The influence of dietary benefits in customer buying decisions towards ice cream brands in the Thai market By Parichat Tongserm Table of contents 1.0 Background3 1.1 Introduction..3 1.2 Research gaps..8 1.3 Theoretical concepts..8 2.0 Industry Background.9 2.1 Research context9 2.2 Research questions.11 2.3 Objectives..11 2.4 Hypothesis11 3.0 Research Methodology..12 3.1 Research philosophy..12 3.2 Data collection methods.13 3.3 Sampling procedures..14 3.4 Reliability and validity15 3.5 Justification of the Relationship between the Research Questions, Objectives, Aims, and Methodology.16 3.6 Appropriateness of triangulation in the research17 3.7 Timescale.18 3.8 Resources19 4.0 References..20 THE INFLUENCE OF DIETARY BENEFITS IN CUSTOMER BUYING DECISIONS TOWARDS ICE CREAM BRANDS IN THE THAI MARKET. 1.0 Background 1.1 Introduction The choice of consumers to purchase products is determined by several products like the value of the products offered, prices, and quality. Individuals have become very much concerned with their health conditions hence when purchasing foods they critically look at the value of the foods. Products that are healthy mainly attract consumers to purchase them (Kozup et al. 2003, p. 19). Communicating a brand image to the target market is very important in marketing. This study is essential for consumers are influenced into buying food stuffs to a great deal by the dietary benefits of these foodstuffs. In this case, in purchasing ice cream brands in Thai markets, the dietary benefits determine the choice of buying. This is because consumers want to purchase products which are healthy for their bodies. With increasing information on health issues, the choice of purchasing food stuffs has become a topic of increasing importance for the food industry for a long time (Huston & Michael 2003, p. 143). Consumers are attracted to buying functional foods which are described as products that have additional dietary benefits beyond the basic nutrients. Given that ice cream is not considered as basic foods which can be consumed by a family, the choice of purchasing them is directed toward health issues. In food industry, organizations place different health and dietary claims product labels as required by the new Food and Drug Administration (FDA) regulations and the need to market the products (Alan &Kunal 2000, p. 99). This is because once consumers are aware that the products they purchase have dietary benefits they are more likely to increase their purchases. Surprisingly, the demand for functional foods has increased with many people wishing to purchase these foods (Kozup et al. 2003, p. 19). This has resulted in an increase in supply hence making the producers to improve dietary benefits to compete effectively in the market. This study tries to answer the question whether the consumer buying decisions towards ice cream brands in the Thai markets are influenced by the dietary benefits. As reported by Onozaka and McFadden (2010, Q1), a series of studies has been conducted by the ?International Food Information Council (IFIC) Foundation on consumer perceptions and attitudes toward functional foods. The results have indicated that foods that have dietary benefits are purchased more than those with fewer benefits. Additionally, the choice of purchasing them is made mainly basing on the associated dietary benefits (Huston & Michael 2003, p. 143). There is an increasing awareness of health, disease, and diet. In Thai market, the consumer decisions in buying ice creams are influenced by the benefits in the diets of the foods. Bond et al. (2008, p. 231) assert that there is evidence that consumers have significantly changed their eating habits and have moved toward consuming more healthy foods. In this case therefore, in making decisions to purchase food products, they have to look at the dietary benefits. Consumers form a very important section of the food industry hence they are capable of determining the success or failure of the products (Vermeir & Verbeke 2006, p. 169). Marketers in food industry have realized that the dietary benefits play a critical role in the process of decision making among the consumers. For instance, ice creams which are higher in terms of dietary benefits are capable of attracting more consumers than those with fewer dietary benefits. It is therefore imperative for food manufacturers to develop marketing approaches that serve both consumer wants and needs (Kupiec & Brian 2001, p. 7). Consumers purchase products because they have the buying power. However, the dietary benefits of foods influence consumers to purchase foods despite their buying powers. Many people usually buy the crucial necessities especially if they do not have a stable source of income. This implies that purchasing ice creams is mainly influenced by the benefits brought about by the products (Bond et al. 2008, p. 231). Basically, ice creams in Thailand can be viewed as functional foods as they are said to have additional nutrients. The business of ice cream in this country is very competitive hence companies offering it need to put in place effective competitive strategies (Vermeir & Verbeke 2006, p. 169). This is the reason as to why this study wishes to investigate whether consumers of ice cream brands in Thai market are influenced in their buying decisions by dietary benefits. A number of studies have supported this dissertation while others have refuted it. According to a study conducted by Onozaka & McFadden (2010, p. Q2), consumers of functional foods are more interested in the dietary benefits hence they are influenced by the same in making their buying decisions. As a result of the limited resources and finances, it is essential for food manufacturers to seek assistance in setting most favorable marketing plans based on their understanding of the behaviors of consumers (Kupiec & Brian 2001, p. 7). In this case, with the knowledge that dietary benefits influence buyers in purchasing functional foods like ice cream brands, it is easier for manufacturers know what to do to increase their sales. Alan &Kunal (2000, p. 99) assert that consumers first evaluate the health benefits of functional foods before making final decisions to purchase them. The authors continue to state that in the food choice process, the consumer perception of a product attribute is a fundamental factor. In this case, consumers are influenced by taste, wholesomeness, naturalness, health and convenience in buying functional foods. McFadden (2001, p. 351) used a hedonic model in evaluating consumer influences on buying decisions. The author indicated that consumers of food products look at the nutritional content and taste of a product before purchasing it. The hedonic model was used in drawing conclusion about consumer perceptions and it was indicated that some consumers were influenced by taste more than nutritional content for certain products. Maynard & Sharon (2003, p. 316) indicated that consumers are influenced by nutritional content of food products more than their prices. In this case, if the dietary benefits are perceived to be high, consumers are willing to pay even higher prices for them. The authors assert that consumers believe that when a product is sold at low price, its nutritional content is low and vice versa hence they are willing to pay high for the most nutritious food products. However, Kozup et al. (2003, p. 19) stated in their study that consumers buying decisions are not influenced by dietary benefits but the prices and convenience. The authors concluded that when prices are too high consumers will not be willing to purchase the products despite the high nutritional content of the products. Additionally, when the products are not widely available they are not demanded by consumers. This conclusion was supported in another study by Jeevananda (2011, p. 50) who stated that consumer loyalty is achieved through optimal marketing strategies. This is because when customers are convinced that a certain functional food is beneficial they may make decisions about purchasing it. 1.2 Research Gaps Despite that, factors influencing consumers buying decisions is a topic that has been studied especially in the food industry, there are research gaps. In this case, the aspect of dietary benefits has not received much attention in research. The data provided by aggregate food consumption provide very little evidence there is a change in eating habits to eat more healthy foods among the consumers (Onozaka & McFadden 2010, p. Q13). This shows that extensive studies have not been conducted in this area especially in functional foods like ice creams. Most of the studies conducted in foods industry concern with how tastes, convenience and price but little has been done on dietary benefits (Huston & Michael 2003, p. 143). 1.3 Theoretical Concepts According to utility theory, a consumer is not willing to purchase a product unless its marginal utility is equal to or greater than the utility of another product. This theory is used in explaining how consumers buying decisions of ice cream brands in Thai market are influenced by dietary benefits (Bond et al. 2008, p. 231). The theory therefore asserts that consumers buy ice cream brands in the market because of their marginal utility. In this case therefore, consumers are attracted when the price of ice creams is related to their marginal utility (dietary benefits). The main aim of consumers when purchasing ice cream brands in Thai market is to get the greatest satisfaction from the dietary satisfaction (Vermeir & Verbeke 2006, p. 169). They are therefore willing to pay for ice creams that offer maximum satisfaction. If the marginal utility of one ice cream brand is low, consumers will be more willing to for another brand whose utility is high. Lancasters theory of consumer demand was developed by Kevin Lancaster (December 10, 1924 ? July 23, 1999) who indicated that consumers demand a product because of its properties or characteristics. The theorist stated that if the characteristics of a product are perceived as beneficial by the consumers they will be more willing to purchase it. Linking this theory to this study, it is clear that the characteristics of ice cream brands in Thai markets influence consumers buying decisions. Consumers make decisions of purchasing ice cream brands because of the dietary benefits they perceive. 2.0 Industry Background 2.1 Research Context The study will be conducted in Gelate Italian ice cream Company in order to evaluate how it would be able to compete effectively in the Thai market. Gelate is an independent company owned by the Ittiangkool family (GelateThailand, 2012). The company was founded in 2003 and has been serving the highest quality and most interesting and unique flavors of ice cream in Thailand ever since. Gelate makes its homemade ice cream, sorbet and Italian ice every day and also makes ?no added sugar and ?dairy free flavors. Gelate has branches in 8 provinces totally 27 branches with its products reaching only in Thailand but the company is planning to expand its franchise to other countries such as china and India. The company has not had brand extensions in other categories but the company has planned to produce its own milk. Gelate is known for having a very wide flavor of Italian ice cream and a very wide distribution network, reaching even the small shopping center in Bangkok. Gelate is seeking to strength and deepen the globalization of its brands and commercial strategies, through the development of products that have high added value; it is aiming to leverage the strong brand equity of its own to generate increased consumer interest. The main aim of the study will be exploring a point of differentiation that will be capable of sustaining the companys brand position in the Thai market, building a strong brand and emerging as a market leader in the region. Due to the fact that Gelate Italian ice cream Company has not been very competitive in the Thai market, it requires strong marketing strategies for its success in the market. The study is conducted to help the company focus on its marketing strategies after knowing whether consumers buying decisions of ice cream brands are influenced by dietary benefits. 2.2 Research Questions i) What factors influence consumer buying decisions toward ice cream brands in the Thai market? ii) How do consumers perceive the dietary benefits of ice cream brands in the market? 2.3 Research Objectives a) To explore the factors influencing consumer buying decisions towards ice cream brands in the Thai market b) To establish whether consumers are influenced by dietary benefits when making decisions to purchase ice cream brands c) To establish the most preferable point of differentiation that should be established by Gelate Company to sustain its ice cream brands in the Thai market and become a market leader through creation of strong brands. 2.4 Hypothesis Through promotion of ice cream brands with increased dietary benefits like less fattening characteristic than other brands, consumers will make buying decisions towards the brands. 3.0 Research Methodology 3.1 Research Philosophy Each research should be guided by a belief about the method of gathering, analyzing and using information about a phenomenon. This study will employ the positivism approach. According to positivists, reality is stable, observable, and can be described from an objective point of view without necessarily interfering with the phenomenon under study (Welman et al. 2005, p. 45). This philosophy is applied in this study because the reality that consumers are influenced by factors in their buying decisions is stable and cannot be changed. Additionally, it is possible to observe the consumers buying ice cream brands and note what influences their buying decisions without having to interfere with them. The positivist approach was used by Larue et al. (2004, p. 155) while studying consumers responses to functional foods and it was very effective. Since the study will use the questionnaire method in collecting data, information will be gathered from existing customers, potential customers and non-ice cream consumers. Comparing this information will enable the researcher to arrive at the reality. According to Maynard and Sharon (2003, p. 316), factors influencing consumer buying decisions towards functional foods is a reality that cannot be changed. The independent variable will be dietary benefits while dependent variables will be consumer buying decisions. 3.2 Data Collection Methods In order to effectively conduct this study questionnaire method and comparison of sales performance between Gelate Italian ice cream Company and its rivals will be used. The questionnaire method will be used in collecting information from existing customers, potential customers and non-ice cream eaters in Thai market. This will help in investigating whether consumer buying decisions towards ice cream in the Thai markets are influenced by dietary benefits (Rochim & Donnelly 2006, p. 23). As indicated in the objectives of the study, this investigation will help in exploring whether dietary benefits are considered in consumer buying decision making. Additionally, the study objectives pose a question hence in answering this question effectively questionnaires will be used. This method of data collection is advantageous in studying consumer behaviors as it was used by Mojduszka et al. (2001, p. 81) and was very effective. Wide ranging information is collected as it is determined by the number of questionnaires provided. It is also easy to measure the response rate and in case the rate is low, other questionnaires may be issued to the selected participants (Leedy & Ormrod 2001, p. 12). The researcher is in a position to control the respondents through the use of closed ended questions. In achieving the third objective of this study, information collected through questionnaire method is easy to analyze and interpret (Welman et al. 2005, p. 45). This is because similar information provided by the existing customers, potential customers and non-ice cream consumers can be tabulated together for easy comparison. Comparison of sales performance between the Gelate Company and its rivals in the Thai market will give an insight of the performance of this company in the market. The highest sales show that the brands are of high quality in terms of dietary benefits hence attracting many consumers (Rochim & Donnelly 2006, p. 23). This method will only be interested in investigating the existing customers in the market. It will also be easier to determine the total number of ice cream consumers in the Thai market hence enabling the company to improve its brand quality to increase customer base. 3.3 Sampling Procedures Random sampling method will be used in selecting participants because all participants are at equal chance of being studied. A sample of 200 respondents will be selected in Bangkok Thailand as the town comprises of different people; existing customers, potential customers, and non-ice cream consumers (Leedy & Ormrod 2001, p. 12). The initial questions in the questionnaire will differentiate between the three sets of respondents, that is, existing, potential customers and non-ice cream eaters. The respondents will be informed that the study is for academic purposes in order to gain trust in them. They will also be required to sign a consent form that will indicate that they have accepted to participate in the study. Consumers in Bangkok purchase ice cream brands from different companies in the country hence it will be easy to investigate where they purchase the products and why. The study will only involve in studying the food industry in general and ice cream brands in particular. This sector of the market will help in answering the research questions and proving the study hypothesis. 3.4 Reliability and Validity Reliability in this study will be ensured by administering questionnaires in bits in order to ensure that the results are consistent over a period of time and the total population under study is accurately presented (Welman et al. 2005, p. 45). In this case, the test-retest method will be used in two different times. After the respondents answer the first bit of questions they will be provided with other questionnaires asking similar questions but in a different format. This will help in testing the consistency with which the questions are answered. Since the study deals with a stable measure in the Thai ice cream market, the results are required to be similar (Rochim & Donnelly 2006, p. 23). This will be done in order to make sure that the results obtained are repeatable. According to Bond et al. (2008, p. 231) in their study on ?understanding consumer interest in product and process-based attributes for fresh produce, reliability of results was ensured by using the test-retest method. This method is advantageous in that if there is no reliability it will be easy to notice as respondents will not be similar. However, there may be slight changes in the results as brought about by changes in the attitudes of respondents. In ensuring reliability in this study, examination of trustworthiness will be considered Validity on the other hand is defined by Welman et al. (2005, p. 47) as a way of measuring how truthful the results of a study are. In this case, do the instruments of a research truly measure what was intended to be measured? Validity in this study will be ensured by using the hypothesis in determining the type of data to be collected. For instance, the hypothesis of this study is ?through promotion of ice cream brands with increased dietary benefits like less fattening characteristics than other brands, consumers will make buying decisions towards the brands. From this hypothesis what are the correct data that should be collected. Collection of accurate and precise data shows validity in a study. 3.5 Justification of the Relationship between the Research Questions, Objectives, Aims, and Methodology There is a clear relationship between the research aim, objectives, questions, and methodology since the research aims and objectives determine the research methodology used in this study. The research question is concerned with dietary benefits as a factor that influences the consumer buying decisions towards ice cream brands in Thai market. This question guides the method of data collection by mainly investigating existing customers, potential customers and non-ice cream eaters. In achieving the research objectives, the research questions are used in methodology part. There is a relationship between the research objectives and the aim as the aim helps in the formulation of objectives. 3.6 Appropriateness of Triangulation to the Research Triangulation involves gathering of information about a phenomenon from the point of view of people within it (Rochim & Donnelly 2006, p. 27). In this study, information concerning whether consumer buying decisions towards ice cream brands in the Thai market are influenced by dietary benefits will be collected from the consumers themselves. This is important since the respondents have adequate information on what influences their buying decisions. In this case therefore, triangulation in this study is used as a strategy for increasing the strength of evaluating the study results. 3.7 Time Scale Activities 1st week2nd Week 3rd Week 4th Week5th Week 6th Week 7th Week Designing of questions Planning to do the research Data collection Data analysis Discussion of results 3.8 Resources This study will mostly use peer reviewed journals dated from the year 2000 to 2012. These are good sources of information as they provide recent and well researched information. Additionally, books will be used especially for the methodology part since they provide guidelines on how research should be conducted. Both the journals and books will be retrieved online from eBooks, university libraries and public libraries. 4.0 References Alan, D. & Kunal, B. (2000) ?Customer Loyalty: Toward an Integrated Conceptual Framework. Journal of Academy of Marketing Science, 22: 99-108 Bond, C.,Thilmany, D., & Keeling-Bond, J. (2008) ?Understanding consumer interest in product and process-based attributes for fresh produce. Agribusiness: An International Journal, 24(2): 231-252. GelateThailand, 2012. Gelate authentic gelato. [online] Available at: [Accessed 25 May 2012]. Huston, S. & Michael, F. (2003) ?Diet Choice and the Role of Time Preference. The Journal of Consumer Affairs, 37 (1): 143-160 Jeevananda, S. (2011) ?Influence of Customer Loyalty Programs on Buying Decisions. Research Journal of Economics and Business Studies, 1(1): 50-59 Kozup, J., Elizabeth, C., & Scot, B. (2003) ?Making Healthful Food Choices: The Influence of Health Claims and Nutrition Information on Consumers Evaluations of Packaged Food Products and Restaurant Menu Items. Journal of Marketing, 67: 19-34. Kupiec, B. & Brian, R. (2001) ?Measuring Consumer Quality Judgments. British Food Journal, 103(1): 7-22 Larue, B., Gale, W., Carole, G., & Remy, L. (2004) ?Consumer Response to Functional Foods Produced by Conventional, Organic, or Genetic Manipulation. Agribusiness, 20(2): 155-166 Leedy, D. & Ormrod, E. (2001) Practical research, planning and design (7th ed.). New Jersey: Merrill Prentice Hall, 12-43 Maynard, L. & Sharon, F. (2003) ?Functional Foods as a Value-Added Strategy: The Commercial Potential of Cancer-Fighting Dairy Products. Review of Agricultural Economics, 25(2): 316-331 McFadden, D. (2001) ?Economic Choices. The American Economic Review, 91 (3): 351-378 Mojduszka, E., Julie, C., & Michael, H. (2001) ?Consumer Choice of Food Products and the Implications for Price Competition and Government Policy. Agribusiness, 17 (1): 81-104 Onozaka, Y. & McFadden, D. (2010) ?Local Food Consumers: How Motivations and Perceptions Translate to Buying Behavior. The Magazine of Food, Farm, and Resource Issues, 25(1): Q13 Rochim, W. & Donnelly, J. (2006) Research Methods Knowledge Base. London: Prentice Hall, 23-43 Vermeir, I., & Verbeke, W. (2006) ?Sustainable food consumption: exploring the consumer ?attitude-behavior intention gap. Journal of Agriculture and Environmental Ethics, 19(2): 169-194 Welman, C., Kruger, F., & Mitchell, B. (2005) Research Methodology. New York: Wiley, 45-87
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