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Variety - seeking in product choice behavior : theory with applications in the food domain
The primary objectives of the present work are (1) to review the marketing and psychological literature on variety-seeking behavior, (2) to develop a formal model for variety-seeking in product choice behavior and (3) to investigate elements of the proposed model empirically. The present approach specifically focuses on temporal variety-seeking behavior and addresses some of the key issues that have received inadequate attention in previous work on temporal variety-seeking behavior. The main conclusions of the present work will be summarized and discussed in this chapter, and directions for future research in this area will be suggested.Limitations of previous work on variety-seeking behaviorDespite the fact that during the last few years variety-seeking behavior has received considerable research attention in the marketing literature, there are a number of issues that have not been adequately addressed. To a considerable extent this appears to be due to inadequate and inconsistent use of the terminology in this research area (McAlister and Pessemier 1982; Kahn, Kalwani and Morrison 1986). In particular the term variety-seeking behavior has been used rather informally to denote a number of different phenomena. This seriously hampers theoretical progress in this area as it makes it difficult to directly compare results from different studies and to integrate them into a comprehensive theory for varietyseeking behavior. Therefore, in the present work much attention is given to the terminology being adopted. The term variety-seeking behavior is reserved for those instances of consumer switching behavior that are motivated by the utility inherent in variation per se. The present approach thus explicitly distinguishes variety-seeking behavior from derived varied behavior , that is motivated by the more or less delayed consequences of switching behavior rather than the utility inherent in switching behavior per se.Apart from theoretical inconsistencies in the definition of variety-seeking behavior, much of the previous research has also fallen short in the measurement of this type of behavior. Despite the fact that the distinction between true variety-seeking behavior and derived varied behavior has played a prominent role in conceptual analyses of the phenomenon, both in the psychological (e.g. McReynolds 1971a; Deci 1975) and the marketing literature (McAlister and Pessemier 1982; Hoyer and Ridgway 1984; Raju 1984; Mazursky, LaBarbera and Aiello 1987), few studies on variety-seeking behavior that have incorporated it into empirical analysis. Again, the neglect of this distinction in empirical investigations of the phenomenon seriously hinders theoretical progress in the area, as many of the results attributed to variety-seeking behavior may be confounded by elements of derived varied behavior.In the marketing literature, variety-seeking behavior has been studied from two basic approaches. The implicit approach takes observed variation in purchase or consumption histories as a starting point of their attempts to derive insight into variety-seeking behavior. The explicit approach, on the other hand, takes the individual and psychological processes as a starting point of their analyses in an attempt to explain why and when variety-seeking behavior is likely to occur. Both of these approaches have specific strengths and weaknesses. One of the main strengths of the implicit approach is that these studies model variety-seeking behavior from "real-life" consumption data and thereby implicitly consider variety-seeking behavior in the broader context of consumer choice behavior. However, these studies have also specific problems associated with them. One of the most prominent weaknesses concerns the measurement of true variety-seeking behavior. Many of the models suggested within this approach do not allow for a formal distinction between true variety-seeking behavior and derived varied behavior. Therefore, the variety-seeking parameters obtained from these models primarily distinguish repeat purchasing from variation in behavior, without providing insight into the nature of the observed variation in behavior (true variety-seeking behavior versus derived varied behavior). As a result, many of these models are primarily descriptive in nature without providing a detailed insight into the nature of true variety-seeking behavior. The models developed within this approach are becoming increasingly sophisticated, progressing in a direction that in the long-run may allow for a better distinction between variety-seeking behavior and derived varied behavior.Studies within the explicit approach take the underlying psychological processes for variety-seeking behavior as their point of departure. Building on the psychological theories of exploratory behavior, most of these studies have focused on personality characteristics as an explanation for individual differences in variety-seeking behavior intensity. Only recently have these studies begun to consider choice-context related determinants of variety-seeking behavior. Both person-related and context-related determinants have been shown to influence the intensity of variety-seeking in product choice behavior. Thus, these studies are likely to provide a more detailed insight into the psychological processes that may explain why and when variety-seeking behavior will occur. However, studies within the explicit approach also have specific weaknesses associated with them. Many of these studies have used stated behavior rather than actual manifestation of variety-seeking behavior in product choice. Also, the fact than many of these studies have been conducted in controlled experimental settings makes it difficult to capture the phenomenon within the broader context of other consumer choice mechanisms that compete and interact with the desire for variety in determining actual choice behavior.Valid measures for variation in consumption behavior are a prime concern to both approaches to variety-seeking behavior. Although several measures have been proposed, the issue of their validity assessment has largely been ignored. This lack of established validity is problematic as it directly influences the validity of the results obtained, and renders a direct comparison of results from various studies very difficult. Chapter 5 critically reviews measures for variation in consumption that have been proposed in the economics and marketing literatures and provides an empirical investigation into their validity. It is shown that rather than relating to one single underlying construct (variation in consumption), the measures can more accurately be classified into two distinct categories: those that quantify variation at the product level versus those that take into account the attribute composition of the brands switched to and from.Main contributions of the present studyThe variety-seeking modelThe primary aim of the present study is to fill the gaps identified in previous work on temporal variety-seeking behavior. The variety-seeking model developed for this purpose explicitly distinguishes between a static and a dynamic component in consumer evaluation processes of product alternatives. In line with most of the previous research on the phenomenon, variety-seeking behavior is attributed to feedback mechanisms from previous consumption and purchasing, implying that it exerts its influence through the dynamic component of consumers' evaluation processes. The more static component, on the other hand, reflects the consumer's long-term preference for choice alternatives and captures both instrumental and hedonic product attributes.The variety-seeking model allows for a more detailed analysis of the underlying processes of variety- seeking behavior, which relate to changes in perceived hedonic value of choice alternatives under the influence of previous consumption or purchase behavior. Three such underlying psychological processes are identified, Boredom with the choice task is a product-specific decrease in perceived hedonic value of the previously chosen alternative. As a result, the attractiveness of the previously chosen alternative decreases relative to that of all other choice alternatives. In such a situation, another alternative, for which the consumer's unconditional or long-term preference is lower than for the previously chosen alternative, may conditionally become more attractive. Switching behavior in response to this process is a first type of variety-seeking behavior identified in the variety-seeking model (cf. Jeuland 1978). In addition to boredom as an item-specific phenomenon, perceived hedonic value may also decrease under the influence of previous consumption in an attribute-specific manner. Over time, consumers may get satiated not only with repeated consumption of the same item, but also more specifically with certain attributes repeatedly delivered by the product. This process is well documented for sensory attributes, where it is referred to as 'sensory specific satiety' (LeMagnen 1967; Rolls 1986). In such instances, the consumer's evaluative judgment of one or more hedonic attributes changes under the influences of previous consumption. This phenomenon of attribute satiation is identified as the second psychological process underlying variety-seeking behavior (cf. McAlister 1982).Whereas the previous two underlying processes emphasize the reduction in relative attractiveness of the previously chosen alternative vis-à-vis other alternatives, curiosity as an underlying motivation for variety- seeking behavior emphasizes the increase in absolute attractiveness of an alternative not chosen on the previous consumption occasion. Curiosity, the desire to close the information gap between what is known and what one wants to know (Loewenstein 1994), may increase the perceived value of one or more alternatives that have not been chosen on the previous occasion. Switching behavior instigated by the desire to solve product curiosity is identified as the third underlying process for variety-seeking in product choice behavior.The three underlying processes share an important characteristic, namely that they all relate to the stimulation level experienced in choice behavior. Each of these three psychological processes is the result of a discrepancy between the Actual Stimulation Level (ASL) experienced in life and the Stimulation Level that is Optimal (OSL) for the consumer in question. Boredom and attribute satiation reflect sub- optimal levels of stimulation experienced in life (ASL) and variety-seeking behavior in response to these processes is a means of bringing ASL into closer correspondence with OSL. Curiosity on the other hand, is characterized by a mildly supra-optimal level of ASL and variety-seeking behavior to solve curiosity is a means of reducing ASL to bring it into closer correspondence with OSL. Correspondence between OSL and ASL is associated with positive affect. This idea is central to the concept of "Value derived from variety" that summarizes the utility derived from the three types of variety-seeking behavior discussed above. As each of these processes aims at bringing ASL into closer correspondence with OSL, variety- seeking behavior is an inherently pleasurable activity.Variety-seeking behavior as a trade-offThe variety-seeking model states that in actual choice behavior, consumers base their choices on total expected value of consumption of an alternative. This total value assessment comprises a static and a dynamic component, referred to as expected value derived from product-related characteristics (reflected in the hedonic and instrumental long-term value of choice alternatives) and expected variety value (in response to boredom, attribute satiation and curiosity) respectively. In its basic form the variety-seeking model states that at choice occasion t, the consumer's decision to switch from alternative i consumed at t-1 to any other alternative j in the choice set depends on an implicit or explicit comparison of the total expected value of alternatives i and j. If the total expected value associated with consumption of alternative j is higher than that of consuming alternative i again, the consumer is expected to switch. In many instances, the consumer decision to switch or not will depend on a tradeoff between the two sources of total expected value. One of the contributions of the varietyseeking model is that it makes this trade-off explicit, thereby putting variety-seeking behavior into the broader context of consumer choice behavior rather than treating it in isolation.Variety-seeking behavior is conceived of as one of the consumer choice mechanisms that competes and interacts with other relevant choice mechanisms (summarized in value derived from product-related characteristics) in determining choice behavior. Only when the varietyvalue inherent in switching behavior is the decisive motivator for variation in behavior, is the behavior referred to as true variety-seeking behavior. When the value derived from productrelated characteristics is decisive, variation in behavior is referred to as derived or extrinsically motivated varied behavior.By considering variety-seeking behavior in the broader context of consumer choice behavior, the formulation of the variety-seeking model not only allows for a formal classification of observed variation in behavior as either variety-seeking behavior or derived varied behavior, it also provides an explicit framework to structure determinants in choice behavior that may either stimulate or reduce the occurrence of variety-seeking in actual product choice behavior. Determinants of variety-seeking behaviorIn terms of determinants of variety-seeking behavior, the present work extends previous work by considering product-related determinants and their interaction with the person-related determinants are also considered. Central to the hypothesized interaction between person- and product-related determinants is the notion that product-related determinants operate as controlling factors on consumer choice behavior. Building on cognitive evaluation theory (e.g. Deci and Ryan 1985), the variety-seeking model suggests that these product-related determinants put extrinsic pressure on consumer choice behavior, thereby pressuring choice in a certain direction and reducing the consumer's perceived freedom in choice. As a consequence, the controlling factors are hypothesized to limit the expression of the intrinsic desire for variety in consumers who otherwise would be quite likely to engage in varietyseeking behavior. The present approach suggests that consumers with a high intrinsic need for variety will be particularly sensitive to controlling factors in choice behavior, and in addition to main effects for person-related and product-related determinants, hypothesizes that the product-related determinants will interact with consumers' variety- seeking tendency.Person-related determinants of variety-seeking behaviorTwo hypotheses regarding the main effect of person-related determinants of variety-seeking behavior were empirically tested. The first hypothesis states that consumers with a higher variety-seeking tendency are more likely to engage in variety-seeking behavior than those with a lower variety-seeking tendency. A domain-specific scale, VARSEEK, was developed that specifically taps variety-seeking tendency with respect to foods. The construct validity of the measurement instrument was investigated extensively and confirmed. The nomological validity of the VARSEEK-scale was also confirmed, both in terms of more general personality scales to which it is hypothesized to relate (general OSL and OSL in the consumer context) and in terms of manifestations of variety-seeking behavior (both self-report measures and actual behavior). VARSEEK's relationship with variety-seeking behavior confirms that variety-seeking tendency is an important determinant of variety-seeking behavior. Confidence in VARSEEK's predictive validity was further enhanced in a large scale study on consumer panel data that explicitly allowed for the distinction between true variety-seeking behavior and derived varied behavior. On these "real-life" choice data, the role of VARSEEK as a determinant of variety-seeking behavior was confirmed, both relative to repeat purchases and derived brand switches.Our second hypothesis with respect to person-related determinants of variety-seeking behavior states that VARSEEK, as a measure specifically tapping consumers' variety tendency with respect to foods, should have higher predictive validity than both (a) general measures for OSL and (b) consumer specific measures for OSL, when the purpose is to predict variety-seeking in food consumption. The rationale behind this hypothesis is the "principle of measurement correspondence" (Ajzen 1987), which states that higher predictive validity will be achieved when the predictor concept (e.g. personality variables) is measured at the same level of specificity as the behavior purportedly being predicted. Consistent support was found for VARSEEK's predictive superiority vis-à-vis a general personality measure for OSL (CSI; Steenkamp and Baumgartner 1995). However, only weak support was found for VARSEEK's predictive validity vis-à-vis a measure for OSL in the consumer context (EBBT; Baumgartner and Steenkamp 1994), in particular with respect to EBBT's subscale for Exploratory Acquisition of Products (EAP). In its definition, "a consumer's tendency to seek sensory stimulation in product purchase through risky and innovative product choices and varied and changing purchase experiences" (Baumgartner and Steenkamp 1994: 6), the EAP-subscale bears high similarity with our concept of variety-seeking tendency. Empirical results reveal that the two constructs are closely related, as is evidenced by their bivariate correlation of 0.670 (p Product-related determinants of variety-seeking behaviorContext factors as a determinant of variety-seeking behavior intensity have only recently begun to attract attention in the marketing literature. Examples include purchase strategy (Simonson 1990), display format (Simonson and Winer 1992), consumers' mood during decision making (Kahn and Isen 1993) and context variation (Menon and Kahn 1994). The present study extends this stream of research by deriving and testing specific hypotheses for what we refer to as "product-related" determinants of variety-seeking behavior. These hypotheses follow from the variety-seeking model's assumption that whether or not varietyseeking behavior will occur depends of the magnitude of the variety value inherent in switching behavior relative to the magnitude of the difference in value derived from productrelated characteristics (hedonic and instrumental value) associated with the alternatives switched from and to. Product-related determinants of variety-seeking behavior may exert their influence through both of these value-components. Consequently, the variety-seeking model suggests three classes of product-related determinants:1. those that affect value derived from variety2. those that affect the difference in value derived from product-related characteristics3. those that simultaneously affect value derived from variety and difference in value derived from product-related characteristicsThe present work further extends previous work in this area in that it not only considers the main effect of these product related determinants of variety-seeking behavior, but in addition hypothesizes that these product-related determinants will interact with the person-related determinants. Consumers low in variety- seeking tendency are not likely to derive value from variety and thus are not likely to engage in variety- seeking behavior, irrespective of the product-related characteristics. Consumers high in variety-seeking tendency, on the other hand, are quite likely to express their intrinsic desire into actual variety-seeking behavior unless product-related determinants exert a controlling effect on the choice task.Several hypotheses with respect to product-related determinants of variety-seeking behavior and their interaction with variety-seeking tendency were empirically tested in a large-scale consumer panel. In addition to recording brand choice behavior over time, the data collection procedure also identified underlying motivations for brand switching, thus allowing for a distinction between true variety-seeking behavior and derived varied behavior. The data collection procedure adopted thus permitted a test of the hypothesized determinants of variety-seeking behavior relative to both repeat purchasing and derived varied behavior. Empirical support was found for the hypotheses with respect to low product-category involvement, small perceived differences among the choice alternatives, low brand loyalty and high hedonic features as product-related determ
Consumer-Oriented New Product Development
Introduction For most companies, the introduction of successful new products is critical to the achievement of the short- and longterm corporate strategic goals of profitability, growth, and continuity. As an illustration, more than 25% of the current retail food sales in the US have been reported to consist of products introduced within the past 5 years (Hughes, 1994). Similarly, US marketing managers indicated that they expect 40% of the company profit made in 5 years’ time would come from products not currently on the market (Booz et al., 1982). Within the well-established product-market expansion matrix for growth (Ansoff, 1957), new product development (NPD) is identified as one of the important growth strategies of the firm. Despite the fact that successful NPD is crucial to profitability and growth ambitions, the actual success rates of new product introductions are fairly disappointing. Although there is a lack of reliable data on actual success and failure rates, reported failure rates are ranging anywhere between 40% (e.g., Barczak et al., 2009) and as high as 90% (e.g., Gourville, 2006). One reason for this lack of insight into actual success and failure rates stems from how success rates are being defined (Castellion and Markham, 2013). Success rates have been expressed as the percentage of commercialized new products that not only meet their marketing (e.g., market share and profit contribution) objectives, but also relative to the number of initial ideas that have entered the NPD selection process. Research on the 2003 the Product Development and Management Association best practices study (Barczak et al., 2009) suggests that approximately 15% of the new product ideas and approximately 60% of the new products actually introduced into the market place make it to a commercial success in the market. Whatever the exact metric and the exact percentage be, failure rates of new product introduction are an important concern to academics and practitioners alike, as new product introductions require substantial up-front investments that are not necessarily recouped from the new product’s financial returns. Bottom-line, NPD is an activity that is both necessary in light of market turbulence, but at the same time quite uncertain and risky in terms of potential failure. Not surprisingly, the NPD process has received a lot of attention in the marketing and management literatures (see Hart, 1996 for an overview)
Een geïntegreerde filosofie voor produktontwikkeling op basis van de kwaliteitsperceptie van consumenten.
What determines consumer attention to nutrition labels?
To identify the key determinants of consumer attention to nutrition labels, visual search tasks (present – absent; one – two targets) were used as an effective experimental tool. The main manipulation concerned: set size (number of labels on front of pack); label characteristics (display size, position of the label on frontof-pack, colour scheme); and familiarity with type of the label and its location on the front of pack. Attention capture was faster and more accurate when the label was present rather than absent, with doubled rather than standard display size, and with mono- rather than polychromatic colouring. There was performance benefit when the type of label and its location on the package did not change in two consecutive exposures, suggesting that nutrition logos should be printed in a consistent location on the package. The results confirm our hypotheses that display size, colour scheme, familiarity with the label and its location on the front of the pack are key determinants of consumer attention to labels. These findings are crucial to better understanding consumer attention to labels and thus the impact of nutrition information on healthy food choice
Winkelkeuzegedrag van consumenten, in het bijzonder bij de aankoop van verse levensmiddelen. [Consumer's store choice behaviour for fresh foods]
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