Introduction
Diet is strongly patterned socio-economically and spatially, but it remains unclear whether geographical variations in retail provision contribute significantly to these associations. It has been suggested that ‘Food Deserts’ exist in areas where there is poor availability of the foods that make up a ‘healthy’ diet at an affordable price.
Objectives
To determine the relationship between dietary intake and socio-economic factors at individual, household and neighbourhood levels and retail access to a ‘healthy’ and
affordable diet, and thus determine whether ‘food deserts’ exist and, if so, to describe their characteristics.
Methods
A cross-sectional, multilevel study was undertaken, involving simultaneous surveys of diet, social factors, health and food shopping behaviour in a representative sample of households and individuals in Newcastle upon Tyne and all retail outlets selling food, as well as data on access to retail outlets by private and public transport and socio-economic data on local areas. Surveys were piloted prior to main data collection. 5044 individuals (out of 6162 – 83% response rate) in 3153 households (out of 17801 contacted – 18% response rate) completed the main surveys. 560 retail outlets selling food (out of 658 approached – 85% response rate) were surveyed to collect information on the type, size and opening hours of the store and the range, cost and quality of 33 commonly eaten food items. Data on foods within this overall ‘basket’ were weighted in accordance with typical levels of consumption in England. Data from household individual and retail surveys were linked and analysed statistically and spatially using simple and multivariable techniques in order to explore the relationship between food retailing, socio-economic factors and dietary patterns.
Geographically referenced data on the road network and public transport in Newcastle, as well as socio-economic data from the 1991 Census were integrated with these data sets to enable spatial analyses.
Results
The main survey produced a sample of households that was slightly biased towards higher socio-economic status, though geographically representative of all residential areas of Newcastle; the sample of individuals was slightly biased in favour of older age groups and women.
Food shopping
77% of households did their main food shopping at a multiple supermarket, 14% in a discount supermarket, 3% in a department store and 2% in other local shops. Households in the top socio-economic quintile were twice as likely to use a multiple supermarket compared with those in the bottom quintile. 33% said the main reason for using their usual food shop was because it was ‘near to home’. Disadvantaged individuals tended to cite cost and convenience whilst more advantaged individuals tended to cite range of foods available and quality as their main reason for using their main food shop. In regression analyses, shopping at a multiple supermarket was independently associated with having a university education, having greater dietary knowledge, living in a more affluent area, being in employment and travelling to their main food store by car. Shopping at a discount supermarket was independently associated with living in a more deprived area, having a lower income, having poorer dietary knowledge, travelling to shops on foot or bicycle, and living closer than 1km to their main food shop.
64% of householders used a private car to get home from their main food shop, 16% travelled by foot, 14% used public transport and 8% used a taxi. Those in the lowest socioeconomic quintile were 10 times as likely to travel by taxi or foot compared to those in the highest quintile. People travelled all over the city, and beyond, to shop and did not appear to be limited by the distance of shops from their homes (except those travelling on foot). People shopping at a significant distance from their home did so usually because they linked food shopping with other journeys (‘trip-chaining’). Individuals in the lowest socio-economic quintile had a median travel distance to their main food shop of 1.3 km and those in the highest a distance of 2.4 km. Those using multiple supermarkets travelled about twice as far as individuals using discount supermarkets. These differences reflect socio-economic patterns in shop use and ownership and use of a car versus walking to shops.
Most people (65%) reported no problems with food shopping. The main problem identified with food shopping was carrying food home, identified by 18% of householders. Those in the lowest socio-economic quintile were 10 times more likely to have problems carrying shopping home than those in the top quintile.
Average amount spent on food was about £26.00 per adult equivalent per week. Those in the lowest socio-economic quintile spent a median of £22.00 per adult equivalent per week on food, whilst those in the highest quintile spent on average £31.50. Overall, an estimated 17.8% of household income per adult equivalent was spent on food by our sample of households. More affluent households spent a significantly lower proportion of their income on food, even though they spent more per adult equivalent on food.
Dietary behaviour
In univariable analyses, consumption of fresh fruit and vegetables was patterned by food expenditure and neighbourhood deprivation, and by age, sex and self-rated health.
Individuals in the lowest Townsend Deprivation Score quintile and those who spent less on food ate more fat as a percentage of total energy intake and drank less alcohol than individuals in the top quintiles. Healthy eating, measured by all dietary indices, was most strongly and consistently predicted by higher dietary knowledge. Regression models, at best, explained <10% of variance in dietary indices. The strongest independent predictors of dietary patterns at household and individual levels were demographic, socio-economic and behavioural factors, with dietary knowledge the most important overall.
Respondents, on average, ate out at a restaurant, pub, café, chip shop or other take-away 2-3 times per week. Eating out at a chip shop was associated with lower socio-economic position, lower dietary knowledge and worse dietary indicators, whilst eating out at a restaurant, pub, café or other take-away was associated with greater affluence, higher levels of knowledge and better dietary indicators.
Individuals in the lowest socio-economic quintile were less aware of current healthy eating messages than those in the top quintile. Poor knowledge was consistently associated with less healthy eating, measured by a variety of indicators, as well as with other measures of a less healthy lifestyle (e.g. low levels of physical activity and smoking).
Obesity and physical activity
BMI was found to be strongly socio-economically patterned, with less affluent respondents reporting significantly higher BMI overall. Being above ideal weight was also more common among men, older age groups and white Europeans. Being underweight was particularly associated with the youngest age group, being single, being a student and having inadequate cooking facilities. Physical activity was also strongly patterned socioeconomically and demographically. Although less affluent groups were generally more active at work, higher socio-economic groups engaged in more leisure time activity. Higher levels of leisure time activity were strongly associated with eating a healthier diet and with higher levels of dietary knowledge.
Shops in Newcastle
The most common category of shop (216, 39%) was convenience stores, but a small number of discount and multiple supermarkets (38, 7%) act as the main food shop for more than 90% of the population. Shops were distributed fairly evenly across the city, although some wards were better provided for than others. There is a concentration of food stores in the city centre (West City ward), which has the highest total number of stores and grocery stores per thousand households, and checkouts per thousand population. The socioeconomic characteristics of the area in which a shop was located correlated positively with the Townsend Deprivation Score of the household that shopped there, indicating that people from poorer areas tend to shop in stores in poorer areas, and vice versa. In general, shops were located in less socio-economically deprived areas (TDS of shops 2.6 (SD 3.5) vs. an overall TDS of Newcastle EDs of 5.09). General stores, multiples and delicatessens tended to be in more affluent areas (TDS -0.54, 1.03 and 0.97, respectively). Local discount stores, ethnic food stores, fishmongers, freezer centres and greengrocers tend to be in more deprived areas (TDS 4.0, 4.17, 3.27, 3.19 and 3.11, respectively).
Availability of food in shops
Few shops (40, 7%) sold the full range of foods surveyed (33 items). Those that did were primarily multiple supermarkets, discount supermarkets and departments stores. The full range of ‘unhealthy’ items was more available (in 50% of shops) than the full range of ‘healthy’ items (available in 25% of shops). The availability of the full range of foods, the ‘healthy’ and the ‘unhealthy’ baskets was not socio-economically patterned by area.
Convenience stores were more likely to sell the full range of ‘unhealthy’ items than ‘healthy’ items. Carbonated drinks, crisps, Kit Kats, whole milk and white bread were the only ‘less healthy’ items available in more than 50% of food shops (available in 84%, 79%, 61%, 61% and 53% of stores respectively). The only widely available ‘healthy’ foods were fruit juice (available in 52% of food shops) and semi-skimmed milk (available in 61% of food shops). Availability was associated with size of store, as measured by number of checkouts (the larger the store the greater likelihood of selling more of the 33 items). Larger stores were also more likely to sell a full range of fresh fruit and vegetables and the 10 less healthy items.
Cost of food
Our basket of 33 items cost £19.06 on average (IQR: £17.03-20.40), though the cheapest was £14.44 and the most expensive £23.57. TDS was significantly associated with cost of fruit and vegetables, which were more expensive in more affluent areas. However, in regression analysis, only one variable independently predicted cost: number of checkouts – prices were generally cheaper in the larger stores. For ‘baskets’ of items, discount and multiple supermarkets were cheapest overall (for 33 items). Discount and multiple supermarkets were significantly cheaper for the pre-packed 11 ‘healthier’ items and 10 ‘less healthy’ items. The basket of 10 fresh fruit and vegetables was cheapest in the market stalls and greengrocers. Overall, convenience stores and department stores were the most expensive shops, although only 3 out of 216 convenience stores sold all 33 items. There was also significant price variation within chains (‘price-flexing’) - for example, the full range of items cost a median of £20.50 at Tesco but ranged from £15 to £21.26 between Tesco stores.
Quality of fresh produce
Overall, 91% of individual fresh fruit and vegetables were of good quality. Quality was positively associated with size of store, as measured by number of checkouts, and number of fresh fruit and vegetables sold, but not number of ‘less healthy’ items or total number of items sold. Good quality fresh fruit and vegetables were consistently available only at multiple supermarkets and department stores, but quality of produce did not vary by ward.
Geographical proximity to shops
A shop selling any five food items was within 250m of the majority of streets in the city. Only a few rural streets were more than 1000m from a shop selling any five food items. Some parts of the city were further than 1000m from a shop selling 10 ‘less healthy’ food items. Some parts of the city were further than 1000m from a shop selling all 10 fresh fruit and vegetables. The proportion of areas served by shops selling all 10 fruit and vegetables of good quality, or of good quality and less than half of the median basket price, was relatively small, although the best coverage was in the less affluent areas along the riverside. Despite this, approximately 80% of households shop at stores selling 100% of the 33 food items we surveyed. More affluent households generally live further from the nearest shop selling each of our sample food baskets, including both ‘healthy’ and ‘less healthy’ baskets. People who shop at local and convenience stores, and to a lesser extent discount
supermarkets and department stores, appear to be disadvantaged with respect to availability of food items. However, perhaps surprisingly, there was no difference in availability for car users and people shopping by other modes of transport.
Integrated analyses
In regression analyses, retail factors were found to play little independent role in predicting healthiness of diets and none in the models for fruit and vegetables, NSP or Fat. Higher fat intake was associated with: lower dietary knowledge, risky or hazardous alcohol consumption, being male, higher cost of 33 food items (with maximum cost substitution) in households’ usual main food store, lower cost of weekly household food shopping, lower physical activity and shorter distance to nearest food store.
Conclusions
Overall retail provision for Newcastle residents was found to be good, with (as a measure of volume) around 8 checkouts per 1000 population. However, despite the large number of shops selling food, only 22 stores sold all 33 basic food items included in our survey. Of these, 14 were multiple supermarkets, four were discount supermarkets, one was a department store and three were convenience stores. Nevertheless, in 24 out of 26 wards, there was at least one shop selling 27 or more of the 33 food items on our list, and most of the ‘healthier’ and ‘less healthy’ pre-packed items and all of the fresh fruit and vegetables.
We have demonstrated marked differences in diets both socio-economically and geographically and, although these are not always in the anticipated direction, overall less
healthy diets were associated with social disadvantage and having a poorer dietary knowledge. However, using regression analysis, we were unable to demonstrate an
independent relationship between most indicators of healthier eating and factors relating to the local retail environment. The main exception to this was a paradoxical one: eating a diet higher in fat was associated with higher cost of 33 food items (with maximum cost substitution) in households’ usual main food store, but lower cost of weekly household food shopping. This may be because those consuming higher fat diets were more likely to shop at smaller local stores with higher prices and poorer availability.
Our analysis suggests that the strongest predictors of ‘less healthy’ eating are, in the case of fruit and vegetables, NSP and overall dietary index, predominantly demographic, socioeconomic and behavioural – factors such as age, sex, ethnicity, the presence of children within the household and levels of physical activity and alcohol consumption. Similar factors predicted fat intake, but higher cost of 33 food items (with maximum cost substitution) in households’ usual main food store, lower cost of weekly household food shopping and shorter distance to nearest food store were also independent predictors of fat intake.
Overall, it seems unlikely that the explanation for the wide variations in dietary intake seen across the study population lie within the retail domain. The vast majority of households do their food shopping at a large, multiple supermarket and travel there by car – an average of 1.9 km (about 1 mile) from their home. This is also the case for the majority of those who used public transport or taxis to get to and from their main food stores (average distance travelled 1.5-2.4 km). Together, these households
account for 84.5% of the sample. It can, therefore, be concluded that most people travel outside their immediate locality to perform their food shopping. This leaves those who do their shopping on foot – 620 individuals in 490 households in our sample or about 12% of the total households and individuals. It is only for this group that local retail provision would seem to be a possible, although not necessarily a necessary, determinant of diet. If we look at the dietary indices of this group of individuals who do their shopping on foot, we can see that they did have relatively low fruit and vegetable and NSP consumption and relatively low overall dietary index.
So, ‘do food deserts exist?’ The answer must be a qualified: ‘only for some’. And that ‘some’ is a minority of people who, for a variety of reasons, do not or cannot shop outside their immediate locality, and for whom, in addition, this locality suffers from poor retail provision of foods that make up a ‘healthy’ diet. Our findings suggest that the key predictors of healthy eating are primarily dietary knowledge, relative affluence and a ‘healthy’ lifestyle, so we must question whether those people whose diet is ‘less healthy’ than desirable would eat more healthily if supplied with improved retail provision. Our study does not provide evidence to support retail provision as a primary cause of consuming an ‘unhealthy’ diet, although poor retail provision may be an important contributing factor in some, well defined, circumstances (e.g. when individuals are dependent on local retail provision and that provision is less than ideal). Approaches to tackling the problem of food poverty need to address poor knowledge and skills related to the acquisition and preparation of a ‘healthy’ diet, as well as the question of retail access. Further research is needed to explore in greater detail the relationship between diet and retailing, in particular among those without access to a car.
http://www.foodbase.org.uk/results.php?f_report_id=224
Sunday, January 10, 2010
Lidl Black Book published in English by UNI Commerce and ver.di
The Black Book on Lidl has been published in English as a joint project by UNI Commerce and ver.di. It tells the stories of mainly German Lidl workers and lays bare the poor labour relations of the hard discounter. Present all over Europe, and fast growing, the discounter of headband fame is a frontrunner for walmartization of the continent's working life.
Probably the most publicized Lidl scandal was when media reported that women workers in the Czech Republic had to wear special headbands during their monthly periods, to be able to visit the toilet during working hours. Without this means of identification, they were confined to their cash registers or other work stations just like everybody else, until the next scheduled break.
Retailer of headband fame
The Czech Lidl scandal, which management denies to ever have taken place, brought unusually strong condemnation from the public, and wry smiles from competitors. Top managers from other German retail giants, who happened to participate at a meeting in UNI Headquarters in Nyon when the news broke, said that they could well believe that this has happened - but in their companies, they added, workers have the right to use the restrooms when they need to.
Although the Lidl Black Book does not tell the headband story, and whether it was really true or not has never been really verified, it does tell about other kinds of appalling management behaviour. Particularly at home in Germany, the company seems to have put in place a system of management by fear. Every worker is under suspicion, and everyone should be afraid.
No place for unions
Like in Wal-Mart, trade unions have no place in Lidl's universe in Germany. Union busting is always the rule of the day, and the amoeba-like structure that the Schwarz empire has created makes it possible to stop all attempts to put in place normal worker representation structures. But still, ver.di is making progress in organising and building union strength at Lidl.
Outside the home country, the company seems to have resigned to the reality of having to adapt to local legislation and rules. Particularly in the highly unionised Nordic countries, Lidl has therefore joined the employers' associations and is applying collective agreements. But also here, the company's crocodile teeth have started to show. It becomes ever more obvious that the hard discounter has difficulties in adapting to the culture and habits of its host countries.
Low consumer confidence
Low prices is one of the common features with Wal-Mart, but otherwise the German multinational seems to find it hard to gain customer confidence. Consumer surveys regularly show Lidl in the back of the pack, trailing far behind its multi-format and supermarket competitors. And an important thing - these are normally much better employers, engaged in constructive social dialogue with commerce unions.
It is probably no coincidence that so much is common between Lidl and Wal-Mart. When it comes to the commercial idea, Lidl is a copy of world's leading hard discounter Aldi, also at home in Germany. But to its human resource behaviour, and its behaviour towards producers and suppliers, Wal-Mart is the role model. In Europe, Lidl has in fact become a frontrunner in the walmartization of working life.
What about sweatshops, Lidl?
What one does not often hear are questions about the social responsibility in Lidl's supply chain. Whereas other leading retailers more or less successfully try to apply social responsibility codes, Lidl has not been heard speaking about it. It is good that NGOs and media keep a watchful eye on those retailers who have committed themselves to demanding decent employment and working conditions at production sites in China and other countries. It would be equally good if also Lidl, Aldi and other discounters were paid similar attention. One might uncover a lot of sweatshops, to explain the low prices.
Back to the Black Book. Its name relates to Dieter Schwarz - Schwarz meaning black - who built the company and still pulls the strings in the background. Would you like to have a copy, you can order it from ver.di in Berlin, at the contact address below:
Order "Black Book"
"The Black Book on the Schwarz Retail Company"
by Andreas Hamann and Gudrun Giese
Vereinte Dienstleistungsgewerkschaft ver.di, UNI Commerce
Berlin, Nyon Dezember 2005
Price: € 8.00 plus Shipping
To place an order, please contact:
ver.di Bundesverwaltung, Paula Thiede Ufer 10, 10179 Berlin
Telefon +49 / 30 / 69 56 - 27 36, Fax +49 / 30 / 69 56 - 38 72
lidl-aktion@verdi.de
http://lidl.verdi.de
http://www.uniglobalunion.org/unisite/Sectors/Commerce/Multinationals/Lidl_Black_Book_in_English.htm
Probably the most publicized Lidl scandal was when media reported that women workers in the Czech Republic had to wear special headbands during their monthly periods, to be able to visit the toilet during working hours. Without this means of identification, they were confined to their cash registers or other work stations just like everybody else, until the next scheduled break.
Retailer of headband fame
The Czech Lidl scandal, which management denies to ever have taken place, brought unusually strong condemnation from the public, and wry smiles from competitors. Top managers from other German retail giants, who happened to participate at a meeting in UNI Headquarters in Nyon when the news broke, said that they could well believe that this has happened - but in their companies, they added, workers have the right to use the restrooms when they need to.
Although the Lidl Black Book does not tell the headband story, and whether it was really true or not has never been really verified, it does tell about other kinds of appalling management behaviour. Particularly at home in Germany, the company seems to have put in place a system of management by fear. Every worker is under suspicion, and everyone should be afraid.
No place for unions
Like in Wal-Mart, trade unions have no place in Lidl's universe in Germany. Union busting is always the rule of the day, and the amoeba-like structure that the Schwarz empire has created makes it possible to stop all attempts to put in place normal worker representation structures. But still, ver.di is making progress in organising and building union strength at Lidl.
Outside the home country, the company seems to have resigned to the reality of having to adapt to local legislation and rules. Particularly in the highly unionised Nordic countries, Lidl has therefore joined the employers' associations and is applying collective agreements. But also here, the company's crocodile teeth have started to show. It becomes ever more obvious that the hard discounter has difficulties in adapting to the culture and habits of its host countries.
Low consumer confidence
Low prices is one of the common features with Wal-Mart, but otherwise the German multinational seems to find it hard to gain customer confidence. Consumer surveys regularly show Lidl in the back of the pack, trailing far behind its multi-format and supermarket competitors. And an important thing - these are normally much better employers, engaged in constructive social dialogue with commerce unions.
It is probably no coincidence that so much is common between Lidl and Wal-Mart. When it comes to the commercial idea, Lidl is a copy of world's leading hard discounter Aldi, also at home in Germany. But to its human resource behaviour, and its behaviour towards producers and suppliers, Wal-Mart is the role model. In Europe, Lidl has in fact become a frontrunner in the walmartization of working life.
What about sweatshops, Lidl?
What one does not often hear are questions about the social responsibility in Lidl's supply chain. Whereas other leading retailers more or less successfully try to apply social responsibility codes, Lidl has not been heard speaking about it. It is good that NGOs and media keep a watchful eye on those retailers who have committed themselves to demanding decent employment and working conditions at production sites in China and other countries. It would be equally good if also Lidl, Aldi and other discounters were paid similar attention. One might uncover a lot of sweatshops, to explain the low prices.
Back to the Black Book. Its name relates to Dieter Schwarz - Schwarz meaning black - who built the company and still pulls the strings in the background. Would you like to have a copy, you can order it from ver.di in Berlin, at the contact address below:
Order "Black Book"
"The Black Book on the Schwarz Retail Company"
by Andreas Hamann and Gudrun Giese
Vereinte Dienstleistungsgewerkschaft ver.di, UNI Commerce
Berlin, Nyon Dezember 2005
Price: € 8.00 plus Shipping
To place an order, please contact:
ver.di Bundesverwaltung, Paula Thiede Ufer 10, 10179 Berlin
Telefon +49 / 30 / 69 56 - 27 36, Fax +49 / 30 / 69 56 - 38 72
lidl-aktion@verdi.de
http://lidl.verdi.de
http://www.uniglobalunion.org/unisite/Sectors/Commerce/Multinationals/Lidl_Black_Book_in_English.htm
Lidl Britain
As we have recently opened an office in London, we hope to bring our readers some more frequent insight into the UK shopper. Currently though in the UK it is difficult to find good news stories in these recessionary times. Yet food and drink seem to be holding up well – particularly at the value end of the spectrum. The leading players Tesco and Sainsbury's have recently reported modest increases in sales and we have seen a big shift towards the discounters Aldi and Lidl who predominantly stock their own brands. Sainsbury's alone reported a 40% rise in its Basics range over the holiday period and Tesco is trying to reinvent itself as Britain’s biggest discounter with the introduction of over 350 own brands in the last quarter alone.
However, at the other end of the spectrum luxury food retailer Marks and Spencer, which stocks exclusively own label products, recently announced the closure of 25 of its convenience Simply Food stores.
Of course this means that UK manufacturers will need to work harder than ever to maintain or grow share. The retail landscape has changed. Growth is coming from online channels where consumers are increasingly combining online tools such as www.mysupermarket.com, which allows you to compare the price of your shop in the UK’s leading retailers, with portfolio shopping (such as buying packaged goods from a discounter, but fresh produce from a traditional supermarket). P&G have obviously recognised the need to better understand this new landscape and recently announced a 1% stake in online retailer Ocado which will give them a unique insight into online shopping behaviour.
So what does this all mean for the UK shopper as budgets start to tighten? Price obviously takes on greater importance, but what of quality? What of brands? Are we just going to become complete bargain hunters? How will the notion of luxury in grocery shift? How do manufacturer brands change in the new landscape? And have your personal spending habits in the supermarket changed of late? Take our quick survey and let us know.
- Contributed by Ian Thomas
http://www.shopperculture.com/shopper_culture/2009/01/lidl-britain.html
However, at the other end of the spectrum luxury food retailer Marks and Spencer, which stocks exclusively own label products, recently announced the closure of 25 of its convenience Simply Food stores.
Of course this means that UK manufacturers will need to work harder than ever to maintain or grow share. The retail landscape has changed. Growth is coming from online channels where consumers are increasingly combining online tools such as www.mysupermarket.com, which allows you to compare the price of your shop in the UK’s leading retailers, with portfolio shopping (such as buying packaged goods from a discounter, but fresh produce from a traditional supermarket). P&G have obviously recognised the need to better understand this new landscape and recently announced a 1% stake in online retailer Ocado which will give them a unique insight into online shopping behaviour.
So what does this all mean for the UK shopper as budgets start to tighten? Price obviously takes on greater importance, but what of quality? What of brands? Are we just going to become complete bargain hunters? How will the notion of luxury in grocery shift? How do manufacturer brands change in the new landscape? And have your personal spending habits in the supermarket changed of late? Take our quick survey and let us know.
- Contributed by Ian Thomas
http://www.shopperculture.com/shopper_culture/2009/01/lidl-britain.html
the LIDL supermarket spy story
The German magazine "Stern" published a report on the supermarket LIDL in the last week which alledged the corporation had been spying on its employees. The story is now being taken up across Europe, where indeed workers shop in & work for the LIDL chain. The allegations are being supported daily by more and more evidence as can be seen by perusing the original articles at "Stern" complete with photos, a vid, extracts from internal memos, et cetera, so long & so forth.
Included in the internal memos were suggestions that menstruating women employees wear a coloured headband so managers could allow them extra "toilet time", time which would be denied male or non-menstruating employees. It gets worse.., "tattoos"........."wants higher wages"........"junkie friends".........
CCTV guards against theft, pilfering and un-scheduled menstruation at LIDL.
"........
According to a report by the German weekly magazine Stern, Lidl has been spying for months on employees in several of its outlets. The company has allegedly been hiring detectives to investigate workers, both on the job, on cigarette and coffee breaks -- and even on the toilet. The explosive report triggered a government probe into the allegations on Wednesday. A spokesperson for the Interior Ministry of the southern German state of Baden-Württemberg described the claims as "unparalleled," telling SPIEGEL ONLINE: "The supervisory authority has launched an investigation into possible violations of privacy protection rules." The ministry has jurisdiction because Lidl's corporate headquarters are located in the city of Neckarsulm in that state. The spokesperson said investigations could take several weeks and wanted to make no predictions about their possible outcome or consequences. The bulk of the reports cited by Stern come from Lidl outlets in the state of Lower Saxony, plus individual ones from the states of Rhineland-Palatinate, Berlin and Schleswig-Holstein. The observation practices were routine, the report alleges: A detective would install between five and 10 miniature cameras in the store, telling the manager it was an anti-theft measure, and then use the technology to observe employees' behaviour. Stern claims to have obtained hundreds of pages of transcripts that document the movements and conversations of employees, for example: "Wednesday, 4:45 p.m.: Although Ms. N. has not accomplished much in the food and reduced wares department, she takes her break right on time. She sits together with Ms. L.; they talk about their wages, bonuses and paid overtime. Ms. N. hopes that her pay has been transferred already because she desperately needs money for this evening (reason = ?)". The transcripts also get into employees' private lives ("Her circle of friends consists mainly of junkies") and appearances ("Ms. M. has tattoos on both lower arms"). In their tone and detail, the observation logs invite comparison to those of the Stasi, the East German secret police......
English translation pages on Spiegel :-
http://www.spiegel.de/international/business/0,1518,543....html
German pages from "Stern", basically the whole thing is there. http://www.stern.de/wirtschaft/unternehmen/unternehmen/...?vs=1
Vid - coverup - denial from LIDL boss - reams of extracts from internal memos & comparison to the Stassi. So far LIDL denying the stories are only admitting secret cameras in locations in Germany & the Czech republic. But "Stern" really has got its teeth into this & today the story is all over Europe in every language. Surveillance of workers as well as honesty test & the utterly appalling invasion of intimacy which monitoring the menstrual cycle of workers means is an affront to our collective rights & an insult to our class which is just too cheap to bear .
I'd suggest an immediate boycott or campaign of actions against LIDL stores.
pick-up in other press :
English language original -
http://www.guardian.co.uk/world/2008/mar/27/germany.sup...rkets
http://www.timesonline.co.uk/tol/news/world/europe/arti...0.ece
http://news.bbc.co.uk/2/hi/business/7316169.stm
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/20...7.xml
English language translation -
http://www.spiegel.de/international/business/0,1518,543....html
Spanish language
http://www.elpais.com/articulo/sociedad/supermercados/L...4/Tes
http://www.lavanguardia.es/lv24h/20080326/53448511628.html
LIDL ireland :-
http://www.lidl.ie/ie/home.nsf/pages/ls.index
Stern :-
http://www.stern.de/wirtschaft/unternehmen/unternehmen/...?vs=1
Included in the internal memos were suggestions that menstruating women employees wear a coloured headband so managers could allow them extra "toilet time", time which would be denied male or non-menstruating employees. It gets worse.., "tattoos"........."wants higher wages"........"junkie friends".........
CCTV guards against theft, pilfering and un-scheduled menstruation at LIDL.
"........
According to a report by the German weekly magazine Stern, Lidl has been spying for months on employees in several of its outlets. The company has allegedly been hiring detectives to investigate workers, both on the job, on cigarette and coffee breaks -- and even on the toilet. The explosive report triggered a government probe into the allegations on Wednesday. A spokesperson for the Interior Ministry of the southern German state of Baden-Württemberg described the claims as "unparalleled," telling SPIEGEL ONLINE: "The supervisory authority has launched an investigation into possible violations of privacy protection rules." The ministry has jurisdiction because Lidl's corporate headquarters are located in the city of Neckarsulm in that state. The spokesperson said investigations could take several weeks and wanted to make no predictions about their possible outcome or consequences. The bulk of the reports cited by Stern come from Lidl outlets in the state of Lower Saxony, plus individual ones from the states of Rhineland-Palatinate, Berlin and Schleswig-Holstein. The observation practices were routine, the report alleges: A detective would install between five and 10 miniature cameras in the store, telling the manager it was an anti-theft measure, and then use the technology to observe employees' behaviour. Stern claims to have obtained hundreds of pages of transcripts that document the movements and conversations of employees, for example: "Wednesday, 4:45 p.m.: Although Ms. N. has not accomplished much in the food and reduced wares department, she takes her break right on time. She sits together with Ms. L.; they talk about their wages, bonuses and paid overtime. Ms. N. hopes that her pay has been transferred already because she desperately needs money for this evening (reason = ?)". The transcripts also get into employees' private lives ("Her circle of friends consists mainly of junkies") and appearances ("Ms. M. has tattoos on both lower arms"). In their tone and detail, the observation logs invite comparison to those of the Stasi, the East German secret police......
English translation pages on Spiegel :-
http://www.spiegel.de/international/business/0,1518,543....html
German pages from "Stern", basically the whole thing is there. http://www.stern.de/wirtschaft/unternehmen/unternehmen/...?vs=1
Vid - coverup - denial from LIDL boss - reams of extracts from internal memos & comparison to the Stassi. So far LIDL denying the stories are only admitting secret cameras in locations in Germany & the Czech republic. But "Stern" really has got its teeth into this & today the story is all over Europe in every language. Surveillance of workers as well as honesty test & the utterly appalling invasion of intimacy which monitoring the menstrual cycle of workers means is an affront to our collective rights & an insult to our class which is just too cheap to bear .
I'd suggest an immediate boycott or campaign of actions against LIDL stores.
pick-up in other press :
English language original -
http://www.guardian.co.uk/world/2008/mar/27/germany.sup...rkets
http://www.timesonline.co.uk/tol/news/world/europe/arti...0.ece
http://news.bbc.co.uk/2/hi/business/7316169.stm
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/20...7.xml
English language translation -
http://www.spiegel.de/international/business/0,1518,543....html
Spanish language
http://www.elpais.com/articulo/sociedad/supermercados/L...4/Tes
http://www.lavanguardia.es/lv24h/20080326/53448511628.html
LIDL ireland :-
http://www.lidl.ie/ie/home.nsf/pages/ls.index
Stern :-
http://www.stern.de/wirtschaft/unternehmen/unternehmen/...?vs=1
Supermarket sales tactics
Introduction
In brief
Be aware of the tricks and traps supermarkets use to get you to part with your cash.
Impulse buying accounts for a significant proportion of supermarket purchases. Planning your shopping beforehand and making a list will help you resist. Our tips can save you money.
Don’t let discounted petrol or other loyalty schemes control where you buy – consider how much you're really saving.
Major supermarkets are just about everywhere, and according to the market research company ACNielson, the primary appeal is "one-stop shopping" — everything you want under one roof. Apparently we love them, but how well do we understand the modern supermarket and its sophisticated sales strategies?
Setting the traps
Consumer research shows that we’re vulnerable to subtle — and even not-so-subtle — marketing techniques. Impulse buying accounts for a significant proportion of supermarket purchases.
Here are some of the tactics used by supermarkets to encourage you to spend more than you might have planned to:
In your face: More expensive items tend to be right in the line of sight of the target consumer. Cheaper or supermarket own-brands tend to be located on the higher or lower shelves.
Sensory delights: It’s very common to position attractive fresh produce or a bakery at the entry. Does the deli section with its medley of colours and tasty offerings then follow? The aim is that the sights and smells grab your interest and put you into shopping mood as you’re led through the labyrinth to the less interesting packaged dry goods and the strategically placed impulse-buy items.
Where are the eggs? Probably nowhere near the milk or bread. Separation of popular staples is a common element of supermarket design. Why? So you’ll spend more time in the store negotiating your way past all those flashy and tempting impulse-buy items.
Sacrificial lambs: Supermarkets, particularly those with strong local competition, offer "loss leaders" — heavily discounted and advertised goods that are designed to get you into the store. The idea is that you’ll pick up a few more items while you’re there. And don’t be surprised if you find them near high-cost glamour products.
This goes with that: Positioning natural combinations like chips with dips or biscuits near tea and coffee may seem logical, but is it any wonder that it increases the sales of both?
The trouble with trolleys is that it’s very easy to fill them up. If this is you, consider carrying one or even two baskets instead — you’ll find the weight of all those impulse buys good for discipline.
Super specials? Appearances can be deceptive. Are those cosmetics in the bargain bin at the end of the aisle really discounted?
Checkout tempters: Magazines and confectionery live here. How many times have you succumbed to the temptation or been nagged into buying by your kids?
What the research says
Research also suggests that grocery shoppers are heavily influenced by instore displays, particularly at the end of the aisles and at the checkout. Keep this in mind when navigating through the store. Don’t assume they’re automatically a special offer — compare their price with the same items that aren’t being promoted.
At the Food and Brand Lab, University of Illinois, researchers found that promotions using multi-unit pricing such as three for $3, purchase suggestions such as "stock up for Easter", or with purchase limits such as "limit three per customer" increased the amount consumers purchased. “All three types of promotion increase purchase amounts by 30% to 105% over what consumers would normally plan on buying,” it said.
Other research showed that more than 50% of shoppers couldn’t resist a buy-one-get-one-free promotion. But did you even need one in the first place, never mind two?
A study published by the American Psychological Association showed that even the choice of instore music influenced shoppers’ wine selection. Over a two-week period in an English supermarket either French or German music was played from a display of wines from these countries. When the music was French, sales of French wine increased; when it was German, sales of German wine increased. When questioned, shoppers seemed unaware of the effect the music had had on their wine purchasing. more to read here.http://www.choice.com.au/Reviews-and-Tests/Food-and-Health/Food-and-drink/Supermarkets/Supermarket-sales-tactics/Page/Introduction.aspx
In brief
Be aware of the tricks and traps supermarkets use to get you to part with your cash.
Impulse buying accounts for a significant proportion of supermarket purchases. Planning your shopping beforehand and making a list will help you resist. Our tips can save you money.
Don’t let discounted petrol or other loyalty schemes control where you buy – consider how much you're really saving.
Major supermarkets are just about everywhere, and according to the market research company ACNielson, the primary appeal is "one-stop shopping" — everything you want under one roof. Apparently we love them, but how well do we understand the modern supermarket and its sophisticated sales strategies?
Setting the traps
Consumer research shows that we’re vulnerable to subtle — and even not-so-subtle — marketing techniques. Impulse buying accounts for a significant proportion of supermarket purchases.
Here are some of the tactics used by supermarkets to encourage you to spend more than you might have planned to:
In your face: More expensive items tend to be right in the line of sight of the target consumer. Cheaper or supermarket own-brands tend to be located on the higher or lower shelves.
Sensory delights: It’s very common to position attractive fresh produce or a bakery at the entry. Does the deli section with its medley of colours and tasty offerings then follow? The aim is that the sights and smells grab your interest and put you into shopping mood as you’re led through the labyrinth to the less interesting packaged dry goods and the strategically placed impulse-buy items.
Where are the eggs? Probably nowhere near the milk or bread. Separation of popular staples is a common element of supermarket design. Why? So you’ll spend more time in the store negotiating your way past all those flashy and tempting impulse-buy items.
Sacrificial lambs: Supermarkets, particularly those with strong local competition, offer "loss leaders" — heavily discounted and advertised goods that are designed to get you into the store. The idea is that you’ll pick up a few more items while you’re there. And don’t be surprised if you find them near high-cost glamour products.
This goes with that: Positioning natural combinations like chips with dips or biscuits near tea and coffee may seem logical, but is it any wonder that it increases the sales of both?
The trouble with trolleys is that it’s very easy to fill them up. If this is you, consider carrying one or even two baskets instead — you’ll find the weight of all those impulse buys good for discipline.
Super specials? Appearances can be deceptive. Are those cosmetics in the bargain bin at the end of the aisle really discounted?
Checkout tempters: Magazines and confectionery live here. How many times have you succumbed to the temptation or been nagged into buying by your kids?
What the research says
Research also suggests that grocery shoppers are heavily influenced by instore displays, particularly at the end of the aisles and at the checkout. Keep this in mind when navigating through the store. Don’t assume they’re automatically a special offer — compare their price with the same items that aren’t being promoted.
At the Food and Brand Lab, University of Illinois, researchers found that promotions using multi-unit pricing such as three for $3, purchase suggestions such as "stock up for Easter", or with purchase limits such as "limit three per customer" increased the amount consumers purchased. “All three types of promotion increase purchase amounts by 30% to 105% over what consumers would normally plan on buying,” it said.
Other research showed that more than 50% of shoppers couldn’t resist a buy-one-get-one-free promotion. But did you even need one in the first place, never mind two?
A study published by the American Psychological Association showed that even the choice of instore music influenced shoppers’ wine selection. Over a two-week period in an English supermarket either French or German music was played from a display of wines from these countries. When the music was French, sales of French wine increased; when it was German, sales of German wine increased. When questioned, shoppers seemed unaware of the effect the music had had on their wine purchasing. more to read here.http://www.choice.com.au/Reviews-and-Tests/Food-and-Health/Food-and-drink/Supermarkets/Supermarket-sales-tactics/Page/Introduction.aspx
Why Brand Communities Don’t Exist
There is a lot of research on Brand Communities, defined by Muniz and O’Guinn as “a specialized, non-geographically bound community, based on a structured set of social relationships among admirers of a brand.” (Muniz and O’Guinn 2001).
But do brand communities really exist?
Brand communities imply that the brand is at the center of the community. So in the Harley community it would mean that the Harley bike is at the center, in the Jeep community the Jeep Wrangler or the Cherokee, in the Mini Cooper community the Mini, and in the Fiskateer community, the Fiskars tools.
Is this really what is happening? I don’t think so.
For communities to work, the members need to be at the center of the community, and so the motivations have to be different from the pure hedonistic pleasure of owning a brand/product. The Fiskateers may be the people who come up with most of the new Fiskars products ideas. And they may be their staunchest defenders when the brand comes under attack. But the reason they form a tight-knit community, one that some members say changed their lives, is because they share a passion for scrap-booking. The reason that Harley owners get together is because they share a riding lifestyle passion. Jeep owners, probably because they have a shared aspiration for being adventurous by “off-roading” their cars. Mini owners? Not sure, but according to ethnographic research even people who no longer own a Mini Cooper stay with the community, so it cannot be that the car is at the center of the community.
So why Jeep and not Ford, why Fiskars, why Mini, why Harley ? Because in all those cases the companies have provided environments in which those member communities can operate and thrive. Jeep marketers are providing training camps, and are organizing the barbecues around which members can share their passion. Fiskars provided an online environment for their members to thrive and connected those with offline events as well. But in all cases they are enablers of a shared passion that exists within a tribe or community.
The result of that is what I described in a recent blog post – people use the Jeep, the mini, the Fiskars scissors, or the Harley as symbols to associate with others who share that passion. In some cases they take that a step further and create rituals around those brands, which make the brands more sticky. But at the end of the day, these are not brand communities, they are passionate rider communities, scrapbooker community, adventure seeker communities.
What do you think? Do you buy that, or do you think I am missing something?
http://www.emergencemarketing.com/2009/10/21/why-brand-communities-dont-exist/
But do brand communities really exist?
Brand communities imply that the brand is at the center of the community. So in the Harley community it would mean that the Harley bike is at the center, in the Jeep community the Jeep Wrangler or the Cherokee, in the Mini Cooper community the Mini, and in the Fiskateer community, the Fiskars tools.
Is this really what is happening? I don’t think so.
For communities to work, the members need to be at the center of the community, and so the motivations have to be different from the pure hedonistic pleasure of owning a brand/product. The Fiskateers may be the people who come up with most of the new Fiskars products ideas. And they may be their staunchest defenders when the brand comes under attack. But the reason they form a tight-knit community, one that some members say changed their lives, is because they share a passion for scrap-booking. The reason that Harley owners get together is because they share a riding lifestyle passion. Jeep owners, probably because they have a shared aspiration for being adventurous by “off-roading” their cars. Mini owners? Not sure, but according to ethnographic research even people who no longer own a Mini Cooper stay with the community, so it cannot be that the car is at the center of the community.
So why Jeep and not Ford, why Fiskars, why Mini, why Harley ? Because in all those cases the companies have provided environments in which those member communities can operate and thrive. Jeep marketers are providing training camps, and are organizing the barbecues around which members can share their passion. Fiskars provided an online environment for their members to thrive and connected those with offline events as well. But in all cases they are enablers of a shared passion that exists within a tribe or community.
The result of that is what I described in a recent blog post – people use the Jeep, the mini, the Fiskars scissors, or the Harley as symbols to associate with others who share that passion. In some cases they take that a step further and create rituals around those brands, which make the brands more sticky. But at the end of the day, these are not brand communities, they are passionate rider communities, scrapbooker community, adventure seeker communities.
What do you think? Do you buy that, or do you think I am missing something?
http://www.emergencemarketing.com/2009/10/21/why-brand-communities-dont-exist/
Itten's Color Contrasts
Johannes Itten was one of the first people to define and identify strategies for successful color combinations. Through his research he devised seven methodologies for coordinating colors utilizing the hue's contrasting properties. These contrasts add other variations with respect to the intensity of the respective hues; i.e. contrasts may be obtained due to light, moderate, or dark value. more here with images http://www.worqx.com/color/itten.htm
Introduction
In this report i shall cover the Black Box Model Theory in consumer behaviour, applying this theory to my own findings in order to better understand the consumer decision making process, and whether or not external influences do have an effect on this process.
In groups we had to conduct an investigation into consumer behaviour using Supermarkets as the basis for our research. The members of my group were Adriana, Hazel, Emma, Amina, Cat, Lily, Chloe and myself. Within our group we divided into pairs so that we could cover a wide variety of Supermarkets, using a flock and follow technique. This involved following consumers around the stores we visited and noting what items they bought.
After we had gathered our data our next step was to research key theories in consumer behaviour and apply them to our findings. I looked at the Black Box Model theory which has been applied to various subject matters in the past due to its broad scope for explaining the unknown. Although this is not a new theory, it explains best the consumer decision making process and what influences can have an effect on the consumer before a response can be generated.
I was partnered with Chloe and we first chose to conduct a census at the Tesco’s store in Chepstow, tallying the people who were shopping there whilst assessing which demographic age group they belonged in. To get some comparative information, I also got tallying data from another Tesco store from another geographical region.
Our second test was a brand recognition and taste test in which we asked consumers which brand of ketchup they bought and why. Customers also sampled a selection of ketchup portions, not knowing which brand it was they were trying, in order to determine which one tasted best. The results for both of these tests are featured in my report findings.
Results
Tesco
Chepstow, Wales vs Newbury, England
I visited both of these Tesco stores in order to tally the number of people who bought food there (see Fig.1). I sat outside the entrance and divided the people walking in and out into approximate age ranges. I remained out of sight so that I would not come into any contact with the customers.
Chepstow
The Tesco store in Chepstow is situated on the outskirts of the town centre. Its only competition is a small Somerfields in the town centre and is surrounded by many housing estates, car parks, retail stores and a school. It is easily accessible by car, train and foot.
During the day, the majority of people visiting this Tesco store were people over the age of 40. The majority of customers arrived by car while some walked. There was a private taxi service that ran, dropping off and picking up elderly customers who can no longer drive or walk.
The 20-40 age group were mostly women with young children or young families. Many of these women arrived together in a group often sharing trolleys and helping each other to look after their young children. At 3 o’clock, groups of 10-20 year olds went into the shop on their way home from school.
Late at night, the number of people going into the shop had decreased dramatically with only a handful of over 40’s shopping there. The 20-40 year olds arrived alone or in pairs, shopping late after work, buying only a couple of bags worth of shopping. The 10-20 years olds arrived in groups by car and were often seen racing up and down the car park, and beeping their car horns trying to wake up lorry drivers who had parked for the night in the car park.
They only bought bottles of soft drinks and snacks to eat then and there.
Newbury
The Tesco store in Newbury is situated about a half mile from the town centre and is considerably larger than the store in Chepstow. Its nearest competition is a Sainsbury’s store in the town centre and is surrounded by a retail park and an industrial estate. It is only accessible by car as there are no stations or housing estates near by.
Again, during the day, the majority of customers visiting the store were over the age of 40. In Newbury, the customers coming to Tesco were arriving by car as there are no houses close by to the store. Some had walked to the shop but they were walking over from the retail park which is across the road from Tesco. There were fewer 10-20 year olds coming to this store during the day which is due to the fact that there are no schools close by and very few school children needed to pass through Tesco’s to get home.
At night, the 10-20 year olds arrived in groups by car but did not stay long in the car park or race up and down. Many stayed to buy soft drinks and snacks before leaving. This could be due to the fact that there were more customers shopping late at night at this store and that this Tesco shop employs security to patrol the car park.
NO. OF PEOPLE
AGE GROUP Newbury Chepstow
11:13am-12:13pm
10 - 20 12 16
20 - 40 205 131
40+ 286 274
2:17pm-3:17pm
10 - 20 23 34
20 - 40 201 183
40+ 324 282
10:34pm-11:34pm
10 - 20 27 23
20 - 40 45 26
40+ 7 8 Fig. 1
Brand Recognition and Taste Test
My group and I conducted taste tests using a products that most customers would buy in order to understand whether brand, price or taste influenced the consumers decision in buying that particular product. Ketchup was the product that Chloe and I chose to use in the experiment as it is a product that most consumers have at home.
Before conducting the taste test we first asked customers what brand of Ketchup they usually purchased at Tesco’s (see Fig. 2).
Almost all of the people we asked said that they bought Heinz Tomato ketchup as it was a well known brand that they had been given as children and they had grown up using this brand. No one bought the Daddies’s brand ketchup as they did not know that that particular brand made ketchup. Many associated Daddie’s with brown sauce.
The remaining people answered that they bought Tesco’s own brand as they felt it was just as good as Heinz but that the cheaper price influenced their decision to buy Tesco’s rather than Heinz.
Fig. 2
For the taste test, customers sampled each of the three brands unaware of what brand it was that they were testing. They were then asked which of the three samples they preferred the taste of (see Fig. 3).
Customers unanimously agreed that the Daddie’s ketchup was the worst tasting as it was described as being salty and disgusting. The surprising results were that of the Heinz and Tesco’s own brands. Very few people liked the Heinz ketchup with some even saying it was their least favourite out of all the samples. The winner in the taste test was Tesco’s own brand of ketchup with the majority agreeing that it tasted best.
Fig. 3
Many of the customers that said the Tesco brand tasted best thought that it was the Heinz ketchup they were eating. This is because of the Heinz brands association with being the best tasting ketchup.
Discussion
The Black Box Model Theory
Fig. 4
The black box model is a theory that has been universally used to understand many unknown factors. In relation to consumer behaviour, the black box represents the buyers decision making process (see Fig. 4).
The theory behind the black box model tell us that the consumers decision making process and characteristics are influenced by stimuli or external factors generating a response from the buyer (WWW, 2009). The stimuli are often represented by the four p’s of marketing (price, place, promotion and product) and environmental factors such as demographics, politics and geography. The buyers response is considered as a result of a conscious decision process in which it is assumed the consumer has recognised an opportunity that would benefit them.
Belch and Belch (2008) define consumer behaviour as:
the process and activities people engage in when searching for, selecting, purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires (Belch and Belch 2008, p.105).
Can the decision making process be influenced and controlled by external factors?
My tallying results suggest that environmental external influences do have an impact on consumers, with geographical stimuli being a prominent factor in the choice of supermarket people shop at. For example, the Tesco’s at Newbury is considerably further from suburban areas than the Chepstow store yet the number of customers shopping there is greater. Because of the Newbury stores location outside of a limited space area, Tesco’s were able to build a bigger shop with more room for parking, offering to the consumer a wider range of products and services.
The idea of multiple products and services is a key marketing strategy by Tesco’s as the consumer is able to shop for their needs and wants in one place rather than having to visit multiple shops.
Another stimuli that I recognised as having an impact on consumer behaviour was the need for consumers to shop with other people within their own demographic, with many shoppers arriving in pairs or small groups. For example, many mothers that had young children with them would shop together often helping one another with trolleys and looking after their babies.
Although this data has helped us to understand where and how people shop, it has so far not yielded any positive results as to whether or not the consumer can be influenced by stimuli to purchase a product or service.
The brand recognition and taste test showed that brand power has had a significant influence on decision making. Many consumers will buy a well known brand rather than a lesser known one as they make a connection between brand name and excellence. Chloe and I conducted a brand recognition test with Heinz Tomato Ketchup, a brand that has been established since 1876, and asked consumers whether or not they bought the brand name or a lesser known brand such as Tesco’s own brand of ketchup. It was a unanimous decision that consumers bought the Heinz Ketchup as it was a brand they had known since being a small child, they were familiar with that brand and they trusted that brand to be the best product.
Mark Earls (2009) mexican wave theory suggests that as individuals we are heavily influenced by others around us and that as a race we tend to move in herds, mimicking one another’s actions and responses. This applies to our need for familiar brands as we tend to adopt the rituals and thought processes our parents have used when making our decisions, just as our test subjects have done when choosing to buy Heinz rather than Tesco’s ketchup.
The surprising result came from the taste test when our test subjects preferred the taste of the Tesco’s brand rather than the Heinz. We did not reveal to the consumer what brand they were tasting until after they had tasted it removing the influence that brand power had on them. After this result Chloe and I asked our consumers if this taste result had any affect on their decision making process. Many were still influenced by the Heinz brand but others were beginning to think that they would be persuaded to change ketchup products because of the taste.
Conclusions
The main conclusions I can draw from my results is that the decision making process is a complex tool that we as consumers use when making a purchasing decision. Despite its complexity, it is a fast process that goes unnoticed by the consumer as it is considered part of the human psyche passed down from parent to child. Many marketers and theorists have tried to explain why we make the decisions we do but in an environment that is constantly changing and adapting it is, I feel, impossible to fully understand consumer behaviour. I feel that consumer behaviour can never be fully predictable just as the future is never fully predictable. As Alan Fletcher (2001, p.6) says, ‘ Are we pawns of destiny or wildly improbable flukes?’.
It is, however, possible to influence behaviour as the Black Box Model demonstrates, through various stimuli set up to persuade the consumer where, when and what to buy. Many consumers do recognise these opportunities and will make a purchasing decision as a direct result of these stimuli. Some consumers though, make decisions that are not aware of the external stimuli but based on their own wants.
Tuesday, January 5, 2010
Behaving as a Consumer
What we have undertaken in our search to unveil the truth about consumers behavior. We looked at two supermarkets, Asda and Sainsburys.
We research store layout, the consumer decision process, observing consumers paths and the effects of branding. The average consumer is affected by a range of different external influences, a major source of this is due to conformity. Asch theory of conformity suggests that, conformity is caused by consumers feeling the need to adhere to the norms which are socially accepted in society. Conformity therefor must affect the decision making process, described by Hutt and Speh in 1981, which has five stages, from need of product to the brand that is chosen. Supermarkets then employ a range of different strategies, to influence a consumers choice of product. These strategies are; action ally, suggestive selling and positioning.
To look at these different strategies in action, we spent a lot of time in supermarkets, undertaking a range of observation techniques, such as mapping, tally charts, and attempting to influence consumers. We drew the stores layout to determine how customers move through the stores and whether they adhere to the action ally path created by the supermarket. The supermarket introduced action alley because it plays on our unconscious flocking behaviour, discussed in Herd by Earls, which will encourage large numbers to flock into specific areas of the store. These are also known as Hotspots. Hotspots within Asda can be found around the fresh meat and deli counters, and the fruit and vegetable sections as well as promotional ends. In Sainsburys the hotspot was again around the fresh meat section and on the promotional end. We found the path to be very effective in leading consumers both through-out the store, but also into the furthest sections of each department, for example the hotspots in both Asda and Sainsbury we in the meat section in the furthest section on the left area in the chilled department.
We also conducted an experiment with Tomato Ketchup to see if the branded product was chosen over the cheaper alternatives. The first time we did the experiment we did so without telling the consumer the price, and the second time we told them the price. In order to see whether this had any bearing on their decision. Our results showed that after knowing the price, a small number of people chose an alternative brand. Showing that although price can affect the decision the majority of consumers displayed brand loyalty.
We then conducted a taste test with, Heinz, Branston and Smartprice, The consumers each knew, which brand they were tasting and we first asked, which they preferred. This resulted with Heinz being the popular taste, but after being told the price they were again asked, which they preferred, Three people who had previously chosen Heinz chose Smartprice. This was a massive price jump, showing how important price can be to a consumers decision.
After these experiments we then tried to influence the consumers decision ourself, by using a negative or a positive comment about a brand, whilst they were trying to make their decision. These experiments did not work at all. The consumer appeared not to be affected by outside judgements. This may be due to cognitive dissonance. Cognitive dissonance by Festinger, which is a theory suggesting that if two elements are contrary, for example opinions it will create dissonance. Consumers will actively avoid situations and information, which might increase it. This theory could suggest why people will only buy certain products, and ignore messages from others.
We have found that Flocking behaviour is present within supermarkets. They use this to manipulate consumers to walk throughout the store. Conformity also plays a major role in encouraging consumers to purchase products. More specifically we found that women are more loyal to their brands than men, therefore take a shorter time when deciding what to purchase. Where as men our undecided and take over a min to make a decision, making them more easily influenced by packaging and advertising.
References
EVANS, M. FOXALL, G. JIMAL, A. 2009. Consumer Behaviour. Second Edition. Wiley Publication.
McCRAKEN, G. 2006. Flock and Flow. First Edition. United States of America: Indiana University Press.
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