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February 5, 2020

Promotion And Purchase Decision Toward Canned Food Marketing Essay

Canned food also knows as preserved food. Canned food products always describe in the term of ready meal (Euromonitor International, 2011). In the 19th century, canned food products were introduced in the market but with limited choice (Rogers, 2011). The canned products were offered in the convenience purpose to the consumers at that period of time. In time to time, those canned food product companies have introducing difference type of canned food to the consumer to choose. The category of canned food products included beans, fish/seafood, fruits, meats, pasta, soup, vegetable and other. The taste of the canned food was having an improvement to more palatable.

Compared to other food products such as fresh food, frozen food, instant food product and so on, canned food products were especially popular with consumers who did not have a great deal of cooking experience or time to prepare meal. Therefore, the demand of canned food products was higher than past. Through the investigation, the result shows that canned food sales have reach to RM 961 million in 2011 which higher than RM 931 million in 2010 (Eutomonitor International, 2011). Canned food products offered the convenience, affordable price, longer shelf-life which within 2 years and easier storage reason to influence the consumer purchase decision. Mostly, canned food products are targeted to the people who are not time to purchase the fresh food in the market or did not have time to prepare meal. But some consumers will purchases the canned food products due to the nutritional value that had listed on the label. Therefore, different consumers have difference perception toward the canned food product to influence themselves making the purchase decision.

1.2 Statement of Problem

Consumers always have their own reason to purchase the product whether food, apparel, daily product and so on. Customer purchase decision is based on eight mental which include perfectionist, brand consciousness, new and fashion conscious, leisure and shopping conscious, price awareness, impulsiveness, selective confused and brand loyal (Sproles and Kendall, 1986). Other than that, functional need and emotional need (Consoh, 2009) also influence the customer purchase decision.

Nowadays, many companies offer their own brand canned products to attract the target consumer. For example, the bean canned food products which have Yeo’s, Campbells, Ayam brand and etc. Consumers have their own perception toward the particular brand of canned food products and make a purchase decision toward the particular brand products. In major consumers’ perception, canned food products have a bad reputation for being less nutrition and contain preservative ingredients in the foods (Stein, 2011). Sometimes consumers may need to switch the choice to preserved food such as frozen, dry and canned food. Due to the reason of the certain fresh food are unavailable in the market or groceries store in the particular season or period. For example, the seasonal fruit like longan.

In this study, focus on the canned food products, canned food products are popular in among other frozen, dry and fresh food products. The advantages of consume canned food not lesser than other food products. Although canned food products can storage longer than other food products.

1.3 Research Objective

This investigation is conducted three objectives. There are

1. To study the relationship between promotion and purchase decision toward canned food.

2. To study the relationship between price and purchase decision toward canned food.

3. To study the relationship between nutritional value and purchase decision toward canned food.

1.4 Research Question

There are 3 question needed to examine the analysis.

1. Is there relationship between promotion and purchase decision toward the canned food?

2. Is there relationship between price and purchase decision toward the canned food?

3. Is there relationship between nutritional value and purchase decision toward canned food?

1.5 Research Hypotheses

There are 3 hypotheses is going to study during the research.

1. It needed to be tested whether the promotion offer to the consumers will influence the consumers to purchase the particular brand products.

2. Price is to shows how many will the consumers purchase in the lower price (grand sale) and how many will consumers purchase in the normal price.

3. How important of the nutritional value will influence the consumers to purchase the particular canned food.

2.0 Literature Review

2.1 Consumer Purchase Decision

According to Consoh (2009) mentioned that there are two kinds of purchase decision need which include functional needs and emotional needs. Functional needs describe that the product provide the service which satisfy the consumer while emotional needs is related with the psychological aspect of product itself and the products may produce emotions but also bring good functionality (Consoh, 2009). But Engel, Blackwell and Miniard (1995) stated that the model of consumer purchase decision is the most recognized in the market which has 5 stages. There is problem recognition, gather information, alternative evaluation, purchase decision and post purchase behavior. Moreover, Engel et al. (1995) also identified three factors that influence the consumer purchase decision making which are personal, psychological and social. Conversely, Bettman (1979) argues that consumers made their purchase decision depend on the simple strategies than going through a series of logically processes or steps.

Customer decision making has describe as a mental orientation characteristic which affect the choice that consumer made (Sproles and Kendall, 1986). Sproles and Kendall (1986) had identified eight mental consumer’s decision making characteristic which included perfectionist or high quality awareness, brand awareness, new and fashion awareness, leisure and shopping awareness, price awareness, impulsiveness, selective confused and brand loyalty.

2.2 Canned food products

According to Rogers (2011) mentioned that canned food is first introduced in the 19th century to provide the convenience and easily prepare foods. Until today, the canned food products have more palatable than in the past (Rogers, 2011). It cannot be denied the convenience of the canned food products (Rousell, 2011). Moreover, canned food have the advantage of long shelf life and easy to carry and store but it have a bad image of being cheap, low-quality and loaded with sodium and preservatives in the customer perception.

2.3 Price decision

According to Schiffman and Kanuk (2004) discussed that customer make the decision of whether to purchase or not to purchase the particular brand or product is depend on price as fair or low or high. Customer will evaluate the particular brand or product whether the product or brand is worth to that amount of money. Jiang (2004) supported that the important element in the success of a firm is price.

Moore, Kennedy and Fairhurst (2003) mentioned that the negative perception and positive perception have a great impact on the decision making in the marketplace. Positive perception is consumers thinking the brand or product higher the price signal higher grade of quality, prestige and status except the price. Negative perception is consumers thinking the brand or product price equally to quality, price sensitive and grand sale.

Actually the value of money is the important factor when making the purchase decision. According to Creyer and Ross (1997) stated that when the demand for the products increases which mean that the proportion of the benefit and costs will likely to increase, therefore, the value of money will increase too. The consumers are more favorable to purchase the most valuable products at the most reasonable or lower price than the products quality, fashion awareness and brand loyalty (Creyer and Ross, 1997). Through the investigation of the product between price and quality, the results show that major consumers tend to choose the lower price products with a high quality value rather than choose the higher price products with a warranty best quality option (Creyer and Ross, 1997). In additional, Bucklin et al. (1998) supported that price awareness is the most important factor to affect the consumer purchase decision.

Consumer will switch to buy the products which having a discount price although that the products may not be their favorable choice or usual requires (Bucklin et al., 1998). According to the Monroe (1973) mentioned that price expectation is useful to help the consumer to purchase the products. Normally, the price expectation act as reference point to compare with other groceries price and make the purchase decisions.

2.4 Promotion

According to Heilman, Lakishyk and Radas (2011) stated that consumers nowadays are bombarded with all kind of promotions. Vlanchvei et al. (2009) explained that promotions are significant to gain more profitability of the products than advertising. The promotions included products trials, free samples and free gifts (Peattie, 1998).

Conversely, Smith, Berry and Pulford (1998) described that sales promotion divide into two main categories. There are consumer promotion such as premiums, gifts, competition and prize, eg. On the back breakfast cereal boxes and trade promotion such as point-of-sale materials, free items and etc. But, Rizvi and Malik (2011) stated that free samples, winning contests, different price pack and sweep stakes are in the category of consumer promotion. Sales promotion is significant element to increase the sales of the product (Rizvi and Malik, 2011).

Through the study, Pauwels (2002) stated that affect of the sales promotion for the storable and perishable products are short live which only can persist on average 2 weeks and at most eight weeks. It due to these two categories product: storable and perishable are lack permanent effect of sales promotion. According to Kempf and Smith (1998) stated that product trial is allow the consumers to determining brand beliefs, attitudes and purchase when the consumer first trying to use the products. After the consumers use those products, they will evaluate the products whether positive, negative or ambiguous ro affect them become loyalty consumer to the products (Washburn, Till and Priluck, 2000).

2.5 Nutritional Value on the Food Label

Food label is important to every food product because it providing the information that relevant to the food to influence consumers choice to purchase. Food labels include size, colour, images and informative text to the products (Hawkes and World Health Organization, 2004, p. v; Mintel, 2003, p. 11; Rettie and Brewer, 2000; Wandel, 1997). Furthermore, food label will attract the attention of the consumer to the products and providing the information that different from the competitors (Solomon et al., 1999).

Moreover, Wandel (1997) mentioned that the main ingredient that put into the food had to list down on the food labels with the additives and condiment too. The nutrient that contain on the food often provided on the food label. According to the Shannon (1993) mentioned that in the data of research shows that the consumers do not able to gain full advantage or knowledge of information on the food label.

Nutritional information provides the knowledge to the consumers who care about the food nutritional value. In the Food and Drug Administration (FDA) (1998) mentioned that the nutritional information on the food label is to allow consumers to take a variety of foods, keep the healthy weight, choose a diet with low saturated fat and cholesterol or with plenty of vegetables, fruits and grain food, and use moderation of sugar, salt or sodium. Nutritional information is important to affect the consumer decision making (Prathiraja and Ariyawardana, 2003).

Lynn (2011) stated that nutritional value will not lose in the canned food although the taste and texture of canned food maybe not similar from the fresh and frozen food. Consumer will read and compare nutritional information with consumer dietary target and decide whether to purchase or not (Lynn, 2011). The canned food products not only offer the convenience but also nutritional value to the consumer.

In additional, Kapica and Weiss (2012) stated that the nutrients that contain the canned food products are same with other fresh, frozen and dry food. Bruso (2011) explained that some food vitamin C will lost in the canning but major of lost vitamin C will shift to the sauce. Moreover, certain nutrient in the canned food is easy for the consumers’ body to absorb rather than fresh food (Bruso, 2011). Barbara and Rhonda Kaletz (1997) in between one to two years of storage the canned food, the amount of mineral, fiber or vitamin will not change or lose in the canned food products.

2.6 Safety of Canned food

According to Barbara and Rhonda Kaletz (1997) mentioned that canned food products is the safest products since the high heat process of prepare the canned food was used for many years in the purpose to kills microorganism which will cause food borne illness. Moving to the success of the canned food process is needed the quick heating methods, high temperature, integrity of the can and its conductivity (Barbara and Rhonda Kaletz, 1997). Therefore, the news about consumer illness which related to the canned food is seldom and the canned food can store at least two years.

Lynn (2011) stated that consume the canned food will not likely to get illness due to the canned food is safe to eat right out of the can and does not need refrigeration to store which canned food prepare in the condition of health benefit of commercially processed. Unsafely handling the canned food or during the cooking time, it will results food borne illness after consume the canned food.

In the United States Department of Agriculture (2003) noticed that consumers should always checked the package or can product to ensure there are complete product without break or opened when purchase fresh, packaged or canned food product. Consumers should always take the advice from the label which packaged with safety seals, not consume the products’ seal has been broken (United States Department of Agriculture, 2003). Furthermore, consumers should not consume the unsafe canned food when the cans are leaking, cracked, bulging, bad odor, dented or discolour food (Bruso, 2011). Although the canned food offer the convenience to the consumer but when the cans shape is not similar to other cans like dented or broken it refer that the canned food cannot be consume. In addition, after the consumer purchase the canned food, the product should be store in a cool and dry place without damp (United States Department of Agriculture, 2003).

2.7 Storage period

Expire date is used to refer that the food have the best favour but not for safety purpose before the date that had printed on the canned, and usually the date will printed on the top or bottom of the cans (Gleason, 2011). Some canned food manufactures put “use by”, “sell by” or “best if used by” dates on cans. Kapica and Weiss (2012a) supported that canned food have a longer shelf life than fresh and frozen food, this will assist housewife to save money, wasting food and not trouble about spoilage problem when prepare the meal.

3.0 Methodology

3.1 Introduction

In this research is to investigate the customer purchase decision toward canned food product in Kampar. This research is attempted to examine the study of price, promotion and nutritional value toward canned food. The method that uses to collect the data is quantitative methods. For the target customer that would investigate is between 20 to 50 years old with the target amount of 30 people.

3.2 Research Design

The method or sampling that I will go to use is online questionnaire which is one of the categories in quantitative. The questionnaire was divide into few section…

Section A

1. Perfectionists

I make a special effort to choose

the very best quality products

In general, I usually try to buy

the best overall quality

When it comes to purchasing

products, I try to get the very

best or perfect choice

Getting very good quality is very

important to me

My standards and expectations for

products I buy are very high

brand conscious, “price equals quality”

The most advertised brands are

usually very good choices

I prefer buying the best selling

brands

Nice department and specialty

stores offer me the best

products

The higher the price of the

product, the better the quality

recreational and shopping conscious

Going shopping is one of the

enjoyable activities of my life

Shopping the stores wastes my

time

I enjoy shopping just for the

fun of it

Shopping is not a pleasant

activity for me

I make shopping trips fast

price conscious and value for money

I take time to shop carefully for

the best buys*

I look carefully to find the best

value for the money

I carefully watch how much

I spend

confused by over choice

There are so many brands to

choose from that I often feel

confused

Sometimes it’s hard to choose

which stores to shop

All the information I get on

different products confuses me

The more I learn about products,

the harder it seems to choose

the best

Fashionable, attractive styling

is very important to me

I keep my wardrobe up-to-date

with changing fashions

I usually have one or more outfits

of the very newest style

habitual/brand loyal

Once I find a product or brand

I like, I stick with it

I have favorite brands I buy over

and over

novelty conscious

It’s fun to buy something new

and exciting

To get variety, I shop different

stores and choose different

brands

1. Do you often purchase canned food?

What is your perception toward canned food?

What type of canned food do u often buy?

What factor that cause u to purchase the canned food?

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