food behaviour, for example reduced meat-eating triggered by reports of Bse (mad cow disease), and complete rejection of shellfish caused by a bout of shellfish-related food poisoning In the past ten years, food brands in basic food areas have had very similar features and competed mainly on price, so that they have degenerated into commodity products- no brand being distinctive. Also there has been a proliferation of products with very little difference between them- for example the small New zealand market there are about 157 breakfast cereals under the national and retailer brands. Can the consumers differentiate adequately between these, even if they read a consumer magazine? No wonder they choose the easy way out and buy on price, choosing the specials; or keep on buying their familiar product. Foods can be bought on impulse to relieve food boredom or as a treat. A new snack or a new takeaway can be bought to see if it lives up to its promotion; if it satisfies the consumer it can become a regular food The food designer needs to be aware, in the target market, of the general consumer behaviour towards foods and eating, and how this is slowly changing with time, but also needs to recognise the sudden change. This can be caused by either new information giving an attitude change, or new foods giving the onsumers some greater advantage for safety, nutrition, convenience or attractiveness. Companies that have a long-term relationship with their target consumers build up knowledge about the trends in changes of their behaviour which is invaluable in product development. Food consumer behaviour can include the growing of the food but usually i the urban environment it concerns obtaining food from the supermarket, estaurant or takeaway. In the future it may be more distant with food being
When buying food, the consumer usually wants to keep the decision process as simple and quick as possible. Food is consumed two or three times a day, and may be bought every day, so the consumer does not want to spend a great deal of time in buying and today even in consuming food. It is only the special occasion, the special meal or the special food that is given detailed analysis. But it is important for the food designer to recognise that there is detailed and critical thought at certain points of time. Consumers receive a great deal of information on food through the media and advertising as well as by word-of-mouth; gradually and often imperceptibly this information changes their knowledge base and therefore their food behaviour. If there is a great deal of information on saturated fats in the diet, they will consider and may gradually change to low-fat foods. Sometimes their behaviour is changed by a jolt; this could be a food poisoning scare, or it could be food poisoning affecting them directly. These can cause long-term changes in food behaviour, for example reduced meat-eating triggered by reports of BSE (‘mad cow disease’), and complete rejection of shellfish caused by a bout of shellfish-related food poisoning. In the past ten years, food brands in basic food areas have had very similar features and competed mainly on price, so that they have degenerated into commodity products – no brand being distinctive. Also there has been a proliferation of products with very little difference between them – for example in the small New Zealand market, there are about 157 breakfast cereals under the national and retailer brands. Can the consumers differentiate adequately between these, even if they read a consumer magazine? No wonder they choose the easy way out and buy on price, choosing the specials; or keep on buying their familiar product. Foods can be bought on impulse to relieve food boredom or as a treat. A new snack or a new takeaway can be bought to see if it lives up to its promotion; if it satisfies the consumer it can become a regular food. The food designer needs to be aware, in the target market, of the general consumer behaviour towards foods and eating, and how this is slowly changing with time, but also needs to recognise the sudden change. This can be caused by either new information giving an attitude change, or new foods giving the consumers some greater advantage for safety, nutrition, convenience or attractiveness. Companies that have a long-term relationship with their target consumers build up knowledge about the trends in changes of their behaviour, which is invaluable in product development. Food consumer behaviour can include the growing of the food but usually in the urban environment it concerns obtaining food from the supermarket, restaurant or takeaway. In the future it may be more distant with food being 4. For each of these markets set up a core value checklist to be used throughout future product development projects. 5. Discuss how the differences in the core values could lead to different strategies for future product development in the two markets. The consumer in product development 197
198 Food product development Consumer buying sequence Consumer thought process Food/eating problem Group Search: For alternatives Initial product recogni Type, brand, Knowledge -+Memory Comparison of products Product buying decision Decision making Fig 5.2 Consumer food purchase patterns ordered through the Internet. Food companies must realise that although their food behaviour often starts with the selection of food at the retailer consumers have an interest in how food is produced and they have their concerns about production and processing Stages in the consumers' buying sequence and the related consumer thought processes are shown in Fig. 5.2. Recognition of the stimuli that start the buying sequence, the product judging criteria that are used in comparing products during the buying decision, and the level of consumer involvement with the product throughout the purchase and post-purchase sequence, are important in product design 5.1.1 Stimuli to buy and eat Stimuli to buy and eat are many, for example the demands of the family or home group, individual hunger, the array of products on the supermarket shelves, the dishes on the menu or even the weather. The influence of family members on the uying of cereals is illustrated in Table 5. 1. This shows the strong influence of the child on all stages of the buying action, and in particular on what kind and brand to buy - long a basic premise in promotion by the breakfast cereal manufacturers The stimuli to buy and eat can occur before and after entering the supermarket or the restaurant. When buying bread baked in the supermarket, the stimuli may be hot bread aroma, or the known great flavour of the bread Consumers can identify other bread characteristics such as ease of cutting calories, free of additives, but may not be stimulated to buy by them. Because
ordered through the Internet. Food companies must realise that although their food behaviour often starts with the selection of food at the retailer, consumers have an interest in how food is produced and they have their concerns about production and processing. Stages in the consumers’ buying sequence and the related consumer thought processes are shown in Fig. 5.2. Recognition of the stimuli that start the buying sequence, the product judging criteria that are used in comparing products during the buying decision, and the level of consumer involvement with the product throughout the purchase and post-purchase sequence, are important in product design. 5.1.1 Stimuli to buy and eat Stimuli to buy and eat are many, for example the demands of the family or home group, individual hunger, the array of products on the supermarket shelves, the dishes on the menu or even the weather. The influence of family members on the buying of cereals is illustrated in Table 5.1. This shows the strong influence of the child on all stages of the buying action, and in particular on what kind and brand to buy – long a basic premise in promotion by the breakfast cereal manufacturers. The stimuli to buy and eat can occur before and after entering the supermarket or the restaurant. When buying bread baked in the supermarket, the stimuli may be hot bread aroma, or the known great flavour of the bread. Consumers can identify other bread characteristics such as ease of cutting, calories, free of additives, but may not be stimulated to buy by them. Because Fig. 5.2 Consumer food purchase patterns. 198 Food product development