Background and Context

Discuss about the 5 Stages of Consumers’ Buying Decision-Making Process.

According to Sarmugam & Worsley (2015), the people of Australia are immensely busy and hence rely mostly on fast foods and the ready meals which are available in the snack market. This increasing consumption of fast foods and snacks by the consumers in the country has led towards poor nutritional value in them, thereby leading to increase in the rate of obesity among the consumers. The threats of health issues and obesity has presently enhanced and alarmed on developing positive consciousness at least to some extent, which can be further identified as affecting the consumer’s purchase-decision regarding such food-items (Sarmugam & Worsley, 2015). It has been agreed by Kneebone (2015), who added that a large part of the Australian consumers has further shifted their food-habits along with their preference for snack and fast foods to healthy diets. However, amidst this section of the population, the households with higher income are identified to be consuming snacks at a higher range as compared to the others consumers, who cannot afford on buying them. At present, consumer behaviors project that they only demand healthier snacks due to their rise in consciousness towards their health. Obesity and other health issues of consumers have driven their behaviors towards developing health consciousness within themselves (Kneebone, 2015). This is because they have apparently understood that the consumption of unhealthy snack leads to the serious health problem such as obesity. Therefore, the governments have also started developing strategies and taking initiatives towards the elimination of this issue from the roots. One such strategy is the introduction of organic along with high fiber foods that are ordered for being sold in the grocery markets as well (NSW, 2014).

Under the same context, Raghunatha, Naylor & Hoyer (2006) argued that not only the health conscious consumers has changed their preference of foods but have also changed their behavior towards the product that they consume as per their taste intuition. In the past, food used to be chosen only based on taste, but at the present, the nutritional value of the products are also taken into due consideration. Although taste and health are two different perspectives, the majority of the consumers nowadays consider both together before purchasing any food products (Raghunatha, Naylor & Hoyer, 2006). Simliarly, Vasiljevic, Pechey & Marteau (2015) projects that an individual consumer’s hunger level can also bring about a vast change on their purchase-behavior of food, which they want to consume rather than the healthiness of the same. Consumer’s hunger also at times can contribute to the making of their decision of the food products rather than just the attractiveness or the higher nutritional level. This can be explained with an example stating that the consumption of a cereal bar instead of a chocolate bar can serve the same purposes of taste and satisfaction of hunger among the consumers, without harming the health (Vasiljevic, Pechey & Marteau, 2015). At present, Development of Agriculture and Fisheries (2018) highlights that due to increase in obesity and other health issues among the public, the baked sweet potato can bring about a huge impact on the health conscious of the overall consumers in Australia. Since it is baked instead of being fried, contains no fat, is tasty and involves high fiber, its demand has hiked. Moreover, it also saves the consumers from suffering from fat-related health problems such as bowel cancer (DAF, 2018). Under the global study of Burri (2011), it has been evident that baked sweet potatoes have attained a huge success across the world not only for its nutritional value, but also for treating the patients suffering from VA deficiency. At present, it is mostly put into practice in the healthcare settings of the US as it has been identified to be free from any toxic elements (Burri, 2011).

Purchasing Behavior of Health-Conscious Consumers

The occurrence of health issues such as overweight and obesity was understood as being the major problems for the consumers in Australia. This further led to a rise in demands of the customers for the healthy food products and organic ones as well. Among all, one of the health governing body, as well as the community of New South Wales in Australia, have succeeded in aiding most of the customers suffering throughout this phase. They followed a framework of 6 stages, through which they succeeded. Implementing this framework, NSW was able to identify the major source of obesity and overweight that occurs within the consumers. After knowing the major sources, they developed numerous interventions and then assessed them for identifying the best and appropriate interventions to be implemented. Besides, for implementing different types of interventions, they further generated success for promoting the health of the patients or the consumers suffering from serious health issues. Identifying the risks and overcoming them throughout the process of interventions were the biggest perspective that added to the overall success (Gill, King & Webb, 2005).

In addition, Barosh, Friel Engelhardt & Chan (2014) stated that consumer behaviors in Australia have affected the markets as well as their own individual health. The behaviors may be intentional but in most cases in Australia, food security is considered as the key issue for altering the consumer’s behavior from one product to the other. These insecurities have led to a rise in prices of the foods, which in turn has affected the consumption structure of the households with lesser income. The urge of the consumers on buying cheaper foods are determined in accordance with their affordability rates as well. This is the reason for consumers of Australia requiring an introduction of healthier and affordable foods so that they can recover from their illness and stay fit at the same time. This can be done by consuming healthy foods such as Smith’s baked sweet potato (Barosh, Friel Engelhardt & Chan, 2014).

The 5 Stages of Consumers’ Buying Decision-Making Process

Consumer behavior and buying decision-making process are influenced by the environmental factors and individual differences, which may be understood as a preference or attitude (Lee, 2005). Based on the application of the 5 stages involved in the buying process of the consumer, brand awareness can be made possible. The 5 stages comprise need for problem recognition, information search, and evaluation of the alternatives, purchase decision and the post-purchase behavior (Eriksson, 2015).

The Impact of Hunger on Consumer Behavior

Need for Problem Recognition. Being the first stage, a problem must be identified before taking any action for filling the gap between their current and desired status. It is important for the company to identify their major target consumers. This can enable the company to make their product stronger, based on their target consumers. This means that Smith Company knowing about the change in behavior of the consumers towards the healthy snacks identifies the demography of the consumers facing higher level of health issues. Doing this can further help the company to understand the desire of their targeted customer’s and produce ‘Sensation’ accordingly (Stankevich, 2017).

Information Search.  The second stage is important for every company before creating their product’s awareness. From the consumers’ perspectives, it is important to verify whether the brand is trustable or not. This means that the Smith Company must create a label or provide information on the product’s packaging in order to attract the customers and to assist them in gathering complete information before making the purchase decision. This, therefore, helps in maintaining the trust between the company and their customers in terms of business. The company can also provide a free tasting session of the baked sweet potatoes to its target customers (Stankevich, 2017).

Evaluation of the Alternatives. This is the most important stage for every company as the consumer changes their decisions on this stage based on their taste and product quality. Here the customers are always known for being aware of the products. Under this stage, Smith’s Company needs to create its awareness based on affordability, quality and packaging of the product. Enabling this can clear the doubts within the minds of the customers (Stankevich, 2017).

Purchase Decision. This stage is associated with the consumer decision on buying the product. It may be possible that they might not buy the product even after assuring of their future purchase. They apply the decision process in almost every situation before purchasing them. Similarly, the company presents their Sensation food brand to their consumers on a trial basis by providing them with an opportunity to taste the product before paying. This can help in overcoming any negative issues in the near future (Stankevich, 2017).

Post-Purchase Behavior. This process enables the companies to obtain feedbacks and reviews on their products so that they can understand if the product was defective or not. Most of the consumers are earned by the companies with their trust in their product. Focusing on this, Smith’s Company can also gain their loyal consumers through this stage only if the Sensation brand of baked sweet potatoes meets the requirements of the consumers (Stankevich, 2017).

Healthy Alternatives to Snacks

Considering 7P’s of Service Marketing

This concept includes seven areas which deal with the association of company’s finance and the consumer’s different measures. 7P thus includes service product, service price, service promotion, service distribution, people, service process and the service physical evidence (Akroush, 2011).

Partnering with Healthy Brand. Partnering with the healthy food partnership can significantly boost the Smith Company on launching their sensation brand of baked sweet potato. Launching this product can gain consumers of the Healthy food association, as they are self-conscious about their health. Launching baked sweet potato can develop the interests within their minds (Lindberg, Nichols & Yam, 2017). Building a partnership with Healthy Food can favor the launch of the new sub-brand, Smith’s Sensation. This also makes each member understand about the targeted groups and the company’s main strategy of driving the consumer’s behavior must be initiated (Healthinfonet, 2008). As it has been understood that major part of Australia’s population suffers from obesity and other nutritional deficiency related health issues, it needs to be ensured that people serve healthier and good quality baked sweet potato of the Smith’s Company. This can ultimately enable promotion of the product among the sufferers (European Commission, 2012). Creating a friendly environment between the consumers and the company members through an interaction can favor in developing an image, trust as well as relationship of the sub-brand through a regular interaction (Pilizota, 2012).

Collaborating with the Healthy Food Company can also bring improvements in terms of knowledge required on launching as well as promoting the Smith’s sensation brand. Through this knowledge, company can also promote through the same channel of the partnering company, which brought them the success on launching their new products (Bertilsson, 2014). With this, Smith Company can also build better relationship with Healthy Food Company. This would not only succeed in launching the company’s sensation brand but will also develop business at present and even n future as the relationships are made for a long-term business as stated under the contract between them (Kanter, 2018).

Social Media Influence. Implementing the social media can improve the Smith’s sensation brand of baked sweet potato. Developing a website of the company to project the nutrients along with every year annual reports as well as focusing on corporate social responsibility can benefit the launch of the Smith’s sensation brand. Media releases along with the elements associated with the nutrition policies and planning in terms of the company’s corporate social responsibility can favor the company on creating the interest of new sensation brand before even releasing it (European Commission, 2012). This concept suggests that the products manufacture must always be made in terms of the consumer demands. Successful companies are known for producing goods based on the demands of the customers, as they gain regularly feedback from the consumers through social media. With a growing trend of social media, exploring them and advertising at the same time can favor the company on creating a successful launch of the Smith’s sensational brand of baled sweet potato. Enabling online interaction with the people or the stakeholders staying at far places can enable the company on being in touch and sharing the issues or any kind of activities associated with the company’s operational activities. This includes promotion of a new sensation brand of baked sweet potato. Keeping in contact with every member of the company with respect to daily activities through the social media can be benefitting before launching the new products (CIM, 2015).

Government Interventions for Promoting Health Consciousness

In order to maintain or provide a continuous satisfaction on the products provided by the company, understanding the current trend is immensely important. The increase in obesity has led towards a major increase in healthy food demands, thereby monitoring what they expect from the company. Smith’s Company must also be able to identify different consumers based on their preferences such as some people tend to sit at home and order food online. Following this trend and putting the Sensation brand of baked sweet potato can thus attract a large number of consumers (PMA, 2014).

Value Packaging (Promotion). Since the consumers play a major role towards driving the markets, gaining their attention should be the initial objective of the company rather than seeking profit or recovering their expenses made on launching the Smith’s baked sweet potato (Loizou, Michailidis & Kalogianni, 2009). The consumers, who prefer healthy foods, are always known for trusting the company based on their product’s quality content, services and its healthy ingredients, they also tend to look after the evidence of the product before trying. This is because of their desire for becoming healthier by consuming high fibre content food along with the low content of fat and carbohydrates. Following this and ensuring the health improvement of the obese people by conducting various healthy food campaigns around the operating region can drive their consumer behavior towards Smith’s sensation brand of baked sweet potato. On this context, labeling Smith’s sensation baked sweet potato’s nutrient level such as high level of fibre contents with zero fats on its packaging can help build trust amid the consumers before launching the sweet baked potato (World Obesity, 2014).

As the people do not know about the new sub-brand, providing them with adequate knowledge about the product’s fiber content can favor their health. This can prove to be beneficial for the Smith’s Company (World Bank Group, 2017). Giving advice and knowledge about the nutritional products can also enable the target consumers to make their purchase decision effectively, thereby leading to a grand launching of the product (Pepino, 2014). Providing education to the adults as well as teenagers about nutrition can expand the interest of the products in their minds, which can, in turn, prove to be beneficial for the launching of the Sensation brand (Hawkes, 2013). Setting up health welfare programs in order to engage the consumers for projecting the Smith’s sub-brand of baked sweet potato can drive the consumer’s perception towards the product. This can help in promoting new sensation brand of baked sweet potato to the consumers (Hippocrates, 2009). Enabling people on checking or consuming the sample of baked sweet potato can also develop trust as well as awareness for the Smith’s Company (RecreationNB, 2009).

Food Security and Consumer Behavior

References

Akroush, M. N. (2011). The 7Ps classification of the services marketing mix revisited: An empirical assessment of their generalisability, applicability and effect on performance – evidence from Jordan’s services organizations. Jordan Journal of Business Administration, 7(1), 1-32.

Barosh, L., Friel, S., Engelhardt, K. & Chan, L. (2014). The cost of a healthy and sustainable diet – who can afford it?. Australian and New Zealand Journal of Public Health, 38(1), 1-6.

Bertilsson, H. (2014). Launch of new products – Market research for new product development for diabetics. Agricultural Programme – Economics and Management, 1-61.

Burri, B. J. (2011). Evaluating sweet potato as an intervention food to prevent vitamin A deficiency. Comprehensive Reviews in Food Science and Food Safety, 10, 1-13.

Cameron, A. J., Sayers, S. J., Sacks, G. & Thornton, L. E. (2017). Do the foods advertised in Australian supermarket catalogues reflect national dietary guidelines?. Health Promotion International, (32), 113-121.

CIM. (2015). Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. A Brief Summary of Marketing and How It Works, 1-12.

DAF. (2018). Sweet potato consumer research. Retrieved May 30, 2018, from https://www.daf.qld.gov.au/business-priorities/plants/fruit-and-vegetables/vegetables/sweetpotato/consumer-research

Essoussi, L. H. & Zahaf, M. (2012). The organic food market: Opportunities and challenges. Telfer School of Management, 1-27.

European Commission. (2012). Practical example of a business plan. Healthy meal, Ltd, 1-39.

Gill, T., King, L. & Webb, K. (2005). Best options for promoting healthy weight and preventing weight gain in NSW. State of Food and Nutrition in NSW Series, 1-116.

Hawkes, C. (2013). Promoting diets through nutrition education and changes in the food environment: An international review of actions and their effectiveness. Food and Agriculture Organization of the United Nations, 1-78.

Healthinfonet. (2008). Marketing ideas for healthy food in remote community stores. A resource developed as part of the Remote Indigenous Stores and Takeaways Project, 1-12.

Hippocrates. (2009). Health, food and prevention of diet related diseases. Leave Medicines in the Chemist’s Pot if You Can Cure Your Patients with Food, 1-16.

Kanter, R. M. (2018). Collaborative advantage: The art of alliances. Retrieved from https://hbr.org/1994/07/collaborative-advantage-the-art-of-alliances

Kneebone, M. (2015). Market research around the opportunity to create more vegetable snacking options to quantify market size. Horticulture Innovation Australia, 1-94.

Lee, S. H. (2005). Lee, 2005). An application of 5 stage consumer behavior decision making model: An exploratory study of Chinese purchasing of imported health food. Simon Fraser Universioty, 1-87.

Lindberg, T., Nichols, T. & Yam, C. (2017). The healthy eating agenda in Australia. Is salt a priority for manufacturers?. Nutrients, 9, 6-17.

Loizou, E., Michailidis, A. & Kalogianni, I. T. (2009). Drivers of consumer’s adoption of innovative food. A resilient European Food Industry and Food Chain in a Challenging World, 1-10.

Nitisha. (2018). 4 Types of pricing methods – Explained!. Retrieved June 03, 2018, from https://www.economicsdiscussion.net/price/4-types-of-pricing-methods-explained/3841

NSW. (2014). Creating healthy food environments. Report from the NSW Food Forum 2014, 1-11.

Pepino, S. (2014). Nutrition, Education and awareness raising for the right to adequate food. Food and Agriculture Organization of the United Nations, 1-32.

Pilizota, V. (2012). Consumer needs for affordable food of good quality. Serving Consumer Demands, 15(2012), 77-92.

PMA. (2014). Australia consumer and retail trends. Global Trends, 1-18.

Ponsignon, F., Smart, P. A. & Maull, R. S. (2010). Service delivery system design: characteristics and contingencies. International Journal of Operations & Production Management, 31(3), 324-349.

Raghunathan, R., Naylor, R. & Hoyer, W. (2006). The Unhealthy = Tasty Intuition and Its Effects on Taste Inferences, Enjoyment, and Choice of Food Products. Journal of Marketing, 70(4), 170 – 184.

RecreationNB. (2009). Healthy eating in recreation settings. A Provincial Scan of New Brunswick, 1-14.

Sarmugam, R. & Worsley, A. (2015). Dietary Behaviours, Impulsivity and food involvement: Identification of three consumer segments. Nutrients, (7), 1-22.

SOPHE. (2015). Increasing access to healthy foods. Society for Public Health Education, 1-33.

Stankevich, A. (2017). Explaining the consumer decision-making process: critical literature review. Journal of International Business Research and Marketing, 2(6), 1-8.

The Healthy Food Company. (n.d.). About. Retrieved June 03, 2018, from https://www.thehealthyfoodcompany.co.uk/about-us/

The Smith’s Snackfood Company Pty Ltd. (2018). Smith’s crinkle cut. Retrieved June 03, 2018, from https://www.smiths.com.au/brands/smiths

Vasiljevic, M., Pechey, R. & Marteau, T. M. (2015). Making food labels social: The impact of colour of nutritional labels and injunctive norms on perceptions and choice of snack foods. Research Report, 91(2015), 56-63.

Weichselbaum, E., Hooper, B., Buttriss, J., Theobald, C., Sgarabottolo, V., Combris, P…, & Besler, H. T. (2011). Behaviour change initiatives to promote a healthy diet and physical activity in European countries. British Nutrition Foundation Nutrition Bulletin, 38, 85-99.

World Bank Group. (2017). Creating consumer awareness for products or services. Cross-Cutting Inclusive Innovations, 1-9.

World Obesity. (2014). Recommendations towards a Global Convention to protect and promote healthy diets. Consumers International, 1-20