Integrating Routine, Variety Seeking and Compensatory Choice in a Utility Maximizing Framework

Given the large number of choices that consumers make each day it seems likely that they will generally adopt decision strategies that minimize cognitive effort, particularly with low price products such as most items found in a supermarket. One such strategy may be to simply choose what has been chosen in the past, i.e. to fall into a pattern of routine choices or decisions. In contrast, there may be preferences for variety in markets for low price, highly differentiated goods. We develop a conceptual and empirical model of routine choice, and the factors that result in transitions to two strategies other than routine selection, to wit, utility maximizing choice among available alternatives and a variety seeking strategy. The empirical approach we employ provides a mechanism for the examination of panel data that avoids the state dependence issues present in most applications to these types of data. We apply this framework to the choice of two food products that illustrate the heterogeneity across types of products in decision strategies and routine choice patterns.Choice modeling, routine behavior, variety‐seeking, panel data, Consumer/Household Economics, Demand and Price Analysis, Institutional and Behavioral Economics, D12, D03, C25,

Experimental auctions, collective induction and choice shift: willingness-to-pay for rice quality in Senegal

We propose a collective induction treatment as an aggregator of information and preferences, which enables testing whether consumer preferences for food quality elicited through experimental auctions are robust to aggregation. We develop a two-stage estimation method based on social judgement scheme theory to identify the determinants of social influence in collective induction. Our method is tested in a market experiment aiming to assess consumers willingness-to-pay for rice quality in Senegal. No significant choice shift was observed after collective induction, which suggests that consumer preferences for rice quality are robust to aggregation. Almost three quarters of social influence captured by the model and the variables was explained by social status, market expertise and information

Consumer attitudes towards production diseases in intensive production systems

Many members of the public and important stakeholders operating at the upper end of the food chain, may be unfamiliar with how food is produced, including within modern animal production systems. The intensification of production is becoming increasingly common in modern farming. However, intensive systems are particularly susceptible to production diseases, with potentially negative consequences for farm animal welfare (FAW). Previous research has demonstrated that the public are concerned about FAW, yet there has been little research into attitudes towards production diseases, and their approval of interventions to reduce these. This research explores the public’s attitudes towards, and preferences for, FAW interventions in five European countries (Finland, Germany, Poland, Spain and the UK). An online survey was conducted for broilers (n = 789), layers (n = 790) and pigs (n = 751). Data were analysed by means of Kruskal-Wallis ANOVA, exploratory factor analysis and structural equation modelling. The results suggest that the public have concerns regarding intensive production systems, in relation to FAW, naturalness and the use of antibiotics. The most preferred interventions were the most “proactive” interventions, namely improved housing and hygiene measures. The least preferred interventions were medicine-based, which raised humane animal care and food safety concerns amongst respondents. The results highlighted the influence of the identified concerns, perceived risks and benefits on attitudes and subsequent behavioural intention, and the importance of supply chain stakeholders addressing these concerns in the subsequent communications with the public

The “Made in USA poultry label” and consumer choice in Ghana

Market survey data from Ghana was used to gain understanding of consumers’ attitudes, preferences for foreign food products, and the role product country of origin plays in the demand for poultry. Intention to purchase poultry from the US was anchored on product packaging, quality, expiry date and country of origin.Country of origin, consumer preference, poultry demand, Ghana, US exports., Agribusiness, Industrial Organization, Marketing, Q13, Q17,

Consumer motivation and willingness to pay for “safer” vegetables in Ghana

This document is the Accepted Manuscript version of the following article: Iddrisu Yahaya, and Fred A. Yamoah, (2015) "Consumer motivation and willingness to pay for “safer” vegetables in Ghana", British Food Journal, Vol. 117 Issue: 3, pp.1043-1065, the version of record is available online at doi: 10.1108/BFJ-10-2013-0296. © Emerald Group Publishing Limited 2015 Published by Emerald Group Publishing Limited.Purpose – The purpose of this paper is to assess consumer motivation and willingness to pay (WTP) for “safer” vegetables from the use of non-treatment options of wastewater use in urban/peri-urban vegetable production. Design/methodology/approach – As a theoretical basis, consumer theory of maximizing utility being an indicator of individual preference was examined through choice experiment (CE) method to measure the WTP for value of safety within the context of health reduced risk (pathogen reduction) of illness. WTP was tested empirically using survey data from 650 households in the two largest cities in Ghana (Accra and Kumasi) that are characterized by a number of well-established vegetable producers who use wastewater in their production and a large urban and peri-urban vegetable consumer market. Findings – Experience of vegetable borne diseases drives the need for safer vegetables and income and gender are key demographic factors influencing WTP. It was further found that consumers are willing to pay an average amount of GH¢ 4.7 ($2.40) per month for a technology change that would result in the production of “safer” vegetables. Research limitations/implications – Understanding WTP offers insight into consumer concerns, behaviour and their readiness to pay for safer vegetable options. However, a further consideration of the impact of the combinations of the various non-treatment options on pathogen reduction and the assessment of the financial viability of each option will collectively ensure an efficient and cost-effective implementation of the technologies. Practical implications – WTP insight gained has implications for vegetable production, marketing and public health policy. The understanding from the findings forms a solid basis to canvass for certification system for urban/peri urban vegetables. The information provided also helps to formulate effective public education on the safety of vegetables. Originality/value – Measuring WTP for safer vegetables by Ghanaian urban/peri-urban consumers is novel. The CE approach is robust and the findings can inform vegetable production and marketing decisions as well as public health policy formulation.Peer reviewedFinal Accepted Versio

Administration of Sales Force Tasks under Field Conditions

There are two perspectives on controlling the performance of salespeople - an outcome based perspective and behavior based perspective. The former process focuses on the objective measures of results while the latter perspective on performance control of salespeople incorporates complex and often subjective assessments of the attributes of sales people. A balance of these implications provides strong support for laying controls and evaluating the performance of sales people in varied socio-cultural selling situations. This study has been conducted in Mexico with which discusses the impact of sales territory design and compensation to salespeople as predictors of performance of sales unit effectiveness.Sales force organization, selling behavior, task administration, sales performance evaluation, territory management, outcome performance, sales territory, compensation, sales unit effectiveness, organizational efficiency

The Effect of Consumer Characteristics and Lifestyle toward Purchase Decision

Coffee is a significant commodity in terms of both consumption and production. As a result, marketing interactions with systems and activities must be capable of bringing consumers closer to the items and corporate brand names offered. Urban neighborhoods are currently undergoing lifestyle adjustments. The consumption patterns exhibited by certain cohorts of persons who frequent coffee establishments might be viewed as a reflection of contemporary societal norms and values. The aim of this research is to determine the characteristics of customers and to examine the impact of the consumer lifestyle connected with XYZ Coffee on consumer buying decisions. The research employed a non-probability sampling method, especially convenience sampling, consisting of a sample size of 271 participants. The data were analyzed using descriptive statistics and Structural Equation Modeling (SEM). The study's findings indicate that the target demographic for XYZ Coffee products consists of economically active individuals with adequate income and substantial expenditures on food and beverages. This consumer segment is characterized by a favorable lifestyle and image, making them the primary purchasers of XYZ Coffee products

The Role of the Mangement Sciences in Research on Personalization

We present a review of research studies that deal with personalization. We synthesize current knowledge about these areas, and identify issues that we envision will be of interest to researchers working in the management sciences. We take an interdisciplinary approach that spans the areas of economics, marketing, information technology, and operations. We present an overarching framework for personalization that allows us to identify key players in the personalization process, as well as, the key stages of personalization. The framework enables us to examine the strategic role of personalization in the interactions between a firm and other key players in the firm's value system. We review extant literature in the strategic behavior of firms, and discuss opportunities for analytical and empirical research in this regard. Next, we examine how a firm can learn a customer's preferences, which is one of the key components of the personalization process. We use a utility-based approach to formalize such preference functions, and to understand how these preference functions could be learnt based on a customer's interactions with a firm. We identify well-established techniques in management sciences that can be gainfully employed in future research on personalization.CRM, Persoanlization, Marketing, e-commerce,

Estimating the Value Consumers Derive from Product Labeling

Firms spend billions of dollars annually on new product and label designs in order to attract and retain customers. The issue of labeling is also important to government agencies and nonprofit labeling organizations. For example, the U.S. Food and Drug Administration has an organizational body in its Office of Nutritional Products that deals with issues of food and dietary supplement labeling. The U.S. Department of Agriculture’s Food Safety and Inspection Service also deals with labeling through its Labeling and Consumer Protection Staff. These government agencies spend millions of dollars trying to ensure that food labels adequately inform consumers. One issue that has not been examined is the welfare difference to consumers from alternative labeling schemes/regulations. It seems likely that different labels would differ in effectiveness at informing consumers.

A Super Efficiency Model for Product Evaluation

This study applies a Super Efficiency Data Envelopment Analysis model to evaluate the efficiency of cars sold on the German market. Efficiency is conceptualized from a customers' perspective as a ratio of outputs that customers obtain from a product relative to inputs that customers have to invest. The output side is modeled as a set of customer-relevant parameters such as performance attributes but also nonfunctional benefits and brand strength. More than 60% of the cars are efficient but the analysis shows marked differences regarding their degree of Super Efficiency. Super Efficiency indicates the extent to which the efficient products exceed the efficient frontier formed by other efficient units. Based on the parameter weights, segments of cars with a particular mix of characteristics can be identified; cars with a comparative advantage relative to their competitors who provide the same mix are characterized as the reference points within a given segment.Customer Value, Data Envelopment Analysis (DEA), Marketing Efficiency, Product Marketing, Super Efficiency Model