1 / 11

Understanding Today‘s Consumers: Between Preferences and Innovation

Understanding Today‘s Consumers: Between Preferences and Innovation. Dr Sven Anders Dept of Rural Economy University of Alberta. The Changing Face of Food. Quality Fresh, Taste, Convenience , Ready-to…, … Safety

raiden
Download Presentation

Understanding Today‘s Consumers: Between Preferences and Innovation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Understanding Today‘s Consumers: Between Preferences and Innovation Dr Sven Anders Dept of Rural Economy University of Alberta

  2. The Changing Face of Food • Quality Fresh, Taste, Convenience, Ready-to…, … • Safety Listeria m., E. coli, Salmonella, Campylobacter, Mycotoxins, Pesticide and chemical residues … coli, Salmonella, Campylobacter, Mycotoxins, Pesticide and chemical residues … coli, Salmonella, Campylobacter, Mycotoxins, Pesticide and chemical residues … • Nutrition“Canada Weighs in”(CBC) Obesity, Lifestyle, Food Knowledge, Habits

  3. The Changing Face of Retailing • Retail Differentiation Discounters Store designs and experience Private labels (store brands) Labelling, promotion Alternative store concepts (farm markets, specialty [organic, health], on-the-go store…)

  4. The Changing Face of Demand • Sensible Food Issues Animal welfare The environment Let food be your medicine, feel good foods Origin Social standards Aging population

  5. Opportunities for Innovation Today’s consumer wants… More variety Home grown food New and ethnic To shop at discounters and farmer’s markets To eat out of home AND, want it easy, fast and safe ??? Are they willing to pay (more) for it ???

  6. Success and Failure of Innovations Successful innovations hinge on understanding of target market consumers • Explaining Consumer Resistance to Innovation What drives Innovation adoption in food markets? Common barriers: Usage, Value, Risk, Tradition, Image

  7. Case study “Modified Atmosphere Packaged (MAP) Ground Beef in the Canadian Retail Market” • Consumer Choice Experiments (n=200) • Identify meat preferences, food innovation attitudes • Observe product choice behaviour for new meat packaging technology • Estimate willingness to pay across consumer population • Determine target market segment and likely labelling strategy

  8. Findings • Consumer Choice Experiments (n=200) MAP shelf life extension (14 days) has positive effect on WTP Light & cherry red ground beef colour preferred MAP (MAP/CO) information decreases WTP for preferred colour and shelf life Knowledge about technology decreased WTP on average 23% (from $1.04 to $0.80/lb.)

  9. Implications Innovation success does depend on knowledge of expected consumer reaction Case of MAP in ground beef highlights role of: Information Presence of labelling Consumer risk and value barriers Experimental economics valuable tool to complement “classic” market research tools (e.g. retail scanner data)

  10. Thank you Alberta Livestock and Meat Agency (ALMA) Beef Information Center (BIC) Canadian Meat Council (CMC) Agri-food Discovery Place Sven.Anders@ualberta.ca 515 GSB, Rural Economy University of Alberta

More Related