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Consumer Bahaviour Essay

3862 words - 16 pages


1. Executive summary 3
2. Problem definition: 4
3. Organization of the Study: 7
4. Approach to problem (literature review): 8
5. Research design (Methodology): 11
6. Ethical issues: 13
7. Data Analysis and Results: 14
8. Conclusion and recommendations: 25
9. Appendix A: Survey 27
10. Appendix B: Statistical tests results 30

1. Executive summary
A web survey was used in the UK to collect information for Tropicana fruit Juice Company to increase their sales. Descriptive research analysis was used to investigate which labeling attributes consumers consider significant when choosing 100% fruit juices, and ...view middle of the document...

Since there is no law that requires how much real fruit has to be included in a food that uses this claim, the sugary product could contain small percentage of real fruit or no fruit whatsoever. Manufacturers mislead shoppers using “Five a day” labels to promote high sugar and salt products as healthy food (The telegraph 2012).

II. Problem definition:
Managerial problem:
Our primary research revealed that Tropicana’s sales are dropping and one on the main reasons is the recession, high unemployment levels and low consumer confidence which made consumers switch to cheaper fruit juices brands such as own brand supermarkets 100% fruit juice.Therefore, a proper evaluation of consumer’s attitudes towards 100% fruit juices may provide valuable information for the managers of Tropicana. Based on the results of this study they may either choose to amplify marketing Tropicana as 100% juice (if this label is indeed important for customers) or change the company’s strategy completely and enter the blooming low-end market segment, probably with some new brand.
Market research problem:
The majority of fruit juices products in the market have a high sugar levels and low percentage of real fruits with misleading labels such as 100% fruit juice or 1 of your 5 A Day. This study will help to determine what the perception of these labels by the customers is and whether the labels indeed may mislead the customers. In the case when the strong positive attitude towards these labels would be discovered the action from the market regulators is required.
III. Specific objectives:
A. To investigate which labeling features consumers consider important when choosing 100% fruit juice products.
B. To identify market segments based on consumers preferences, behavior, attitudes, and interests and analyzed differences between the segments.
Additionally, other objectives considered in carrying out this research were:
C. To estimate if consumers pay more for specific labels, specially the 100% fruit juice label.
D. To develop a better understanding of consumer preferences for 100% fruit juice labels.

3.Organization of the Study:
This report viewed some of the labels used on fruit juices such as 100% fruit juice, pure fruit juice, and one of your 5 A Day label. Fruit juices labels were chosen because it has been shown that products that use these labels claim it prevents the risk of several diseases and promote better health when used daily. Some attributes such as; health and nutritional claims, 100% fruit juice label, price were used to measure their relative importance to customers when buying fruit juices. Data was collected from approximately 110 respondents through a web survey. Descriptive research was used for the sample to analyze the consumer preferences. Followed by is the approach to the problem. Next is the methodology, which is our research design, this includes the hypothetical and empirical models, data collection process and...

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