BMGT 364 Project 2
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PRODUCT ELEMENTS AS THE BASIS FOR CONSUMER CHOICE:
THE CASE OF FOOD SUPPLEMENTS
Monika Kavaliauskė 1 , Michail Chavkin
2 , Inga Zaukevičienė
3 ,
Roma Bernotavičiūtė 4 , Sigitas Urbonavičius
5
1 Vilnius University, Lithuania, monika.kavaliauske@ef.vu.lt
2 Vilnius University International Business School, Lithuania, mchavkin@gmail.com
3 Vilnius University International Business School, Lithuania, inga.zaukeviciene@gmail.com
4 Vilnius University International Business School, Lithuania, roma_bern@hotmail.com
5 Vilnius University, Lithuania, sigitas.urbonavicius@ef.vu.lt
Abstract
One way of analysing market offers is based on the evaluation of product elements from the position
of potential consumers. Food supplements product category is rather specific and has not been much
researched. Therefore, the objective of the paper is to determine which elements of food supplements are
perceived as more important by the consumers and have the strongest influence on consumer buying
decisions, and what combinations of products elements would be preferable by various consumers segments.
The analysis was based on results of survey that included opinions of 188 participants. Conjoint analysis was
used to determine consumer preferences based on the selected six research variables: brand name, main active
ingredient, frequency of use, country of origin, price and recommendations. Also the gender, age and buying
experience of consumers were considered. The results revealed that internal product elements had the
strongest influence on consumer buying decisions. The most important internal characteristic was the
frequency of use. Price was the most important among the external elements – the lower it was, the more
consumers wanted to buy particular food supplement.
Keywords: consumer behavior, consumer choice, consumer buying decisions, product elements, food
supplements, conjoint analysis.
JEL Classification: M31, M37, I12.
Introduction
Product elements analysis from the position of potential buyers and consumers is widely used in
various instances (markets and product groups), but typically concentrate on high involvement items: durable
goods or at least products that are perceived of relatively high importance to the consumer. Though other
types of products also deserve attention of researchers, low involvement of potential buyers make these
studies more complex or require use of more specific research methods.
As a product category, food supplements are rather specific. From the rational standpoint, they are far
away from being the products of the first necessity. At the same time, emotionally this category is strongly
related with health protection, which increases the importance of these products to some segments of the
market. This controversy makes it difficult to understand which product elements are perceived as more
important, and what their combinations would be suitable to various segments. This served as a background
for the research on importance of the food supplement elements in Lithuanian market. Additionally, it is
necessary to state that the legal definition of food supplements includes very broad set of product types that
are used for fortifying one’s health and can’t be assigned to the category of pharmaceuticals. Thus, the study
is based on the product group that belongs to the food supplements category – i.e. supplements for the eyes.
Therefore, the objective of the paper is to determine which elements of food supplements for the eyes
are perceived as more important by the consumers and have the strongest influence on consumer buying
decisions, and what combinations of products elements would be preferable by various consumers segments.
The research was carried out according to the conceptual model which included internal and external
product elements that influence consumer decisions. The analysis was based on results of survey that
included opinion of 188 participants. The conjoint analysis was used to determine consumer preferences
based on the selected six research variables: brand name, main active ingredient, frequency of use, country of
origin, price and recommendations.
Product elements
Previous consumer buying behavior studies revealed that customers pay attention to many product
characteristics while choosing it, which can differ according the product type. Importance of product
characteristics might differ among different customers, especially when they gain new experience and
knowledge during the time period (Aliman et al., 2007).
http://dx.doi.org/10.5755/j01.em.17.1.2276
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Product characteristics and elements can be classified in several ways; however, often they are divided
into two groups: internal (essential) product characteristics and external (inessential) characteristics
(Northen, 2000; Fandos et al., 2006; Aliman et al., 2007; Veale el al., 2009).
Internal characteristics are the essential, natural product elements, which determine product
functionality and physical appearance (Veale et al., 2009). These characteristics are specific for every
product; also they disappear while consuming the product and cannot be changed without changing the
essence of the product (Fandos et al., 2006). Such orgoleptic characteristics as appearance, color, taste,
smell, can be classified as internal (Northen, 2000; Fandos et al, 2006).
External characteristics are related to the product but are not the part of it. These characteristics can be
changed while not changing the physical product condition. Therefore, price, brand, country of origin,
packaging, recommendations by authorities, suggestions by shop employees can be classified as external
product characteristics (Northen, 2000; Fandos et al., 2006).
It was found that in evaluation of quality of the rationally purchased products (to which food
supplements for the eyes can be assigned) internal product characteristics typically are considered as being
more importante than external ones. However, for the products more related to the image (automobiles,
apparel items, etc.), physical differences cannot be easily evaluated, and therefore external characteristics
become more important (Pecotich et al., 2007).
Familiarity with product category also influences the reliability of product characteristics. Typically,
external characteristics are more important when familiarity is low, while internal characteristics are more
important when knowledge about product is high (Jin el al., 2010).
Brand can be classified as the most important element for consumers to decide whether to buy or not
particular product (Srinivasan et al., 2002; Aliman et al., 2007). Brand is the external product element, which
consumers consider in product evaluation, and especially – when they cannot understand or evaluate internal
product characteristics (Aliman et al., 2007). Strong and well known brand provides customers information
about product quality, visible and invisible product characteristics and might decrease concern during the
buying process (Srinivasan et al., 2002). In addition to this, the more customer is familiar with brand, the less
other external characteristics such as price or country of origin, are considered, because information provided
by the brand becomes more valuable (Pecotich et al., 2007).
Many researchers have determined the positive impact of country of origin to product evaluation and
choice (Hui et al., 2001; Aliman et al., 2007; Veale et al., 2009), however, the level of importance was found
very different. As many researchers determined that internal product characteristics (appearance, colour, taste)
have higher impact for quality evaluation than external characteristics (price, brand, country of origin), it is
obvious that country of origin can make only limited influence on perception of product quality, especially
when customer can evaluate many product elements (Al-Sulatiti et al., 1998). Therefore, customers perceive
country of origin as an important element when: (a) they have information about the product or the information
is less specific and reliable; (b) product is important and expensive, (c) buyers do not understand the product
well enough, or (d) product category is closely related to the country of origin (such as French perfume or
Chinese silk) (Veale et al., 2009). In some instances domestic products are evaluated higher, which might be
influenced by ethnocentrism and higher recognition of local products (Pecotich et al., 2007).
Price is also one of the most important product elements, however, the impact of price is bigger then
there is not much information about the product, as the broader information facilitates decision making
process and decreases the impact of price (Veale et al., 2009). Higher price can be perceived as a signal of
better quality, especially – when the product is very important for the customer, or it is difficult to evaluate
product characteristics. In case of food supplements for the eyes higher price can be perceived as an indicator
that the product will have stronger positive impact on a consumer’s health (Akcura et al., 2004).
Additionally, decision about product choice is influenced by customer personal characteristics;
especially: gender, age, income and buying experience. It was discovered that women and persons with
lower income are more aware about the prices and see them as more important (Rosa-Dı´az, 2004).
Consumer behavior also differs according to the buying frequency of particular product, as the product
choice criteria differs in the process of acquiring experience and expertise (Nisel, 2001). Such customer
characteristics as age, income, social class determine the number of attributes that each segment of customers
evaluates. Typically, when buying novel and high involvement products, younger and higher social class
customers evaluate more attributes than elder ones. Elder consumers, as well as the ones from lower social
groups, typically try to simplify the process by analyzing less product attributes (Schaninger et al., 1981).
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Conceptual Model
The main research variables include the six product elements: brand, main active ingredient, frequency
of usage, country of origin, price and recommendations. According to the analyzed literature, brand, country
of origin, and price are considered as essential product elements, common for every type of product
(including food supplements for the eyes). However, in order to define product-specific external elements,
the series of expert interview were performed. In addition to the known essential product elements, the
experts reported that in case of food supplements for the eyes the most important influencing factors are: the
main active ingredient; convenience of the using, particularly – how many times per day the product has to
be used (frequency of use), manufacturer and recommendations of official institutions (opinion leaders) that
may be found on the product packaging. However, influence of a manufacturer was excluded from the
further research in order to avoid possible overlap with the brand.
Therefore, based on the literature analysis and pilot survey, the research model included two
categories of product elements: internal (essential) characteristics (the main active ingredient, frequency of
use); and external characteristics, such as: price, brand, country of origin, and recommendations of opinion
leaders (Fig. 1).
Figure 1. Research model
Hypotheses
The aim of the research was to evaluate how different product elements influence consumers’ choice
when selecting food supplements for the eyes. Therefore, according analysis of literature, six hypotheses
were developed:
H1: Internal product elements (active ingredient, frequency of usage) have bigger impact on
consumers’ choice of food supplements for the eyes than external product elements (brand, country of origin,
price, and recommendations).
H1a: Internal product elements (active ingredient, frequency of usage) have bigger impact on
consumers that have experience in using food supplements for the eyes than for those who do not have
experience in using food supplements for the eyes.
H1b: External product elements (brand, country of origin, price, and recommendations) have bigger
impact on consumers without experience in using food supplements for the eyes than for those who do have
experience in using food supplements for the eyes.
H2a: Consumers evaluate food supplements for the eyes better when the country of origin is Lithuania
compared to USA or France.
H2b: Consumers evaluate food supplements for the eyes better when the country of origin is USA
compared to France.
H3: Preferences for food supplements for the eyes differs between young and older consumers.
Methodology
The research was carried out according to the conceptual model which included product elements that
influence consumer decisions. Respondents were selected using non probability sampling snowball method.
The questionnaire was hosted on the internet and respondents received a link to it. To determine the required
amount of respondents, the comparable researches that used conjoint analysis were analyzed. It was
determined that average amount of respondents was 167 ( Okechuku, 1994; Saunders et al., 1997; Arora,
2006; Jin et al., 2010; Quester et al., 1998; Kupiec et al., 2001; Hong et al., 1989). The analysis was based
on results of survey that included opinion of 188 participants. The conjoint analysis was used to determine
consumer preferences based on the selected six research variables: brand name (Liuberin, Yourlife,
Akiuvita), main active ingredient (blueberries extract, lutein, vitamins), frequency of use (1, 2 or 3 times a
INTERNAL characteristics:
Main active ingredient
Frequency of use
EXTERNAL characteristics:
Price
Brand
Country of origin
Recommendations of opinion leaders
IMPORTANCE IN PRODUCT SELECTION
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day), country of origin (Lithuania, France, USA), price (33.23, 39.09, 46.48 Lt) and recommendations
(without recommendation; recommendation of Lithuanian oculists association; recommendation of
International oculists association). Also gender, age and buying experience of food supplements consumer
were considered. 18 representative profiles were constructed, having 6 attributes (research variables) with 3
levels each. SPSS program was used for results analysis.
Results
Survey represents opinion of 188 participants, of which 66.5% were women (N=125) and 33.5% were
men (N=63). Two thirds of the respondents (61.7%, N=116) had eyesight malfunctions, whereas only 38.3%
(N=72) stated that they yet do not have any problems with eyesight. The buying experience of food
supplements for the eyes distributed almost equally among respondents, as 48.4% (N=91) of them bought
food supplements for the eyes previously, whereas 51.6% (N=97) did not.
As the aim of the research was to determine the most important elements of food supplements for the
eyes for consumers, the internal and external elements were evaluated. The results revealed that the most
important internal product elements were frequency of use (25.46%) and main active ingredient (21.29%)
(Fig. 2). Whereas, the external product elements were considered as less important: price (17.87%), brand
(13.63%), recommendations (11.40%) and country of origin (10.34%) (Fig. 2).
Figure 2. The importance of food supplements for the eyes elements
According the Stjudent criteria, frequency of use was stastistically more significant than all other
external product elements, similarly as the main active ingredient, which only was not more important than
price. The least significant were country of origin and recommendations (Table 1). These results confirm the
findings of other researchers, which stated that impact of country of origin for the consumer choise is rather
small (Al-Sulaiti et al., 1998; Ettenson et al., 1988). Also the hyphotesis H1 was confirmed, that internal
product elements have greater impact on the consumer choise of food suplements for eyes than the external.
Table 1. The importance of food supplements for the eyes elements (t-test)
Nr. Pair of product elements t df Sig. (2-tailed)
1 Brand – Main active ingredient -2.68 187.00 0.01
2 Brand – Frequency of use -3.87 187.00 0.00
3 Brand – Country of origin 1.56 187.00 0.12
4 Brand – Price -1.72 187.00 0.09
5 Brand – Recommendations 1.11 187.00 0.27
6 Main active ingredient – Frequency of use -1.20 187.00 0.23
7 Main active ingredient – Country of origin 4.30 187.00 0.00
8 Main active ingredient – Price 1.18 187.00 0.24
9 Main active ingredient – Recommendations 4.09 187.00 0.00
10 Frequency of use – Country of origin 5.47 187.00 0.00
11 Frequency of use – Price 2.46 187.00 0.01
12 Frequency of use – Recommendations 5.36 187.00 0.00
13 Country of origin – Price -3.56 187.00 0.00
14 Country of origin – Recommendations -0.63 187.00 0.53
15 Price – Recommendations 3.30 187.00 0,00
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To evaluate hypothesis H3, and determine if age influences consumer preferences in case of food
supplements for the eyes, two age groups were segregated: under 30 years (103 respondents) and over 30
years (85 respondents). The significant difference (t test) was determined in case of main active ingredient
and price (respectively Sig. 0.005 and 0.000). Therefore, H3 was confirmed, as price was more important for
young people, and main active ingredient was more important for older people (Fig. 3a).
a) b)
Figure 3. The importance of food supplements for the eyes elements according a) age; b) buying experience
To evaluate hypothesis H1a and H1b, and determine if buying experience influences consumer
preferences in case of food supplements, two groups were segregated: consumers with food supplements for
the eyes buying experience (91 respondents) and consumers without food supplements for the eyes buying
experience (97 respondents). The significant difference (t test) was determined in case of frequency of use,
country of origin and price (respectively Sig. 0.04, 0.01 and 0.01). Therefore, H1a and H1b were confirmed,
as frequency of use (internal element) was more important for consumers with food supplements for the eyes
buying experience, whereas country of origin and price were more important for consumers without food
supplements for the eyes buying experience (Fig. 3b).
To determine consumer preferences, means of every data group was calculated, and significance of
differences between the means was determined by Student test (t-test).
After the analysis of results it was determined that Liuberin band was preferred the most among the
respondents (Table 2a). Also statistically significant difference was determined only between Liuberin and
two other brands (Table 2b). Therefore, it can stated that customers prefer well know brand even in food
supplements for the eyes category, however, the other global brand YourLife was evaluated the same as the
imaginary brand Akiuvita, specially created for this research.
Table 2. Consumer preferences for brand (t-test)
Brand Mean Standard deviation
Liuberin 0.59 2.894
YourLife -0.23 2.812
Akiuvita -0.36 2.136
Pairs t df Sig. (2-tailed)
Liuberin - YourLife 2.109 187 .036
Liuberin - Akiuvita 3.046 187 .003
YourLife - Akiuvita .430 187 .668
In case of main active ingredient, it was revealed that it is important elements for customers. However,
the extract of blueberries was much more important for the respondents compared to Lutein and vitamins, as
only blueberries showed statistically significant difference (Table 3 a and b).
Table 3. Consumer preferences for main active ingredient (t-test)
Main active ingredient Mean Standard deviation
Blueberries 1.77 3.819
Lutein -.79 3.240
Vitamins -.98 2.781
Pairs t df Sig. (2-tailed)
Blueberries - Lutein 5.374 187 .000
Blueberries - Vitamins 6.441 187 .000
Lutein - Vitamins .561 187 .575
Differences between frequency of food supplements for the eyes use was statically significant for all
three variants, however, usage 1 time a day was considered as advantage, whereas usage 3 times a day was
considered as big disadvantage, while usage 2 time a day being as an intermediate option (Table 4 a, b).
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Table 4. Consumer preferences for frequency of use (t-test)
Frequency of use Mean Standard deviation
1 time a day 3.28 4.034
2 times a day -.82 2.580
3 times a day -2.45 2.799
Pairs t df Sig. (2-tailed)
1 time - 2 times a day 9.117 187 .000
1 time - 3 times a day 12.185 187 .000
2 times - 3 times a day 6.261 187 .000
Survey results revealed that Lithuanians do not prefer any country of origin, as no statically significant
differences were determined (Table 5 a, b). Therefore, hypothesis H2a and H2B were not confirmed.
Table 5. Consumer preferences for country of origin (t-test)
Country of origin Mean Standard deviation
Lithuania -.03 2.636
France .07 2.017
USA -.04 2.104
Pairs t df Sig. (2-tailed)
Lithuania - France -.348 187 .729
Lithuania - USA .034 187 .973
France - USA .506 187 .613
The analysis confirmed that Lithuanians are sensitive to price, as respondents preferred the lowest
price and the differences between different prices were statistically significant (Table 6 a, b).
Table 6. Consumer preferences for price (t-test)
Price Mean Standard deviation
33.23 Lt 1.90 3.400
39.09 Lt -.14 2.287
46.48 Lt -1.77 2.853
Pairs t df Sig. (2-tailed)
33.23 Lt - 39.09 Lt 5.551 187 .000
33.23 Lt - 46.48 Lt 8.609 187 .000
39.09 Lt - 46.48 Lt 5.729 187 .000
Respondents preferred recommendations of Lithuanian oculist association the most, however the
statistical significant difference was determined between all pairs, therefore, product with recommendations
was more attractive for customers than without them (Table 7 a, b).
Table 7. Consumer preferences for recommendations (t-test)
Recommendations Mean Standard deviation
Lithuanian .84 1.976
International .02 2.427
None -.86 2.017
Pairs t df Sig. (2-tailed)
33.23 Lt - 39.09 Lt 2.832 187 .005
33.23 Lt - 46.48 Lt 7.314 187 .000
39.09 Lt - 46.48 Lt 3.006 187 .003
To determine two different customers groups, the cluster analysis was used by “K-means” SPSS
module. Therefore, the prediction was made that two clusters can be segregated, where one cluster prefers
internal product elements, whereas the other cluster prefers external product elements. The start clusters
centers were set at frequency of use as the most important internal element, and price as external product
element. Final result was achieved after 9 iterations with 94 respondents in each cluster.
Figure 4. The importance of food supplement s for the eyes elements according clusters
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Student test confirmed significant difference among all product elements except the brand (sig. 0.000).
Therefore, it can be stated that for the first cluster internal product elements are more important, whereas for
the second cluster – external (Fig. 4). Significant difference was determined between clusters according
buying experience, as customers with buying experience preferred internal product elements (1 st cluster),
whereas customers without buying experience preferred external product elements (2 nd
cluster) (sig. 0.000).
Also clusters significantly differed according age, as the average age of first cluster was 35.56, whereas the
average age of second cluster was 31.01 (sig. 0.008).
Conclusions
The results revealed that internal product elements of food supplements for the eyes had the strongest
influence on consumer buying decisions. The most important internal characteristic was the frequency of use,
as the fewer times a day the food supplement had to be used, the more attractive it was to consumers. Also the
active ingredient played a significant role, which was especially relevant for the older respondents. However,
most of the consumers were aware only about one type of the three proposed sorts of active ingredients. From
the external elements, price was the most important – the lower it was, the more consumers wanted to buy
particular food supplements for the eyes, which was especially noticeable for the younger respondents. Also it
was revealed that recommendations of opinion leaders were important for consumers, precisely when they were
from local doctors association. However, such products elements as country of origin and brand name were not
important for consumers. In addition to that, it was determined that the brand name awareness of food
supplements for the eyes was very low among consumers in Lithuania.
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