Distribution management |
Consumer driven supply chains: the case of Dutch organic tomato |
Author: F. Anastasiadis, Y.K. van Dam |
MKT 625 |
Supply chain management refers to the efficient integration of various processes involved in turning resources into consumer products. Effectiveness of the supply chain is more easily understood in terms of Value Chain Management, and the integration of processes that turn resources into consumer value.
The current paper reports two studies into the value chain of organic produce in Netherlands. The paper combines two different research approaches to study which consumer motives and values are the main drivers of ...view middle of the document...
One of the key foundations of being customer driven is to have a robust and dynamic supply chain, where risks are understood and addressed. However by focusing on their key requirements it creates higher customer service levels which can be managed through common structured metrics and a unified demand plan through cross-functional consensus can result in significantly higher perfect-order fill rates
Customer Driven Supply Chain focuses on supplying exactly what the customer wants with minimum waste. The aim is to improve the ability to react to disruptions or changes within the product life cycle such as reducing cycle time, reducing inventory and increasing productivity.
Concerning the methodological approach, a variety of different methods and studies have been employed to analyze purchase motivations.
Focus group discussion and Laddering interviews have been conducted to analyze the purchase motivation and Laddering interviews have been conducted on a group of 72 consumers in the city of Utrecht, which locates in the center of Netherlands. An exploratory study by quantitative means provides the guidance to the researchers to identify motives or a value behind purchase decision of organic food was employed. A survey by quantitative means aims to validate the first study’s findings and strengthen the parameters related to consumer’s attitude.
However a pilot study ascertains that the attributes and consequences in the survey are the most important, while covering a broad range of Dutch consumer’s perceptions. As a statistical method confirmatory factor analysis is used in this case. This indicated the internal values (self respect and enjoyment of life) that were the leading incentives behind the purchase of organic products. In this study Means End Chain (MEC) theory has been widely used to analyze purchase motivation.
The conceptual framework of this study is based on the definition of SC. In order to deliver this superior consumer value, it is necessary to identify which values underlie consumer preference for organic products, and which are the valued benefits that motivate consumers’ decisions to purchase these products. The framework allows for a two-step approach of this issue. Firstly, an exploratory study, by qualitative means, identifying motives/values behind purchase decision of organic food was employed. Secondly, a survey, by quantitative means, aims to validate the first study’s findings and strengthen the parameters related to consumers’ attitude.
Study 1-exploratory study
The current study applies a laddering approach to analyze the MECs of Dutch consumers in order to reveal the meanings attached by consumers to organic food consumption. A computer based questionnaire was used as an instrument to administer the laddering task of the respondents. The data collection was focused on a specific organic product; tomato was selected due to the fact that it is a...