This thesis explains the relative significance of product claims in food product marketing. Eggs are selected as the appropriate product for evaluating the importance of animal welfare and product origin claims. For illustration purposes, this study uses qualitative data for the top four egg-producing countries in Europe: France, Germany, the U.K and Italy. This data is acquired from Mintel GNPD.
After the hierarchical clustering technique has been applied, European egg consumers are divided into five groups: premium consumers, product-centric consumers, indifferent consumers, fair consumers, and local consumers. Substantial differences have been found in the preferences of product claims for each cluster.
This thesis attempts to make three contributions to existing research by analyzing product claims for eggs. Firstly, this study demonstrates the importance of product origin claims in marketing. Secondly, it explains different aspects of animal welfare that are relevant for European consumers, when purchasing eggs. Finally, it makes recommendations to policy makers for increasing consumer engagement and helps egg suppliers in Europe in developing international marketing strategies.
Table of Contents
1 Introduction
1.1 Why are Eggs the Appropriate Product for studying the Influence of Product Claims?
1.2 Research Objectives
1.3 Motivations for this Thesis
1.3.1 Economic Motivation
1.3.2 Academic Motivation
1.3.3 Legal Motivation
1.4 Structure of this Thesis
2 Literature Research
2.1 Why Product Origin and AW claims are Important for Food Products?
2.2 Conceptual Framework
2.3 Animal Welfare Claims
2.4 Product Origin Claims
2.5 Other Product Attributes
3 Methodology
3.1 Cluster Analysis
3.2 Types of Cluster Analysis
3.2.1 Hierarchical Cluster Analysis
3.2.2 Partition Cluster Analysis
3.2.3 Two-Step Clustering
4 Analysis: Steps in Agglomerative Hierarchical Clustering
4.1 Data Collection
4.2 Data Preparation
4.3 Selection of Distance Measurement Criteria for Contingency Table
4.4 Selection of Criteria for Joining Clusters
4.5 Selection of Final Number of Clusters using Dendrogram
5 Results
5.1 Cluster One: Premium Consumers (n=107)
5.2 Cluster Two: Product Centric Consumers (n=89)
5.3 Cluster Three: Indifferent Consumers (n=95)
5.4 Cluster Four: Fair Consumers (n=55)
5.5 Cluster Five: Local Consumers (n=108)
6 Conclusion
7 Research Implications
7.1 The Significance of Product Claims in Egg Marketing
7.2 Relevance of Product Origin Claims for European Countries
7.3 Importance of AW Claims for European Consumers
8 Recommendation for Marketers and Policy-Makers
8.1 Empower Consumers
8.2 Educate Farmers
8.3 Campaigns for Promotion of Organic Eggs
8.4 Pricing for Locally Produced and Organic Eggs
8.5 Relevance of Consumer Knowledge w.r.t. Product Claims
9 Limitations Related to this Study
9.1 Subjective Bias in Database Creation
9.2 Impact of Consumers Psychology and Producer’s Market Share
9.3 Economic Factors
Objectives and Themes
This thesis aims to evaluate the relative significance of product claims (specifically regarding animal welfare and product origin) in the marketing of food products, using eggs in four major European economies as the primary case study.
- Analysis of consumer preferences regarding different product claims through hierarchical clustering.
- Evaluation of the impact of product origin claims on European egg consumers.
- Examination of animal welfare aspects that are relevant for consumer purchasing decisions.
- Development of strategic recommendations for policymakers and egg suppliers in Europe.
Excerpt from the book
Why Product Origin and AW claims are Important for Food Products?
This study explores the significance of product origin and AW claims in food product marketing. These two types of claims are vital for consumers because consumers make distinct associations with such claims. According to Born and Purcell (2006), consumers prefer products which display regional claims because of three main reasons.
i) High product quality: Locally produced products have low delivery time. Therefore, domestic products are perceived as high quality products with attributes such as freshness, health benefits, and superior taste, etc. (Gracia, Barreiro-Hurlé, & Galán, 2014)
ii) Environmental Sustainability: Regional products are considered as environment friendly because they are transported across shorter distances. Hence, local products discharge less emissions during their product life cycles (Conner, Colasanti, Ross, & Smalley, 2010).
iii) Economic and social fairness: Consumers also think of economic and social welfare aspects, while purchasing regional products. The economic justification for consuming local products is to promote domestic agriculture and to reduce dependence on foreign products. From a social perspective, consumers want to support native farmers and help them to stay competitive (R. Chambers, 2014).
Summary of Chapters
1 Introduction: This chapter outlines the market context of food products, justifies the choice of eggs as the subject of study, and defines the research objectives and motivations.
2 Literature Research: This chapter reviews existing academic studies on product claims, consumer segmentation techniques, and establishes a conceptual framework classifying these claims.
3 Methodology: This chapter reviews various clustering techniques and justifies the selection of hierarchical cluster analysis (HCA) for this study.
4 Analysis: Steps in Agglomerative Hierarchical Clustering: This chapter details the technical process of the research, including data collection from Mintel GNPD, data cleaning, and the application of clustering algorithms.
5 Results: This chapter presents the identified five consumer clusters and their respective preferences for product claims.
6 Conclusion: This chapter summarizes the findings regarding consumer behavior and the relative importance of product claims across different European countries.
7 Research Implications: This chapter discusses the academic and practical implications of the results for stakeholders in the food market.
8 Recommendation for Marketers and Policy-Makers: This chapter provides actionable advice for policymakers and egg suppliers based on the study findings to improve engagement and animal welfare.
9 Limitations Related to this Study: This chapter acknowledges constraints regarding data sources, psychological assumptions, and regional economic factors.
Keywords
Product claims, animal welfare, egg marketing, product origin, organic eggs, free-range, GNPD, cluster analysis, agglomerative hierarchical clustering, consumer behavior, European markets, willingness to pay, food policy.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on analyzing the influence of organic and domestic product claims on the marketing of food products, specifically using egg products in France, Germany, the U.K., and Italy as a representative sample.
What are the primary themes of the study?
The study revolves around understanding consumer preferences for animal welfare (AW) and product origin claims, how these influence purchasing decisions, and how segmentation techniques can categorize European consumers.
What is the primary objective of this thesis?
The main objective is to identify the significance of product claims for European consumers, determine which countries value origin claims the most, and highlight which aspects of animal welfare resonate most with them.
Which scientific method is utilized?
The study employs a quantitative methodology using hierarchical cluster analysis (specifically the agglomerative hierarchical clustering approach) to segment consumers based on market data provided by the Global New Products Database (GNPD).
What is covered in the main section of the paper?
The main part of the paper details the data cleaning process, the conversion of qualitative labels into binary data, the step-by-step application of the clustering algorithm, and a comprehensive interpretation of the five identified consumer clusters.
Which keywords best characterize this work?
Key terms include product claims, animal welfare, cluster analysis, egg marketing, product origin, and European consumer preferences.
How are the consumers segmented in this analysis?
Consumers are segmented into five distinct groups: premium, product-centric, indifferent, fair, and local, based on their response to price, product origin, and animal welfare claims on egg packaging.
What is the significance of the "Premium" consumer cluster?
The premium cluster represents consumers who prioritize organic eggs and high animal welfare standards, showing a strong willingness to pay higher prices and a preference for multiple product claims on the packaging.
Why are Italian consumers described as "Indifferent"?
The "indifferent" label is applied because the cluster analysis showed that these consumers, largely based in Italy, displayed the lowest interest in both animal welfare and other product attributes, with a high proportion of products not displaying any claims.
What is the role of the "Local" consumer cluster in this research?
The "local" cluster consists primarily of French consumers who exhibit a strong preference for domestic/regional products, placing higher importance on country-of-origin claims than on animal welfare or other product features.
- Quote paper
- Syed Asad Ali Naqvi (Author), 2019, Food Marketing. Influence of organic and domestic claims, Munich, GRIN Verlag, https://www.grin.com/document/1130085
