Search results for: consumer well-being

Authors: Veronika Efremova

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In recent decades, there have been significant developments in the European Union in the field of collective consumer redress. South East European countries (SEE) covered by this paper, in line with their EU accession priorities and duties under Stabilisation and Association Agreements, have to harmonize their national laws with the relevant EU acquis for consumer protection (Chapter 28: Health and Consumer). In these countries, only minimal compliance is achieved. SEE countries have introduced rudimentary collective redress mechanisms, with modest enforcement of collective redress and case law. This paper is based on comprehensive interdisciplinary research conducted for SEE countries on common principles for injunctive and compensatory collective redress mechanisms, emphasizing cross-national comparisons, underlining issues of commonality and difference aiming to develop recommendations for an adequate enforcement of collective redress. SEE countries are recognized by the sectoral approach for regulating collective redress contrary to the majority of EU Member States with having adopted horizontal approach to collective redress. In most SEE countries, the laws do not recognize compensatory but only injunctive collective redress in consumer protection. All responsible stakeholders for implementation of collective redress in SEE countries, lack information and awareness on collective redress mechanisms and the way they function in practice. Therefore, specific actions are needed in these countries to make the whole system of collective redress for consumer protection operational and efficient. Taking into consideration the various designated stakeholders in collective redress in each SEE countries, there is a need of their mutual coordination and cooperation in order to develop consumer protection system and policies. By putting into practice the national collective redress mechanisms, effective access to justice for all consumers, the principle of rule of law will be secured and appropriate procedural guarantees to avoid abusive litigation will be ensured.

Keywords: Collective redress mechanism, consumer protection, commonality and difference, South East Europe.

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Authors: Laura Sapranaviciute-Zabazlajeva, Abdonas Tamosiunas, Dalia Luksiene, Dalia Virviciute

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The cardiovascular diseases (CVD) is the leading cause of death in the EU, especially in the middle aged and elderly population. Psychological wellbeing (PWB) has been linked with better cardiovascular health and survival in the elderly. The aim of the study is to evaluate associations between CVD risk and PWB in middle-aged and elderly population. 10,940 middle aged and older Lithuanians of age 45-74 years, were invited to participate in the study. A study sample was a random and stratified by gender and age. In 2006-2008 7,087 responders participated in the survey, so the response rate was 64.8%. A follow-up study was conducted from 2006 till 2015. New CVD cases and deaths from CVD were evaluated using the Kaunas population-based CVD register and death register of Kaunas. Study results revealed that good PWB predicts longer life in female participants (Log Rank = 13.7, p < 0.001). In the fully adjusted model for socio-demographic, social and CVD risk factors, hazard ratio for CVD mortality risk was lower amongst women with good PWB (HR = 0.28, 95% CI 0.11-0.72), but not significantly for men. Our study concludes, that lower CVD mortality rates is being associated with better PWB in female aged 45-74 years.

Keywords: Psychological wellbeing, cardiovascular disease, elderly.

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Authors: Aimen Batool Bint-E-Rashid, Syed Muhammad Dawood Ali Shah, Muhammad Usman Farooq, Mahgul Anwar

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As the world is progressing, the needs and demands of the consumer market are also changing. Nowadays the trends of consumer purchase decisions are dependent upon multiple factors. This study aims to identify the influential impact of country of origin over the perception and devotion towards daily personal care products specifically in reference to the knowledge and awareness regarding that particular brand in Pakistan. To corroborate this study, a 30-item brand origin questionnaire has been used with 300 purchase decision makers belonging to different age groups. To illustrate this study, a model has been developed based on brand origin, brand awareness and brand loyalty. Correlation and regression analysis have been used to find out the results which conclude the findings on the perspective of Pakistan’s consumer market as that brand origin has a direct relationship with brand loyalty provided that the consumer has a positive brand awareness. Support for the fact that brand origin impacts brand loyalty through brand awareness has been presented in this study.

Keywords: Brand awareness, brand loyalty, brand origin, personal care products, P&G, Unilever.

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Authors: Natalia Moreira, Trevor Wood-Harper

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The acceptance of sustainable products by the final consumer is still one of the challenges of the industry, which constantly seeks alternative approaches to successfully be accepted in the global market. A large set of methods and approaches have been discussed and analysed throughout the literature. Considering the current need for sustainable development and the current pace of consumption, the need for a combined solution towards the development of new products became clear, forcing researchers in product development to propose alternatives to the previous standard product development models. This paper presents, through a systemic analysis of the literature on product development, eco-design and consumer involvement, a set of alternatives regarding consumer involvement towards the development of sustainable products and how these approaches could help improve the sustainable industry’s establishment in the general market. Still being developed in the course of the author’s PhD, the initial findings of the research show that the understanding of the benefits of sustainable behaviour lead to a more conscious acquisition and eventually to the implementation of sustainable change in the consumer. Thus this paper is the initial approach towards the development of new sustainable products using the fashion industry as an example of practical implementation and acceptance by the consumers. By comparing the existing literature and critically analysing it, this paper concluded that the consumer involvement is strategic to improve the general understanding of sustainability and its features. The use of consumers and communities has been studied since the early 90s in order to exemplify uses and to guarantee a fast comprehension. The analysis done also includes the importance of this approach for the increase of innovation and ground breaking developments, thus requiring further research and practical implementation in order to better understand the implications and limitations of this methodology.

Keywords: Consumer involvement, Products development, Sustainability.

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Authors: A. Hol

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Electronic mediums such as websites, feeds, blogs and social media sites are on a daily basis influencing our decision making, are improving our productivity and are shaping futures of many consumers and service/product providers. This research identifies that both customers and business providers heavily rely on smart phone applications. Based on this, mobile applications available on iTunes store were studied. It was identified that fruit and vegetable related applications used by consumers can broadly be categorized into purchase applications, diaries, tracking health applications, trip farm location and cooking applications. On the other hand, applications used by farmers can broadly be classified as: weather tracking, pests / fertilizer applications and general social media applications such as Facebook. To blur this farmer-consumer application divide, our research utilizes Context Specific eTransformation Framework and based on it identifies characteristic future consumer-farmer applications will need to have so that the current divide can be narrowed and consequently better farmerconsumer supply chain link established.

Keywords: Smart Phone Applications, SME, Farmers, Consumer, Fruit and Vegetable, Technology, Business Innovation.

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Authors: Maia Seturi, Tamari Todua

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Economic growth is seen as the increase in the production capacity of a country. It enables a country to produce more and more material wealth and social benefits. Today, the success of any product on the market is closely related to the issue of branding. The brand is a source of information for a user/consumer, which helps to simplify the choice of goods and reduce consumer risk. The paper studies the role of branding in order to promote Georgian tea brands. The main focus of the research is directed to consumer attitudes regarding Georgian tea brands. The methodology of the paper is based on marketing research. The findings study revealed that the majority of consumers prefer foreign tea brands. The final part of the article presents the main recommendations.

Keywords: Marketing research, customer behavior, brand, successful brand.

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Authors: Somdech Rungsrisawat

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The purpose of this research is to study of consumer perception and understanding consumer buying behavior that related between satisfied and factors affecting the purchasing. Methodology can be classified between qualitative and quantitative approaches for the qualitative research were interviews from middlemen who bought organic vegetables, and middlemen related to production and marketing system. A questionnaire was utilized as a tool to collect data. Statistics utilized in this research included frequency, percentage, mean, standard deviation, and multiple regression analysis. The result show the reason to decision buying motives is Fresh products of organic vegetables is the most significant factor on individuals’ income, with a b of –.143, t = –2.470, the price of organic vegetables is the most significant factor on individuals’ income, with a b of .176, t = 2.561, p value = .011. The results show that most people with higher income think about the organic products are expensive and have negative attitudes towards organic vegetable as individuals with low and medium income level. Therefore, household income had a significant influence on the purchasing decision.

Keywords: Consumer behaviors, Consumer perceptions, Organic Vegetable.

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Authors: P. Ondee, S. Pannarunothai

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In Thailand, both the 1997 and the current 2007 Thai Constitutions have mentioned the establishment of independent organizations as a new mechanism to play a key role in proposing policy recommendations to national decision-makers in the interest of collective consumers. Over the last ten years, no independent organizations have yet been set up. Evidently, nobody could point out who should be key players in establishing provincial independent consumer bodies. The purpose of this study was to find definitive stakeholders in establishing and developing independent consumer bodies in a Thai context. This was a cross-sectional study between August and September 2007, using a postal questionnaire with telephone follow-up. The questionnaire was designed and used to obtain multiple stakeholder assessment of three key attributes (power, interest and influence). Study population was 153 stakeholders associated with policy decision-making, formulation and implementation processes of civil-based consumer protection in pilot provinces. The population covered key representatives from five sectors (academics, government officers, business traders, mass media and consumer networks) who participated in the deliberative forums at 10 provinces. A 49.7% response rate was achieved. Data were analyzed, comparing means of three stakeholder attributes and classification of stakeholder typology. The results showed that the provincial health officers were the definitive stakeholders as they had legal power, influence and interest in establishing and sustaining the independent consumer bodies. However, only a few key representatives of the provincial health officers expressed their own paradigm on the civil-based consumer protection. Most provincial health officers put their own standpoint of building civic participation at only a plan-implementation level. For effective policy implementation by the independent consumer bodies, the Thai government should provide budgetary support for the operation of the provincial health officers with their paradigm shift as well as their own clarified standpoint on corporate governance.

Keywords: Civic participation, civil society, consumerprotection, independent organization, policy decision-making, stakeholder analysis.

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Authors: Bahar Urhan Torun, Havva Nur Tarakcı

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At the present time, online marketing has become the common target of small and full-scale organizations. Today’s humanbeing who has to spend most of their time in front of the computer because of his job, prefers to socialize by internet due to the easy access to technology. So online marketing area expands day by day. All business organizations from the smallest to the biggest are in a race in order to get a cut from the virtual market share in an extreme competitive environment. However these organizations which use the internet to reach more consumers cannot determine their target group accurately, so this is the biggest handicap of online marketing sales nowadays. The aim of this study is to determine some significant elements about need for communicating efficiently with the consumer on the internet on online marketing. The strategies that can be used in order to increase sales and the limitations of virtual environment where cannot be communicated with the consumer face to face are argued in this study’s scope. As a consequence it is thought that to study on this subject because of lacking and also being limited efficiency of researches and outputs. Within this scope suggesting some proposals about how to communicate efficiently with the consumer and also offering the consumers’ demands efficiently is the essential objective of this study.

Keywords: Communication, competition, consumer, online marketing.

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Authors: Norazah Mohd Suki, Norbayah Mohd Suki

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Online shopping enables consumers to search for information and purchase products or services through direct interaction with online store. This study aims to examine the effect of Internet marketing environment, product characteristics, familiarity and confidence, and promotional offers on consumer online shopping behavior. 200 questionnaires were distributed to the respondents, who are students and staff at a public university in the Federal Territory of Labuan, Malaysia, following simple random sampling as a means of data collection. Multiple regression analysis was used as a statistical measure to determine the strength of the relationship between one dependent variable and a series of other independent variables. Results revealed that familiarity and confidence was found to greatly influence consumer online shopping behavior followed by promotional offers. A clear understanding of consumer online shopping behavior can help marketing managers predict the online shopping rate and evaluate the future growth of online commerce.

Keywords: Internet Marketing Environment, Product Characteristics, Multiple Regression Analysis, Malaysia.

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Authors: Khatesiree Sripoothon, Usanee Sengpanich, Rattana Sittioum

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The objective of this study is to examine the factors influencing consumer purchasing decisions about healthy food. This model consists of two latent variables: Consumer Perception relating to NCDs and Consumer Perceived Product Value. The study was conducted in the northern provinces of Thailand, which are popular with tourists and have received support from the government for health and wellness tourism. A survey was used as the data collection method, and the questionnaire was applied to 385 consumers. An accidental sampling method was used to identify the sample. The statistics of frequency, percentage, mean, and structural equation model were used to analyze the data obtained. Additionally, all factors had a significant positive influence on healthy food purchasing decisions (p<0.001) and were predictive of healthy food purchasing decisions at 46.20% (R2=0.462). Also, these findings seem to underline the supposition that consumer perceptions of NCDs and perceived product value are key variables that strengthen the competitive effects of healthy-friendly business entrepreneurs. Moreover, it reduces the countries' public health costs for treating patients with the disease of NCDs in Thailand.

Keywords: healthy food, perceived product value, perception of noncommunicable diseases, purchasing decisions

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Authors: Naser Zourikalatehsamad, Seyed Abdorreza Payambarpour, Ibrahim Alwashali, Zahra Abdolkarimi

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The paper aims to evaluate the effect of online advertising on consumer purchase behavior in Malaysian organizations. The paper has potential to extend and refine theory. A survey was distributed among Students of UTM university during the winter 2014 and 160 responses were collected. Regression analysis was used to test the hypothesized relationships of the model. Result shows that the predictors (cost saving factor, convenience factor and customized product or services) have positive impact on intention to continue seeking online advertising.

Keywords: Consumer purchase, convenience, customized product, cost saving, customization, flow theory, mass communication, online advertising ads, online advertising measurement, online advertising mechanism, online intelligence system, self-confidence, willingness to purchase.

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Authors: Shaya Alshahrani

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Perceived risks play a major role in consumer intentions, behaviors, attitudes, and decisions about online shopping in the KSA. This paper investigates the influence of six perceived risk dimensions on Saudi consumers: product risk, information risk, financial risk, privacy and security risk, delivery risk, and terms and conditions risk empirically. To ensure the success of this study, a random survey was distributed to reflect the consumers’ perceived risk and to enable the generalization of the results. Data were collected from 323 respondents in the Kingdom of Saudi Arabia (KSA): 50 who had never shopped online and 273 who had done so. The results indicated that all six risks influenced the respondents’ perceptions of online shopping. The non-online shoppers perceived financial and delivery risks as the most significant barriers to online shopping. This was followed closely by performance, information, and privacy and security risks. Terms and conditions were perceived as less significant. The online consumers considered delivery and performance risks to be the most significant influences on internet shopping. This was followed closely by information and terms and conditions. Financial and privacy and security risks were perceived as less significant. This paper argues that introducing adequate legal solutions to addressing related problems arising from this study is an urgent need. This may enhance consumer trust in the KSA online market, increase consumers’ intentions regarding online shopping, and improve consumer protection.

Keywords: Perceived risk, consumer protection, online shopping, Saudi Arabia, online contracts, e-commerce.

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Authors: Mikel Alonso López, María Francisca Blasco López, Víctor Molero Ayala

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The present study explains the somatic marker theory of Antonio Damasio, which indicates that when making a decision, the stored or possible future scenarios (future memory) images allow people to feel for a moment what would happen when they make a choice, and how this is emotionally marked. This process can be conscious or unconscious. The development of new Neuromarketing techniques such as functional magnetic resonance imaging (fMRI), carries a greater understanding of how the brain functions and consumer behavior. In the results observed in different studies using fMRI, the evidence suggests that the somatic marker and future memories influence the decision-making process, adding a positive or negative emotional component to the options. This would mean that all decisions would involve a present emotional component, with a rational cost-benefit analysis that can be performed later.

Keywords: Emotions, decision making, somatic marker, consumer´s brain.

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Authors: Omid Ghassemi

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As a by-product of its "cyberspace" status, electronic commerce is global, encompassing a whole range of B2C relationships which need to be approached with solutions provided at a local level while remaining viable when applied to global issues. Today, the European Union seems to be endowed with a reliable legal framework for consumer protection. A question which remains, however, is enforcement of this protection. This is probably a matter of time and awareness from both parties in the B2C relationship. Business should realize that enhancing trust in the minds of consumers is more than a question of technology; it is a question of best practice. Best practice starts with the online service of high street banks as well as with the existence of a secure, user-friendly and cost-effective payment system. It also includes the respect of privacy and the use of smart cards as well as enhancing privacy technologies and fair information practice. In sum, only by offering this guarantee of privacy and security will the consumer be assured that, in cyberspace, his/her interests will be protected in the same manner as in a traditional commercial environment.

Keywords: Consumer, Electronic, Jurisdiction, Payment

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Authors: Subarna Ferdous, Mitsuru Ikeda

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For the shrimp companies to remain relevant to its local and international consumers, they must offer new shrimp product and services. It must work actively not just to create value for the consumer, but to involve the consumer in co-creating value for shrimp product innovation in the market. In this theoretical work, we conceptualize the business concept of value co-creation in the context of shrimp products, and propose a framework of value co-creation for shrimp product innovation in shrimp industries. With guidance on value co-creation in in shrimp industry, and shrimp value chain actors mapped to the co-creation cycle, companies can use the framework to offer new shrimp product to consumer communities. Although customer co-creation is known approach in the world, it is not commonly used by the companies in Bangladesh. This paper makes an original contribution by conceptualizing co-creation and set the examples of best co-creation practices in food sector. The results of the study provide management with guidelines for successful co-creation projects with an innovation- and market-oriented approach. The framework also provides a basis for further research in this area.

Keywords: Bangladesh, shrimp industry, shrimp product, value co-creation.

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Authors: Rafenomananjara Tsinjo Nirina, Tomoo Sekito, Andrianaivoravelona Jaconnet Oliva

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Manufacturing a composite material from post-consumer bottles is an interesting outlet since Madagascar is still facing the challenges of managing plastic waste on the one hand and appropriate waste treatment facilities are not yet developed on the other hand. New waste management options are needed to divert End-Of-Life (EOL) soft plastic wastes from landfills and incineration. Waste polyethylene terephthalate (PET) bottles might be considered as a valuable resource and recovered into polymer concrete. The methodology is easy to implement and appropriate to the local context in Madagascar. This approach will contribute to the production of ecological building materials that might be profitable for the environment and the construction sector. This work aims to study the feasibility of using the post-consumer PET bottles as an alternative binding agent instead of the conventional Portland cement and water. Then, the mechanical and physical properties of the materials were evaluated.

Keywords: PET recycling, polymer concrete, ecological building materials, pollution mitigation.

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Authors: B. Schmid, C. Kexel, E. Djafarova

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Understanding consumers is elementary for practitioners in marketing. Consumers of sports events, the sports spectators, are a particularly complex consumer crowd. In order to identify and define their profiles different segmentation approaches can be found in literature, one of them being multidimensional segmentation. Multidimensional segmentation models correspond to the broad range of attitudes, behaviours, motivations and beliefs of sports spectators, other than earlier models. Moreover, in sports there are some well-researched disciplines (e.g. football or North American sports) where consumer profiles and marketing strategies are elaborate and others where no research at all can be found. For example, there is almost no research on athletics spectators. This paper explores the current state of research on sports spectators segmentation. An in-depth literature review provides the framework for a spectators segmentation in athletics. On this basis, additional potential consumer groups and implications for social media marketing will be explored. The findings are the basis for further research.

Keywords: Multidimensional segmentation, social media, sports marketing, sports spectators segmentation.

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Authors: Norazah Mohd Suki, Norbayah Mohd Suki

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This research aims to examine the influence of mediating effect of corporate social responsibility on the relationship between consumer awareness of green marketing and purchase intentions in the retail setting. Data from 200 valid questionnaires was analyzed using the partial least squares (PLS) approach for the analysis of structural equation models with SmartPLS computer program version 2.0 as research data does not necessarily have a multivariate normal distribution and is less sensitive to sample size than other covariance approaches. PLS results revealed that corporate social responsibility partially mediated the link between consumer awareness of green marketing and purchase intentions of the product in the retail setting. Marketing managers should allocate a sufficient portion of their budget to appropriate corporate social responsibility activities by engaging in voluntary programs for positive return on investment leading to increased business profitability and long run business sustainability. The outcomes of the mediating effects of corporate social responsibility add a new impetus to the growing literature and preceding discoveries on consumer green marketing awareness, which is inadequately researched in the Malaysian setting. Direction for future research is also presented.

Keywords: Green marketing awareness, corporate social responsibility, partial least squares, purchase intention.

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Authors: Tithdanin Chav, Phichhang Ou

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The study is about the e-banking consumer behavior of five major banks in Cambodia. This work aims to examine the relationships among job relevance, trust, mobility, perceived ease of use, perceived usefulness, attitude toward using, and intention to use of internet banking and apps. Also, the research develops and tests a conceptual model of intention to use internet banking by integrating the Technology Acceptance Model (TAM) and job relevance, trust, and mobility which were supported by Theory of Reasoned Action (TRA) and Theory of Planned Behavior (TPB). The proposed model was tested using Structural Equation Modeling (SEM), which was processed by using SPSS and AMOS with a sample size of 250 e-banking users. The results showed that there is a significant positive relationship among variables and attitudes toward using internet banking, and apps are the most factor influencing consumers’ intention to use internet banking and apps with the importance level in SEM 0.82 accounted by 82%. Significantly, all six hypotheses were accepted.

Keywords: Bank Apps, consumer intention, internet banking, technology acceptance model.

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Authors: Choon Ling Sia, Yani Shi, Jiaqi Yan, Huaping Chen

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With the development of the Internet, E-commerce is growing at an exponential rate, and lots of online stores are built up to sell their goods online. A major factor influencing the successful adoption of E-commerce is consumer-s trust. For new or unknown Internet business, consumers- lack of trust has been cited as a major barrier to its proliferation. As web sites provide key interface for consumer use of E-Commerce, we investigate the design of web site to build trust in E-Commerce from a design science approach. A conceptual model is proposed in this paper to describe the ontology of online transaction and human-computer interaction. Based on this conceptual model, we provide a personalized webpage design approach using Bayesian networks learning method. Experimental evaluation are designed to show the effectiveness of web personalization in improving consumer-s trust in new or unknown online store.

Keywords: Trust, Web site design, Human-ComputerInteraction, E-Commerce, Design science, Bayesian network.

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Authors: Pongsatorn Tantrabundit, Lersak Phothong, Ong-art Chanprasitchai

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Due to the emergence of the Internet, it has extended the traditional Word-of-Mouth (WOM) to a new form called “Electronic Word-of-Mouth (eWOM).” Unlike traditional WOM, eWOM is able to present information in various ways by applying different components. Each eWOM component generates different effects on online consumer behavior. This research investigates the effects of Webcare (responding message) from product/ service providers on negative eWOM by applying two types of products (search and experience). The proposed conceptual model was developed based on the combination of the stages in consumer decision-making process, theory of reasoned action (TRA), theory of planned behavior (TPB), the technology acceptance model (TAM), the information integration theory and the elaboration likelihood model. The methodology techniques used in this study included multivariate analysis of variance (MANOVA) and multiple regression analysis. The results suggest that Webcare does slightly increase Thai online consumer’s perceptions on perceived eWOM trustworthiness, information diagnosticity and quality. For negative eWOM, we also found that perceived eWOM Trustworthiness, perceived eWOM diagnosticity and quality have a positive relationship with eWOM influence whereas perceived valence has a negative relationship with eWOM influence in Thai online consumers.

Keywords:

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Authors: Saima Hirani, Emmanuela Ojukwu, Nilanga Aki Bandara

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Mental health challenges that begin during the youth age period may continue across the entire life course. One way to support youth mental health is to encourage youth engagement in prosocial activities. This study aimed to explore youth’s perceptions about helping others and mental wellbeing, barriers, and enablers for youth to initiate and continue prosocial activities, and strategies for developing the attribute of helping others in youth. We conducted a qualitative study using semi-structured, virtual interviews with 18 young individuals (aged 16-24 years) living in Vancouver, British Columbia, Canada. Youth perceived helping others as a source of feeling peace and calm, finding meaning in life, experiencing social connection and promoting self-care, and relieving stress. Participants reported opportunities to learn new skills, the role of religion, social connections, previous positive experiences, and role modeling as enablers for their prosocial behavior. Heavy time commitment, negative behavior from others, self-doubt, and late exposure to such activities were considered barriers by youth when participating in prosocial activities. Youth also brought forward key recommendations for engaging youth in helping others. The findings of this study support the notion that youth have positive experiences when engaging in helping others and that involving young people in prosocial activities could be used as a protective intervention for promoting youth mental health and overall wellbeing.

Keywords: Helping others, prosocial behavior, youth, mental wellbeing.

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Authors: Yasin Bilim, Alaaddin Başoda

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The recent growth of internet applications on hospitality and tourism provokes on-line consumer comments and reviews. Many researchers and practitioners have named this enormous potential as “e-WOM (electronic word of mouth)”. Travel comments are important experiential information for the potential travellers. Many researches have been conducted to analyse the effects of e-WOM on hotel consumers. Broadly quantitative methods have been used for analysing online comments. But, a few studies have mentioned about the positive practical aspects of the comments for hotel marketers. The study aims to show different usage and effects of hotel consumers’ comments. As qualitative analysis method, grounded theory, content and discourse analysis, were used. The data based on the 10 resort hotel consumers’ on-line comments. Results show that consumers tend to write comments about service person, rooms, food services and pool in their online space. These indicators can be used by hotel marketers as a marketing information tool.

Keywords: Comments, E-WOM, hotel consumer, qualitative.

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Authors: Mikhail V. Khachaturyan, Inga A. Koryagina, Maria Nikishova

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The study investigates the impact of the ongoing financial crisis, started in the 2^nd half of 2014, on marketing budgets spent by Fast-moving consumer goods companies. In these conditions, special importance is given to efficient possessory risk management systems. The main objective for establishing and developing possessory risk management systems for FMCG companies in a crisis is to analyze the data relating to the external environment and consumer behavior in a crisis. Another important objective for possessory risk management systems of FMCG companies is to develop measures and mechanisms to maintain and stimulate sales. In this regard, analysis of risks and threats which consumers define as the main reasons affecting their level of consumption become important. It is obvious that in crisis conditions the effective risk management systems responsible for development and implementation of strategies for consumer demand stimulation, as well as the identification, analysis, assessment and management of other types of risks of economic security will be the key to sustainability of a company. In terms of financial and economic crisis, the problem of forming and developing possessory risk management systems becomes critical not only in the context of management models of FMCG companies, but for all the companies operating in other sectors of the Russian economy. This study attempts to analyze the specifics of formation and development of company possessory risk management systems. In the modern economy, special importance among all the types of owner’s risks has the risk of reduction in consumer activity. This type of risk is common not only for the consumer goods trade. Study of consumer activity decline is especially important for Russia due to domestic market of consumer goods being still in the development stage, despite its significant growth. In this regard, it is especially important to form and develop possessory risk management systems for FMCG companies. The authors offer their own interpretation of the process of forming and developing possessory risk management systems within owner’s management models of FMCG companies as well as in Russian economy in general. Proposed methods and mechanisms of problem analysis of formation and development of possessory risk management systems in FMCG companies and the results received can be helpful for researchers interested in problems of consumer goods market development in Russia and overseas.

Keywords: FMCG companies, marketing budget, risk management, owner, Russian economy, organization, formation, development, system.

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Authors: Laimona Sliburyte

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Today advertising is actively penetrating into many spheres of our lives. We cannot imagine the existence of a lot of economic activities without advertising. That mostly concerns trade and services. Everyone of us should look better into the everyday communication and carefully consider the amount and the quality of the information we receive as well as its influence on our behaviour. Special attention should be paid to the young generation. Theoretical and practical research has proved the ever growing influence of information (especially the one contained in advertising) on a society; on its economics, culture, religion, politics and even people-s private lives and behaviour. Children have plenty of free time and, therefore, see a lot of different advertising. Though education of children is in the hands of parents and schools, advertising makers and customers should think with responsibility about the selection of time and transmission channels of child targeted advertising. The purpose of the present paper is to investigate the influence of advertising upon consumer views and behaviour of children in different age groups. The present investigation has clarified the influence of advertising as a means of information on a certain group of society, which in the modern information society is the most vulnerable – children. In this paper we assess children-s perception and their understanding of advertising.

Keywords: Advertising, children, children targeted advertising, consumer socialization process.

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Authors: M. K. Witek-Hajduk, T. M. Napiórkowski

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A number of studies discussed the topic of benefits of retailers-manufacturers cooperation and coopetition. However, there are only few publications focused on the benefits of cooperation and coopetition between retailers and their suppliers of durable consumer goods; especially in the context of business model of cooperating partners. This paper aims to provide a clustering approach to segment retailers selling consumer durables according to the benefits they obtain from their cooperation with key manufacturers and differentiate the said retailers’ in term of the business models of cooperating partners. For the purpose of the study, a survey (with a CATI method) collected data on 603 consumer durables retailers present on the Polish market. Retailers are clustered both, with hierarchical and non-hierarchical methods. Five distinctive groups of consumer durables’ retailers are (based on the studied benefits) identified using the two-stage clustering approach. The clusters are then characterized with a set of exogenous variables, key of which are business models employed by the retailer and its partnering key manufacturer. The paper finds that the a combination of a medium sized retailer classified as an Integrator with a chiefly domestic capital and a manufacturer categorized as a Market Player will yield the highest benefits. On the other side of the spectrum is medium sized Distributor retailer with solely domestic capital – in this case, the business model of the cooperating manufactrer appears to be irreleveant. This paper is the one of the first empirical study using cluster analysis on primary data that defines the types of cooperation between consumer durables’ retailers and manufacturers – their key suppliers. The analysis integrates a perspective of both retailers’ and manufacturers’ business models and matches them with individual and joint benefits.

Keywords: Business model, cooperation, cluster analysis, retailer-manufacturer relationships.

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Authors: Warunpun Kongsom, Chaiwat Kongsom

Abstract:

The objective of this study was to investigate the awareness, knowledge and consumer behavior towards organic products in Thailand. For this study, a purposive sampling technique was used to identify a sample group of 2,575 consumers over the age of 20 years who intended or made purchases from 1) green shops; 2) supermarkets with branches; and, 3) green markets. A questionnaire was used for data collection across the country. Descriptive statistics were used for data analysis. The results showed that more than 92% of consumers were aware of organic agriculture, but had less knowledge about it. More than 60% of consumers knew that organic agriculture production and processing did not allow the use of chemicals. And about 40% of consumers were confused between the food safety logo and the certified organic logo, and whether GMO was allowed in organic agriculture practice or not. In addition, most consumers perceived that organic agricultural products, good agricultural practice (GAP) products, agricultural chemicals free products, and hydroponic vegetable products had the same standard. In the view of organic consumers, the organic Thailand label was the most seen and reliable among various organic labels. Less than 3% of consumers thought that the International Federation of Organic Agriculture Movements (IFOAM) Global Organic Mark (GOM) was the most seen and reliable. For the behaviors of organic consumers, they purchased organic products mainly at the supermarket and green shop (55.4%), one to two times per month, and with a total expenditure of about 200 to 400 baht each time. The main reason for buying organic products was safety and free from agricultural chemicals. The considered factors in organic product selection were price (29.5%), convenience (22.4%), and a reliable certification system (21.3%). The demands for organic products were mainly rice, vegetables and fruits. Processed organic products were relatively small in quantity.

Keywords: Consumer behavior, consumer knowledge, organic products, Thailand.

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Authors: Kgatla T.E., Howard S.S, Hiss D.C.

Abstract:

Prickly pear juice has received renewed attention with regard to the effects of processing and preservation on its sensory qualities (colour, taste, flavour, aroma, astringency, visual browning and overall acceptability). Juice was prepared by homogenizing fruit and treating the pulp with pectinase (Aspergillus niger). Juice treatments applied were sugar addition, acidification, heat-treatment, refrigeration, and freezing and thawing. Prickly pear pulp and juice had unique properties (low pH 3.88, soluble solids 3.68 oBrix and high titratable acidity 0.47). Sensory profiling and descriptive analyses revealed that non-treated juice had a bitter taste with high astringency whereas treated prickly pear was significantly sweeter. All treated juices had a good sensory acceptance with values approximating or exceeding 7. Regression analysis of the consumer sensory attributes for non-treated prickly pear juice indicated an overwhelming rejection, while treated prickly pear juice received overall acceptability. Thus, educed favourable sensory responses and may have positive implications for consumer acceptability.

Keywords: Consumer acceptability, descriptive test, Prickly pear juice

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Authors: Mikel Alonso López

Abstract:

This paper explores, in depth, the idea that emotions are present in all consumer decision making processes, meaning that purchase decisions have never been purely cognitive or as they traditionally have been defined, rational. Human beings, in all kinds of decisions, has "always" used neural systems related to emotions along with neural systems related to cognition, regardless of the type of purchase or the product or service in question. Therefore, all purchase decisions are, at the same time, cognitive and emotional. This paper presents an analysis of the main contributions of researchers in this regard.

Keywords: Emotions, decision making, consumer behavior.

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