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Similar a Packaging Strategies for Increasing Sales of Insect Food Products
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Packaging Strategies for Increasing Sales of Insect Food Products
- 1. Packaging strategies for Insect Packaged Food Products ERASMUS UNIVERSITY ROTTERDAM Faculty of Economics of Business Marketing Supervisor: Dr. Vijay Hariharan Name: Peng Li Student number: 358056 E-mail address: william880906@gmail.com Study: Business and Economics (Marketing) Thesis: Master
- 3. Abstract: This paper aims to exam packaging strategy for insect packaged food products. An experiment is carried out to investigate that which kinds of packaging combination between brand name and brand logo will be suitable for consumer. Furthermore, we also investigated the interaction effect between brand name and brand logo.
- 4. Chapter 1. Research Problems According to the United Nations report, the current world populations of 7,2 billion is projected to increase by 1 billion over the next 12 years and reach 9,6 billion by 2050. (World population projected to reach 9.6 billion by 2050 – UN report, 2013) The demand for food, feed, fiber and fuel will likely outpace food production if the current rate of output remains the same. (Koba, 2014) Global food shortages become more and more serious. We are looking for more possibilities to replace the food we are eating now in a sustainable way to provide high nutrition, but at low cost. Changes in food consumption could solve this issue. In this regard insects have a high nutritional value, their cultivation is environmentally friendlier and comes with great socio-economic benefits for many people in the poorer regions of the planet. (Cassimally K. A., 2013) Over 2 billion people worldwide already supplement their diets with insects. Eating insects for human consumption is officially called entomophagy. Globally there are 1,417 species of edible insects and nearly 3,000 ethnic groups that currently practice entomophagy around the world. Most of these insects are eaten in the larval and pupil stages, though some are good all the way to adulthood. Beetle is on the top of the list of edible insects with 344 variables to choose from for consumption. Ants, bees and wasps are close behind with 314. Butterflies, moths, grasshopper and crickets are the other heavy hitter. (Bryant, 2013) Let us look at the Dutch market. Jumbo is a supermarket chain in Netherlands, which stared to offer edible insects in their stores. I have conducted a short interview with the manager of Jumbo in Buitenveldert, Amsterdam. The manager said that the sales of insect products are 'not so positive, and they just want to put insect product on the shelf to see if the Dutch customers would like to try the new product'. The result of that commitment remains unknown so far. From the interview with workers in the Jumbo super market, it was found out that the sales were relatively negative. People are curious about the product, but they did not buy it in the end. This is also a reason why I explore what customers think about the insect products. What changes can be still done to improve the sales of
- 5. insect products? Jumbo is not the only supermarket chain in The Netherlands that sells insect products. Albert Heijn also started to sell diverse kinds of products. In the Dutch insect market, the battle has just started and supermarkets do not want to be too late to put those products on the shelves. According to an online survey by Marcel Dicke, Wageningen University, Professor of Entomology, 70% percent of the respondent chose “definitely” or “probably” to indicate that they would consume insect products. Another 30% of the participants choose not to. (Bron, 2014) As a result, we see that there are still a lot of people willing to try and consume an insect product. However, for the Netherlands, insect consumption is still a relatively new subject. In Southern Asia, Mopani worms, the caterpillars of emperor moths are already popular snacks. The Japanese have been consuming aquatic insect larvae since ancient times. Grasshoppers are eaten in Mexico. But these traditions are noticeably absent in Europe and Europe-originating cultures, like the United States. “Consumer disgust” remains a large barrier in many Western countries. (UN urges people to eat insects to fight world hunger, 2013) Owing to that, my research question will be: What kinds of package strategy can insect producing company use to reduce the negative perception of insect products in order to increase sales? In order to increase the sales of insect products, I come up with three different sub-questions: 1)Which type of brand name in the packaging would consumers prefer to purchase more insect products? 2)Which type of brand logo in the packaging would consumers prefer to purchase more insect products ? 3)Which type of combination between brand name and brand logo would consumers prefer to purchase more insect products?
- 6. The reason why I am going to do this research is that I want to try to analyze, what consumers think about insect products and what their opinion is affected by and what may change through different display conditions. The main reason is to increase the sales of insect products and find out which package marketing strategy is the best for the company to get positive perception instead of negative one in the consumer’s mind. Afterwards I will give a recommendation for supermarkets to improve customer perception to get more sales. Besides, it is interesting for me to conduct an experiment with different advertising conditions to determine which advertising strategies are best for manufactures.
- 7. Chapter 2. : Background Information 2.1 What are insects? Insects are the largest group in the kingdom of animals. There are over 1 million of various insect species on our planet, living in every conceivable environment from volcanoes to glaciers. Insects help people in pollinating food crops, decomposing organic matter, providing researchers with clues to cancer cures, or solving crime cases. (Hadley, 2015) One can find insects in almost all terrestrial and freshwater habitats, from the driest desert to freshwater ponds, from the canopy of a tropical rainforest to areas of arctic waste. Insects are seen everywhere and appear in many different shapes and forms. They share several, easily recognizable external characteristics. 2.2 Why do people eat insects? Even though eating insects in some countries is considered unappetizing or primitive, there are almost 2 billion people in the world who consume insects on a regular basis. For instance, in The Republic of Congo caterpillars are available for consumption reasons throughout the whole year and as sold in the local markets. A single household in the Congolese capital of Kinshasa eats approximately 300 grams of caterpillars a week. This equals to 96 tons of caterpillars consumed annually. There are also many other insects available on the local market. For instance, beetles and caterpillars are consumed as much as all the other edible insects combined. Moreover, bees, wasps and ants are popular as well, accounting for 14% of the global insect consumption. (Cassimally, 2013) Even though insects are relatively popular in Africa and Asia, this is not the case in Europe. People still find the consumption of insects odd. The acceptable limit of insect infestation in hops is 2,500 aphids per 10 grams. The permissible level of insect infestation in canned fruit juice reaches up to 1 maggot per 250 ml and for curry powder up to 100 insect fragments (head, body, legs) per 25 grams for chopped dates up to 10 whole dead insects is the acceptable number. (Alford, 2014) People may have actually been eating insects for years, but they just never realized it.
- 8. There are many reasons why people choose to eat insects: Health reasons: One hundred grams of crickets contains 121 calories. Only 49.5 calories come from fat. The nutritional value is in the 12.9 grams of protein and 75.8 milligrams of iron. They also have about 5 grams of carbohydrates. When people would like to watch their shape and want to cut down on the carbs, they go with worm pupae or a nice steaming bowl of termites. Neither of these has any carbohydrates, nor they both are a great source of protein and calories. But if its protein, caterpillars are the most appropriate choice. These little insects pack a walloping 28 grams of protein per 100 grams. They are also loaded with iron, thiamine (B1) and niacin (B3). (Bryant, 2013) Insects are really good for our health. ”Nutritionally, insects are quite excellent,” says Arnold van Huis, PhD, an entomology researcher at Wageningen University in the Netherlands. There are a number of instances besides that which prove that they are even better than normal meat. Ounce for ounce, crickets provide more than twice the protein of beef. Furthermore, that protein is the best kind on the top of it, containing all nine essential amino acids. Crackers have around five times as much magnesium as beef does. (Carter, 2014) Magnesium in the food can decrease heart diseases about 22 percent. Research in Japan has shown that you can lower the risk of getting a heart disease approximately 33 percent. Crickets have 3 times more iron than beef. The author of the Edible also says that you are eating ones and organs, which deliver calcium, iron, vitamin B12, and zinc. That equals the whole amount of nutritional elements as for adult cattle. (Huis, 2013) The following table also shows that adult locusts and grasshoppers have comparable levels of protein as raw beef does. And we see also that the insects make up sizeable portion of the daily needed dose of protein, calcium, zinc and iron. . (Brown, 2013)
- 9. Table 1: As for the health motives, we also know that insects are taxonomically distant from humans, which makes them less possible to transmit diseases to humans. We all know the SARS, H5N1, and 'mad-cow' cases, which originate from animals and they share some related bacteria to humans, transmitted due to bad manners of preservation or cooking. They unwittingly cause diseases. Furthermore we can read from the chart, that insects can also provide us daily nutrition demand. If we can start to eat insects, we can avoid some diseases by the same token. Environmental reasons: eating insects is also good for the environment. Unlike chickens, pigs, and cows - crickets create a fraction of the green house gases. A single pound of beef, by comparison, requires thousands of gallons of water-
- 10. 2,600 to 5,200, according to the estimate from U.N. food and the Agriculture Organization. Cattle take two to three years to reach slaughter weight; crickets grow from egg to adulthood in seven weeks. (Carter, 2014) Insects that are kept for breeding also emit considerably fewer green house gases than most livestock and require much less space. A Wageningen University research team has for the first time quantified the greenhouse gases produced per kilogram of insect product. The gases concerned were methane (CH4) and nitrous oxide (N20). The result showed that insect produce much smaller quantities of greenhouse gases than conventional livestock. For example, a swine produces between ten and hundred times as much greenhouse gases per kilogram compared with mealworms. The emission of ammonia appears to be significantly lower. A swine produces between eight and twelve time as much ammonia per kilogram of growth compared to crickets, and up to fifty times more than locusts. Another advantage is also that insects convert their food quicker into meat than conventional livestock. (Huis, 2013) The results can be seen in the table below. Because insects are cold-blooded, they require less energy to maintain the internal body temperature. Therefore, they are more efficient at converting food into protein. Crickets, for example need twelve times less food than cattle, four times less than sheep, and half as much as swine’s and broiler chicken in order to
- 11. produce the same amount of proteins. Also the costs of gathering insects (as is the practice in the developing countries) or producing them at a larger scale are relatively low. Livelihood reasons (economics and society): insect harvesting is a low-tech, low capital investment option that offers entry even to the poorest section of society, such as the landless. Small amounts of insect livestock offer livelihood opportunities for both urban and rural people in developing countries. Insects can be low-tech or not very sophisticated, depending on the level of the investment. At the same time, the insect products also offer important livelihood diversification strategies. Insects can be directly and easily collected in the wild. Producers of this livelihood can improve the diets and provide cash income through the selling of excess production as street food. It also gives a good opportunity for entrepreneurship and does not need a big investment to start. The whole production process and the business chain are fairly easy in rural areas.
- 12. Chapter 3. Literature Review There is not a lot of research about insect product consumer behavior analysis. But there are a lot of papers about organic food. Insect food products and organic food both are the alternative way for current food methods. I’m going to stimulate organic product papers with my research. Consumer perceptions about organic food and insect food are quite complex, which need advertising efforts to convince the potential buyers. 3.1 Prior studies for purchasing reason of Organic food study: Hendrik (Ophuis, 1997) in Netherlands did research about health-related determinants of organic consumption. According to his study, organic buyers appear to be health-conscious. They find health very important for themselves, and they think what they eat affects their health. Also, they know more about nutrition than non-buyers, and they do not mind eating something else if they agree that this can improve their health. They are willing to make sacrifices regarding money or the appearance of the product to obtain natural and healthy food. Health is a more important motive for the incidental buyer of organic food; this is why a lot of surveys did not focus on health, as buyers are likely to conclude that health is the most important reason for people to buy organic food. It should be noted that age might be a confounding reason in determining the relative importance of health and environment for organic food buying. Shepherd and Magnusson (Richard Shepherd, 2005) did research about consumer behavior and purchase intention for organic food. His conclusion is that consumers were satisfied with organic food for variety of reasons. Health content came first in mind over environmentally safe, satisfies changing taste, attitude of the customers, and helps in maintaining the status in society. Quality of the product was also a very important factor for consumers of organic food. Consumers think that organic food is costly, but at the same time, they believe that the higher price can be introduced because of the healthy content and the eco-friendliness of a product. Consumers did not stick to organic food purchases only. They bought un-organic food in combination with organic food. It also showed that the quantity of organic food purchased depends on the educational
- 13. level. The customers are willing to buy organic food because of the benefits. The retailers have to keep tell their consumers about these benefits. After this study, recommendations were given for future studies regarding information to be given about the benefits of organic food, the freshness of the taste and the environmental benefits also. Another research shows that health is a more important influential factor compared to environmental ones, although this varies between the light and heavy users. Health benefits were more strongly related to attitude and behavior than the perceived environmental benefits. However, the frequency of performing environment-friendly behavior also contributed to the prediction of the purchase of organic food. Briz (T.Briz, 2009) made a conclusion that the potential gains that can result from efforts to improve consumers understanding about organic food and where to concentrate those efforts. The results showed that awareness levels are different across age, education and region of the country. Education can be the most influential factor for raising awareness. Awareness levels were lowest amongst the low income and education demographics. For these lower awareness levels, the relationship between awareness and consumption is positive. The contrast with the high education and income level is a profound item of the downturn in the likelihood of consumer organics. Regarding (Roddy, 1996) investigation of the consumer’s attitude and behavior to organic food in Ireland, cluster analysis methodology was applied regarding the attitude, which influences the purchasing behavior and the premium price for the organic food. The result showed that the target consumers are “half- hearers”, ”cost conscious”, “worriers”, “organic purist” and “organic conditionals”, and that they will be increasingly buying organic food in the future as well. The marketing strategies are trying to satisfy the needs of these different groups. The main issue, which needs to be confronted, is the price and availability of organic food. Promotion also needs to be improved and the education component should be also taken into account. For the environment content, the behavior-behavior correlations are stronger
- 14. than belief behavior. In their papers, they also mentioned the project of CONDOR, which examine attitudes to processed food as well as fresh organic food and the role of affective and how to make choices. An interesting result is that consumer’s socio-demographic characteristics have only limited influence on their organic food choice in Europe. Three previous empirical studies concluded that in Europe, amongst socio-demographic characteristics, only age, education and household size influence organic food choice. Most Europe high-income consumers are more likely to buy organic food. Their finding also indicates that income has a positive effect on the probability to buy organic products. As for the price sensitivity, the finding is that consumers who perceived the price to be high are less willing to buy organic goods and will consume fewer amounts. People with lower shopping frequency pay more attention to the price of organic food. European consumers are willing to buy organic good mainly because organic food is healthy and environmental-friendly. And the importance of health has a higher impact on the probability of purchasing behavior compared to environmental reasons. These studies indicate that older, more educated consumers and those living in larger householder are more likely to buy organic food product. But in our study, none of the socio-demographic characteristics has a statistical impact on either the probability of buying organic food or the probability of being a regular consumer. Another important result is that the health and environmental benefits of organic food product perceived by European consumers are factors explaining organic food demand. Moreover, it can be stated that health benefits is more influential than the environmental benefits in European consumers’ choice of organic food. (Azucena Gracia, 2008) Hjelmar (Hjelmar, 2011) showed that the availability of organic food product is very important; they also found out that most of customers are pragmatic and they do not like to go to several different stores to get what they want. They prefer to go to a supermarket, which is very convenient and not distant. Consumers also believe that the organic food tastes better than conventional
- 15. food. Organic food is associated with high-quality food because it is fresh, local and seasonal. It offers consumers more health benefits than conventional food and is full of nutrition. Hjelmar also showed that politically minded consumers have more considerations when purchasing organic food products, for example, health, animal welfare, environment, freshness and national origin. Roitnter (Birgit Roitner-Schobesberger, 2008) found out that the most buyers of organic vegetables in Bangkok are older and have higher incomes than the people who are not 'organic' buyers. It was also mentioned that men in Bangkok seem to be more likely to buy organic food than women. More men are willing to pay a premium price than women. Health benefits have been reported again as the main reason for people who buy organic food. It was found out in this study that the organic benefit is closely associated with the residues from the chemicals that are used in the local agriculture. The two main motivations for consumers of organic food are freshness and tastiness. It is also interesting that consumers are not very clear about organic labels according to the results from the paper. The main reason why consumers do not buy organic food is that they do not comprehend the meaning of 'organic'. It is difficult to educate potential consumers about different “safe food” labels. This could be an issue for the development of organic food in Thailand. It would seem useful that the Department of Agriculture, the Department of Agricultural Extension and the Ministry of Health agree on one label indicating that foods comply with the maximum allowable residue limit, this label should be based on a common control and inspection method. It is also mentioned that the reducing the number of “safe food” labels would also allow organic labels to position themselves more clearly by indicating more restrictive standards. The study showed that organic labels do not have a clear profile for consumers. In his paper (Roitner-Schobesberger, 2008), there are also three main motives to purchase organic food in Bangkok: the expected health benefits, the attraction of new products and the search for tastier products. Health benefits have been reported as a main motive for purchasing organic food by most studies. Health is
- 16. the one-aspect that consumers are at least willing to compromise. The second important motive to purchase organic food is the consumers search for new, trendy and fresh products. Freshness is generally a key criterion in the purchase of vegetable and fruits. And the third important motive is related to the better taste of organic vegetables. Saleki (Zeinab Seyed Saleki, 2012) found out that the relationship between attitude and organic purchasing behavior is significant and positive for consumers in Iran. But the relationship between subjective norms and attitude has the lowest correlation. The whole impact (organic knowledge, price consciousness, subjective norms and familiarity) is positive and significant except for the subjective norms that influence the organic buying behavior, see figure 1 below. A number of studies about customer satisfaction, health image, demographic influence and price have contributed to my research about the perception of insect products in The Netherlands. A questionnaire has been made to ask people their opinion and to analyze these factors. 3.2 Prior researches for brand name and brand image study: Park (C. Whan Park, 1989) found out that the different structures of a brand name have different influences in the consumers' mind. Symbolic brand names are presented to a consumer with the meaning “the product is luxurious, has high social status and inexpensive” by contrast, the used based brand names are not spontaneously articulated by subjects when presented with the lists of brand names. From this study, we see that the similarity showed the functional and
- 17. usage based brand name were not increased by the presence of the brand name. But the symbolic brand name is enhanced for the subject’s judgments of how well the products fit together. Finally, we also know from the functional or usage based brand name concepts are associated with the common features. It is called a “bottom-up” type of process. The brand name concept is descripted as the result of promotion or being exposed to the brand name by different individual products. The paper gives Honda as an example. Consumers may think of Honda as “small, gasoline engine based” because they relate to the Honda motorcycle or the compact car. But when it comes to the symbolic brand name concept, it follows the “top-down” which means that the brand name is difficult to describe with the individual features and may be understood by consumers with a unique combination of products, persons or usages of situation settings. When the products are positioned properly, the concept will be associated with the right understanding in terms of meaning. They also give suggestions for further research initiatives regarding how brand name concepts are initially formed. Iglesias (Iglesias, 2001) also points out that the brand name is very important for a company to get differential advantages. Nowadays it no longer offers previous levels of competitive advantages from improving technology innovations and function aspects. It is also not surprising that there are some famous brand advertising campaigns, which try to focus on the pleasure of using this product instead of mentioning the functional product technical characteristics. So the recurring assumption is that the differentiation of competing products is based on the symbols, images and feelings associated with the brand name rather than in the physical characteristics of the product itself. This hypothesis has not been proven in empirical research to date. In the study, the hypothesis is sufficiently supported that there are greater differences between the brands in the brand name related than in the product related benefits. Frost (Frost, 2002) examined the effects of non-product-related brand associations on status and conspicuous consumptions. The results indicate that
- 18. symbolic characteristics, self-imaged brand image congruency and brand feeling were the strongest related to a brand and consumption related to a certain brand. It is important to know that the key brand association consumers perceived to be important in the process of the status consumption and conspicuous consumption. We can also say that if consumers do not consider a brand’s symbolic characteristics, self-imaged and brand image congruency and brand feelings to be important, then it is more likely to happen that they do not perceive this brand to possess status or to be suitable for a conspicuous consumption. The study also showed that people do not have to be familiar with a band to identify a brand as a status brand to buy it. Consumers can recognize the brand name and brand image without being familiar with the other aspects of a brand. It will not affect consumers’ ability to identify certain brands. If they find meaningful symbolic characteristics, if their self-image is congruent with that of the brands image and if they have positive strong feeling towards the brand, then the status attributed and conspicuousness of consumption of the brand will not be affected. Also the brand familiarity can vary from recognizing packaging, identifying with the brand’s image or personality, to knowing where the brand is sold, how much it costs, how broad the range of products is and the overall quality and durability. There are also some papers about how to deliver positive or negative perceptions to your customers. Rechard and Lee found out that the effects of negative political campaigns that attack ads are more memorable than the typical positive ads. Bias based on these political campaigns inevitably distorts perceptions of the prevalence of negative campaigning. And the social science research provide some evidence that the mechanisms through which negative campaigning is supposed to work do in fact operate, but there is an overriding lack of evidence that negative campaigning itself works as it is supposed to. The conclusion that the negative campaigning is no more effective than positive campaigning even though negative campaigns appear to be somewhat more memorable and to generate somewhat greater campaign-relevant knowledge. Negative campaigning also has the potential effect to damage the political system. It also tends to reduce the feeling of political efficacy, trust in
- 19. government, and perhaps even satisfaction with government itself. (Lau, 2007) Another research paper done by Yanna Krupnikov (Krupnikov, 2012), points out that certain ads help individuals to make better choices. Negative ads, rather than positive ads, increase this likelihood of selection. At a time when numerous political organization, and journalists continue to argue that negativity is detrimental to the political progress it is important to note that increase in negativity leads to an increase in the likelihood of selection. In short, individual who saw more negative ads were more likely to take an initial, necessary step toward political involvement. Simply because negative ads are unpleasant does not logically determine that negative ads will be harmful under all conditions. Straub and hills (Diane.m. straub, 2003) pointed out that although anti-tobacco advertising has a protective effect, it was unable to counteract the effect of pro- tobacco advertising in the same cohort. Independent of known influences on adolescent’s intention to smoke, it was found that both receptivity to pro- tobacco advertising and agreement with anti-tobacco advertising were strong predictors of the intention to smoke. In their study, there is an independent strong inverse association with intention to smoke with agreement with anti- tobacco advertising. Clearly, youth are being simultaneously exposed to both pro- and anti-tobacco advertising, and it appears that each exerts an independent effect on their intention to smoke. Goldman and Glantz (Lisa K. Goldman & Stanton A. Glantz, 1998) did research on the evaluation of antismoking advertising campaigns. Their focus group participants indicated that industry manipulation and second hand smoke has the most effect strategies for deformalizing smoking and reducing cigarette consumption. Addiction and cessation can be effective when used in conjunction with industry manipulation and second hand smoke strategies. Young access, short-term effects, long-term health effects, and romantic’s rejection are not effect strategies. More aggressive advertising strategies appear to be more effective at reducing tobacco consumption.
- 20. Chapter 4. Theoretical Framework and Hypotheses Based on the literature review, we have gone through different papers about factors, which can influence organic food purchasing behavior, and also brand name and brand image. If we want to know the influence of the brand name and image on the package for the consumer purchasing behavior, we have to know what consumers think about insect product and the purchasing behavior, which are including the following five different stages: (Johnston, 2013) Stage 1: consumers need recognition. Maketeers are trying to stimulate consumer into a real need for a specific product. For example, you may have heard many times about a movie, but maybe you are not interested in watching it. But after having seen a movie trailer on Youtube you start to have a feeling that you want to watch it with friends. Actually, it is the same case with the insect product, people maybe feel not good about eating insect as food. But when they had one good experience with consuming insect products, they might still remember the first time consuming it and they would like to try it again. Stage2: information search. Once the time is identified, consumers begin to seek for right information and a possible solution to solve a problem. There are two types of information in the consumer’s mind. The first one is the so-called the “internal information”. It is the memory that already is available in the brain of consumers. It comes from the last experience he had with a brand or product; it even could be an opinion in the past. The second type of information is called “external information”, which is received by friends or family members through reviews. In this stage, brand name and brand logo also can help people remind its brand. During decision-making, consumers normally prefer to listen to their friends or the opinion of other people. Consumers consider it to be more objective than commercial advertising. Stage3: alternative evaluation. After having collected the information, the consumer will start to evaluate the different alternatives that are offered to him. He will evaluate the best option to solve his problem. The higher involvement of the consumer and importance of the purchase is stronger, the higher frequency
- 21. of the consumer will think it as important. In order to convince consumers think different, the key concept what they may remember is, brand name or brand logo. Stage4: purchase decision. It is the moment that consumers start to shop He has already evaluated the different kinds of solutions and products which are available for him. He is able to choose a product or brand that seems to be the best option to him. His decision depends on the information he obtained during the different stages. In the meantime, the perceived value, perceived attributes importance and functions are also very important to him. Even when a consumer starts to purchase a brand or a product, a marketer still can use promotion strategies to change or improve the purchase volume. Stage5: Post-Purchase Behavior. After some consumers used the insect product, they would like to evaluate the consume experience. And they also start thinking about if they made a right choice. There are mostly two types of feeling: one is satisfaction, and another is called dissatisfaction. When they are satisfied with the insect products, they would like to short the time of making purchasing progress. They will buy the same product again. It is also possible to become a loyal consumer in the long run. If consumers don’t like what they have chosen, they maybe will leave this brand and look for a new opportunity to fulfill their need. So it is very important to satisfy consumers in order for them to stay with a certain brand. The post-purchasing behavior plays a very important role for brand development. The relationship between five stages with brand name and logo are following: Regnition Information search Alternative evaluation Decision Psot- Purchase behavior Brand Logo Brand name H1 H2 H3
- 22. H1: consumers are more likely to purchase a product in a food category if it has a brand name that highlight the benefits of product than it has neutral brand name. A good brand name will make consumer easy to understand and remember. As for brand name, Park found out that symbolic brand name are presented to customer with a meaning of luxury, or high social status. Iglesias also point out that it is very important for a company to get differential advantage by giving a good brand name. And it is also supported that there are greater differences between brand with brand name related and brand with brand with product related benefits. So it may create more attention when a product has a highlight brand name. H2: consumers are more likely to purchase a product in food category if the brand logo contains unattractive image than if it contains a neutral or attractive image. As for the brand image, Yanna point out that negative ads increase this likelihood of selection. Diane researched that both receptive to pro- tobacco advertising and agreement with anti-tobacco advertising were strong predictor of intention to smoke. So consumer starts to have an anti-feeling, when they saw a negative perception, it maybe increases the curiosity of trying. H3: Consumers are more likely to purchase a product in a new food category if the brand name highlight feature benefits with less attractive logo than if the brand name is neutral and has attractive brand logo. Based on the hypotheses 1 and 2, I make another hypotheses. When a brand name highlight the benefits directly, and it also have a less attractive logo, consumers are more likely to purchase, comparing with a brand name is neutral with an attractive logo.
- 23. Chapter 5. Experiment Design As for that, I have research question that I would like to base on organic food to simulate the research question itself. We want to examine people purchasing attention about insect products. I came up with a questionnaire according to the literature reviews in chapter 3. Tina M. Lowrey (Tina M. Lowrey, 2003) concluded that throughout the brand name development process, marketers might benefit from being sensitive to the linguistic characteristics of candidate names. Both screening and testing phases should capture consumer response to a wide range of candidate names differing in the types of linguistic devices used. It is also important that the study of language in advertising needs to be researched more thoroughly and more precisely. In order to examine the advertising strategy, we are going to test the influence of consumer feelings about a brand name on consumer purchasing behavior. We have the original name “insecta”, and we also have the new brand name “bio high protein” as comparing control group. There is also another variable, which is very interesting for me to examine, namely the image on the package for insect products. I made three options for this variable. The first option shows the original worms, where consumers can see worms directly on insect products. The second option is the neutral one where nothing will be appearing in the same place on the package. The third option is that a cartoon of worms will be appearing on the package at the same place as with option1. In summary, I have designed 2 variables in this paper and there will be 6 conditions, which apply for the direct advertising on the package for insect products. My goal is to test which combination of these two variables will be best for the company to launch new packaging material in order to increase the sales. Negative Neutral Positive Brand name 1 condition1 condition2 condition3 Brand name 2 condition4 condition5 condition6 Original worm Nothing Cartoon worm Insecta condition1 condition2 condition3 Bio High Protein condition4 condition5 condition6
- 24. Chapter 6. Methodology, Data and Key variables Model: In this section, I develop a regression model to analyze the different variables that have an influence on the respondent reply to the questionnaire. The formula will be as follows: f(k,i)=β0,k+β1,kX1,i+β2,kX2,i+````````+βm,kXm,i Where the βMK is a regression coefficient associated with Mth explanatory variable and the kth outcome. As explained in the logistic regression article, the regression coefficient and explanatory variable are normally grouped into factors of size M+1, so the predicted function can be also be written as follows: f(k,i)=βk*Xi where βk is the set of regression coefficient associated with outcome k and Xi is the set of explanatory variables associated with observation i. In this equation, the consumer-purchasing outcome will be representative; there are total 180 respondents, which are under 6 conditions. 30 respondents will answer each condition. I used Erasmus Quatrics platform, respondents are mainly coming from Facebook friends. The explanatory variables will be: brand name, picture on package, involvement, price index, age, gender, income, and partner status and education situation. Data: The data were collected by a structured questionnaire, based on the purpose of this paper. The questionnaire was under 6 conditions, which was also based on the 2 variables on the package. The first variable has two options. And the second variable has three options. The main respondents come from Facebook. After I got data from respondents, I first summarized the data. From the appendix table 10.3, I first used factor analysis to find out if there is one factor from question 1 to question 7. Question 1 is about the health concept of insect products. Question 2 is about insect products better for the environment. Question 3 is about the tasty of insect product, which are better. Question 4 is about safety of insect product. Question 5 is the think of relation between insect
- 25. products with organic concept. Question 6 is recommendation power from other person. Question 7 is about if consumer would like to make recommendation for their friends or family members after they consume the product. Using the same method, I found out that also involvement is one factor. I named them as Coi(consumer opinion index)and Invol(involment). Question 13 to 17 is the demographic question which give us more information about our respondents. Key Variables: Coi: Consumer opinion index (consumer perceptions) BN: brand name Carp: Logo, (original worm, cartoon worm, nothing) Involvement: this is involvement with organic food. Price index: this is the price which customer willing to pay for insect product. Once again this is specific, make it general based on dimensions of packaging. Variable type Literature Description in questionnaire Coi Hendrik(1997) Insect product is healthier than conventional products Richard(2005) Insect product is better for environment Brigit(2008) Insect product is tastier than conventional products Brigit(2008) Insect product is more safe than conventional products Blackwell(2006) I believe that Insect product is an organic-related product Blackwell(2006) I buy insect product because of the recommendations from others Blackwell(2006) Do you make recommendation of insect products to your others? BN Iglesias(2001) Brand name 1: Insecta Forst(2002) Brand name 2: Bio high protein Carp Yanna(2012) Original Nothing Lisa(1998) Cartoon worm Involvement I think organic food is very important for me I don’t think organic food is useful to the society I think organic food is very beneficial I think organic food is very needed Price index Robby(1996) If organic chicken burger price is 3 euro per package, what is you willing to pay (euro) for insect burger? Fill in a number (1 to 5 euro) Age Gracia(2008) How old are you? Gender Gracia(2008) Please select you gender Income Rointer(2008) In what category does your monthly income fall Partner Graxia(2008) Do you live together with a partner Education Briz(2009) What is your education level
- 26. Chapter 7. Statistics results Descriptive Analysis: We see that the highest percentage of the respondents is people around 20 to 30 years old. This may be due to the Facebook friend limitation. The mean of the involvement is approximately 3.4, which means that people who have high involvement with organic food, who might like to buy insect products. This may explain the connection between organic food and insect products. Insect products are good for environment and health. People may start to combine these two kinds of products with the same health expectation. In the final data, there are more male than female respondents due to the limitation of this research. The income of consumers' majority is around 1500 euros per month. They are not the wealthiest group in the society, but they already have a strong awareness of insect products. It may result from the higher education they had. The mean of consumer partner status is around 0.64, which shows that most respondents are partnered. They start to look for more healthy food solutions. We also clearly see that the mean of the education factor is 14.5, which shows that most respondents have a bachelor degree. Higher education may come with a high awareness of insect products, which apparently plays an important role in health food purchasing. Empirical analysis: In the second part of statistics result, I will focus on the regression, after using SPSS linear regression analysis; we set insect brand name as baseline, and Bio high protein burger will be 1, we also set neutral as our baseline as well, we try to analyze the parameters. In the total output from SPSS in the Appendix, I also made a summary of the parameters, the standard error, and the significant situation also as follows: Model B Std. Error Sig. Constant 2,381 0,546 0,000 BN 1,667 0,122 0,000 Orip -0,273 0,119 0,023 Carp 1,143 0,120 0,000 BNOrip -1,103 0,170 0,000 BNCarp -0,477 0,177 0,008
- 27. BN: brand name Orip: Original worm on packaging Carp: Cartoon worm on packaging BNOrip: interaction effect between Brand name and Original worm on packaging BNCarp: interaction effect between Brand name and Cartoon worm on packaging Brand Name Main Effect(neutral) 1 Original worm 2 Cartoon worm 3 Bio high protein burger 1,667 0,291 2,363 Insecta 0 -1,376 0,696 The above table is made from the appendix table. The variables: involvement, price index, age, gender, income, partner status and education years are all not of significant influence on consumer purchasing attention for insect products. As for the significant effect, it will explain as follows: We can clearly see that brand name coefficient B is 2,381, and P value (0,000) <0,05, brand name has significant influence on consumer purchasing attention for insect products. As for the brand logo on the package, we see that the logo of original worms has negative B, -0,273, P value (0,023) <0,05, which means that the image of original worms has a negative influence on consumer purchasing attention for the insect product. We also see that the cartoon worm has positive B, which is 0,143, P 1,667 0 2,363 0 -1,376 0,696 -2,000 -1,500 -1,000 -500 0 500 1,000 1,500 2,000 2,500 3,000 1 2 3 Bio High Protein Burger Insecta
- 28. value (0,000) <0,05, which means that the image of the cartoon worm has a positive effect on consumer purchasing attention for the insect product. There is an interaction effect between brand name and the logo of the original worm, they have negative B, which is -1,103, P value (0,000)< 0,05, they have a negative effect on consumer purchasing attention, but regarding the brand name and cartoon worm, they have a negative effect on consumer purchasing attention. The B is -0,477, and the P value (0,008) <0,05. So that means that both original worm and cartoon worm have negative effect on consumer opinion index when they are combining with brand name. I made interaction effect as above, when the brand name is Bio high protein burger, the cartoon effect (2,363) has the highest, when the bran name is insect, the cartoon effect (0,696) also the highest.
- 29. Chapter 8. Discussion and Conclusion, Managerial Implications, Limitation 1) Discussion and Conclusion Insect products are a good solution for meat replacement. We have to understand consumer-purchasing behavior in order to improve insect products. In this paper, I have applied statistical methods to find out in which way a packaging advertising strategy can be improved. The brand name has a significant effect on consumer attention for insect products, with analyzing the questionnaire data, we can see that branding name has a significant effect on consumer attention, “bio high protein” which has positive effect on purchasing and attention. Hypothesis 1 is accepted, which means that consumer is more likely to purchase a positive perception brand name than a neutral brand name product. This strategy should be used effectively. As for the brand logo from product, the original worm has a negative effect on consumer purchasing attention and the cartoon worm has positive effect on consumer purchasing attention for the insect product. Hypothesis 2 is rejected, which means that consumers are more likely to purchase a positive image on packaging than a negative one. The interaction effect between the brand name and original worm and the brand name and the cartoon worm both have a negative effect on purchasing attention, which means that when the brand name with two different brand logo both work at the same time on the package, people start to have a negative perception about the insect product. Hypothesis 3 is also rejected, which means that the combination between brand name and two brand logos together have negative effect on consumer purchasing behavior. Consumers maybe become confused about this brand. They don’t trust this brand any more. Thus, I think this is an interesting finding for my study that people start to have negative perception about insect product when they noticed both positive brand name and positive brand logo on the package, it also can be an interesting topic for future research.
- 30. 2) Managerial Implications From the above marketing analysis, I would like to recommend making a new brand name different from the current, “Insecta”. From my research that we can see consumers prefer “bio high protein”, this brand name makes it easier to understand the perceived value than “Insecta”. About the brand logo of the package, we clearly found out that consumers do not appreciate a brand logo of actual worms; it may create a bad image for purchasing. At the same time, cartoon worms, which consumers prefer in our research, have a positive effect on purchasing attention. Negative brand logo did not encourage consumer to purchase more, I would recommend making cartoon worms as brand logo appear on the package. From this research paper, we also clearly see that consumers display a negative effect on their purchasing attention when a positive brand name and a cartoon worm brand logo both appear on the package. This will create difficulties if we would make “bio high protein” as the brand name appears alongside the cartoon worm as brand logo on packaging. I would like to recommend further study on this research topic regarding the interaction between separately well-received brand names and positive brand logo on packaging. I hope that my research paper can contribute to the designs of further studies. 3) Limitation: The sample size of respondents for this research paper is 180 individuals, which I selected from my Facebook friends, requested to answer my questionnaire. The sample size was a very important aspect for thesis. A small sample size would be difficult to find significant relationship in research and also hard to be representative for the whole distribution. Additionally, we saw that the most respondents are the people, who have the income of around 1500 euro per month, and most are partnered with a bachelor degree, and the average respondent age is between 20 and 30, which also skews the outcome of this research paper. For future studies, a larger group with a more diverse age range
- 31. would be able to present more generally representative results. Secondly, based on the scope of research topic, there are very few literature reviews about insect products. This also makes it more difficult to explore my research question. I would like to make contribution to future study for the same topic of insect product as for my research paper.
- 36. 14) Please select you gender: Male Female 15) In what category does your monthly income fall? (After tax) <1000 1000-2000 2000-3000 3000-4000 >4000 16) Do you live together with a partner? Yes No 17) What is your education level? High school Bachelor Master Table 10.3 Factor Analysis from question 1 to question 7: Correlation Matrix a Q1 Q2 Q3 Q4 Q5 Q6 Q7 Correlation Q1 1.000 .872 .820 .816 .593 .764 .760 Q2 .872 1.000 .739 .781 .559 .694 .732 Q3 .820 .739 1.000 .748 .484 .703 .677 Q4 .816 .781 .748 1.000 .526 .680 .710 Q5 .593 .559 .484 .526 1.000 .525 .531 Q6 .764 .694 .703 .680 .525 1.000 .718 Q7 .760 .732 .677 .710 .531 .718 1.000 Sig. (1-tailed) Q1 .000 .000 .000 .000 .000 .000 Q2 .000 .000 .000 .000 .000 .000 Q3 .000 .000 .000 .000 .000 .000 Q4 .000 .000 .000 .000 .000 .000 Q5 .000 .000 .000 .000 .000 .000 Q6 .000 .000 .000 .000 .000 .000 Q7 .000 .000 .000 .000 .000 .000 a. Determinant = .002 Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % 1 5.159 73.707 73.707 5.159 73.707 73.707 2 .594 8.480 82.187 3 .367 5.239 87.426 4 .308 4.397 91.823 5 .239 3.416 95.239
- 37. 6 .227 3.243 98.482 7 .106 1.518 100.000 Extraction Method: Principal Component Analysis. Factor analysis from question 9 to question 12: Correlation Matrix a Q9 Q10 Q11 Q12 Correlation Q9 1.000 -.588 .624 .596 Q10 -.588 1.000 -.638 -.562 Q11 .624 -.638 1.000 .687 Q12 .596 -.562 .687 1.000 Sig. (1-tailed) Q9 .000 .000 .000 Q10 .000 .000 .000 Q11 .000 .000 .000 Q12 .000 .000 .000 a. Determinant = .154 Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % 1 2.850 71.246 71.246 2.850 71.246 71.246 2 .444 11.101 82.347 3 .409 10.229 92.577 4 .297 7.423 100.000 Extraction Method: Principal Component Analysis.
- 38. Table 10.4 Descriptive analysis tables : Descriptive Statistics N Minimum Maximum Mean Std. Deviation Coi 180 1.29 4.86 2.9770 1.01759 Invol 179 2.00 4.00 3.4050 .35857 Q8 180 1 5 3.39 2.892 Q13 180 19 56 27.14 5.788 Gender14 180 .00 1.00 .4333 .49692 Income15 180 500.00 3500.00 1488.8889 578.85351 Partner16 180 .00 1.00 .6444 .48002 Education17 180 12.00 16.00 14.4556 1.27863 Valid N (listwise) 179 Characteristics of Insect product (Coi) Frequency Percent Valid Percent Cumulative Percent Valid 1.29 2 1.1 1.1 1.1 1.43 5 2.8 2.8 3.9 1.57 6 3.3 3.3 7.2 1.71 11 6.1 6.1 13.3 1.86 11 6.1 6.1 19.4
- 39. 2.00 8 4.4 4.4 23.9 2.14 10 5.6 5.6 29.4 2.29 18 10.0 10.0 39.4 2.43 7 3.9 3.9 43.3 2.57 7 3.9 3.9 47.2 2.71 2 1.1 1.1 48.3 2.86 4 2.2 2.2 50.6 3.00 5 2.8 2.8 53.3 3.14 6 3.3 3.3 56.7 3.29 4 2.2 2.2 58.9 3.43 5 2.8 2.8 61.7 3.57 8 4.4 4.4 66.1 3.71 9 5.0 5.0 71.1 3.86 11 6.1 6.1 77.2 4.00 8 4.4 4.4 81.7 4.14 5 2.8 2.8 84.4 4.29 6 3.3 3.3 87.8 4.43 11 6.1 6.1 93.9 4.57 6 3.3 3.3 97.2 4.71 3 1.7 1.7 98.9 4.86 2 1.1 1.1 100.0 Total 180 100.0 100.0 Involvement Frequency Percent Valid Percent Cumulative Percent Valid 2.00 2 1.1 1.1 1.1 2.25 1 .6 .6 1.7 2.50 4 2.2 2.2 3.9 2.75 4 2.2 2.2 6.1 3.00 19 10.6 10.6 16.8 3.25 40 22.2 22.3 39.1 3.50 66 36.7 36.9 76.0 3.75 31 17.2 17.3 93.3 4.00 12 6.7 6.7 100.0 Total 179 99.4 100.0 Missing System 1 .6 Total 180 100.0
- 40. Price Index (Q8) Frequency Percent Valid Percent Cumulative Percent Valid 1 13 7.2 7.2 7.2 2 61 33.9 33.9 41.1 3 39 21.7 21.7 62.8 4 44 24.4 24.4 87.2 5 16 8.9 8.9 96.1 6 7 3.9 3.9 100.0 Total 180 100.0 100.0 Age Frequency Percent Valid Percent Cumulative Percent Valid 19 2 1.1 1.1 1.1 20 1 .6 .6 1.7 21 4 2.2 2.2 3.9 22 3 1.7 1.7 5.6 23 28 15.6 15.6 21.1 24 25 13.9 13.9 35.0 25 32 17.8 17.8 52.8 26 22 12.2 12.2 65.0 27 12 6.7 6.7 71.7 28 9 5.0 5.0 76.7 29 5 2.8 2.8 79.4 30 7 3.9 3.9 83.3 31 1 .6 .6 83.9 32 6 3.3 3.3 87.2 33 1 .6 .6 87.8 34 7 3.9 3.9 91.7 35 3 1.7 1.7 93.3 36 1 .6 .6 93.9 40 4 2.2 2.2 96.1 45 4 2.2 2.2 98.3 50 2 1.1 1.1 99.4 56 1 .6 .6 100.0 Total 180 100.0 100.0
- 41. Gender14 Frequency Percent Valid Percent Cumulative Percent Valid .00 102 56.7 56.7 56.7 1.00 78 43.3 43.3 100.0 Total 180 100.0 100.0 Income15 Frequency Percent Valid Percent Cumulative Percent Valid 500.00 29 16.1 16.1 16.1 1500.00 126 70.0 70.0 86.1 2500.00 23 12.8 12.8 98.9 3500.00 2 1.1 1.1 100.0 Total 180 100.0 100.0 Partner16 Frequency Percent Valid Percent Cumulative Percent Valid .00 64 35.6 35.6 35.6 1.00 116 64.4 64.4 100.0 Total 180 100.0 100.0 Education17 Frequency Percent Valid Percent Cumulative Percent Valid 12.00 37 20.6 20.6 20.6 15.00 130 72.2 72.2 92.8 16.00 13 7.2 7.2 100.0 Total 180 100.0 100.0 Table 10.5 Final Linear Regression Analysis
- 42. Variables Entered/Removed a Model Variables Entered Variables Removed Method 1 Education17, Partner16, Q8, Invol, BNOrip, Gender14, Q13, Carp, BN, Income15, Orip, BNCarp b . Enter a. Dependent Variable: Coi b. All requested variables entered. Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .902 a .813 .799 .45670 a. Predictors: (Constant), Education17, Partner16, Q8, Invol, BNOrip, Gender14, Q13, Carp, BN, Income15, Orip, BNCarp ANOVA a Model Sum of Squares df Mean Square F Sig. 1 Regression 150.250 12 12.521 60.030 .000 b Residual 34.623 166 .209 Total 184.873 178 a. Dependent Variable: Coi b. Predictors: (Constant), Education17, Partner16, Q8, Invol, BNOrip, Gender14, Q13, Carp, BN, Income15, Orip, BNCarp Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig.B Std. Error Beta 1 (Constant) 2.381 .546 4.360 .000 BN 1.667 .122 .820 13.614 .000 Orip -.273 .119 -.126 -2.300 .023
- 43. Carp 1.143 .120 .531 9.485 .000 BNOrip -1.103 .170 -.400 -6.472 .000 BNCarp -.477 .177 -.175 -2.692 .008 Invol -.014 .103 -.005 -.141 .888 Q8 -.006 .013 -.018 -.504 .615 Q13 .000 .007 .001 .031 .975 Gender14 .111 .074 .054 1.492 .138 Income15 -1.217E-5 .000 -.007 -.160 .873 Partner16 .035 .080 .016 .433 .665 Education17 -.017 .032 -.022 -.540 .590 a. Dependent Variable: Coi