CONSUMER RESPONSES TO ONLINE FOOD RETAILING

Consumer behavior in the context of online food retail channels is analyzed. The research is a follow-up to an earlier study conducted in early 1998 on consumer response to online food shopping. In the 1998 study (N=243), a majority of the sample (51 percent) were "new" users of online food shopping (<6 months); 35 percent were "intermediate" users (1-6 months); and only 14 percent were "experienced" users (>6 months). In contrast, the new user segment in the follow-up study (N=412) was 29 percent; the intermediate segment was 28 percent; and the experienced group was 43 percent. Demographic profiles and shopping behaviors of respondents in the two studies are compared. Using cluster analysis, four distinct segments of online food shoppers are identified. Marketing strategy implications for online retailers and store retailers are discussed.Consumer/Household Economics, Research and Development/Tech Change/Emerging Technologies,

FUNCTIONAL FOODS: CONSUMER ISSUES AND FUTURE CHALLENGES

Scientific progress in understanding the relationship of diet to disease, along with increasing health-care costs and consumersÂ’' desires to make healthy lifestyle improvements, provides a significant impetus for the development of novel foods with health benefits (functional foods). Combining sound science, effective and balanced communication strategies, and changes in the regulatory environment, important benefits could be realized for the entire food system, including producers, food manufacturers, retailers, and consumers.Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

HOW SOY LABELING INFLUENCES PREFERENCE AND TASTE

Using a “Phantom Ingredient” taste test, this article demonstrates how the use of soy labels and health claims on a package negatively biased taste perceptions and attitudes toward a food erroneously thought to contain soy. Consumers who ate products which mentioned soy on the package described the taste more grainy, less flavorful, and as having a strong aftertaste compared to those who ate the product but saw no soy label. Yet, while putting “soy” on a package negatively influenced taste-conscious consumers, when combined with a health claim, it improved attitudes among consumers who are health-conscious, natural food lovers, or dieters. Our results and discussion provide better direction for researchers who work with ingredient labeling as well as for marketers who work with soybean products.Food Consumption/Nutrition/Food Safety,

FUNCTIONAL FOODS: CONSUMER ISSUES AND FUTURE CHALLENGES

Scientific progress in understanding the relationship of diet to disease, along with increasing health-care costs and consumers' desires to make healthy lifestyle improvements, provides a significant impetus for the development of novel foods with health benefits (functional foods). Combining sound science, effective and balanced communication strategies, and changes in the regulatory environment, important benefits could be realized for the entire food system, including producers, food manufacturers, retailers, and consumers

WHY DO CONSUMERS CROSS-SHOP BETWEEN DIFFERENT TYPES OF FOOD RETAIL OUTLETS?

This research analyzed consumer cross-shopping between supermarkets and nontraditional food retail outlets and examined reasons for cross-shopping. Focus groups were conducted in two major metropolitan markets and one medium-size market. Participants indicated they add nontraditional retail formats to the existing mix of stores at which they shop. Despite the increased number of types of food retail outlets they patronized, focus group participants said they didn't feel they spent more time grocery shopping at the multiple formats compared to shopping in a traditional supermarket

EXPANSION OF NON-TRADITIONAL FOOD RETAIL OUTLETS: EFFECT ON CONSUMER WELFARE

In this study three different methods of data collection (telephone interviews/focus groups/on-line consumer surveys) were used to assess the impact of non-traditional retail outlets on consumer welfare. We analyzed consumer cross patronage between supermarkets and nontraditional food retail channels, examined reasons for cross patronage, and made a preliminary assessment of consumer response to one of the newest retail channels: on-line food shopping. Telephone interviews were conducted in a medium-size market with 300 individuals and focus groups were conducted in two major metropolitan markets and one medium-size market. The on-line survey consisted of responses from 243 on-line food shoppers in six different markets. High levels of cross patronage were identified between supermarkets and non-traditional food retail outlets with the highest between traditional supermarkets and supercenter formats. A primary objective of the focus group interviews was to learn how consumers incorporate nontraditional retail formats into their grocery shopping. Focus group participants indicated they add these formats to the existing mix of stores from which they shop. Despite the increased number of types of food retail outlets they patronize, most focus group participants said they don’t feel they spend more time grocery shopping now than before. None of the focus group participants had purchased groceries from on-line services. Therefore, we collaborated with a major supermarket chain offering on-line grocery shopping to survey consumers that were actually buying groceries on-line. Convenience was the primary reason given for shopping online but a significant segment mentioned physical and/or constraint issues as a major factor. A fairly small but interesting group said their primary reason for using on-line services was to avoid going to the grocery store because they “hate shopping” and “hate grocery stores.” Of all the retail outlets examined in this three-part study, on-line shopping appears to meet the specific needs of consumers in a way that is different from that of the other retail outlets. Implications for consumers, retailers, and public policy makers are discussed

CONSUMER RESPONSES TO ONLINE FOOD RETAILING

Consumer behavior in the context of online food retail channels is analyzed. The research is a follow-up to an earlier study conducted in early 1998 on consumer response to online food shopping. In the 1998 study (N=243), a majority of the sample (51 percent) were "new" users of online food shopping (6 months). In contrast, the new user segment in the follow-up study (N=412) was 29 percent; the intermediate segment was 28 percent; and the experienced group was 43 percent. Demographic profiles and shopping behaviors of respondents in the two studies are compared. Using cluster analysis, four distinct segments of online food shoppers are identified. Marketing strategy implications for online retailers and store retailers are discussed