DEVELOPMENT OF NUTRITION MODELS OF CONSUMER BEHAVIOR WHEN BUYING FOOD PRODUCTS

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1 DEVELOPMENT OF NUTRITION MODELS OF CONSUMER BEHAVIOR WHEN BUYING FOOD PRODUCTS Sashko Martinovski *, Vera Simovska Original scientific paper UDC 66.:66/66 Faculty of Technological and Technical Sciences - Veles, University of Bitola St. Kliment Ohridski, Dimitar Vlahov, Veles, Republic of Macedonia * saskomartin@gmail.com Abstract Most companies, whose business is the manufacturing of food, thoroughly investigate consumer-buyers decisions in order to meet their needs, wants and desires. The focus of this research is how consumers respond to various marketing strategies of companies. Analysis of patterns of consumer behavior cannot answer these questions. It is important to use modern technology for building models of consumer behavior, when consumers are buying food s. One of these is the Geographic Information System (GIS). The subject of this research paper is to create nutrition models of consumer behavior when purchasing food s in which emphasis is given to the determinant nutritional properties of food s. The goal is to develop a model which could be used in the marketing of the companies whose business is manufacturing of food s, a model that will provide an understanding of consumer decisions regarding the nutritional properties of food s. In this paper we applied an original concept of modeling for building a business model of consumer behavior, when purchasing food s. The model is built on the principle to provide greater clarity and full understanding of the process that is built into the model. An implementation of the model has been done with data from a survey conducted among students studying nutrition and food technology and biotechnology, enrolled in the first and second cycle at the Faculty of Technology and Technical sciences - Veles. The result is comprised from survey responses from consumers. The results were based on a set of relationships between the determinants in the model and they relate to the choice criteria for the purchase of food s. Building a good nutrition model of consumer behavior when purchasing food can help companies whose business is the manufacture of food s, in order to get answers to questions about their marketing strategy, and the need for improvement, reformulation and ion of healthy food, and the role of nutritional characteristics of consumer behavior. The benefits could be threefold: companies benefit through higher profits, benefits for citizens through consumption of healthy and safe food and economic benefit for the state. Key words: Consumer behavior model, Modeling, GIS, Nutrition, Food.. Introduction Most companies from the food industry that risk a large amount of assets, meticulously explore consumer decisions and habits, using various research methods. This task is not easy because of the fact that no one knows exactly how the human brain makes the choice when buying, and often even buyers themselves do not know exactly what made an impact on their purchase. Therefore, the main goal of the company is to discover any key determinants affecting buyers and how buyers respond to various marketing efforts which the company uses. Business models of consumer behavior can give a lot of answers. The st century is the century of modern technology and the continuous development of scientific methods, which include: digital electronics, computers, communications networks, the internet, digitizing and many others scientific methodologies. These benefits must be used in creating business models of consumers behavior. Also, developed concepts are one of the main conditions in the modeling and building good business model/s. A good concept should include: use of modern technology, such as DBMS and others, as well as the Geographic Information System (GIS); modeling by creating system models that can describe the current situation and project the future; using scientif- 6

2 ic concepts in modeling; and using advanced analysis database. Since consumers and consumer behavior databases are important, it should be noticed that important component in these databases creation is marketing research (exploratory, descriptive and causal research). The most widely used method of descriptive research is survey that provides the opportunity to collect primary data that can be included in the business model. Advanced analysis of the consumer databases provides good information about consumer behavior, or more precisely, using advanced methods of data mining is one of the concepts for building business models. The current trends for maintaining good health of the population, i.e. prevention of the diseases spreading in developed countries, are being directed towards healthy food consumption. Republic of Macedonia has joined these trends with a project known under the slogan Health is a Choice!, which promotes the use of healthy food, and maintaining a healthy lifestyle. Studies show that food s consumers are keep more and more attention on the food s nutritional properties ([6] [8]). Therefore, the purpose of food chain companies is to create a business model that will enable them to understand the consumers, especially regarding food s nutritional properties. A nutrition business model would determine the extent of the impact of the determinant - nutritional properties (vitamins, minerals and other beneficial ingredients) in the s purchase process. It would be good if there is a development of the nutrition business models of consumer behavior ([], and []), parallel to the development in the area of planning in the health sector, nutrition and prevention using the so called PSS (Planning Support System). Nowadays, the geographic information systems are an important component integrated in a number of different systems [7]. GIS is an important component that provides geo-processing, graphic, database and modeling capabilities. GIS contains a range of tools, including: economic and demographic analysis and forecasting; environment analysis; mode ling; transport planning; modeling of land use; analysis of health regions; analysis for marketing needs and more. Management of databases, visualization, spatial analysis and modeling are the main reasons of the use of GIS in building business models. There are many benefits in the use of GIS, as follows: Using GIS models as one of the important components in modeling. Representation of real world situations through relations and discrete objects. Business sector analysis component. Real world situations analysis through spatial and non-spatial data in a determined reference system (geospatial data). As well as many others. Building good consumer behavior nutritional model when purchasing food s will help food chain companies to get answers to questions about their marketing strategy, the need for improvement and ion of healthy food, as well as for the role of nutritional properties in consumer behavior.. Materials and Methods. Nutritive business model of consumer behavior After careful consideration of the business models of consumer behavior in theory and practice, it can be deduced that they are: deterministic or probabilistic (linear ODE model); continuously or discrete valued; for continuous or discrete time; lumped or agent model; continuous range or definitive number of brands; for identical consumers or consumers with different needs; etc. The models found in practice have very little use of the determinants connected with food nutritional properties, and usually mostly are using psychological and sociological (Markov model) determinants. Modeling is done with analytics and statistics, and binary comparison and networks ([], [], and [9]) are used). The concept of modeling is used in all them, and very little has been done in terms of understanding of the model itself. Our research has shown that it is necessary modeling to be raised to a higher level. The following text shall is a showcase of original concept of modeling, which will enable improvement in building business models for consumer behavior... Modeling for creation of nutrition business model for consumer behavior The structure of the modeling process is represented in five stages, and each of the stages is related to a certain science (or scientific discipline) and certain technology (Figure ). Figure. Stages of modeling and relation to science and technologies 7

3 ... Stage : Outputs - Methodology - Inputs The distinguishing feature of this stage is that the output is defined first, after that the necessary methodology to obtain it, and in the end, on the basis of the outputs, the model input is defined, as well as its data sources. The output is one of the main components of the model, and apart from analytic data, it can be in the form of a report, through graphical representations contained in the GIS layers. When defining the outputs, one question is always asked: which outputs are needed for this model? The answer to that question can be found by dividing the outputs into several sections, all of these viewed from the: economic, nutritional, legal, sociological, and other viewpoints. Before defining the inputs, it is necessary the methodology that will be used in the model to be determined. This is necessary in building a business model, and is an important step to get high quality outputs. Here one can use all of the known methodologies used in such models. The methods used in data mining are significant, and include: basic concepts of mining frequent forms, association and correlation; classification; decision trees; Bayes classification method; models of evaluation and selection; methods of cluster analysis and evaluation of clustering []. To get all predefined outputs, it is necessary to define all the necessary inputs. Generally, there can be two types: spatial and non-spatial (attribute). When defining the input, its source is also defined. The databases usually used are the consumer behavior databases, marketing research data, such as surveys, and so on. Stage consists of multiple entities that are connected in a relational model.... Stage : Conceptual model The conceptual model consists of defining all points necessary for building the model. On the basis of Stage, strategies for modeling are defined. We propose using GIS, i.e. GIS models, GIS methods and techniques, and questionnaire data (SQL); advanced data analysis (Data mining methods); and mathematics and statistics. First of all, all GIS functions that can be applied in the model [7] are defined, as follows: Binary models - spatial query. Logical models - Physical collection. Index models - Physical ranking. Regression models - for prediction and assessment. Process models - defining the processes in the real world represented in a set of relations and equations. Then, all the known methods used in models of consumer behavior are defined, such as: psychological, sociological (Markov model), personal, cultural, nutritional, analytical and statistical methods, and methods such as binary comparison and networks. In this stage, in order to simplify the modeling, the concept to create multiple sub-models instead of a simple complex is accepted. The concept of modeling we propose allows this. Each sub-model is an entity in the E-R model.... Stage : Logical model Creation of a logical model begins by defining all entities of all previous stages, and then setting out relations between entities in the E-R model. There are several distinctive relations: Output - Methodologies - Input; Output - Sub-models; Output - GIS models; Output - Advanced Methods of Data Mining; and many other relations. This concept of modeling will enable the business model to be self-explanatory. For every output there is a connection to the other entities, which can be incorporated into the model, and an explanation for their acquisition.... Stage : Physical model The physical model is created on the basis of the logical model. It is created in software development environment, such as Microsoft Visual Studio, with integration of an existing GIS software and integration of Database management system - DBMS. ArcMap ((GIS software from ESRI, ESRI is an international supplier of Geographic Information System software, web GIS and geo-database management applications) can be used for GIS, where with the ModelBilder (graphics tool from ArcMap) GIS models can be created. For non- GIS databases Structured Query Language/Database Management Systems - SQL DBMS can be used, and finally if needed, to use other specific software. In this way the physical model can be obtained at a much higher level. The concept of modeling shall enable the physical model to be self-explanatory. Thus, the constructed model will provide an opportunity for better understanding of all received outputs, and thus it shall be easier for use and further development.... Stage : Verification The business model is verified with test data. The output is analyzed, and this can be done very easily at this point, because the physical model is self-explanatory, i.e. each output obtained is self-explanatory. The verification of the model can cause general changes: smaller changes in the entities of the model, and greater changes, starting from Stage... Nutrition determinant of business models Apart from the other determinants in the model (cultural, social, personal and psychological), the nutrition determinant is placed as an input, and it contains several elements, including: 8

4 Energy value. Fats and saturated fats. Quantity of sugars and proteins. Carbohydrates. Vitamins/minerals. Fibers. Nutrition and health claims. Sensory attributes (color, aroma, and taste). Product safety. Certification (for example: organic, quality).... Survey on the impact of nutritional properties on consumer behavior To determine the level of the impact of the nutrition determinant on the behavior in a separate group of consumers of food s - a total of 0 students from Faculty of Technological and Technical Sciences in Veles in all four years of the study program Nutrition and food technology and biotechnology were surveyed. The survey consists questions. The questions relating to the nutrition determinant are: Question : When you buy a because of its nutritional properties, how much do the following sources of information on these properties affect your decision? (Multiple answer) Labeling (label) of the Previous knowledge of nutritional properties of this group of s The history of use of the Promotion (advertising) of the nutritional properties of the Recognition of the brand..... Question : How well do you understand (select the degree of how well you understand and interpret the meaning of) the section on the where the nutrition facts are labeled? (Multiple answer) Declared Energy Value The amount of fats and saturated fats The amount of sugars and proteins The amount of fibers Vitamins /minerals as part of the recommended daily intake Nutrition and health claims Question : Select the degree of influence of given nutritional properties when buying food s (Multiple answer) Energy value Fats Carbohydrates Fibers Vitamins / minerals Nutrition and health claims 9

5 Question : Choose the importance of the given attributes when buying food s (Multiple answer) Sensory attributes (color, aroma, taste) Price Product safety Brand Certification (for example: organic, quality) Question : Select the level of receiving information about the importance of nutritional properties of food s for the human organism (Multiple answer) Learning at the University Books and scientific publications The Internet Mass Media Experts Scientific conferences - seminars Other Question 6: Select the level of influence on your decision to purchase a regarding the information obtained about the importance of the nutritional properties of food s for the human organism, presented in a given resource (Multiple answer) Learning at the University Books and scientific publications Internet Mass media Experts Scientific conferences - seminars Question 7. Do you think that other consumers of food s receive enough information about the importance of the nutritional properties of food s for the human organism? (Single answer) Question 8. How much do you influence your family and friends, regarding the importance of nutritional properties when buying food s? (Single answer). Results and Discussion A database was created from this survey, and advanced and statistical analysis was used, i.e. correlations were created between specific questions. A great number of results were obtained as model outputs, and a part of these are: Output : Correlation between the answers of the questions:. Select the degree of influence of given nutritional properties when buying food s and 8. How much do you influence your family and friends, regarding the importance of nutritional properties when buying food s? Results have been provided in Table. 0

6 Table. Correlation of the impact of nutritional properties when buying food s and the impact on other consumers Energy value Fats Carbohydrates Fibers Vitamins / minerals Nutrition and health claims 0,77 0,69 0,6 0,68 0,8 0,6 0,7 0,7 0,66 0,6 0,8 0,7 0,6 0,7 0,80 0,9 0,90 0,8 0,88 0,8 0,8 0,86 0,9 0,8 0,9 0,89 0,9 0,88 0,9 0,8 Table. Correlation of consumers who buy food for its nutritional attributes, and sources of information on those attributes and the influence on other consumers Labeling (label) of the Previous knowledge of nutritional properties of this group of s The history of use of the Promotion (advertising) of the nutritional properties of the Recognition of the brand. 0,88 0,89 0,7 0,90 0,6. 0,8 0,8 0,76 0,8 0,8. 0,69 0,79 0,89 0,89 0,90. 0,9 0,9 0,89 0,9 0,9. 0,9 0,9 0,89 0,88 0,9 Output : Correlation between the answers of the questions:. When you buy a because of its nutritional properties, how much do the following sources of information on these properties affect your decision and 8. How much do you influence your family and friends, regarding the importance of nutritional properties when buying food s? Results have been provided in Table. The obtained results point to a great degree of influence of the surveyed students about nutritional attributes when buying food s on the other consumers (family, friends, and other consumers of food s). Also, the degree of influence of surveyed students on other consumers of the importance of information on nutritional attributes of food s is very high.. Conclusions - Educating people about the importance of a healthy diet and nutritional attributes is increasing, and state institutions are increasingly investing in that part. Studies show that over time the impact of the nutritional attributes in the purchase of food s will be much greater. Therefore, the development of nutritional business models of consumer behavior is an important part in the food chain value business. - Building a good business model require employment od methods, which should be developed on the basis of several principles: the business model should be conceptualized in a way that allow ease of use for the companies; the business model should use modern technologies such as GIS and DBMS; for building business models it should use modeling by utilizing GIS; and it should use advanced data analysis that will enable companies to get answers to consumer behavior. - The modeling concept represented in five stages in a relational model will allow raising the consumer behavior business models a higher level. The model is easy for use and further development, and is using advanced methodologies, with one very important feature - it will be self-explanatory, which shall enable for it to be completely understood.. References [] Brail R. K., and Klosterman R. E. (Eds.). (00). Planning Support Systems: Integrating Geographic Information Systems, Models, and Visualization Tools. CA: ESRI Press, Redlands, pp [] Geertman S., and Stillwell J. (Eds.). (00). Planning Support Systems in Practice. Springer-Verlag, Berlin, Germany,pp -. [] Jiawei H., Micheline K.,Jian P.(0).Data mining: Methods and Models ( rd Ed.). Morgan, Kaufmann imprint of Elsevier, pp -86. [] Martinovski S. (0). GIS modelling for the strategic urban development planning. Doctoral Dissertation, University St. Kliment Ohridski - Bitola, Macedonia, pp. -9.

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