creating value by understanding consumers (and chain partners!)

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Creating Value by Understanding Consumers (and Chain Partners!) Domenico Dentoni, Dr. Assistant Professor of Agribusiness Strategy and Management Wageningen University & Research Centre 6th MSC Netherlands Partners Meeting Rotterdam, Monday 9 september 2013

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Page 1: Creating Value by Understanding Consumers (and Chain Partners!)

Creating Value by UnderstandingConsumers (and Chain Partners!)

Domenico Dentoni, Dr.

Assistant Professor of Agribusiness Strategy and Management

Wageningen University & Research Centre

6th MSC Netherlands Partners Meeting

Rotterdam, Monday 9 september 2013

Page 2: Creating Value by Understanding Consumers (and Chain Partners!)

How do We Create More Value for Sustainable Seafood?

Page 3: Creating Value by Understanding Consumers (and Chain Partners!)

Let’s start from consumers…

Page 4: Creating Value by Understanding Consumers (and Chain Partners!)

Let’s start from consumers…

+

Page 7: Creating Value by Understanding Consumers (and Chain Partners!)

More value: Consumers choose to eat seafood as a cultural…

…traditional, hystorical, authentic (and fun) experience

Page 8: Creating Value by Understanding Consumers (and Chain Partners!)

The point is: consumers value theirwhole experience with seafood

Page 9: Creating Value by Understanding Consumers (and Chain Partners!)

Fish quality is crucial to make the experience. MSC label is one of many valuable dimensions of

quality

Page 10: Creating Value by Understanding Consumers (and Chain Partners!)

Challenge #1…:

How can the MSC label help chain partners to create

a more valuable, happier experience with seafoodto consumers?

Page 11: Creating Value by Understanding Consumers (and Chain Partners!)

…and Challenge #2:

How can chain partners and MSC experiment and innovate

to improve consumers’ seafood experiencewithout wasting

…time?…money?…product?

Page 12: Creating Value by Understanding Consumers (and Chain Partners!)

Case of Tasmanian Southern Rock lobsters to US market

(There are many «mixed-feelings» stories out in the world!)

(Dentoni et al. 2012)

Page 13: Creating Value by Understanding Consumers (and Chain Partners!)

What do Consumers Believe?

Challenge #1:

How can MSC label helpchain partners to create

a more valuable, happy experience with seafoodto consumers?

Page 14: Creating Value by Understanding Consumers (and Chain Partners!)

Let’s Dig into Consumer Psychology

Fishbein 1967, Fishbein & Ajzen 1975

Consumers’ Beliefson Product Attributes

Consumers’ Beliefson Product Attributes

Consumers’ Attitudes towards

Product

Consumers’ Intentions and

Behavior to BuyProduct

Page 15: Creating Value by Understanding Consumers (and Chain Partners!)

Example: US Consumers’ Beliefs of

“Australian-Grown” Beef

Implication: Australians had to improvetheir image of beef with «great flavor»

(Dentoni et al. 2013)

Page 16: Creating Value by Understanding Consumers (and Chain Partners!)

Example: US Consumers’ Beliefs of

“Animal Welfare” Beef

Implication: The Humane Society emphasized the link betweentreating animals ‘humanely’ and meat healthiness.

(Dentoni et al. 2013)

Page 17: Creating Value by Understanding Consumers (and Chain Partners!)

Challenge #1:

How can MSC label helpchain partners to create

a more valuable, happy experience with seafoodto consumers?

Page 18: Creating Value by Understanding Consumers (and Chain Partners!)

Value Proposition (1)

Great flavor?

Visually attractive?

Fresh, seasonal?

Which inferences do consumers make from your seafood with MSC label?Which inferences would you like to strengthen in consumers’ mind?

Sustainable

Authentic, Cultural?

Traditional, Hystorical?

AttitudestowardsSeafood

Attitudestowards Buying

and EatingSeafood

More Convenient?

Supportive of Local Economy?

Healthy?

More SociallyAccepted/ «Cooler»?

More Fun?

Page 19: Creating Value by Understanding Consumers (and Chain Partners!)

Value Proposition (2)

Great flavor?

Visually attractive?

Fresh, seasonal?

Which inferences do consumers make to your seafood with the MSC label? Which inferences should be strengthened? How?

Sustainable

Authentic, Cultural?

Traditional, Hystorical?

AttitudestowardsSeafood

Attitudestowards Buyingand Eating Food

More Convenient?

Supportive of Local Economy?

Healthy?

More SociallyAccepted/ «Cooler»?

More Fun?

Page 20: Creating Value by Understanding Consumers (and Chain Partners!)

How can YOU strengthen these inferences in consumers’ mind?

Page 21: Creating Value by Understanding Consumers (and Chain Partners!)

Act on Value Proposition

Great flavor?

Visually attractive?

Fresh, seasonal?

How can YOU strengthen inferences in consumers’ mind?

Sustainable

Authentic, Cultural?

Traditional, Hystorical?

AttitudestowardsSeafood

Attitudestowards Buying

and EatingSeafood

More Convenient?

Supportive of Local Economy?

Healthy?

More SociallyAccepted/ «Cooler»?

Chefs, Journalists, Bloggers, Producers’ Associations

Cultural Associations, Museums, Festivals, Travel Guides

Recipies, New Ways of Disposal, Journalists, Bloggers

Page 22: Creating Value by Understanding Consumers (and Chain Partners!)

Consumers

Processors, Buyers and Wholesalers

Fishers

Cultural

Associations

Travel

Guides

NGOsTravel

Guides

Fairs and

FestivalsChefsJournalists Friends

Fairs and

Festivals

Journalists Bloggers

Transaction, product flow Social Tie, information flow

Retail and Food Service

Act on Value Proposition

Which networks are YOU building with credible actors that influence YOUR consumers? Which actors would YOU or MSC like to engage to create value?

Page 23: Creating Value by Understanding Consumers (and Chain Partners!)

Challenge #2:

How can the fishers, processors and MSC staff engage in allthese networks to act on the value proposition?

Networking & market innovations are time-consuming

money-consumingproduct-consuming!

Risk of innovations is all beared by supply chain actors!

Page 24: Creating Value by Understanding Consumers (and Chain Partners!)

Australian Challenges Creating Value

from Consumers to Fishers

Sometimes public agencies and project managers put too much emphasis in «understandingconsumers». The risk is… forgetting to understand and communicate with chain partners!!!

Southern Rock lobsters to US marketIntroducing Pre-Packaged, Chiled Seafood at Retail

Linking MSC sustainable prawns to Hilton hotelsIntroducing check-off promotion programs in

oyster sector

Page 26: Creating Value by Understanding Consumers (and Chain Partners!)

Dank u wel! Questions?

Contact me and you are welcome in Wageningen

Domenico Dentoni, Dr.

Assistant Professor of Agribusiness Strategy and Management

Wageningen University & Research Centre

[email protected]

domenicodentoni.blogspot.nl

Page 27: Creating Value by Understanding Consumers (and Chain Partners!)

Who do Consumers Believe?

Appendix

Page 28: Creating Value by Understanding Consumers (and Chain Partners!)

1

2

3

4

5

6

7

No Vested Interest

Knowledgeable

US Consumers’ Beliefs on Info Sources

Trade-off: consumers believe that most knowledgeablesources have also vested interests in promoting food

Page 29: Creating Value by Understanding Consumers (and Chain Partners!)

0.23

0.12

0.130.09

0.07

0.10

0.03

0.23

Government

Chef

Producer Association

Certifying NGO

Advocacy NGO

Retailer

Deli Store

Wourd-of-Mouth

US Consumers’ Brand Choices from

different Info Sources

Government and word-of-mouth are the most credible and influential actors.

Producer associations and chefs are influential too

Page 30: Creating Value by Understanding Consumers (and Chain Partners!)

Source Choice Respondent Segment

Government 23% Elder, Male

Word-of-Mouth 23% Younger, Less Educated, Male

Producer Associations

13% Elder, More Educated, Female, Frequent Buyers

Chefs 12% Younger, Male

Retailers 10% Younger, Less Educated, Male, Frequent Buyers

Certifying NGOs 9% Younger

Advocacy NGOs 8% Younger, Less Frequent Buyers

Deli Stores 3% Younger, Female

Segments of US Consumers’ Brand Choices

from different Info Sources

Strong segmentation: different consumers believe different information sources