Enhancing Consumer Preference Towards Healthy Drinks: Great Lakes Herald March 2019, Vol 13, Issue No.1
Enhancing Consumer Preference Towards Healthy Drinks: Great Lakes Herald March 2019, Vol 13, Issue No.1
Enhancing Consumer Preference Towards Healthy Drinks: Great Lakes Herald March 2019, Vol 13, Issue No.1
H1: H
There is aispositive
1: There relationship
a positive relationshipbetween
betweenBrand and Customer
Brand Image and CustomerPurchase
PurchaseIntention.
Intention.
Below are the hypotheses that we have defined from the literature review for each
of the two phases:
PHASE 1: Survey Research
H1: There is a positive relationship between Brand Image and Customer Purchase
Intention.
H2: There is a positive relationship between Product Advertisements/Offers/
Promotions and Customer Purchase Intention.
H3: There is a positive relationship between Consumer awareness and Customer
Purchase Intention.
H4: There is a positive relationship between Taste / Texture / Flavour of the drink
and Customer Purchase Intention.
H5: There is a positive relationship between Product Packaging / Design and
Customer Purchase Intention.
H6: There is a positive relationship between Reference Groups and Customer
Purchase Intention.
H7: There is a positive relationship between Favourable In-mall product placements
and Customer Purchase Intention.
H8: There is a negative relationship between Product Price and Customer Purchase
Intention.
H9: There is a positive relationship between Display of product ingredients and
Customer Purchase Intention.
H10: There is no significant relationship between socio demographic variables
(segmentation variables) and consumer buying behaviour towards health drinks.
PHASE 2: Experimental Research: We have identified above factors which will
function as independent variables. We intend to perform quantitative analyses
(Multi-linear regression, Logistic Regression, Factor and Cluster Analysis, Conjoint
Analysis, etc.) to further analyse and assess the trend of consumer behaviour. We
will study the different sampling techniques available and choose the best-fit
method based on the scope of this empirical study. Questionnaires will be framed
taking into account the independent and dependant variable(s) to be studied. In the
course of the empirical study, we will account for any co-variates or extraneous
variables that we may encounter and factor them into the quantitative study in
order to get a holistic view of the consumer pattern of buying healthy drinks.
Below
Great Lakesarekey latent relationships55that were uncovered.
the
Herald All2019,
March relationships mentioned
Vol 13, Issue No.1
Below are the key latent relationships that were uncovered. All relationships mentioned h
significant.
significant.
Below are the key latent relationships that were uncovered. All relationships
mentioned here are statistically significant.
1. Fear, Attitude, Susceptibility, Health Consciousness and Response
Efficacy are playing significant roles in influencing the purchase decisions
of respondents.
2. Severity and Self Efficacy did not come out as significant in influencing
purchase decisions.
3. Fear appeal in the advertisement with a focus on inducing more Anxiety
tends to increase Severity effect among respondents.
4. Fear appeal in the advertisement with a focus on scare factor induces a
change in attitude in respondents. They tend to check their consumption of
sugary drinks more when scare quotient of the advertisement is high.
5. Attitude and Health consciousness drives response efficacy (to avoid
consuming carbonated drinks and switch to healthy drinks)
6. Availability of healthy drinks also induces self-efficacy to switch to healthy
drinks.
7. Health consciousness plays a key role in Severity of effect judgment by
respondents.
The insights are mostly in-line with results of Linear Regression/ Factor Analysis/
Linear Discriminant Analysis that we performed and submitted for previous
empirical project milestones. Latent interaction diagram is appended in the
Statistical output document attached. Thus, we have empirically established that
Fear, Attitude and Response Efficacy are most important drivers to focus on.
These factors will be crucial in deciding how we can target the consumer segment
to move from consumption of fizzy drinks to healthy drinks.
Results from Phase 3b: ‘Mediation Analysis’ using Process Macro v3.0
The research motivation to perform mediation analysis came from the results of
the AMOS study. We had concluded that Fear, Attitude and Response Efficacy
are important factors that are actionable when deciding advertising campaigns.
Large FMCG organisations like Pepsi Co., Coca Cola, etc. should focus on these
parameters when designing advertising that are relevant to the consumer base
for their latest health drink products. This will ensure that we can manipulate
behavioural purchase patterns of profitable customer segments and shift them
from consumption of fizzy drinks to healthy drinks.
Process Macro v3.0 is an observed variable OLS regression path analysis
modelling tool for SPSS. It is used to assess direct/indirect effects of independent
and mediator variables on the final outcome (dependent) variable.
Fear Quotient
Response Efficacy
4. How can we effectively re-position health drinks based on the consumer segments available i
right balance of fear/attitude/response efficacy, coupled with a socially
relevant message, health drink manufacturers can target the required consumer
segment and boost sales of their health drinks in the global FMCG market.
We have focused on the consumer behaviour aspect of the empirical study and
there are few areas of research that are outside the scope of this study and warrant
further discussions:
1. How can health drink manufacturers design advertisements that combine the
right balance of fear quotient and response efficacy without falling into the
aforementioned “negative effect” scenario?
2. What are the psychographic components of a consumer’s reaction to response
efficacy? How can it be studied?
3. What other mediums can we look at while designing content for health drink
advertisements?
4. How can we effectively re-position health drinks based on the consumer
segments available in the FMCG market?