Dr. Pornsri Laurujisawat 9April 09

1. ThaiConsumers’ Perception criteria andRisk Reduction Strategies influencingPurchasing Decision for fresh chicken meatduring the bird flu risk situation Dr. Pornsri Laurujisawat 9April 09 Dr.Pornsri Laurujisawat

2. Introduction Statement of the Problem &Four Objectives 1) InMarketing Area: This paper intends to study whether consumer behaviorsinfluence consumers’ purchasing decision. • New marketing knowledge has shifted from a focus on products to consumers’ satisfaction (Kotler & Armstrong, 2004). • One way to understandUnderstanding consumer behavior leads to recognition of how and why consumers make their purchasing decisions. 2) Focus on Agricultural products: Which factors influence consumers buy or eat chicken meat? Dr.Pornsri Laurujisawat

3. Introduction Statement of the Problem &Four Objectives 3) In this research inserts ”bird flu” crisis situation for more challenging study. When there is a risk in food, consumers feel fear, and always ask questions such as; Can this food be eaten? Will they die from eating this dangerous food? etc • During the “bird flu” crisis, consumers’ panic and non-confidence to whether to buy or to consume chicken meat 4) Application of academic theories to solve the industry’s problems: Dr.Pornsri Laurujisawat

4. Consumer Behavior FactorsIn the L/R when study consumers' buying behavior of food products, they always study “ consumer perception”. Consumer perception(an internal factor of consumer behavior) Consumer influences External influences Culture and values Demographics, income and social class Reference groups and households Marketing activities Internal influences Needs, motives and emotions Perceptions and memory Personality and lifestyle Attitudes Situational influences Physical, time, social, task and antecedent Decision-process influences Problem recognition Information search Alternative evaluation Outlet selection Purchase Post purchase processes Marketing decisions Market segmentation Target segment (S) Single- or multiple-target Segments Product positioning Key product-differentiation Variables Marketing mix Product features Price level Promotional appeal Place (distribution) To study whether consumer perceptioninfluence consumer s’ purchasing decision Source: Neal, Quester, and Hawkins, 1999, p.1.9 Dr.Pornsri Laurujisawat

5. Risk Reduction Strategy is an increasing consumers’ confidence and repurchase factor The risk reduction model The research is designed to study which are risk reduction strategies that can increase consumers’ confidence and regain to consume chicken? Source: Yeung, R.M.W. and Morris, J. (2001b), "Food safety risk: consumer perception and purchase behavior", British Food Journal, Vol. 103 No.3, pp.170-187. Dr.Pornsri Laurujisawat

6. 4) Application of academic theories to solve the industry’s problems: 1) Demographic Factors • Whether different demographic factorshave different purchasing decision. 2) Situation impact to purchasing decision • The risk for food has had a huge impact on the economy and the livelihood of Thai people. While food risk can occur at any timein Thailand, it is challange to be prepared for the future by applying the bird flu case to solve this type of problem. • To understanding consumers in different situations comparison, the research is also designed to examine purchasing decision in three situations as 1) normal situation, 2) during risk crisis, and 3) if in future risk. • To examine what consumers will do in the three situations to compare and analyze results. Dr.Pornsri Laurujisawat

7. Conceptual Framework of the research Independent Variables Dependent Variable Dr.Pornsri Laurujisawat

8. The matrix form in three different situations :The EquationY = Bo + B1 X1+ B2X2+ B3X3 Dr.Pornsri Laurujisawat

9. Methodology • The research applies quantitative methodology by gathering questionnaires during consumers’ shopping. • The statistic uses Multiple Regression with 400 valid questionnaires. Dr.Pornsri Laurujisawat

10. Consumers’ perception criteria influencing consumer purchase decisions in three different situations in different ways Dr.Pornsri Laurujisawat Source: Calculation and summary from the hypothesis test

11. Risk reduction has played an important role in increasing consumer confidence and also has an influence on consumers’ purchasing decisionin three different situations in different ways: Dr.Pornsri Laurujisawat Source: Calculate from details of collected data

12. Purchasing decision is different in three situationsin different ways Source: calculated from the data details from the results of questionnaire Dr.Pornsri Laurujisawat

13. The Findings • Different demographic factors have difference purchasing decisions in different situations with different ways. Dr.Pornsri Laurujisawat

14. Implementation: Five Management Practices • Producers or marketers suggest to provide more product information. • The government suggest to design the “Government controls/Labels”. The “Government controls/Labels” is important to all parties; small farms, big businesses, and international businesses. It means national food safety image. • The study shows that “risk reduction” strategies are important to Thai consumers during food risk scares. In order to restore Thai consumers’ confidence, efforts suggest be made to improve the regulation of the production process and the distribution system through the supply chain. 4 Dr.Pornsri Laurujisawat

15. Implementation: • The Thai chicken meat marketers would have to always think about if there will be another bird flu. 5) In this study, personal control factor was also considered an important risk reduction strategy. As a standard precaution, WHO recommends that poultry and poultry products should always be prepared following good hygienic practices, and that poultry meat should be properly cooked. This information needs to be made available to the Thai public, especially to those living in remote districts which are out of range of print and broadcast media. Dr.Pornsri Laurujisawat

16. Implementation: • Three Business Policies 1) Since a demographic variable there is different to purchasing decision, marketers should design strategies for different target groups. 2) Producers suggest promote their own brands more. 3) Some communication channels which poultry farmers can use, in cooperation with the Government, are workshops, road shows, telephone hotlines, websites, and information leaflets. Accurate and reliable information can take the role of removing uncertainty and restoring consumers’ confidence during and after bird flu scares. Dr.Pornsri Laurujisawat