H5: Lifestyle influences consumer’s brand selection
This study examined how true the lifestyle influences the consumer’s brand selection of instant coffee. Here, emphasise is given on the health-concern lifestyle to explore whether or not the coffee side-effect build brand resistance toward purchasing (Holderness 1995).
2.0. CRITICAL ANALYSIS OF PAST RESEARCH
2.1. Consumer Preference in FMCG
The very words FMCG imply a constantly changing marketplace and experiencing enormous change over the years (Dolby 2002). New products are emerging all the time (Haigh 2000). Consumers themselves are also changing and (Day, Gan, Gendall and Esslemont 1991) engage more in the alternative evaluation and selection process (Hawkins, Best and Coney 2001) (appendix B). Although there are many factors that influence the process (appendix C and D) (Solomon 2004), it is still indisputable that choices are circular, emotional, incomplete and based on convenience (Hawkins, Best and Coney 2001). Thus, understanding the buying behaviour and the effects of marketing mix programs are a very critical especially in FMCG market (appendix E) (Kotler, Adam, Brown and Armstrong 2003).
2.2. Choice of subject
2.2.1. A bit about coffee
Since its first discovery in Ethiopia, coffee has steadily snatched the heart of its consumers (Anonymous 2004b). Today, coffee is the world’s most popular beverage after water, with over 400 billion cups consumed annually (Anonymous 2004a). It has evolved into a giant global industry employing more than 20 million people (Anonymous 2004a) with the majority (52%) of adults in America drink it on daily basis (Carroll 2003). In contemplating today busy lifestyle, the need of getting a fast-ready-made coffee is emerged (Donnelly 2003). As such, the demand for the instant coffee, which is just a regular brewed coffee with nearly all the water removed, is overwhelming tremendously (Paajanen 2004).
2.2.2. Nescafe
Nestle under its brand name Nescafe is the world's first producer of fully soluble coffee extract. (Anonymous 2004d). From its humble start in late 1930’s, Nescafe today has transform into the most popular instant coffee in the world with some estimation of 3,000 cups of Nescafe are drunk every second (Anonymous 2004d).
2.2.3. Nescafe’s Management Decision Problem
Although Nescafe is enjoying the economic of scale and competitive advantage from its superior product quality (Anonymous 1995), still Nescafe needs to solve the problem of deciding the right tuning of its product attributes in order to deliver more appealing goods, especially in today environment where Malaysia has engaged in free trading among various countries (e.g. AFTA). The capability of understanding consumers better than rivals will allow Nescafe to satisfy consumers, maximise profit and maintain as market leader.
- Price
Price refers to the total of all values that the consumers exchange for the benefits of having or using the product or service (Lamb, Hair and McDaniel 2005). It affects the perceived values, attitudes, willingness to buy and behaviour of consumers (Gotlieb and Dubinsky 1991). It is also argued that price relatively affect the consumer choice (Engel, Blackwell and Miniard 1995) and has a negative relationship with the purchase probabilities (Lichtenstein, Ridgway and Netemeyer 1993; Sivakumar 1996). Hence, price influence is a complex issue as different people tend to perceive price differently (Evans, Mountinho and Raaij 1996) though it may not relevant to preferences (Gil and Sanchez 1997).
Price is stated as the most influencing factor in coffee industry (Anonymous 1995) as coffee prices have gone down during the last half century (appendix F) and it is expected to go down further (Anonymous 2004e). With increase in coffee consumption that has not been as rapid as the production (Anonymous 2004e) (appendix G), price is going to be highly persuasive (Dodds, Monroe and Grewal 1991).
2.4. Advertising
Advertising refers to any paid form of non-personal presentation and promotion of ideas, goods or services by acknowledged sponsors to meet the long-term indirect purposes related to brand image (Kotler et al. 2003). It includes everything from television, newspapers and even internet (Kotler et al. 2003). Basically, advertising is used as a tool to inform, persuade or remind the consumers about the firm’s products (Dibb, Simkin, Pride and Ferrell 1994). It can help the creation of brand-related attitudes, which in the end will lead to purchasing action (Fishbein and Azjen 1975) because consumer is basically a rational problem solver (appendix H) (Cobb and Hoyer 1985).
With approximately 95% of home have televisions (Jarvis 2004), it is not impossible that advertising is bringing a substantial impact (Anonymous 2004f) as long as the message is based on the relationship between perception, experience and memory (appendix I) (Schiffman and Kanuk 2004). The study done by Keown and Casey (1995) also revealed that 17% of its respondents believed that advertising plays a major role in decision-making process, especially television advertisement (Anonymous 1995).
2.5. Taste and Satisfaction
It has been widely suggested that taste and satisfaction are the key issues that contribute to preference (Hawkins, Best and Coney 2001). In fact, taste was indicated as the most influential factor in consumer choice of beverages (Winer 2000) as it is a sensory function that are always used in the evaluation of consumer goods (Schiffman and Kanuk 2004).
Some studies, furthermore, recognized that better taste is a more important motivator than any possible health risks (Urala and Lahteenmaki 2003; Carroll 2003). Hence, it is more likely that consumers are not willing to compromise taste for any health benefits (Wolfe 1998; Owens 1998). Whatever attributes the coffee might have, the taste still persists as a strong aspect (appendix J) (Verbeke and Viaene 1998) and the most important choice factor in the consumers’ minds (Urala and Lahteenmaki 2003). So, it is important to know how Nescafe plays in the market as it is highly significant to understand how consumers value the taste of a brand in comparison to others (Drake 2001).
2.6. Brand
Brand is a complex mixture of taste positioning, advertising, packaging, pricing, trade and promotion in order to develop a differentiated product (Mohamad, Ahmed, Honeycutt, Tyebkhan and Taizoon 2000). It is stated that brand name is an important factor in any decision-making process (Engel, Blackwell and Miniard 1995) and the branding of soluble coffee has become stronger in recent years (Dodds, Monroe and Grewal 1991). Many instant coffees are strongly branded and their successful marketing has required considerable investment and expertise (Hankinson and Cowking 1996). It is more influential when the brand has a positive effect on perceptions of quality, value and willingness to buy (Sivakumar 1996; Boyle 2001).
Brands also play significant role in helping consumers make choices as it influences the preferences when doubt is occurred (Dibb et al. 1994). Therefore, it is commonly acceptable that active shoppers tend to consider brand name more important (Walley, Parsons and Bland 1999). Since coffee is a primary commodity in Malaysia, it is highly important for Nescafe to create brand loyalty that reflects consistent purchase of the brand over time (Assael 1992).
2.7. Lifestyle
Basically, lifestyle is a pattern of living that is expressed in someone’s activities, interest and opinions (Kotler et al. 2003).It is a factor that has increasingly important in influencing people to make a choice (Schiffman and Kanuk 2004). For example: for people who adopt healthy lifestyle and hence, coffee may be avoided (Bonfield 1974) as it has always linked to heart disease (Anonymous 2004g) and urinary incontinence (Howard 2003).
These health issues raise the question of how Nescafe understands the customers’ perception of being healthy when consuming coffee (Pecotich and Clifford 1998), to know whether consumers indistinctly hold the same perception against all brands (Bass 1974). The increasing trends of people who continue to be time-pressed also lead to the preference over goods that can save the preparation time (Holderness 1995). As such, today busy lifestyle has played a major role in consumer instant coffee drinking habit (Anonymous 2004c).
3.0. RESEARCH METHODOLOGY
3.1. Sampling
The sample groups are consisted of adult (18 years and above), female and male from all over Penang. Specifically, a combination of convenience, quota, stratified and cluster sampling were chosen. A total of 100 respondents from Central Town were personally surveyed under administration. Specifically, the sample groups with 25 people each were made up of:
- College students
- People in shopping malls
- People in café or restaurants
- People in the residential areas
For the observation, the store locations were chosen randomly to ensure adequate sampling across a wide range of demographics. Time of day and day of the week are varied under the assumption that inherent biases in shopping behaviour would wash out across individuals.
3.2. Data Collection Method
Firstly, the survey questionnaires were used as the basic research design. Data were collected by personally administered surveys, from sample respondents. Structured questionnaires that were designed were utilized to collect data. Responses were measured through the combinations of Likert, category and rating scale which have been widely used to measure attitudes. Secondly, observation during buying process in addition to the survey questionnaires was also included. Finally, secondary data analysis like books, internet, magazines, newspapers and journals was also used to provide additional information.
3.2.1. Time Frame
The data gathering process was allocated a maximum of two weeks with 3 weeks allocated for the compilation and data analysis. Thus, this research is estimated to be completed by the end of October 2004.
3.3. Pre-Test
To ensure that the questionnaire is ready to use, understandable and serve its purpose, a pre-testing were conducted on 10 people. Pre-test were conducted on people who are as similar as possible to the research population with respect to age, education, knowledge of the market and other factors that could influence the quality and quantity of data collected.
3.4. Statistical Analysis
The data will be analysed using SPSS (Statistical Package for Social Sciences) software and following are some of the tasks included:
- Frequency test and descriptive statistics
The test was measured to see whether the respondents dis/agreed with the statement provided in the questionnaires and its percentage.
- Pearson Correlation Analysis
This function was used to test the relationship between the dependent variable (consumer preference on Nescafe) and independent variables (price, advertising, taste and satisfaction, brand and lifestyle).
Multiple Regression was used to test the variances of dependent variables that will be explained when those independent variables are stated to concurrently influence it.
- Analysis of Variance (ANOVA)
It is used to compare the mean of consumer preference on Nescafe across demographic variables and determined whether it is different.
Various types of bar charts and pie charts to give more appealing graphical data representation.
3.5. Limitations
Some limitations that have directly or indirectly affected the results of the study are:
- The sample size of 100 respondents is too small and does not generate sufficient and detailed information that is required
- Relatively short periods (three months) were not enough to conduct a profound research.
- The geographical representation of Penang was not sufficient as researchers were not able to conduct the study outside the Central Town due to transportation problem.
- Difficulties in selecting the right respondents especially when the respondents do not use the product that was researched.
- Limited word requirement has affected its quality because the information that is available has to be reduced
REFERENCES
Anonymous (1995), “BrandTrack: Coffee Sector in an Instant,” Marketing Week, Vol. 18, 10 (May), 36-37.
____________ (2004a), “History of Coffee,” .
____________ (2004b), “What is Coffee?” .
____________ (2004c), “From Seed to Cup: Facts & Figures,” .
____________ (2004d), “Nescafe,” .
____________ (2004e), “Faces of Coffee,”
____________ (2004f), “International Competition,” .
____________ (2004g), “Filtering the News about Coffee,” .
Assael, H. (1992), Consumer Behavior & Marketing Action 4th Ed., US: PWS-Kent.
Bass, Frank M. (1974), “The Theory of Stochastic Preferences and Brand Switching,” Journal of Marketing Research, Vol. 11, February, 1-20.
Bonfield, Edward H. (1974), “Attitude, Social Influence, Personal Norm, and Intention Interactions as Related to Brand Purchase Behavior,” Journal of Marketing Research, Vol.11, (November), 379-389.
Boyle, Edward (2001), “Roll-fed Labels Decorate Nestlé’s Nescafe Brands,” Paper, Film and Foil Converter, Vol. 75, 11, 2.
Carroll, Noreen (2003), “Coffee Flavors Complement Dairy Foods,” Dairy Foods, Vol. 4, (April), 39.
Chaudhuri, Arjun (2002), “How Brand Reputation Affects the Advertising-Brand Equity Link,” Journal of Advertising Research, Vol. 42, 3 (May/Jun), 33-44.
Cobb, Cathy J. and Wayne D. Hoyer (1985), “The Influence of Advertising at the Moment of Brand Choice,” Journal of Advertising, Vol. 14, 4 (March), 5-27.
Day, Dianne, Boon Gan, Phillip Gendall and Don Esslemont (1991), “Predicting Purchase Behavior,” Marketing Bulletin, 2, 18-30.
Dibb, Simkin, Pride and Ferrell (1994), Marketing: Concepts and Strategies 2nd Ed., US: Hought Mifflin.
Dodds, Williams B., Kent Monroe and Dhruv Grewal (1991), “Effects of Price, Brand and Store Information on Buyers’ Product Evaluations,” Journal of Marketing Research, Vol. 28, 3 (August), 307-319.
Dolby, Jonathan (2004), “E-centives, Inc. Creates Comprehensive Interactive Database Marketing System with Acquisition of BRI,” .
Donnelly, Patrick (2003), “Instant Coffee,” The Yale Review, Vol. 91, 4 (October), 82-83.
Drake, Julia (2001), “What Consumers Want: Price? Convenience? Cleanliness? Great product variety?” Canadian Grocer, Vol. 115, (July/August), 33 -35.
Engel, James F., Roger D. Blackwell and Paul W. Miniard (1995), Consumer Behavior 8th Ed., Orlando, US: The Dryden Press.
Evans, M.J., Moutinho, L. and Raaij, W.F.V. (1996), Applied Consumer Behaviour, UK: Addison-Wesley.
Fishbein, Martin and Icek Azjen (1975), “Belief, Attitude, Intention, and Behavior,” in Cobb, Cathy J. and Wayne D. Hoyer (1985), “The Influence of Advertising at the Moment of Brand Choice,” Journal of Advertising, Vol. 14, 4 (March), 5-27.
Gil, J.M. and Sanchez, M. (1997), “Consumer Preferences for Wine Attributes: A Conjoint Approach,” British Food Journal, Vol. 99, 1 (March), 3-11.
Gotlieb, J.B. and Dubinskv, A.J. (1991), “Influence of Price on Aspects of Consumers’ Cognitive Process,” Journal of Applied Psychology, Vol. 76, 4, 541-549.
Haigh, David (2000), “Brands that can Teach Professional Service Firm How to Operate FMCG Markets,” http//www.brandfinance.com/pdfs/brands_that_teach_prof.pdf.
Hankinson, Graham and Philippa Cowking (1996), The Reality of Global Brands: Cases and Strategies for the Successful Management of International Brands, UK: McGraw-Hill.
Hawkins, Del I., Roger J. Best and Kenneth A. Coney (2001), Consumer Behavior: Building Marketing Strategy 8th Ed., US: McGraw-Hill
Holderness, Lisa (1995), “Our Best Recipes: Coffeehouse Pleasures,” Better Homes and Gardens, Vol. 73, 2 (Feb), 153-155.
Howard, Caroline (2003), “Kids’ Health: Java Junkies,” Working Mother, Vol. 26, 7 (August), 70.
Jarvis G (2004), “Marketing Directors: Consider Media Trends,” .
Keown, C. and Casey, M. (1995), “Purchasing Behaviour in the Northern Ireland Wine Market,” British Food Journal, Vol. 97, 1, 17-20.
Kotler, Philip, Steward Adam, Linden Brown and Gary Armstrong (2003), Principle of Marketing 2nd Ed., New South Wales, Australia: Pearson Education
Lamb, Charles W. Jr., Joseph F. Hair, Jr. and Carl McDaniel (2005), Essentials of Marketing 4th Ed., Ohio, US: South-Western.
Lichtenstein, D.R., Ridgway, K.M. and Netemeyer, R.G. (1993), “Price Perceptions and Consumer Shopping Behavior: A Field Study,” Journal of Marketing Research, Vol.30, (May), 234-245.
Mela, Carl F., Gupta Sunil and Donald R. Lehmann (1997), “The Long-term Impact of Promotion and Advertising on Consumer Brand Choice,” Journal of Marketing Research, Vol. 34, 2 (May), 248-262.
Mohamad, Osman, Zafar U. Ahmed, Earl D. Honeycutt Jr. and Taizoon Hyder Tyebkhan (2000), “Does ‘made in…’ Matter to Consumers? A Malaysian Study of Country of Origin,” Multinational Business Review, Vol. 8, 2, 69-73.
Owens, Ross (1998), “Ultimate Java Index,” InfoWorld, Vol. 20, 38 (Sept), 113.
Paajanen, Sean (2004), “Quick Coffee,” .
Pecotich, Anthony and Clifford J. Shultz II (1998), Marketing and Consumer Behavior in East and South-East Asia, Australia: McGraw-Hill.
Schiffman, Leon G. and Leslie Lazar Kanuk (2004), Consumer Behavior 8th Ed., New Jersey, US: Pearson Education
Sivakumar, Kumaran (1996), “An Empirical Investigation of the Two Roles of Price on Brand Choice,” Pricing Strategy & Practice, Vol. 4, 15-24.
Solomon, Michael R. (2004), Consumer Behavior: Buying, Having and Buying 6th Ed., New Jersey, US: Pearson Education.
Swait, Joffre and Tulin Erdem (2002), “The Effects of Temporal Consistency of Sales Promotions and Availability on Consumer Choice Behavior,” Journal of Marketing Research, Vol. 39, 3 (Aug), 304-321.
Urala, Nina and Liisa Lahteenmaki (2003), “Reasons behind Consumer’s Functional Food Choices,” Nutrition and Food Science, Vol. 33, 4 (May/Jun), 148-158.
Verbeke, W. and Viaene, J. (1998), “Consumer Behaviour towards Yoghurt in Belgium and Poland: A survey in Two Regions,” British Food Journal, Vol. 100, 4, 201-207.
Walley, K., Parsons, S. and Bland, M. (1999), “Quality Assurance and the Consumer: A Conjoint Study,” British Food Journal, Vol. 101, 2, 148-161.
Winer, Russell S. (2000), Marketing Management, New Jersey, US: Prentice Hall.
Wolfe, K. (1998), “Consumer Preferences and Low-fat and No-fat Food,” Agricultural Development Center, (November).
Appendix B – Alternative Evaluation and Selection Process
Source: Hawkins, Del I., Roger J. Best and Kenneth A. Coney (2001), Consumer Behavior: Building Marketing Strategy 8th Ed., US: McGraw-Hill
Appendix C – Factors That Affect the Consumer Decision-Making Process
Source: Lamb, Charles W. Jr., Joseph F. Hair, Jr. and Carl McDaniel (2005), Essentials of Marketing 4th Ed., Ohio, US: South-Western.
Appendix D – Factors influencing consumer behaviour
Experiences
Source: Kotler, Philip, Steward Adam, Linden Brown and Gary Armstrong (2003), Principle of Marketing 2nd Ed., New South Wales, Australia: Pearson Education
Appendix E – A model of buyer behaviour
Source: Kotler, Philip, Steward Adam, Linden Brown and Gary Armstrong (2003), Principle of Marketing 2nd Ed., New South Wales, Australia: Pearson Education
Appendix F – Coffee Price
Source: Anonymous (2004e), “Faces of Coffee,”
Appendix G – Coffee Production vs. Consumption
Source: Anonymous (2004e), “Faces of Coffee,”
Appendix H – A Simplified Version of the Theory of Reasoned Action
Source: Ajzen, Icek and Martin Fishbein (1980), “Understanding Attitudes and Predicting Social Behavior,” in Schiffman, Leon G. and Leslie Lazar Kanuk (2004), Consumer Behavior 8th Ed., New Jersey, US: Pearson Education
Appendix I – The Three Phases and Flow of the Perception/Experience/Memory Model of Advertising
Phase
Function
Effect
Source: Hall, Bruce F. (2002), “A New Model for Measuring Advertising Effectiveness,” in Schiffman, Leon G. and Leslie Lazar Kanuk (2004), Consumer Behavior 8th Ed., New Jersey, US: Pearson Education
Appendix J
Typical specific desirable flavour characteristics
-
Bright, Dry, Sharp, or Snappy— (typical of Central American coffees)
-
Caramelly —candy like or syrupy
-
Chocolaty— an aftertaste similar to unsweetened chocolate or vanilla
-
Delicate— a subtle flavor perceived on the tip of the tongue (typical of washed New Guinea arabica)
-
Earthy— a soily characteristic (typical of Sumatran coffees)
-
Fragrant— an aromatic characteristic ranging from floral to spicy
-
Fruity— an aromatic characteristic reminiscent of berries or citrus
-
Mellow— a round, smooth taste, typically lacking acid
-
Nutty— an aftertaste similar to roasted nuts
-
Spicy— a flavor and aroma reminiscent of spices
-
Sweet— free of harshness
-
Wildness— a gamey flavor which is not usually considered favorable
-
Winy— an aftertaste reminiscent of well-matured wine
Typical specific undesirable flavour characteristics
-
Bitter— perceived on the back of the tongue, usually a result of over roasting
-
Bland— neutral in flavor
-
Carbony— burnt charcoaly overtones
-
Dead— see "flat"
-
Dirty— a mustiness reminiscent of eating dirt
-
Earthy— see "dirty"
-
Flat— lack of acidity, aroma, and aftertaste
-
Grassy— an aroma and flavor reminiscent of freshly cut lawn
-
Harsh— a caustic, clawing, raspy characteristic
-
Muddy— thick and dull
-
Musty— a slight stuffy or moldy smell (not always a negative characteristic when in aged coffees)
-
Rioy— a starchy texture similar to water which pasta has been cooked in.
-
Rough— a sensation on the tongue reminiscent of eating salt
-
Rubbery— an aroma and flavor reminiscent of burnt rubber (typically found only in dry-processed robustas)
-
Soft— see "bland"
-
Sour— tart flavors reminiscent of unripe fruit
-
Thin— lacking acidity, typically a result of under brewing
-
Turpeny— turpentine-like in flavor
-
Watery— a lack of body or viscosity in the mouth
-
Wild— gamey characteristics
Source: Anonymous (2004b), “What is Coffee?” .
