Marketing Intelligence & Planning

Marketing health-enhancing foods: implications from the dairy sector

Gillian Armstrong Heather Farley Jennifer Gray Mark Durkin
Article information:
To cite this document:
Gillian Armstrong Heather Farley Jennifer Gray Mark Durkin, (2005),"Marketing health-enhancing foods:
implications from the dairy sector", Marketing Intelligence & Planning, Vol. 23 Iss 7 pp. 705 - 719
Permanent link to this document:
http://dx.doi.org/10.1108/02634500510630221
Downloaded on: 02 April 2016, At: 05:34 (PT)
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

References: this document contains references to 41 other documents.

To copy this document: permissions@emeraldinsight.com
The fulltext of this document has been downloaded 2242 times since 2006*
Users who downloaded this article also downloaded:
(2005),"Determinants of consumers' dietary behaviour for health-enhancing foods", British Food Journal,
Vol. 107 Iss 1 pp. 4-16 http://dx.doi.org/10.1108/00070700510573168
(2002),"Buyer beliefs, attitudes and behaviour: foods with therapeutic claims", Journal of Consumer
Marketing, Vol. 19 Iss 7 pp. 591-606 http://dx.doi.org/10.1108/07363760210451410
(2005),"Analysis of the healthy lifestyle consumer", Journal of Consumer Marketing, Vol. 22 Iss 5 pp.
275-283 http://dx.doi.org/10.1108/07363760510611707

Access to this document was granted through an Emerald subscription provided by emerald-srm:402912 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for
Authors service information about how to choose which publication to write for and submission guidelines
are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company
manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as
providing an extensive range of online products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee
on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive
preservation.

*Related content and download information correct at time of download.

 The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at
www.emeraldinsight.com/researchregister www.emeraldinsight.com/0263-4503.htm

Marketing
Marketing health-enhancing health-enhancing
foods: implications from the foods
dairy sector
705
Gillian Armstrong and Heather Farley
School of Marketing, Entrepreneurship and Strategy, University of Ulster, Received November 2004
Newtownabbey, Northern Ireland Accepted July 2005
Jennifer Gray
Allied Bakeries Ltd., Belfast, Northern Ireland, and
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

Mark Durkin
On sabbatical leave from the University of Ulster, at the Department of
Marketing, Monash University, Melbourne, Australia

Abstract
Purpose – To assess the potential for development in the agri-food sector by investigating: consumer
awareness of health-enhancing foods; key influences on their perceptions of and attitudes towards
these foods; their relevant purchasing behaviour in the context of the Northern Irish dairy products
market. To develop recommendations for future segmentation and positioning strategies for
health-enhancing dairy foods.
Design/methodology/approach – Northern Ireland is a geographically discrete area of the
United Kingdom, which relies heavily on the agri-food industry in general, and the dairy sector
in particular. A consumer questionnaire was adapted from previous studies. After two pilot
studies with 30 and 50 consumers, 600 were administered face-to-face to a quota sample of male
and female shoppers in six key supermarkets across Northern Ireland. Results were collated
and analysed by SPSS. Descriptive parametric and non-parametric statistics re-reported in
findings.
Findings – There is potential for the agri-food industry to expand further, particularly in the case of
added-value food products, among which health-enhancing foods should be treated as an important
subset. However, a pre-requisite is development of enhanced consumer segmentation and product
positioning strategies.
Research limitations/implications – The findings and conclusions derive from one study of one
specialist product type in one small national market. Generalisation should be possible, at least
informally, but comparative studies are indicated.
Practical implications – The findings indicated a general lack of awareness of the
health-enhancing food concept and the level of (largely proven) health benefits of such products,
which is a barrier to their wider adoption of these products. The key aims goals for marketing
planners in this context are thus awareness generation and consumer education. The crucial
segments of the general target audience and the core message to be conveyed, are both defined by
the findings.
Originality/value – This study provides a research-based foundation for a more proactive and
informed marketing strategy in a particular context, potentially transferable to other market sectors
and locations. Marketing Intelligence & Planning
Keywords Food products, Consumer behaviour, Market segmentation, Quality awareness, Vol. 23 No. 7, 2005
pp. 705-719
Northern Ireland q Emerald Group Publishing Limited
0263-4503
Paper type Research paper DOI 10.1108/02634500510630221
 MIP Introduction
23,7 In recent years, the agri-food industry across Europe has been subject to great change.
Such change has been manifest at the level of both policy and practice, and recent
Common Agricultural Policy (CAP) reforms, such as decoupling, have placed a
strategic imperative on this industry to adapt or die (Chartered Institute of Marketing,
2004). There is a clear need to shift thinking away from the traditional
706 production-orientated focus towards a more demand-driven approach that can
capitalise on emerging opportunities. Breaking the link between direct agricultural
support and production-orientation, and understanding and responding to customer
preferences are requirements for future success. As this change dynamic and the
implications of it are becoming more clearly understood, the level of competition in the
agri-food industry across Europe is increasing. It is those participants who display a
truly customer-oriented approach, underpinned by an innovative and entrepreneurial
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

culture, which will survive and indeed thrive.

The creation of a customer-oriented agri-food industry requires a focus on the needs
of the marketplace. Changing consumer tastes and preferences, an increase in
affluence, demographic changes and an increasing societal awareness of the links
between diet and health have all reduced demand for some traditional staples, but have
simultaneously increased opportunities for new product offerings that offer added
value to customers (Department of Agriculture and Rural Development, 1999). The
emphasis is now moving towards optimising diet to maximise health and reduce risk
of disease (Newsholme, 2002). Sloan (2002) identifies this trend as part of an
unprecedented “do-it-yourself” approach to health, worth an estimated $42 billion. As
consumers continue to take an increasingly proactive interest in their health, both
consumer and commercial focus on health-enhancing foods is rapidly developing
(Mintel, 2004). Set within the context of rising health care costs and improved scientific
and technological knowledge, nutrition and health related product offerings can,
therefore, provide significant opportunities for the agri-food sector.
Health-enhancing foods can be defined as “a natural or manufactured food or food
ingredients, which confer specific health-enhancing benefits beyond their basic
nutritional functions” (Bogue et al., 2005). Health-enhancing foods are steadily
emerging in several food categories, mainly through the modification and fortification
of existing products.
The Northern Ireland dairy industry is facing increasing pressure to produce
market-oriented products which can compete in a competitive marketplace
(Leatherhead Food International, 2004). Milk and milk products continue to have a
low (average 14.2 per cent) value added percentage of sales within the Northern Ireland
processing sector (Department of Agriculture and Rural Development, 2004a). As a
result, the need for consumer research to increase value added potential has been
identified as a priority strategy for Northern Ireland’s processing sector (Food Strategy
Group, 2004).
The purpose of this study is to illustrate how strategically important an in-depth
knowledge of the consumer within the marketing process can be within this sector.
A questionnaire was designed and administered to Northern Irish food consumers,
to gain an insight into three key themes important to advancing our understanding of
how consumers relate to health-enhancing foods. These themes were consumer
awareness, purchase behaviour, and consumer perceptions of and attitudes towards
 health-enhancing foods. This research formed part of a longitudinal study that is Marketing
expected to contribute to the development of product positioning strategies for health-enhancing
health-enhancing foods through the integration of market research data and sensory
evaluation techniques. The combination of these research techniques was utilised in foods
order to better understand how various consumer segments embraced
health-enhancing dairy foods and to determine the influencers upon and barriers to
such interaction, in order that improved marketing activities could be undertaken. 707
Health-enhancing food market
The global market for health-enhancing food (also known as functional food) is
experiencing rapid growth (Leatherhead Food International, 2004). Taking a strict
definition limited to food and drinks that make specific health claims on the packaging
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

or in advertising, the market in the five major European countries, the USA, Japan, and
Australia was worth $10 billion in 2003. Taking a broader definition, to include a wide
range of healthy products not necessarily making health claims but nevertheless often
perceived as offering added value benefits associated with health-enhancing foods, the
market rises to almost $24.2 billion.
In recent years, the European health-enhancing dairy sector has emerged as one of
the most dynamic and innovative health-enhancing food sectors, accounting for around
30 per cent of all health-enhancing products (Heasman and Mellentin, 2002). Probiotic
yoghurts and drinks sectors are prominent as a result of heavy investment in product
development and marketing activities by ma (Datamonitor, 2003). At the same time,
consumer interest in health-enhancing foods has grown greatly throughout Europe. For
example, the number of health-enhancing food consumers in the UK has more than
doubled since 1997, and is forecast to grow by almost 40 per cent to 4.7 million by 2007
(Datamonitor, 2002). Recognising this market potential, major multinational food and
drinks companies such as Yakult Honsha and Groupe Danone, have established
strategic alliances to help maintain their dominant global positions (Sloan, 2004).
As the global health-enhancing food market appears to have entered a time of
consolidation and strength (Leatherhead Food International, 2004), the Northern
Ireland market is in the midst of active development (Giles, 2004). For example, dairy
manufacturer, Dale Farm, has made recent acquisitions in an attempt to maintain its
position as Northern Ireland’s number one dairy brand (Giles, 2004). In addition, Dale
Farms have announced ongoing investment to develop health-enhancing dairy foods
for the regional and European market (Giles, 2004). Such an approach should help
secure a viable future for the Northern Ireland dairy industry, considering the
population constraints of the region and the existing reliance on export sales. Pressure
on the local dairy industry to adopt a more market-oriented focus is clear. However, if
companies are to compete effectively on these terms, an in-depth knowledge of the
consumer is required. An appreciation of the importance of segmentation is a
pre-requisite to such understanding.

Segmentation in the food market

Segmentation is paramount to developing successful marketing programmes in any
competitive environment (Peter et al., 1999). Characteristics of the agri-food sector
would present further opportunities for market segmentation, most notably a
prevailing production-based focus, a diverse customer base with wide ranging needs,
 MIP and buyer behaviour manifest through various channel interfaces. However, while as a
23,7 concept segmentation is straightforward, many industries have difficulty
implementing it effectively.
Speed and Smith (1992) suggest that a priori segmentation, which charges the
researcher with determining the size and character of segments, is the most widely
used method. This involves the use of demographic information. In contrast, post hoc
708 methods are less widely used and entail the grouping of respondents according to their
responses to particular variables. Increasingly, there is a recent focus on behavioural
segmentation (Peter et al., 1999; Kesic and Piri-Rajh, 2003; Bogue et al., 2005). The
behavioural approach contrasts with the process of segmentation based on customer
characteristics in that the focus is more driven by customer “needs”. It is argued that
such a need identification approach is more robust than a classification of
characteristics and that it is probable that the segments, which are subsequently
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

identified, will ultimately be more predictive of purchase behaviour (Elliott and Glynn,
1998). Smith (2004, p. 27) argues that any approach to segmentation that is not focused
on clustering customers according to their motivations “is simply an approximation
based on the assumption that descriptors (i.e. characteristics) and motivations (i.e.
needs/behaviour) are closely aligned – usually they are not”.
The need for such behaviourally focused consumer research is of particular
relevance to the health-enhancing food industry in order to better understand
consumer awareness, motivations, and perceptions more fully (Childs and Poryzees,
1998; Bogue and Ryan, 2000; Breslin, 2001; Newsholme, 2002).

Research context
A number of consumer research studies have been conducted within the
health-enhancing food arena (Hilliam, 1996; Gilbert, 1997, 2000; Childs and Poryzees,
1998; Poulsen, 1999; International Food Information Council (IFIC), 2002; Newsholme,
2002), and are largely based on more highly developed markets than Northern Ireland
(Leatherhead Food International, 2004). Consumer research within Ireland has been
limited to the Republic of Ireland. Bogue and Ryan (2000) investigated consumers’
attitudes to, perceptions of and consumption patterns regarding health-enhancing
foods. The study utilised a structured questionnaire ðn ¼ 303Þ and reported a very
high level (90 per cent) of consumer awareness of the health-enhancing food concept.
It concluded that opportunities exist for health-enhancing foods targeted at specific
consumer groups, but that a more effective communication and positioning strategy
may increase consumer acceptance of such products.
Accordingly, the overall aim of the study reported here is to address the deficit of
consumer research with regard to the health-enhancing food arena in Northern Ireland.
Specifically the objectives are to:
.
investigate consumer awareness of health-enhancing foods;
.
identify the main influencers which shape consumers’ perceptions of and
attitudes towards these health-enhancing foods;
.
establish current patterns of purchase behaviour regarding health-enhancing
dairy products; and
.
develop recommendations regarding future segmentation and positioning
strategies for health-enhancing dairy foods.
 Methodology Marketing
A questionnaire was designed and piloted to elicit information on the key themes, health-enhancing
namely: consumer awareness, influences on purchase behaviour, and perceptions
regarding health-enhancing dairy products in Northern Ireland. foods
A quantitative methodology was utilised, as it allowed the collection of information
in a standardised way from a large number of consumers in a relatively quick and
cost-effective manner. The questionnaire was in part adapted from previous work, 709
most notably Hilliam (1996), Childs and Poryzees (1998), Young (1998), the
International Food Information Council (IFIC) (2000) and Bogue and Ryan (2000).
The questions were primarily closed-format, including dichotomous, ranking scales
and Likert scales, for ease of completion and analysis. Two pilot studies were
conducted with 30 and 50 consumers, respectively, to evaluate clarity, ease of
interpretation and the time taken to complete the questionnaire. As a result of the pilot
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

studies, a consumer-oriented definition of health-enhancing foods and examples of

health-enhancing product brands were included. For example, “health-enhancing foods
tend to be characterised simply as foods that may provide specific health benefits
beyond the nutrients they already contain. Examples include Actimel, Benecol,
Flora Pro-Activ, Muller Vitality, and Yakult” (International Food Information
Council, 1999).
The questionnaire was divided into three sections. To establish context, Section A
sought to gauge consumers’ beliefs about diet and health in general; Section B focused
on awareness, perceptions, and consumption patterns of health-enhancing dairy
produce; Section C established a demographic and socio-economic profile for each
respondent. For the purposes of this paper, results from Sections B and C will be
reported and discussed.
A total of 600 questionnaires were personally administered in the chilled dairy
sector of six key supermarkets across Northern Ireland. The face-to-face method of
administration was utilised in order to include more detailed questions, to probe for
more comprehensive responses, and to offer clarification if necessary. A quota
sampling technique (De Vaus, 2002) was adopted to ensure that a representative
number of consumers from each socio-economic classification (Chisnall, 1976) were
obtained. The sample surveyed was considered representative of the population of
Northern Ireland, based on socio-economic status derived from the Northern Ireland
Census Report (1991) (Table I).
Questionnaire responses were collated and analysed using the statistical package
SPSS for Windows (version 11.0). Descriptive statistics were applied to calculate
frequency distributions for particular variables. Chi-square analysis was used to

Socio-economic group NI population (per cent) Sample population (per cent) Total number

A 6.4 7.0 42
B 12.9 17.0 102 Table I.
C1 12.1 12.3 74 Socio-economic profile of
C2 13.5 13.2 79 sample population as
D 21.7 19.5 117 compared to the
E 33.4 31.0 186 population of
Total n ¼ 100 n ¼ 100 n ¼ 600 Northern Ireland
 MIP compare different groups of respondents in terms of nominal or ordinal variables.
23,7 Further statistical analysis included the application of non-parametric tests. The
Mann-Whitney U-test was used to determine whether significant differences existed
between two independent groups of subjects (males and females). The Kruskal-Wallis
H-test analysed independent variables such as age, marital status, education level, and
socio-economic status.
710
Results and discussion
The results are presented according to the identified themes:
.
consumer awareness of health-enhancing foods;
.
influencers which shape consumer perceptions of and attitudes towards these
health-enhancing foods; and
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

.
current patterns of purchase behaviour regarding health-enhancing dairy
products.
The consumer sample consisted of 78.7 per cent females and 21.3 per cent males. These
figures suggest that despite the dramatic increase in the number of women in full-time
employment, females remain the primary food shoppers. The age range of respondents
ranged from 16 to over 65 years old, with the highest percentage of respondents within
either the 35-44 (22.5 per cent) or 25-34 (22.3 per cent) age brackets. Almost two-thirds
of respondents (61.7 per cent) were married or cohabiting, and all socio-economic
groups were represented in this study.

Theme 1: consumer awareness of health-enhancing foods

The results reveal that age has a significant influence on health-enhancing food
awareness (x25 ¼ 11:553; p , 0:05) with younger respondents, particularly those in the
16-24 age category, demonstrating the highest level (84 per cent). As the age of the
respondent increased the level of health-enhancing food awareness decreased, with
respondents in the 65 þ age category demonstrating the lowest level (18 per cent).
This may be indicative of a “too old to try that” mentality amongst the older
generation, who perceive little association between food and disease prevention (Childs
and Poryzees, 1998). Despite the relative lack of awareness amongst Northern Irish
consumers, it is, however, encouraging to note a strong interest in the relationship
between diet and health, with 86 per cent of respondents recognising the link.
The results also demonstrate a highly significant association between marital
status and awareness of health-enhancing food (x23 ¼ 63:417; p , 0:001), with
unmarried respondents exhibiting the highest level (71 per cent). Level of education
had a significant impact on awareness (x24 ¼ 93:906; p , 0:001), with respondents who
had been educated to tertiary level demonstrating the highest level. Respondents
educated only to primary level demonstrated the lowest level (14 per cent). Similarly, a
highly significant relationship existed between socio-economic status and awareness
(x25 ¼ 58:167; p , 0:001). Clearly, if the market for health-enhancing foods is to
develop in Northern Ireland, there is an urgent need to increase awareness levels
amongst a wider range of consumer groups (Gray et al., 2003).
The questionnaire results show that, whilst consumer awareness of specific
health-enhancing food terms such as “bifidobacteria” and “probiotic” was low (19 and
37 per cent, respectively), it would seem that the market for probiotic products is still
 reasonably well developed with many more respondents recognising more general Marketing
claims such as “bio” (99 per cent) and “beneficial bacteria” (49 per cent). Despite the fact health-enhancing
that consumer awareness of the actual food ingredients was shown to be low,
consumer recognition of health-enhancing food brands appeared to be very much foods
higher. This has important implications for any manufacturer, and would suggest that,
whilst marketing has already contributed much in relation to brand awareness, there
may in some instances be a need to focus more on the health-enhancing ingredients 711
themselves and an associated condition-specific marketing (Sloan, 2002). Research
within the US (MSI, 2001) has reported that consumers are increasingly interested in
trying foods fortified to promote health, such as coronary and intestinal health, as
reflected in the exponential growth of the condition-specific market.
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

Theme 2: consumer perceptions of and attitudes towards health-enhancing dairy

products
In terms of the attributes associated with health-enhancing dairy products, “quality”
was considered acceptable with 88 per cent of respondents reporting satisfaction. Over
half of the respondents (53 per cent) agreed that the “variety and choice” of available
products was satisfactory, but significant differences were observed between
socio-economic groups (x25 ¼ 14:350; p , 0:05). Respondents in socio-economic
group A reported the highest level of satisfaction for “variety and choice” (77 per
cent), but satisfaction was shown to steadily decline in accordance with socio-economic
status, with respondents in categories D (45 per cent) and E (43 per cent) reporting the
lowest level of satisfaction. This could, however, be associated with an inability to
purchase health-enhancing foods and correspondingly low levels of consumption
amongst the lower socio-economic groups.
In general, the “taste” of health-enhancing dairy products was considered
acceptable with 84 per cent of respondents reporting satisfaction. A very high
percentage of respondents (83.5 per cent) agreed that the “health benefits” offered by
the health-enhancing dairy products available on the market place were satisfactory.
No significant relationships were found between satisfaction levels for “taste” or
“health benefits” and demographic or socio-economic factors (p . 0:05). It is, therefore,
evident that the perceived product quality of health-enhancing foods is not a limiting
factor in their wider acceptance.
Only 35 per cent of respondents reported that they were satisfied with the “price” of
health-enhancing dairy products, and significant differences were observed between
the age categories (x25 ¼ 12:543; p , 0:05). Respondents in the younger age categories
(16-24 and 25-34) were more likely to be satisfied with the price than respondents in the
older age categories (55-64 and 65 þ ). Significant differences were also observed
between education levels (x24 ¼ 10:251; p , 0:05), with those respondents educated to
a higher level reporting the highest level of satisfaction. It is probable that consumers
educated to this level are more likely to have the disposable income to afford
health-enhancing dairy foods, whereas the premium prices attributed to these foods
would probably put them out of the reach of lower income groups with the highest
prevalence of diseases of affluence (British Nutrition Foundation, 2000).
Almost two-thirds (65 per cent) of respondents claimed they were willing to pay “up
to 20 per cent” more for the health benefits offered by health-enhancing foods, as
compared to the conventional equivalent. Consumer willingness to pay a premium
 MIP varied across the age categories (x25 ¼ 24:306; p , 0:001). It would again appear that a
23,7 higher frequency of respondents in the younger age categories 16-24 (76 per cent) and
25-34 (80 per cent) were willing to pay a premium for products with perceived health
benefits when compared to respondents of pensionable age, where willingness declines
to 33 per cent. Consumer willingness to pay an increased price for health-enhancing
foods also varied across the education categories (x24 ¼ 17:354; p , 0:01), with a higher
712 frequency of respondents educated to secondary level and above willing to pay a
premium, whilst willingness declined for respondents educated to secondary level
(48 per cent) and primary level (31 per cent).
Of the 35 per cent of respondents who stated that they would be willing be prepared
to pay “nothing” more for health-enhancing foods, virtually all agreed that they would
pay more if they thought their health was at risk (92 per cent). The analysis suggested
that females (95 per cent) would be more willing than men (76 per cent) to pay a
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

premium for health-enhancing foods if they considered their health to be at risk

(z ¼ 22:299; p , 0:05). Consumer willingness to pay a premium price if at risk was
shown to vary across the age categories (x25 ¼ 18:742; p , 0:01), with respondents in
the youngest age category (16-24) demonstrating the lowest level of willingness. It is,
however, worth noting that, even with an immediate health risk, consumers do not
easily change their food habits and awareness may not necessarily translate into
action. This is a well known problem in the area of adoption-diffusion research
(Table II).
Respondents’ attitudes to a series of questions regarding likelihood to purchase
health-enhancing dairy products in the future were measured using a Likert scale

Category Percentage of respondents

Gender Male 45
Female 43
Age 16-24 47
25-34 45
35-44 41
45-54 54
55-64 38
65 þ 30
Socio-economic group A 71
B 64
C1 53
C2 32
D 28
E 38
Marital status Single 44
Married/cohabiting 45
Separated/divorced 35
Widowed 32
Table II. Education level Primary 32
Profile of consumers Secondary (GCSE) 28
who purchased Secondary (A level) 43
health-enhancing dairy Further 41
products Higher 66
 ranging from “strongly agree” to “strongly disagree”. The importance of price in the Marketing
food choice decision process is further highlighted by the finding that, perhaps not health-enhancing
surprisingly, 71 per cent of respondents reported that they would be more likely to
purchase health-enhancing dairy products in the future if they were “less expensive” foods
(Table III). Given that only 35 per cent of respondents reported satisfaction with prices,
the findings do indicate a negative perception towards the value associated with
health-enhancing foods. However, it was interesting to note that price was of lesser 713
importance when compared to the provision of “clinically proven health
claims”(81.5 per cent). Similarly, as noted above, price becomes relatively less
important if health becomes a more pressing factor for individual consumers.
In considering variety and choice, 53 per cent of respondents stated that they were
satisfied. However, when asked whether improved “variety and choice” would
encourage health-enhancing dairy food purchase 62 per cent agreed. These findings
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

may suggest a degree of confusion or lack of awareness regarding the range of

health-enhancing dairy produce currently available, but could merely reflect the
current environment, where consumers tend to expect more choice and variety in all
product sectors.
With regard to consumer interest, 69 per cent of respondents claimed to be “very
interested” in learning more about the health benefits offered by health-enhancing
foods, which is an encouraging sign for the health-enhancing food market. It was
observed that consumer interest varied across the age categories (x25 ¼ 18:185;
p , 0:01) with respondents in the 35-44 age category demonstrating the highest level
of interest (79 per cent). This is comparable to a study conducted by the National
Institute of Nutrition (2000), which reported in 2000 that middle-aged consumers
(35-54) were more likely than others to be interested in learning more about
health-enhancing foods.
On review of the high level of consumer interest in learning more about
health-enhancing foods, it was important to ascertain sources considered to be credible
by consumers for providing information about the possible health benefits of
health-enhancing foods. The task of raising awareness and educating consumers has
been identified as vitally important if health-enhancing foods are to fulfil their potential
(Hilliam, 1996). “Health professionals/doctors” were cited by 88 per cent of respondents
as the most credible source for providing information about the possible health effects
of health-enhancing foods (Table IV), and may well be a potential target for effective
promotional messages. Significant gender differences were observed with a higher
frequency of female respondents (90 per cent) citing this source as compared to 79 per
cent of males (z ¼ 22:300; p , 0:05). Significant differences were also observed
between the sexes in terms of credibility attributed to the “government” (z ¼ 24:396;
p , 0:001). The results suggest that men are likely to be more receptive to the

Consumer perceptions Agree (per cent) Neutral (per cent) Disagree (per cent)

Less expensive 71.0 2.5 26.5

Variety and choice 61.8 4.7 33.5 Table III.
Improved taste 37.0 27.3 35.3 Consumers’ perceptions
Clinically proven health claims 81.5 0.8 17.7 to health-enhancing
More information on product label 71.8 2.2 26.0 dairy products
 MIP “government” than women. The media, particularly “television”, were cited by 39 per
23,7 cent of respondents as the most preferred method for communicating the possible
health effects of health-enhancing foods ahead of “in-store promotions” (22 per cent)
and “product labels” (22 per cent) (Table V). This suggests that although the media,
food manufacturers and food retailers were perceived as less credible sources of
information, they nonetheless have an important role to play in informing consumers
714 through television, in-store promotions and product labelling.

Theme 3: purchasing behaviour

Less than half of respondents (44 per cent) claimed to have purchased health-enhancing
dairy products, and no significant relationship existed between gender and purchase
behaviour (Table II). The questionnaire results do, however, show that age has a
significant influence on purchasing (x25 ¼ 11:442; p , 0:05). Consumers in the
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

youngest age categories (16-24 and 25-34) were significantly more likely to purchase
health-enhancing dairy products than consumers in the 65 þ age category (p , 0:05).
Furthermore, middle-aged consumers (45-54) were significantly more likely to
purchase health-enhancing dairy products than the older age categories (55-64 and
65 þ ) (p , 0:05). Thus, consumers in the middle age bracket may represent a potential
target market, given that they are more likely to have the disposable income available
to afford premium prices and were shown to have a higher level of health-enhancing
food awareness than respondents in both the older age categories.
The education level of respondents appeared to have a very highly significant
impact on purchasing (x24 ¼ 55:976; p , 0:001). Of those respondents who had
completed higher-level education, 66 per cent claimed to have purchased
health-enhancing dairy foods. This was in contrast to those who had completed
either primary or secondary level education where 32 and 28 per cent of respondents,
respectively, claimed to have done so.

Sources Number of respondents Percentage of respondents

Table IV. Health professional/GP 230 87.8

Credible sources for Media 99 37.8
providing Food manufacturer 71 27.1
health-enhancing food Food retailer 64 24.4
information Government 55 21.1

Communication method Number of respondents Percentage of respondents

Television 103 39.3

In-store promotions/demonstration 58 22.1
Product labels 57 21.8
Magazine advertisements 23 8.8
Table V. In-store leaflets 19 7.3
Preferred method of Internet 1 0.4
communication Radio 1 0.4
 Socio-economic status would also appear to have an impact on the purchase of Marketing
health-enhancing dairy food (x25 ¼ 50:997; p , 0:001), results indicating that the health-enhancing
highest purchase levels were found in socio-economic groups A and B, with products
appealing most to respondents in group A (71 per cent). Consumers in socio-economic foods
groups C2, D and E were significantly less likely to purchase health-enhancing dairy
products. It was interesting to note that despite respondents in socio-economic group D
indicating the highest level of awareness (69 per cent), they also demonstrated the 715
lowest level of purchase behaviour (28 per cent). This would confirm that awareness
does not necessarily translate into action, and other factors such as price and limited
availability may represent significant barriers to purchase.

Summary of findings
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

On review of the results, the current health-enhancing dairy food consumer in Northern
Ireland is depicted as a well-educated, relatively young male or female earning a
reasonably high income. Similar findings have been reported by Childs (1994) and
International Food Information Council (1999) who both depict the health-enhancing
food consumer as a middle-aged female. There may also be potential within the more
affluent 45-54 year-old consumer group. Similarly, although earlier studies implied that
men were less likely to purchase health-enhancing foods and there is no disputing that
women are the most valuable target audience for the food industry, since they have the
largest responsibility for food purchasing (Childs and Poryzees, 1998), it would now
seem that men are showing a tentative interest in health-enhancing foods. This
phenomenon may present another new opportunity for food manufacturers and
marketers.

Implications for marketing

The findings indicated a general lack of awareness of the health-enhancing food
concept and the level of (largely proven) health benefits of such products. This lack of
awareness is certainly a barrier to the wider adoption of these products and confirms
the first challenge facing marketers, which is one with roots in marketing
communications. Those consumers already aware of health-enhancing foods and
purchasing them considered their quality to be excellent and the health benefits
satisfactory. Combined with this the findings indicate a high level of consumer interest
in learning more about health-enhancing foods and their health benefits. It would seem
therefore that the goals of awareness generation and consumer education are closely
related in this circumstance (Westrate et al., 2002).
Throughout any education process, of course, a challenge for marketers will be to
ensure that timely, relevant, credible, and consumable information is conveyed. This is
especially true where the product or service innovation in question is new and
discontinuous enough in nature that the consumer has little prior knowledge which
will help in understanding the benefits on offer easily.
The Japanese model, where consumer education and awareness schemes are
promoted by government and supported by an extensive regulatory framework, is
worth some consideration within the UK today. Health claims, for example, are one of
the most effective ways to provide consumers with information about the nutritional
benefits of health-enhancing foods (National Consumer Council, 2001). Where specific
health concerns exist the development of condition-specific marketing is appropriate.
 MIP This can occur where the health-enhancing ingredient and associated health benefit are
23,7 promoted to help increase awareness and more accurately position products to
different age groups, with differing health concerns. However, the challenge rests in
ensuring that the promotional tools utilised are strictly regulated, to safeguard the
consumer from ambiguous information (National Consumer Council, 2001) and to be
perceived as credible sources of information by consumers. The balance to be struck
716 here between the:
.
nature and extent of information provided by government to consumers;
.
nature of information provided to consumers by commercial dairy enterprises;
and
.
the methodology for possible government validation or endorsement of the
health claims made by commercial dairy companies is complex and requires a
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

marketing-oriented, indeed entrepreneurial, approach by parties on all sides.

Regarding purchase behaviour, the Northern Irish health-enhancing food consumer is

typically a well-educated, young (16-34) male or female earning a reasonably high
income. It is evident that consumers in the middle age bracket (45-54) are also discrete
targets as they are more likely to have disposable income to afford the premium prices
charged and have an appreciation of the value-added offered. Such characteristics
include a contribution to health and well-being. This middle-aged segment was shown
to have a higher level of awareness than the older age categories.
The findings also indicate that consumers perceive the “quality” and “variety and
choice” of health-enhancing foods to be satisfactory, but do not perceive the products to
offer value for money. That consumers are only willing to pay “up to 20 per cent” more
for health-enhancing foods if they believe their health to be at risk again highlights the
marketing challenge of conveying the importance of health-enhancing food
consumption for preventative purposes.
Accordingly, there is a clear need for marketing communications to convey a
value-for-money message. Where this value is perceived to accrue, and how it differs
by segment are crucial factors, and it is market intelligence such as this that will
determine a more effective strategic direction for dairy companies. The fact that
perceptions of value vary from person to person, combined with the prevailing low
awareness of health-enhancing foods in general and the inherent intangibility of the
outcome of consuming them, suggest that a more macro message regarding the value
proposition may be warranted. For example, it might be centred around a theme that
the price paid in the short-term is much less that then the cost incurred in the long-term
by not purchasing and then becoming ill.
While there is clearly a need for mass-market communications to generate
awareness of enhancing foods in general, there is also a marketing opportunity in more
closely examining motivations for purchase, and to tailor messages on a segment by
segment basis. For example, the fact that 92 per cent of respondents agreed that they
would be willing to pay a 20 per cent premium for such foods if they thought their
health was at risk suggests that it may be possible to cluster consumers according to
whether they have a preventative motivation for purchase (to stop getting ill) or a
condition-specific motivation (their health is already affected or at risk). This
classification around motivations for purchase is suggested as being most effective
when used in conjunction with the demographic and purchase behaviour data already
 available. Such behavioural approaches are increasingly common in other industries. Marketing
In particular, this is true of the service sector where an increased focus on clustering health-enhancing
customers in terms of interface usage preferences is growing in popularity (as in
financial services, for example). foods

Conclusion
The study reported and discussed here sought to address the dearth of consumer 717
research related to consumption of health-enhancing food and illustrate the
importance of an in-depth knowledge of the consumer within the product
development and marketing processes. More specifically, the aim was to gain an
insight into consumer awareness of health-enhancing foods, to identify the
influencers which may help shape consumers’ perceptions of and attitudes towards
these health-enhancing foods, to examine current patterns of purchase behaviour,
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

and to thereby formulate recommendations regarding future segmentation and

positioning strategies.
It is evident that, in any strategic or communications sense, consumer segmentation,
product positioning strategies, and integrated marketing, on the basis of both
demographic and behavioural variables, are central within the future success of the
agri-food sector.
For the Northern Ireland dairy industry specifically, the pursuit of continual
product innovation and the delivery of added value to the consumer will be critical to
secure long-term market development in an increasingly competitive industry.
However, based on the results of this consumer research study, a more proactive and
informed marketing process could be initiated by the Northern Ireland dairy industry.
Implicit in this approach, however, is that the concept of “marketing”, with its
attendant focus on customer orientation, is embraced at an industry level. This is a
particular challenge for the agri-food sector, in which survival will be reliant on an
in-depth knowledge of the consumer in both local and global markets. Failure to
embrace a true market orientation will significantly undermine any future innovations
developed which, even if rooted in an added value approach, will be rendered
ineffective if such value is not clearly and specifically conveyed to the relevant
customer segments.

References
Bogue, J. and Ryan, M. (2000), “Market-oriented new product development: functional foods and
the Irish consumer”, Agribusiness Discussion Paper No. 27, University College Cork, Cork.
Bogue, J., Coleman, T. and Sorenson, D. (2005), “Determinants of consumers’ dietary behaviour
for health-enhancing foods”, British Food Journal, Vol. 107 No. 1, pp. 4-16.
British Nutrition Foundation (2000), “Functional foods: cholesterol lowering spreads”, available
at: www.nutrition.org.uk (accessed January 2003).
Breslin, L. (2001), “European collaboration research on functional foods: functional foods: a recipe
for success”, paper presented at the Annual Seminar for Facilitating Innovation in
Functional Foods, Loughry Food Centre.
Chartered Institute of Marketing (2004), Agri-Food – Fit to Survive? Strategies for Competitive
Success, University of Ulster, Jordanstown, 8-9 September.
Childs, N.M. (1994), “Functional foods and market entry”, World of Ingredients,
October/November, pp. 36-9.
 MIP Childs, N.M. and Poryzees, G.H. (1998), “Foods that help prevent disease: consumer attitudes and
public policy implications”, British Food Journal, Vol. 100 No. 9, pp. 419-26.
23,7
Chisnall, P.M. (1976), Marketing: A Behavioural Analysis, McGraw-Hill, London.
Datamonitor (2002), “Functional food and drink: consumers become amateur physicians”,
available at: www.commentwire.com (accessed January 2004).
Datamonitor (2003), Nutraceuticals in Europe, Datamonitor, New York, NY.
718 De Vaus, D. (2002), Surveys in Social Research, Routledge, London.
Department of Agriculture and Rural Development Vision Steering Group (1999), Vision for the
Future of the Agri-Food Industry, DARD, Belfast.
Department of Agriculture and Rural Development (2004a), Size and Performance of the
Northern Ireland Food and Drinks Processing Sector 2002 – Subsector Statistics with
Provisional Estimates for 2003, DARD, Belfast.
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

Department of Health and Social Services and Registrar General Northern Ireland (1991),
Northern Ireland Census Report, HMSO, Belfast.
Elliott, G. and Glynn, W. (1998), “Segmenting financial services markets for customer
relationships: a portfolio-based approach”, The Service Industries Journal, Vol. 18 No. 3,
pp. 38-55.
Food Strategy Group (2004), Fit for Market, Northern Ireland Office, Belfast.
Giles, D. (2004), “Reaping rewards”, available at: www.themanufacturer.com/ (accessed August
2004).
Gilbert, L. (1997), “The consumer market for functional foods”, Journal of Nutraceuticals,
Functional and Medical Foods, Vol. 1 No. 3, pp. 5-21.
Gilbert, L. (2000), “Marketing functional foods: how to reach your target audience”, AgBioForum,
Vol. 3 No. 1, pp. 20-38.
Gray, J., Armstrong, G.A. and Farley, H. (2003), “Opportunities and constraints in the functional
food market”, Nutrition and Food Science, Vol. 33 No. 5, pp. 213-8.
Heasman, M. and Mellentin, J. (2002), “Functional dairy transforms EU market”, available at:
www.ffnmag.com (accessed January 2004).
Hilliam, M.A. (1996), “Functional foods: the western consumer viewpoint”, Nutrition Reviews,
Vol. 54 No. 11, pp. S189-94.
International Food Information Council (1999), “Background on functional foods”, available at:
www.ific.org (accessed March 2000).
International Food Information Council (2000), “Functional foods: attitudinal research”, available
at: www.ific.org (accessed January 2003).
International Food Information Council (2002), “Functional foods: attitudinal research”, available
at: www.ific.org (accessed August 2002).
Kesic, T. and Piri-Rajh, S. (2003), “Market segmentation on the basis of food-related lifestyles of
Croatian families”, British Food Journal, Vol. 105 No. 3, pp. 162-74.
Leatherhead Food International (2004), Functional Food Markets, Innovation and Prospects – An
International Analysis, Leatherhead food international, Leatherhead.
Mintel (2004), Functional Foods – UK, Mintel, London.
MSI (2001), The 2001 Study of Consumer Awareness of and Interest in PUFA/Omega-3.
Mulitsponsor Surveys, MSI, Princeton, NJ, available at: mulitsponsor@snip.net
National Consumer Council (2001), “Nutrition and functional claims”, available at: www.ncc.org
(accessed July 2004).
 Newsholme, H.C. (2002), Consumer Awareness of and Attitudes Towards Functional Foods, Marketing
Campden and Chorleywood Food Research Association, Gloucestershire.
National Institute of Nutrition (2000), “Functional foods: consumer, health and market
health-enhancing
perspectives”, NIN Rapport, Vol. 15 No. 2, pp. 1-8. foods
Peter, J.P., Olsen, J.C. and Grunert, K.S. (1999), Consumer Behaviour and Marketing Strategy,
McGraw-Hill, Berkshire, pp. 329-48.
Poulsen, J.B. (1999), “Danish consumers’ attitudes towards functional foods – MAPP working 719
paper 62”, available at: www.mapp.asb.dk/wppdf/wp62.pdf (accessed May 2002).
Sloan, A.E. (2002), “The top ten functional food trends: the next generation”, Food Technology,
Vol. 56 No. 4, pp. 32-57.
Sloan, A.E. (2004), “The top ten functional foods trends 2004”, Food Technology, Vol. 58 No. 4,
pp. 28-51.
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

Smith, B. (2004), “Getting motivated”, Marketing Business, January, pp. 26-7.

Speed, R. and Smith, G. (1992), “Retail financial services segmentation”, The Service Industries
Journal, Vol. 12, pp. 368-83.
Westrate, J.A., van Poppel, G. and Verschuren, P.M. (2002), “Functional foods, trends and future”,
British Journal of Nutrition, Vol. 88, pp. S233-5, suppl. 2.
Young, J. (1998), “Consumer issues and functional foods”, in Sadler, M.J. and Saltmarsh, M. (Eds),
Functional Foods: The Consumer, the Products and the Evidence, The Royal Society of
Chemistry, Cambridge, MA, pp. 167-73.

Further reading
Euromonitor (2004), The World Market for Dairy Products, Euromonitor, London, REFREF.
 This article has been cited by:

1. Rodolfo BernabéuEscuela Técnica Superior de Ingenieros Agrónomos, Universidad de Castilla‐

La Mancha, Albacete, Spain Antonio TenderoEscuela Técnica Superior de Ingenieros Agrónomos,
Universidad de Castilla‐La Mancha, Albacete, Spain Miguel OlmedaEscuela Técnica Superior de
Ingenieros Agrónomos, Universidad de Castilla‐La Mancha, Albacete, Spain. 2012. Consumer preferences
versus commercial differentiation: a Spanish case study. British Food Journal 114:11, 1626-1639.
[Abstract] [Full Text] [PDF]
2. Lara Spiteri Cornish. 2012. It's good for me: It has added fibre! An exploration of the role of different
categories of functional foods in consumer diets. Journal of Consumer Behaviour 11:10.1002/cb.v11.4,
292-302. [CrossRef]
3. R. Olivas, R. Bernabéu. 2012. Men’s and women’s attitudes toward organic food consumption. A Spanish
case study. Spanish Journal of Agricultural Research 10, 281. [CrossRef]
Downloaded by University at Buffalo Libraries At 05:34 02 April 2016 (PT)

4. Deborah J Nolan-Clark, Elizabeth P Neale, Yasmine C Probst, Karen E Charlton, Linda C Tapsell. 2011.
Consumers' salient beliefs regarding dairy products in the functional food era: a qualitative study using
concepts from the theory of planned behaviour. BMC Public Health 11, 843. [CrossRef]
5. Rodolfo BernabéuEscuela Técnica Superior de Ingenieros Agrónomos, Universidad de Castilla‐La
Mancha, Albacete, Spain Mónica DíazInstituto de Desarrollo Regional, Universidad de Castilla‐La
Mancha, Albacete, Spain Miguel OlmedaEscuela Técnica Superior de Ingenieros Agrónomos, Universidad
de Castilla‐La Mancha, Albacete, Spain. 2010. Origin vs organic in Manchego cheese: which is more
important?. British Food Journal 112:8, 887-901. [Abstract] [Full Text] [PDF]
6. Hacer Celik Ates Department of Agricultural Economics, Faculty of Agriculture, Yuzuncu Yil University,
Van, Turkey Melike Ceylan Department of Agricultural Economics, Faculty of Agriculture, Yuzuncu Yil
University, Van, Turkey . 2010. Effects of socio-economic factors on the consumption of milk, yoghurt,
and cheese. British Food Journal 112:3, 234-250. [Abstract] [Full Text] [PDF]
7. Rodolfo Bernabéu, Miguel Olmeda, Mónica Díaz, Raquel Olivas. 2009. Oportunidades comerciales para
el aceite de oliva de Castilla-La Mancha. Grasas y Aceites 60:10.3989/gya.2009.v60.i5, 527-535. [CrossRef]
8. Charles McIntyreSchool of Service Management, Bournemouth University, Poole, UK Amit BaidSchool
of Service Management, Bournemouth University, Poole, UK. 2009. Indulgent snack experience attributes
and healthy choice alternatives. British Food Journal 111:5, 486-497. [Abstract] [Full Text] [PDF]
9. Maria Pothoulaki, George Chryssochoidis. 2009. Health claims: Consumers’ matters. Journal of Functional
Foods 1, 222-228. [CrossRef]
10. L.E. HollywoodSchool of Marketing, Entrepreneurship and Strategy, Faculty of Business and
Management, University of Ulster, Newtownabbey, Northern Ireland G.A. ArmstrongSchool of
Marketing, Entrepreneurship and Strategy, Faculty of Business and Management, University of Ulster,
Newtownabbey, Northern Ireland M.G. DurkinSchool of Marketing, Entrepreneurship and Strategy,
Faculty of Business and Management, University of Ulster, Newtownabbey, Northern Ireland. 2007. Using
behavioural and motivational thinking in food segmentation. International Journal of Retail & Distribution
Management 35:9, 691-702. [Abstract] [Full Text] [PDF]