EAT BUYERS' CHOICE PROCESSES By ANGELA KAY COUNTISS Bachelor of Science ...

153 Pages·2014·3.66 MB·English

~EAT BUYERS' CHOICE PROCESSES
By
ANGELA KAY COUNTISS
II
Bachelor of Science
Oklahoma State University
Stillwater, Oklahoma
1990
Submitted to the Faculty of the
Graduate College of the
Oklahoma State University
in partial fulfillment of
the requirements for
the Degree of
MASTER OF SCIENCE
July, 1992
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MEAT BUYERS' CHOICE PROCESSES
Thesis Approved:
ii
ACKNOWLEDGEMENTS
Even though my name is mentioned as the researcher and writer, this
thesis could not have been started and completed without the help of many
individuals. First, I would like to thank my parents, Sam and Glenda Countiss,
and my sister, Amy, for their financial and emotional support. I could not have
made it through my undergraduate and graduate studies without their
encouragement and faith in me.
Next, I would like to thank my adviser, Dr. Daniel S. Tilley, for his patience
and for providing me the opportunity to conduct research on and write a
marketing oriented thesis. I would also like to thank my committee members,
Dr. Clem Ward and Dr. Phil Kenkel, for their assistance with my thesis. Special
thanks and appreciation go to my office mate, Kellie Curry, for her friendship
and encouragement.
I would also like to thank the Agricultural Economics Graduate Studies
Committee for offering me the assistantship. A special thank you goes to Betsy
Little for typing this thesis and to Margaret Mitchell for the terrific job of preparing
the surveys and transcribing the protocols.
Further, I am indebted to the numerous survey respondents and protocol
participants for their assistance with my thesis research. There would have
been no thesis without their participation. Thanks, additionally, goes to Dr.
William Branch for his assistance in collecting the surveys.
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TABLE OF CONTENTS
Chapter Page
I. INTRODUCTION ..................................................................................... 1
Economic Psychology ........................................... ........................ 2
The Choice Stage ... .. . .. . . .. .. .. . .. .. . . . .. .. .. .. .. .. . . . . .. .. . .. . . . .. .. .. . . . .. .. . . . . .. .. . .. 4
Target Marketing ............................................................................ 5
Systemwide Efficiency .................................................................. 6
Objectives ......................... ,. . . . . . .. .. . . .. .. . . .. . .. . .. .. . . .. . . .. . .. . .. .. . . .. . .. . . . .. .. . .. . 7
Organization of Thesis .................................................................. 7
II. THEORY AND RELEVANT LITERATURE .......................................... 8
Involvement .. .. ........... .... ...... .... . .. .. .. ........... ..... .... .. . .... ..... ..... ..... .. .. .. . 8
High-Involvement Choice Models .............................................. 9
Compensatory Models ................................. ......... ..... .......... 9
Phased Models ..................................................................... 1 0
Low-Involvement Choice Models ............................................... 11
The Conjunctive Rule........................................................... 12
The Disjunctive Model ......................................................... 13
Elimination-By-Aspects .. ... .... ............... .... ... ... .. . .. . ..... ... .. .. .. . . 1 3
The Lexicographic Model ... .. . ........ ..... .. ............. .. ....... .. .. . .. .. 1 4
Phased Models ..................................................................... 15
Prior Research on Choice Processes .............. ................. ......... 15
Task Complexity.................................................................... 15
Simplifying vs. Optimizing ................................................... 16
Amount of Information .......................................................... 1 7
Fam1hanty ............................................................................... 18
Prior Research on Industrial Buying Choice Processes ......... 19
Holdren's Theory of the Multiproduct Firm ................................ 23
Ill. DATNPROCEDURES AND RESULTS/
ANALYTICAL PROCESSES ................................................................ 32
. .
Q
uest1onna1re ................................................................................ . 32
Restaurant and Institutional Buyers .................................. . 33
Importers and Exporters ..................................................... . 34
Retailers and Wholesalers ................................................. . 35
Protocol Analysis .......................................................................... . 36
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Chapter Page
Questionnaire Results ............. .................................. .. .................. 38
Restaurant and Institutional Buyers ...... ...... .......... ... ... ... .... 38
Meat Information ................................................................... 40
Importers and Exporters ...................................................... 42
Meat Information ................................................................... 43
Retailers and Wholesalers .................................................. 44
Meat Information ................................................................... 45
Attribute and Chi-Square Discussion ........................................ 4 7
Marketing and Advertising Support ............................ ....... 48
Quality of Packaging ............................................................ 51
Vendor Reputation/Past Experience with Vendor .......... 52
Preparation Method and Time............................................ 54
Payment Terms ..................................................................... 55
Pricing Competitiveness of Like Items .............................. 56
Customer Acceptance.......................................................... 57
Handling, Distribution and Storage ................................... 59
Delivering Frequency ........................................................... 59
Product Quality ...................................................................... 60
Protocol Results ............... ............................ ............. .............. ....... 61
Marketing Strategies Targeted at Those Who
Accepted the Longmont Product ................. ... .............. 62
Marketing Strategies Targeted at Those Who
Rejected the Longmont Product ................................... 64
Marketing Strategies Targeted at Those Who
Accepted the Excel Product .......................................... 65
Marketing Strategies Targeted at Those Who
Rejected the Excel Product ........................................... 67
IV. CONCLUSIONS ..................................................................................... 69
Limitations ....................................................................................... 71
Future Research............................................................................. 72
REFERENCES........................................................................................................ 7 4
APPENDIXES .. .. .. .... .. .. . .. .. .. .. .. ............. ... . .. .. . .. . . . ..... .. ... ............ ... .. . .. . . . . .. . .. . .. . . . . . .. .... 79
APPENDIX A - RESTAURANT AND INSTITUTIONAL
MEAT BUYERS SURVEY ...................................... 80
APPENDIX B - IMPORTER/EXPORTER SURVEY ......................... 82
APPENDIX C- RETAILER/WHOLESALER SURVEY .................... 84
APPENDIX D- LONGMONT CONSUMER PACKAGED
FROZEN CHUNKS LITE SUPREME
GROUND TURKEY.................................................... 87
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Chapter Page
APPENDIX E- EXCEL TOP SIRLOIN STEAK ................................ 89
APPENDIX F- TABLE OF MARKET BY MTGSUP ......................... 91
APPENDIX G- TABLE OF MARKET BY PRODQUAL .................... 93
APPENDIX H- TABLE OF MARKET BY QUALPACK .................... 95
APPENDIX 1- TABLE OF MARKET BY HANDDIST ..................... 97
APPENDIXJ- TABLE OF MARKET BY CUSTACCT .................... 99
APPENDIX K- TABLE OF MARKET BY PRICCOMP ..................... 101
APPENDIX L- TABLE OF MARKET BY DELFREQ ....................... 103
APPENDIX M- TABLE OF MARKET BY PAYTERMS .................... 105
APPENDIX N- TABLE OF MARKET BY PREPMETH .................... 107
APPENDIXO- TABLE OF MARKET BY VENDREP ....................... 1 09
APPENDIX P- RETAILER A............................................................... 111
APPENDIX Q- RETAILER B............................................................... 114
APPENDIX R- RETAILER C................................................................ 11 7
APPENDIX S- RETAILER D................................................................ 120
APPENDIXT- RETAILER E................................................................ 124
APPENDIX U- RETAILER F................................................................ 127
APPENDIX V- WHOLESALER G....................................................... 132
APPENDIXW- RETAILER H................................................................ 135
APPENDIX X- RETAILER 1.................................................................. 141
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LIST OF TABLES
Table Page
I. Meal Prices ........................................................ ;.................................. 40
II. Attributes Considered Important by Restaurant and
Institutional Meat Buyers ................................................................ 41
Ill. Attributes Considered Important by Importers and Exporters ...... 43
IV. Attributes Considered Important by Retailers and
Wholesalers ...... ..................... ........ ..... .... ....... ...... ...... ... .. ... .. ..... .... .... 46
V. Statistical Data ..................................................................................... 49
VI. Chi-Square Table for Preparation Method and Time ................... 50
VII. Longmont Lite Supreme Ground Turkey ......................................... 62
VIII. Excel Top Sirloin Steak ...................................................................... 66
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LIST OF FIGURES
Figure Page
1. Systemwide Efficiency in the Meat Marketing System ......................... 7
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CHAPTER I
INTRODUCTION
Fresh, frozen, and processed consumer meat product innovation is
occurring. Food manufacturers are attempting to get their products past the
introductory stage and into the growth stage of the product lifecycle. In 1990,
13,000 new grocery product introductions were competing for shelf space, and
between 1989 and 1990, the number of new product introductions increased by
nearly 10 percent (Gallo, 1991 ). However, the failure rate is as high as 80
percent for new product introductions in the packaged goods industry
(Montgomery, 1975). Between 1982 and 1990, 75,000 new items were taken
off store shelves within one year (Gallo, 1991 ).
Due to competition and high product development costs, information that
would help manufacturers increase the probability of product success would
have great value. In particular, the choice processes that import, export, retail,
wholesale, hospital, restaurant, and institutional meat buyers use when
evaluating the characteristics of new meat products would be of great interest to
new product manufacturers. Meat buyers' primary responsibilities are to listen
to supplier presentations, store managers, and customers, and to manage the
meat product line, which encompasses accepting and rejecting new meat items.
Special attention has to be paid to wholesalers and retailers who serve as the
"gatekeepers to the supermarket shelves" because they match the products
supplied by manufacturers with the demands of consumers (Mclaughlin & Rae,
1990). Meat manufacturers, who are interested in selling their meat items in
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