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Health or Taste? Consumer Dilemmas with Functional Foods – Literature Review
17-29Views:305The current study of our two-part paper series is dealing with one of the most important attitude influences on functional food consumer behaviour. Namely, it focuses on “health effects vs. taste” attitude factor of functional food products, which describes the possible conflict between a pleasant taste and the health benefit of the product. This factor is analysed on the basis of two aspects of factors influencing food choice: internal (food) effects (e.g. sensory aspects) and external (non-food) effects (e.g. psychological, social, cultural factors). The most important internal (or intrinsic) characteristic is the taste of the food product. A remarkable finding of this study is that good taste is a crucial, self-relevant characteristic of any food product and bad taste would not be accepted in functional food products either. Consumers are hardly willing to compromise on the taste of functional food products for potential health benefits. Another aspect in the case of functional food products is that intrinsic product characteristics are given by the combination of the health-enhancing ingredient with the type of carrier product used. Studies have shown that functional ingredients that weaken the taste of such food products reduce their acceptance. There is a consensus in the literature that a natural match between added ingredient and carrier product increases the overall acceptance of functional food products. External (or extrinsic) characteristics, e.g. psychological and lifestyle factors, and socio-cultural differences provide further aspects of the potential conflict of “health effects vs. taste”. From a psychological point of view, one may assume that an individual who chooses a functional food is committed to the products’ benefits and may be willing to accept some unpleasant taste in order to achieve the desired health benefit. It has to be noted, however, that although the importance of a given health benefit may lead to the acceptance of an unpleasant taste, this acceptance is not necessarily supported by each of the health benefits. Lifestyle variables also influence the acceptance of functional foods, e.g. wellness-oriented consumers appear to be more willing to trade the taste for health benefits. However, the segment of consumers who are ready to sacrifice the taste for potential health benefits cannot be identified by using classical demographic characteristics as segmentation variables. The “health effects vs. taste” conflict is influenced by cultural differences, too. E.g. the priority of taste can be observed in whole Europe; in contrast, the preference for nutritional benefits is rather typical in the Asian countries. The final conclusion of our study is similar to that of the literature. Good taste and healthiness are not necessarily to be traded-off against each other. Hoping for consumer willingness to compromise on the taste for health is highly speculative and risky, so the functional food industry must develop good taste solutions. In addition to sensory perception of the food, the expectations have also been found to have an impact on the acceptance of functional food products. Consumers’ expectations are highly influenced by marketing communications. In case of functional food products marketing communication is strongly based on health-related information and this information influences not only the perception of healthiness but the liking of foods, too. Hence, additional values of functional food products (health+convenience+pleasure) have to be communicated as hedonic values, emphasizing especially the role of pleasure.
JEL codes: D11, M31
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Production, Trade and Consumption of Functional Foods in Hungary
3-6Views:240Functional food is a specific food which fulfills the original aim of being a nutrient and an energy-carrier, but promotes better health and well-being. During the last decades new and healthier foods were designed to reduce the risk of chronic illnesses and conditions such as cardiovascular diseases, osteoporosis, some cancers and obesity. However, functional foods are traditional foods expected to be consumed in the diet, but modified in such a way that promotes better health. In Hungary about 16% of the consumers are interested in buying functional foods for health improvements. Dairy products are most often the target products for reducing the risk of osteoporosis in the elderly and increasing gut function. In recent years the market of plant products, especially of fruits and vegetables was rapidly growing due to their high antioxidant capacity. Enhancement metabolism of polyphenols, and flavonoids formed in fruits and vegetables during traditional breeding and processing is not clarified yet and little is known about the effects of the extensive or intensive breeding and of the most economic harvesting time. The functional food science deals with the scientific substantiation of the influences of specific food components (biological active materials) as well as production and formulation of foods and food ingredients. Some of those components are obtained from natural sources, some others are artificial products of the organic synthesis in the industry. The term „functional foods” has never achieved an official definition, but most experts would agree on its benificially target functions in the body beyond adequate nutritional effects. Moderate consumption of vitamines and antioxidants in the diet carried in functional foods are belived to decrease the risk of chronic diseases. According to some market surveys the market of these designed foods is very large and rapidly expanding because of a growing interest among body-builders and other sportsmen with higher physical activities.
JEL code: D12
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Successful Small Business – Effective Marketing? Prospects on the Food Market for a Small Company
91-104Views:84Successful small companies concentrate their marketing strategy on satisfying the specific requirements of market niches which are unprofitable for big concerns. It is a complicated task on the market of common consumer goods – like the food market – because it is difficult to find the right buyer segment among the large number of costumers. It is more difficult to choose the adequate distribution and communication channels. The Darnó-Hús (Darnó Meat) – situated in the north-west of Hungary near the Austrian and the Slovakian borders – also faces this problem. Firstly, they do not choose between traditional local food and functional foods, so they obviously aim at two niches. Secondly, small well-branded bakery shops and big supermarkets can be found among the company’s sales points. Furthermore, these sales points are geographically not concentrated. This small company cannot afford to spend much on widespread media communication, so its brand name is not well-known enough to get good product placement locations in the stores. As the SWOT-analysis, which was carried out with the collaboration of the management, points out, there is no unity in the choice between the offensive and defensive strategies. The internal factors of the company, such as high-quality products and excellent professional team, which is flexible enough to fulfil the specific requirements, would assign the company a stronger market position, however, the company’s management does not have adequate marketing tools to achieve a higher penetration into the consumer market. After twenty years in operation, they have to make a decision about the next stage of development. Actually before they start to improve their production capacity, the management has to define their market more precisely. To reach the targeted market niche effectively, more effective branding, clear – emotional and rational – positioning in communication, and adequate selling placement are needed.
JEL code: M31
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Impact of the Financial and Economic Crisis of 2009 on the Hungarian Food Retail Sector in the Light of Consumer Confidence – Improving Trends, Increasing Consumer Confidence
47-59Views:59As a result of the international financial and economic crisis of 2009, Hungarian customers started to make informed purchasing decisions. Merchants recognizing this phenomenon formed their strategies accordingly, while trying to meet the requirements of the constantly changing government regulations. This strategy ensured primarily that they could maintain their position in trading, new consumer expansion was, however, limited. Limited because consumers have realized the situation, i.e. traders have been competing for their income and complex shop visiting has become widely common, implying the weekly tour of different shops in retail chains with an eye on the current promotions. Based on the data of the last eight years, the year most affected by the economic crisis was 2009 – which proved to be the deepest point. It has to be highlighted however that though signs of recovery are clearly visible, the volume of food retail returned to its growth path only in 2014, while sale increase in value has been continuous since 2008. This suggests that the impulses of the crisis starting in the fourth quarter of 2008 formed the domestic food trade for full six years. Also, this period was required to regenerate consumer trust. The more favourable prospects of the finances of both individuals and the economy encourage an increase of willingness to buy. The six-year period impacted by the crisis intensified concentration among trade stakeholders. The forecasts proved realistic, supermarkets have become more popular sites for shopping, although hypermarkets as strong competitors have been able to keep pace due to tailored promotions in the 6 trading days permitted by law until April 2016. Due to the massive social and political pressure the Government repealed the Act prohibiting work on Sundays in most retail shops with effect from 16 April 2016.
JEL code: M30 General