Consumer Buying Behavior

Consumer Behavior The aim of marketing is to meet and satisfy customer

needs and wants Consumer behavior is about how your customers select,

buy and use your products to satisfy their needs and desires

Understanding how and why your customers buy is imperative

Influences on Buying Behavior

Buying behavior is influenced by many factors: Cultural: culture, social class Social: family, life stage, social

role, status Demographic: age, occupation,

income, household size Psychological: motivation,

beliefs, attitudes Individual: knowledge of

proteins and cuts, culinary skills, recipe preference, price sensitivity and “nostalgia” for certain meals

Customers can be… Your customers can be one or more of these when

shopping: Initiators Influencers Deciders Buyers Users

It’s important to understand how consumers actually make their buying decisions and how and by whom they are influenced

The Buying Process Consumers engage in a general buying process at retail:

Problem recognition (What’s for dinner?) Information search (Find a recipe. Ask family what

they want for dinner.) Evaluate alternatives (Is it fast, fresh, affordable? Will

my family enjoy it?) Purchase decision (I’ll buy this!) Post purchase behavior (If satisfied, I’ll buy it again!)

It’s your job to know what influences your customer at each stage of the buying process

Satisfied customers continue to buy!

Factors Influencing Beef Purchases The main reasons consumers are purchasing beef:

They love the taste It is quick and easy (ground beef is very versatile) It’s the right choice for many occasions Beef is a family favorite Protein is increasingly seen as critical for good

nutrition

Source: Consumer Beef Index Report July 2012

Factors Influencing Beef Purchases The main reasons consumers are limiting their beef

purchases are: Health reasons

Limiting cholesterol or calories Other meats seem healthier

Prefer other meal options Too expensive

Source: Consumer Beef Index Report July 2012

The role of price keeps on growing Value plays dominant role in

meat and poultry purchasing decision with emphasis on in-store decision making

Consumer money-saving measures move away from volume-based discounts Spending less by buying less

is the new trend Merchandising Ideas:

Family packs Individual portion packs

Top Consumer Learnings about Meat

Source: The Power of Meat: An in Depth Look at Meat Through the Shoppers’ Eyes, Food Marketing Institute, 2012

How Shoppers Save Money 60% of consumers “frequently” or “always” implemented

these techniques: Studying up on grocery circulars Diverting to less expensive cuts of meat/poultry Looking at price per pound Stocking up on meat when it’s on sale Purchasing more private label Cooking different meals to stretch meat quantity

(pasta, casseroles)

Source: The Power of Meat: An in Depth Look at Meat Through the Shoppers’ Eyes, Food Marketing Institute, 2012

Purchasing shifts to service meat case Service counter plays very specific role, surrounding

specialty purchases and preparation advice Growing share of “brand switchers”

Rather than outright preference for national brands or private brands, more shoppers are open to either

Supermarkets remain stronghold for meat Full-service supermarkets feature high shopper

retention rates and add shoppers from other channels through meat offering

Top Consumer Learnings about Meat

Source: The Power of Meat: An in Depth Look at Meat Through the Shoppers’ Eyes, Food Marketing Institute, 2012

Meal preparation has changed Meat and poultry preparation techniques have changed

quite a bit over the past five years Shopper cooking knowledge varied

Vast opportunity to educate and connect with shoppers from marginal cooks to curious gourmets

Shoppers will appreciate access to recipes Interest in meat department cooking demos is high

79% of shoppers say they need more help understanding the nutritional content of meat

Top Consumer Learnings about Meat

Source: The Power of Meat: An in Depth Look at Meat Through the Shoppers’ Eyes, Food Marketing Institute, 2012

Trends in Meat Prep

Shoppers compared current preparation techniques versus five years ago

Frying is out Especially among shoppers

aged 65 or older This group instead increased

their use of the microwave by 10%

Preparation by oven and slow cookers/crockpots is in

Source: The Power of Meat: An in Depth Look at Meat Through the Shoppers’ Eyes, Food Marketing Institute, 2012

Offer better quality, service and prices Provide shoppers with nutritional information

Ways to Grow Beef Sales

Promote nutrient-rich lean beef and how it compares favorably to chicken

Educate your customers on cuts and cooking methods Provide recipes, cooking

demos and classes Showcase the versatility of

beef Utilize easy fresh cooking

labels

More Ways to Grow Beef Sales Variety - Offer a wide range of types and cuts, There’s

a beef cut for every budget and occasion Education - Help shoppers identify lean beef cuts

Prominently display cuts for growing demographics

Be a resource for shoppers on beef Use of point-of-sale signage/labeling

Customize – Offer packaging that meets shoppers’ needs

Appearance - Maintain cleanliness and better organization

Utilize free beef resources (recipes, photography, beef cut charts) and information (cooking tips, nutrition, safety) from The Beef Checkoff Customize them for your shoppers

Summary Consumer behavior is about how your customers select,

buy and use your products to satisfy their needs and desires

It’s your job to know what influences your customer at each stage of the buying process

Satisfied customers continue to buy Frying is out Grilling and slow cookers are in Educating the customer on cuts and cooking methods

and improving the meat case experience will drive beef sales

Consumer Buying Behavior: QUIZ

1. What’s the first step the retail consumer generally takes in the beef buying process? A. Searching for information, such as asking a neighbor

for a recipe B. Evaluating alternatives—for example, considering

which cut will be easiest to cook C. Deciding which cut to purchase D. Identifying the problem, namely “What’s for dinner?”

2. Which of the following is not one of the main reasons consumers purchase beef? A. It is quick and easy B. It’s an unusual protein that they like to reserve for

special occasions only C. It’s a family favorite D. They love how it tastes

3. True or false: Consumers who limit their beef purchases

to avoid cholesterol or calories may be happy to learn that lean cuts minimize many of their health concerns.

Consumer Buying Behavior: QUIZ

4. Which of the following is a handy merchandising idea for helping consumers overcome their “price hurdles” when deciding to buy beef? A. Offer both individual and family packs to match all

shoppers’ value needs B. Minimize price signage to keep consumers from

focusing on it too much C. Encourage impulse purchases rather than stocking

up on beef when it’s on sale D. Market beef as a luxury so they’ll

feel like they’re treating themselves

Consumer Buying Behavior: QUIZ

5. Which of the following is a tactic for enhancing your meat department’s educational value to consumers? A. Provide preparation advice at the service counter B. Give shoppers access to beef recipes C. Provide meat department cooking demos D. All of the above

Consumer Buying Behavior: QUIZ

6. Which meat preparation method(s) has seen its use increase by 12% in the past five years? A. Frying B. Slow cooker/crockpot cooking C. Oven cooking D. B and C

Consumer Buying Behavior: QUIZ

7. Over the past five years, which preparation method has seen its use drop the most (by 22%)? A. Outdoor grilling B. Frying C. Stir-frying D. Microwaving

8. True or false: Providing shoppers with nutritional

information on how rich lean beef compares favorably to chicken can help increase your beef sales.

Consumer Buying Behavior: QUIZ

9. Which of the following is not a tactic for growing beef sales further? A. Keeping the meat counter clean B. Limiting the types and cuts of beef C. Prominently display cuts popular with growing

demographics D. Diversifying and improve beef packaging for ease

and convenience

Consumer Buying Behavior: QUIZ

Consumer Buying Behavior: QUIZ KEY

1. D. Identifying the problem, namely “What’s for dinner?” (See slide 5)

2. B. It’s an unusual protein that they like to reserve for special occasions only (See slide 6)

3. True (See slide 7)

4. A. Offer both individual and family packs to match all shoppers’ value needs (See slide 8)

5. D. All of the above (See slides 10 and 11)

6. D. Answers B and C (See slide 12)

7. B. Frying (See slide 12)

Consumer Buying Behavior: QUIZ KEY, continued

8. True (See slide 13)

9. B. Limiting the types and cuts of beef (See slide 14)

Resources Shopper Insights

www.BeefRetail.org/ShopperInsights.aspx Customer handouts and resources

http://BeefRetail.com/customerhandoutsandresources.aspx

Meat Department Educational Tools www.BeefRetail.org/Education.aspx Consumer marketing resources

http://BeefRetail.org/consumermarketing.aspx Beef Market Research

www.BeefResearch.org Beef: It’s What’s for Dinner

www.BeefItsWhatsForDinner.com/ Facts About Beef

www.FactsAboutBeef.com