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Food safety concern: Incorporating marketing strategies into consumer risk coping
framework
Ruth Yeung Wallace M.S. Yee
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BFJ
114,1 Food safety concern
Incorporating marketing strategies into
consumer risk coping framework
40 Ruth Yeung
Institute for Tourism Studies, Colina de Mong-Ha, Macau, China, and
Received May 2010
Revised June 2010
Wallace M.S. Yee
Accepted June 2010 University of Macau, Taipa, Macau, China
Downloaded by UNIVERSITY OF HONG KONG At 10:15 01 February 2016 (PT)
Abstract
Purpose – The purpose of this paper is to examine how the incorporation of marketing elements into
consumer risk coping strategies affects consumer purchase decision during periods of food safety
concern.
Design/methodology/approach – This research used a structured questionnaire administered to a
convenience sample of 216 respondents. By using logistic regression, a consumer risk coping
framework incorporating marketing strategies was successfully developed to test the impact of brand
and quality assurance, price reduction, availability in all stores and endorsement from an independent
organization, which may not act alone but combine with each other during food purchase.
Findings – The research confirms that consumers adopt risk coping strategies in time of food risk
concern and their coping strategies include marketing elements such as brand and quality assurance,
price reduction, availability in all stores and endorsement from an independent organization.
Practical implications – The framework helps marketers to predict the effect of their marketing
plan by incorporating consumers’ risk coping strategies, in turn to improve consumers’ purchase
intention when perceived food safety risk exists.
Originality/value – This research demonstrates how marketers can incorporate marketing
strategies in a consumer risk coping framework, in order to provide an insight for the industry to
evaluate the effectiveness of their marketing strategies in times of food safety concern.
Keywords Consumer behaviour, Food safety, Marketing strategy, Food safety risk,
Risk coping strategy, Logistic regression
Paper type Research paper
Food safety has become an important criterion for consumer food choice. Some argue
that there may be a negative effect on the food market due to concern for the food
safety risk issue; an example of this is the outbreak of avian flu among poultry, which
brought down the sales of Bernard Matthews’[1] products by 17 percent (Tiltman,
2007). The significant drop of beef products is also a remarkable example (MAFF,
2000). The food industry and marketers have experienced great challenges when the
food market is fuelled with concern over the composition of food, such as chemicals
used in food production, microbiological contamination and so forth (Pugh, 1990).
Following a belief, many food marketers attempt to reduce the price in order to recover
British Food Journal the declined market in short term and/or promote the quality assurance to restore
Vol. 114 No. 1, 2012
pp. 40-53 consumer confidence in long term. As the food industry tends to adopt all possible
q Emerald Group Publishing Limited
0007-070X
alternatives to save the market, which marketing strategy is more effective among
DOI 10.1108/00070701211197356 others in particular when several marketing strategies are adopted?
Correspondingly, research suggests that consumers have a set of preferences to Food safety
coping with the unresolved perceived risk (Yeung and Morris, 2001). Their preferences concern
are driven by the possibility of reducing their perception of food safety risk, for
example to choose a product with a well known brand, celebrity endorsement,
money-back guarantee and so forth (Yeung and Yee, 2003). The context of their study
mainly focuses on a general purchase situation such as new product development or
brand extension. Little attention has been directed toward the food safety issue. Hence, 41
there is a need for the food industry to have a systematic strategy in time of food safety
concern.
Understanding consumers’ risk coping strategies would significantly help
industries to develop effective marketing strategies. An effective marketing strategic
plan, utilizing the right proportion of the marketing elements at the time of food safety
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concern can restore the declining sales due to (the) loss of consumer confidence in the
defective food product (Heerde et al., 2007). To achieve this, the industry should
understand how consumers respond to different marketing strategies solely or
corporately in order to develop a strategic plan which can meet consumers’ preferences.
However, there is a dearth of knowledge of how effective these marketing strategies are
in times of food safety concern. Nevertheless, little research so far seeks to utilize the
existing information in formulating a marketing programme. Even less research links
marketing strategies with risk coping strategies on consumer purchase decision during
perceived food safety risk exists.
This study aims to examine how the incorporation of marketing elements into
consumer risk coping strategies affects consumer purchase decision during periods of
food safety concern. As the poultry market has been frustrated due to the frequent
occurrence of contamination with Salmonella, and the recent H5N1 avian flu, chicken
meat product was chosen in the study to assess the usefulness of the marketing
strategies on consumer purchase in time of food safety concern.
when the strategies are implemented individually and corporately from the perspective
of consumers.
factor for consumer purchase. Verma and Varma (2003) opine that price is relatively
speaking the flexible elements to change compared to other marketing mix elements.
Companies very often adjust the basic price of a product to account for various
customer differences and changing situations (Hunt, 2005). Price promotion is viewed
as better value to the consumer in the general situation, since low price probably helps
to attract customers (Fleischmann et al., 2004, Yee et al., 2005). The most common
method is price reduction for a particular product when the demand drops. This
phenomenon is true when the demand for the offended product declines after the
outbreak of food scares (Yeung and Yee, 2003). Price reduction has been extensively
used by marketers during periods of food scare. Many major companies cut prices by a
third or even half of the original price in order to reward consumer responses. Other
research has found that money back guarantees also useful, but there was very little
effect on consumer purchase for the product associated with food hazard (Yeung and
Yee, 2003).
H2. There is a positive relationship between the risk coping strategy referencing
price reduction and consumer purchase decision.
H3. There is a positive relationship between the risk coping strategy referencing
availability in all stores and consumer purchase decision.
H4. There is a positive relationship between the risk coping strategy referencing
endorsement from an independent organization and consumer purchase
decision.
Methods
Focusing on food safety risk, a quantitative study was conducted to test the
applicability of a mix of marketing strategies, and how they work together to reduce
the food scare perceived among consumers. Questionnaire with structured,
closed-ended questions was administered to a convenience sample of 216
respondents aged between 16 and 70 years in different places, on different days and
at different times of the day, to minimize any over-representation. The break down of
their demographic characteristics is shown in Table I.
Age group
16-34 83 38.4
35-54 86 39.8
55-70 47 21.8
Gender
Male 105 48.6
Female 111 51.4
Education background
Degree holder 61 28.2
Non-degree holder 155 71.8
Income group
Table I. Below £15,000 pa 85 39.4
Characteristics of £15,000-29,999 pa 77 35.6
respondents £30,000 pa or above 54 25
In order to test the hypotheses and determine consumer purchase of fresh chicken Food safety
meat, a self-administrative questionnaire was specially designed which contained a concern
choice of a “yes” or “no” response on all possible combinations (see the Appendix,
Table AI), i.e. 15 conditions, either each risk coping strategy stands alone or combines
with other risk coping strategies together with purchase decision of chicken meat
product on the 15 conditions in case of food safety concern. The independent
variables/predictors are the four risk coping strategies and the dependent variable is 45
purchase decision (either purchase or not purchase). In each case, both independent and
dependent variables are dichotomous (i.e. either 1 or 0). The design of the questionnaire
addressed the effect of each risk coping strategy either implemented alone or combined
from all possible combinations. The odds of each risk coping strategy to consumer food
purchase decision can be obtained by performing logistic regression to achieve the
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where pj is the estimated probability of the jth case (j ¼ 1; :::::; 3; 240) in one of the
conditions with constant A, coefficients Bi, and predictors, Xi ði ¼ 1, 2, 3 and 4).
Maximum likelihood was used to estimate the coefficients, and the purpose was to
find the optimal combination of predictors to maximize consumer purchase.
Chi-squared distribution was checked for the difference between their log-likelihood
of the null model and the hypothetical model, and the Wald test was used for testing
the significance of individual independent variables. Classification table was checked
to assess the success of the model and to evaluate the accuracy of the prediction as it
produced the probability of accurate classification for the presence/absence of the
strategy and the overall pooled rate of all sample cases across both of those
representing the presence or absence of a certain type of strategy (Tabachnick and
Fidell, 2007). Furthermore, the resultant model which shows the linear portion of the
equation for the four predictors (A þ B1 X1 þ B2 X2 þ B3 X3 þ B4 X4 ) is not the end in
itself, but it creates the logit or log of the odds where the odds of a particular outcome
for each independent variable can be determined (Hosmer and Lemeshow, 2000).
BFJ Results – risk coping marketing strategies
114,1 A logistic regression model was developed to study consumer purchase decision of
chicken meat relating to food safety risk. Four risk coping strategies, namely “Brand and
Quality Assurance”, “Price Reduction”, “Availability in All Stores” and “Endorsement
from an Independent Organization” were treated as independent variables, and
“Purchase” as a dependent variable were utilised to build this framework. All variables
46 including independent and dependent variables were in binary form; “1” represented “the
present of individual strategy” or “purchase”, whereas “0” represented “without
strategy” or “no purchase” in all 3,240 case scenarios.
Estimation terminated at iteration number 4 because Log likelihood decreased by
less than 0.001. Omnibus test was used to test if the framework with these four
independent variables was significantly different from the null model, which is to test
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the capability of all independent variables in the model jointly to predict the dependent
variable. As shown in Table II, Chi-square was 842.387 with degree of freedom equals 4
and p-value less than 0.001 suggesting that there is adequate fit of the data to the model
which implied that there is at least one of the independent variables is significantly
related to the dependent variable.
A classification table was created to evaluate the classification of cases which fit the
model when predict the outcome. As shown in Table III, the overall accuracy of this
risk reduction framework to predict consumer purchase decision of chicken meat
product under the concern of food safety risk equals 70.86 percent, while the sensitivity
(the correct predicted rate for purchase) and the specificity (i.e. the correct predicted
rate for not purchase) were 71.68 percent (i.e. 1,296/1,808) and 69.83 percent (i.e.
1,000/1,432) respectively with a positive predictive value of 75 percent (i.e. 1,296/1,728)
and negative predictive value of 66.13 percent (i.e. 1,000/1,512), using the default cut
value of 0.5. In other words, 1,296 cases was correctly classified as purchase on the
basis of adopting the risk coping strategies, namely “Brand and quality assurance”,
“Price reduction”, “Availability in all stores” and “Endorsement from an independent
organization” while 1,000 cases was correctly predicted as non-purchase decision.
Chi-square Df Significance
Predicted purchase
Observed 0 1 Percentage correct
Purchase
Table III. 0 1,000 432 69.83
Classification table 1 512 1,296 71.68
assessing the success of Overall percentage correct 70.86
the model for consumer
purchase Note: The cut value is 0.50
For testing individual strategy, the estimated coefficients (in logistic regression) of the Food safety
predictors provided by the Wald test were assessed. As a result of analysing the concern
variables in the equation, all strategies are significant at the 95 percent confident level,
with p , 0:001. The odds (Exp(B)) for the “Brand and quality assurance”, “Price
reduction”, “Availability in all stores” and “Endorsement from an independent
organization” risk coping strategies are 6.0823, 1.2683, 2.2088 and 5.7379 respectively
(Table IV).From these results, the framework was produced as follows:
p
47
ln 12pj j ¼ 2 2.1283 þ 1.8054 £ “Brand and quality assurance” þ 0.2377 £
i
“Price reduction”, þ 0.7925 £ “Availability in all stores” þ 1.7471 £ “Endorsement
from an independent organization”
This indicates that by implementing “Brand and quality assurance” strategy, there
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will be an increase in the odds of a consumer purchasing chicken meat by 6.0823 times
[odds ratio ¼ exp(1.8054) ¼ 6.0823]. Similarly, by implementing the “Price reduction” ,
the “Availability in all stores” and “Endorsement from an independent organization”
strategies, there will be an increase in the odds of a consumer purchasing chicken meat
by 1.2683 times [odds ratio ¼ exp(0.2377) ¼ 1.2683], 2.2088 times [odds
ratio ¼ exp(0.7925) ¼ 2.2088], 5,7379 times [odds ratio ¼ exp(1.7471) ¼ 5.7379]
respectively.
Discussion
From the results of the preceding analysis, the four variables (namely) “Brand and
quality assurance”, “Price reduction”, “Availability in all stores” and “Endorsement
from an independent organization” have both an individual effect and combined effect
with the presence of the other risk coping strategies. The addition or subtraction of one
risk coping strategy would affect the others, as well as consumer purchase decision.
Marketers should take all risk coping strategies into consideration when they develop
marketing strategies or resource allocation on each marketing strategy if there is a food
safety concern.
“Brand and quality assurance” has the relatively highest effects (6.0823) on
consumer purchase. This finding is consistent with other studies that ‘Brand’ in
general is the most effective risk coping strategy adopted by consumers when a risk is
perceived. This finding suggests that well known, popular brands give consumers
reassurance in terms of quality as quality assurance is a key element of brand identity.
Yet, a transparency system of the assurance schemes that consumers are being
informed of, including its standard and procedures is required. As brand could provide
an image of added value and quality assurance, the food industry should aim to
improve their brand equity by adding a guarantee of quality and promote the brand
value of their products to gain favourable response from the consumer and the media.
“Endorsement from an independent organization” comes next to product with an
effect of 5.7379. This is in line with past research in food safety risk with endorsement
from independent organizations, such as the Food Standard Agency, or Meat and
Livestock Commission; this is particularly useful (Yeung and Yee, 2003). As suggested
by Dev and Schultz (2002), the promotional mix is moving away from a mere message
delivery to integration with relevant information in order to differentiate company’s
products and their benefit. Thus, information, such as storage guidelines, methods of
reheating, specific handling instructions and even health information or food safety tips
are well received by consumers (Martin, 1997). A clear and consistent message through
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48
BFJ
114,1
Table IV.
consumer purchase
risk coping strategies on
logistic regression) of the
Estimated coefficients (in
95 percent CI for
Exp(B)
Variable Coefficient B S.E. Exp(B) Lower Upper Wald df p-value
Brand and quality assurance 1.8054 0.0885 6.0823 5.1134 7.2347 415.8887 1 0.0000
Price reduction 0.2377 0.0817 1.2683 1.0806 1.4886 8.4636 1 0.0036
Availability in all stores 0.7925 0.0834 2.2088 1.8757 2.6011 90.2850 1 0.0000
Endorsement from an independent organization 1.7471 0.0884 5.7379 4.8249 6.8237 390.3725 1 0.0000
Constant 2 2.1283 0.1141 347.9815 1 0.0000
Note: Dependent variable: consumer purchase
labels or quality marks is particularly crucial to relieve the food safety concern. A Food safety
standardized quality mark under a national “umbrella” scheme is recommended to avoid concern
dissipated marketing effort, because too many symbols and quality marks supported by
different sources may confuse consumers. No doubt, there is room to improve the
common welfare by providing information for wider food choice, in turn, to enhance the
willingness to purchase. Future research is required to help determine the best way to
put through the message of these quality marks to consumers. 49
“Availability in all stores” strategy comes in third place with an effect of 2.2088. The
underlying principle refers to confidence in the credibility of the big companies, in
addition to the suitable purpose of using the transference process of building trust (Yee
et al., 2005). One possible explanation may be due to the big supermarkets often
recalling or withdrawing the faulty products when a crisis arises. This implies that the
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consumer is likely to purchase food products from those they trust, particularly during
periods of food safety concern.
“Price reduction”, strategy has relatively little effect (1.2683) in this study on food
safety risk. The result shows that consumers may be willing to trade-off risk against a
discounted price. This supports the major supermarkets’ use of price discounts or
special offers to improve sales and/or maintain purchases during periods of poor
consumer confidence in a product. However, the small effect of price is not that
important compared to the other marketing mix elements or because of the
controversies on the price-quality relationship among academics for decades
(e.g. Monroe, 1973; Erevelles, 1993). A study of consumer perception on food safety
risk shows that consumers are willing to pay a little extra for premium food, such as
free-range chicken against some favoured special offers to offset the food risk. This
warrants a further investigation on the relationship between price and perceived
quality of a food product in terms of food safety.
Note
1. Bernard Matthews a British farm and food company specialises in farming turkeys.
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Appendix
a. £
b. £ £
c. £ £ £ £
d. £ £ £
e. £ £
f. £
g. £ £ £
h. £ £
i. £ £
j. £
k. £ £ £
l. £ £
m. £ £
n. £ Table AI.
o. £ £ £ The 15 possible
combinations of risk
Note: £ indicates the presence of the risk coping strategy for each scenario coping strategies
Corresponding author
Ruth Yeung can be contacted at: ruth@ift.edu.mo
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