Motivating Healthier Eating in

a Mature Population: Coastal Wellbeing Centre

Report prepared by Ebony Moore

For Submission to Dr Wendy SpinksCourse Coordinator and TutorConsumer Behaviour MKG 210

23rd May, 2016

Student ID: 1072484Word Count: 2,043

Executive SummaryThis report was commissioned to examine the role of consumer behaviour in the motivation to consumer health food. The scope of this report was centralised to the Coastal Wellbeing Centre, based on the Sunshine Coast Queensland. The established target market for this organisation has been identified as health conscious consumers aged 55-64. This population is at the most risk for ill health due to preventable diseases such as Ischaemic Heart Disease for their respective geographic. Theory presented in the report aims to understand how industry trends and individual purchase processes can influence this target markets motivation to consumer foods that may lower the risk of such diseases. The research draws particular attention to the fact that that Planned Behaviour is represented in this population and is reflective of their high-involvement decision making process. Further investigations revealed that promotion to this population required a stronger physical presence that rejects stereotypical and negative imagery of the target market. Moreover, it was found that levels of healthy eating increased in social environments. In order to increase brand awareness and popularity, a desired consumer behaviour change was proposed; to increase the consumption of the health foods offered by the Coastal Wellbeing Centre. It is recommended that the centre:

Adopt a product development strategy that meets; quality of life, value for money and flexibility needs.

Drive community endorsement and increased consumption through local market presence. Create a loyalty system that actively engages the consumer on a personal level in the growth

of the business as well as helping them to meet their individual goals.

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Table of Contents

Executive Summary....................................................................................................................ii

1.0 Australian Health: A Need for Change..............................................................................2

2.0 The Coastal Wellbeing Centre, Café Nurcha.....................................................................2

2.1 Target Market..........................................................................................................................3

2.2 Ansoff’s Matrix.........................................................................................................................4

3.0 Desired Consumer Behaviour..........................................................................................5

3.1 Motivating Desired Consumer Behaviour using Theory...........................................................5

3.2 Best Theoretical Model for Consumer Behaviour Change.......................................................7

4.0 Planned Behaviour Theory in Action......................................................................................7

5.0 Conclusion............................................................................................................................9

Recommendations......................................................................................................................9

References.......................................................................................................................................10

Appendices...............................................................................................................................12

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1.0 Australian Health: A Need for ChangeFood matters. It is at the core level of basic human needs. So what is so fundamentally wrong that, in Australia the leading cause of premature death is preventable through proper diet and exercise? The understanding of consumer behaviour.

This report will de-mist the concept of consumer behaviour towards health foods and answer the key question; “how do we motivate people to eat healthier?” by providing a one-stop mega shop for all things ‘healthy’, The Coastal Wellbeing Centre (CWC) is in the ideal position for resolving this problem whilst proportionately profiting from it. In 2014, the leading cause of death was Ischaemic Heart Disease (IHD), a preventable condition estimated to be 32% attributed to poor diet and exercise and with the ability to cut an average of 4 years off a person’s life (ABS, 2016). On the Sunshine Coast the 41,539 people between the ages of 55 and 64 (ABS, 2011) are at the most risk of such preventable diseases and as such form the roots of the CWC target market (ABS, 2016).

The purpose of this insight report is to reflect on the health industry climate and the affect this has on the desired consumer behaviour. Careful analysis of this information with appropriate academic theory will be used to form a series of prioritised steps that outline key elements of the Business to Consumer (B2C) setting and ensuing recommendations for improvement.

2.0 The Coastal Wellbeing Centre, Café NurchaThe Sunshine Coast’s Coastal Wellbeing Centre, operating out of Maroochydore is a family owned business and serves as an exemplar for the development and absorption of nutrition into modern day consumer behaviour. The centre is comprehensive in its offering of health goods, including; fresh salads and hot meals, sweet treats and barista coffees (CWC, 2016). In order to achieve the desired outcome of increased health food consumption, the target market’s needs must be met. Figure 1 identifies the Three Product Levels and will serve as a basis for understanding how the business could be more efficiently operated to meet consumer expectations and increase market share.

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Figure 1: The Three Product Levels of the Coastal Wellbeing Centre

Currently, the CWC is in competition with other health food providers and specialist cafés on the Sunshine Coast. Key competitors that are a part of the business’ positioning map may include; Envy Café and Kunara Organic Marketplace. Based on two key elements of price and food quality (perceived healthiness), specialist health food providers and cafes are not easily set apart. As seen in Figure 2, a gap exists in the market for a cheaper high quality health food provider.

Figure 2: Proposed Perceptual Map for the Coastal Wellbeing Centre

The organisations indicated on the perceptual map were selected and placed accordingly to reflect their relationship with the Coastal Wellbeing Centre and the health food industry as a whole. Price is an appropriate indicator here as it provides a universal scale on which any organisation can be compared upon. A new pricing strategy is suggested that takes a more economically efficient approach, this may be achieved through renegotiation of suppliers and product lines.

2.1 Target Market In Australia death due to preventable diseases is rising and the epidemic is being led by a prevalence for obesity. Approximately 25% of all Australians aged 20 and over are at risk of premature death as a result of potentially poor health choices (HEG, 2016). Businesses like the Coastal Wellbeing Centre both rely on and drive consumer behaviour towards lifestyle change and health endorsement. In order to remain relevant, the Coastal Wellbeing Centre, should adopt new and relevant product development strategies. Here, the target market includes persons of any gender aged 55-64 living on the Sunshine Coast with access to the promotional efforts of the CWC. The consumers of the health foods offered by the CWC recognise a need for increased quality of life and evaluate that this will be resolved through the consumption of such products.

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Proposed Position

PromotionPromotion refers to the methods used by an organisation to advertise and sell its products and services. However, not only must the motivation to consume a good or service exist but so too must the motivation to engage in promotions. While the CWC exhibits a strong internet presence it is likely that this is not correct of the target market at which they are aimed. Evidence does suggest that internet based advertising is effective, but this study is exclusive of social media and technological heavy weights (Zhang & Mao, 2016). The target market, aged 55-64, are recognised as digital immigrants. Trends of this particular generation indicate lesser understanding and motivation to become involved in technology use (Autry & Berge, 2011). With potentially limited access to technology, this target market may be at risk of not entering the purchase process.

Appendix 5 demonstrates three potential variations of the Hierarchy of Effects Model. The augmented products like; self-actualisation and quality of life demonstrate a need or a problem to be solved for the target market. The appropriate purchase process that is generally used in thoughtful decision making is the standard learning hierarchy. This purchase framework follows the series; recognise a problem, evaluate information and then consume. This is the highest involvement process (Solomon, et al., 2013). A review of the advertising efforts made by the CWC to include more physical promotion such as; loyalty cards, mail-outs and interest group sponsorship is suggested.

2.2 Ansoff’s MatrixAnsoff’s Matrix is often used to devise a specific business strategy for development. Based on the information presented in the matrix that a product development strategy would be most suited to the CWC. This is appropriate because the target market is strong and the core product already established. In order to apply this to the Coastal Wellbeing Centre, the proposed consumer behaviour should be understood and appropriately applied to one of the four matrix segments. Figure 3 represents each of these four segments based on product or market focused growth directives.

Figure 3: Ansoff’s Matrix for Growth

Increased consumption of health foods by the target market at the Coastal Wellbeing Centre would be most achievable through product development. This strategy enhances the business’ reputation but narrows the focus of the market on the health food, streamlining the consumer buying decision

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process (Solomon, et al., 2013). Health foods are encompassed within a broad industry of health related products, most of which may target the same market. By differentiating the product from the already penetrated industry, the Wellbeing Centre may gain a competitive advantage within the target market and forgo expensive business design manipulations to target a new market. Ideally, product differentiation in such a growing and profitable industry would lead to a majority target market share.

3.0 Desired Consumer BehaviourThe desired consumer for the CWC target market is increased consumption of health foods. This section overviews relevant theories for consumer behaviour and decision making and aims to recognise a strategy that will encourage the desired behaviour change.

3.1 Motivating Desired Consumer Behaviour using TheoryIn a study of the effect of high antioxidant and vitamin content (HAC) foods on measurable health indicators (Pounis, et al., 2013), it was found that these foods lowered the risk of hypertension by 6% and decreased levels of C-reactive proteins (markers for the presence of cancer and cardiovascular disease). The population addressed in this study is reflective of the target market and their subsequent needs. If a promotional effort and product re-development is launched, motivation to consume will increase. Appendix 6 lists a variety of whole foods that are categorised as either high or low in antioxidants. This list is a practical example of an effective marketing tool for encouraging a motivation to purchase. Table 1 demonstrates relevant theory to support the decision making and potential purchase processes of the target market.

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Table 1: Consumer Behaviour Theory of Heath Conscious Individuals Aged 55-64 (Sunshine Coast, Qld)

Theory Authors & year

published

Area of research & reference

Sample Specifics

Behavioural goal being

researched

Results Similarities to C.W.C desired

behaviour

Differences to C.W.C desired

behaviour

Suitability of the theory &

rating

Theory of Reasoned

Action (TRA)

Martin Fishbein

(Fishbein, 1979)

See Appendix 2

Promoting Breakfast ConsumptionBandar Abbas, Iran

(Hosseini, et al., 2015)

88 students of four secondary schools

Increase Breakfast Intake

Increase in all nutritional consumption levels except sugar and fat.

Nutrition growth was achieved, fat and sugar levels did not increase

The Coastal Wellbeing Centre’s ideal target market are aged 55-64, this research was based on school aged children.

Centre’s Café Nurcha offers a breakfast appropriate menu and would benefit from TRA. Difference in results is expected between two different target markets.

Theory of Planned

Behaviour (TPB)

Icek Ajzen

(Ajzen, 1985)

See Appendix 3

Predicting consumption of low in saturated fats among people diagnosed with Type 2 diabetes and cardiovascular disease.Queensland, Australia.

(White, et al., 2010)

184 adults (over 18 years of age) diagnosed with Type 2 diabetes and/or CVD recruited from seven community health centre sites. The mean age of participants was 60.71.

To assess the strength of intentions to eat food low in saturated fat.

Intention and behavioural control over consumption of foods low in saturated fats was mediated by planning.

Study targets healthier options as consumables, sample is relevant to proposed target market and reflective of the geographical area.

Very specific study proposed on low in saturated fats foods rather than healthier options in general. Sample group living with chronic illness.

Excellent suitability for a comparative analysis and application to achieving the desired consumer behaviour.

Hierarchy of Needs

Abraham Maslow

(Maslow, 1943)

See Appendix 4

Exploring the gap between attitudes and behaviour: Understanding why consumers buy or do not buy organic food.United Kingdom

(Padel, 2005)

181 regular and occasional consumers of organic food

The relationship between concerns for food safety and buying more organic food

Organic labels have strong emotional resonance with consumer in terms of personal wellbeing and health. Concerns about food safety are important to the consumer.

Healthier options are considers important pre-requisites to inner wellbeing.

Food safety, on a whole is not a key priority in developed nations.

Not comprehensive. In the absence of food related scares, consumers will deem food safety less important.

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3.2 Best Theoretical Model for Consumer Behaviour ChangeThe most appropriate model for consumer behaviour change is the Theory of Planned Behaviour (Ajzen, 1985). This theoretical model addresses all the key aspects that align with the High Involvement Hierarchy of Effects framework. The target market addressed in the respective case study was evaluated for intentions to eat food that would lower the risk of factors such as heart disease (White, et al., 2010).

The sample population used in the study was reflective of the target market geographic. A common disposition in terms of; demographical, economical and psychological characteristics may be assumed. This model can be readily implemented through a discourse of marketing campaigns that target the risk factors of ill health and the relationship these have with the health-improving HAC foods offered by the CWC.

4.0 Planned Behaviour Theory in ActionProductMarketing specifically to seniors is both integral and challenging because many negative stereotypical images exist. These outdated images were found to have caused one-third of consumers over 55 to deliberate avoid the purchase of a so expressed product (Alder, 1996). The CWC may adopt a more welcoming product and marketing campaign accordingly. The largest identified categories of mature consumers are ‘Health Hermits’ and ‘Ailing Out-goers’. These two personality types, look for social acceptance and product flexibility. Table 2 provides an example of potential product line changes that actively attract these two groups.

Table 2: Mature Population Consumer Groups

Consumer Group & % Population

Characteristics Product Ramifications

Application

Healthy Hermits (36%)

Require comfort and stability

Resent stereotypical expectations of them

Want to know they are socially accepted and will seek further information about a product. More comfortable with established brands.

Weekly home-delivered newsletter

Product-line extension with a well-known and socially accepted brand or event E.g. Local market presence

Cool product colour tones. Blue evokes a sense of calm (Eklan, 2009).

Ailing Out-goers (29%)

Maintain positivity despite poor health

Still determined to ‘make the most out of life’

Generally require a special diet, are easily attracted by promotions advertising specialised and alternative menus.

Rotational offer of ‘Better-Bowls’, light and digestible nutrient packed meals, available as a special.

*Adapted from Table 13.7 Gerontographics: Selected Characteristics (Solomon, et al., 2013)

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The optimal product development for the CWC would emphasise one particular product, energy bowls. Figure 4 demonstrates an example of an energy bowl. By offering a rotating menu of weekly special “Better-Bowls” at an affordable price, the business can take full advantage of this target market.

Figure 4: “George of the Jungle” Energy Bowl, Coastal Wellbeing Centre 2016

By starting small, the business can shine the light on the augmented features the product can offer. It is crucial that the product is marketed for its benefits to the population (increased health and extended quality of life) rather than for the negative consequences of not consuming them. In order to secure the target market the newly refurbished product must be placed and priced appropriately.

PriceAny physical component of a product is known as a product signal (Solomon, et al., 2013). The price-quality relationship indicates that consumers will subconsciously make inferences about a products quality based on its price. The key here is that, as the supplier, the CWC should not over promise and under deliver. The price asked for the product should be justifiable whilst also covering business costs. As a speciality product, the “Better-Bowls” may only be offered at $10.00 per item, slightly less than the current energy bowl price ($12.90). Whilst this does into allow for much profit, it is justifiable! Complimentary products like Barista coffee are low cost to the supplier and increase the value of the consumer experience. A standard coffee ($3.50) or combination breakfast special (meal and drink for $12.00) are perfect recipes for growing the brand’s community endorsement and loyalty.

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PlaceRecognised as the best weekend market on the Sunshine Coast, the Eumundi Marketplace offers the CWC an exciting opportunity to increase awareness whilst encouraging current and potential consumers to get their once a week “Better-Bowl”. It is estimated that this market alone caters nearly 1.6 million people per year (Market, 2016). Research demonstrates, that perceived healthier options are consumed more than unhealthy options in social setting, whilst the general consumption of food is increased when done in a social environment (King, et al., 2004). Not only will a setup at a market boost awareness, but it is cost effective and a great way to motivate a guarded population.

5.0 ConclusionThe purpose of this report was to propose a change in the Coastal Wellbeing Centre business structure, that would ideally encourage the increased consumption of their core product; health food. The Theory of Planned Behaviour framework may help the marketers of this business to better understand their mature target market through a three step process; beliefs, attitudes and behaviours. Motivating the target market requires a positive approach that rejects subjective norms and aligns with the individual’s goal; quality of life. By marketing healthier options in familiar social environments, the Coastal Wellbeing Centre is in the ideal position for optimising their market share and proportionately increasing social acceptance of health food by recluse members of the targeted population. The theoretical evidence presented in this report confirms that a new product development, placement and pricing strategy should be implemented by the Coastal Wellbeing Centre. Ultimately, self-growth motivates consumers to purchase and if an organisation can understand that, it can be used it to fuel their own growth.

Recommendations Offer a membership program to customers that encourages the use and access to mail-

outs, weekly new-letters, loyalty cards and invite only interest group events. This will increase the life-cycle of the customer through loyalty systems and provide the business with cost-efficient market research so that they me stay up to date with the ever changing consumer behaviour climate.

Exhibit proudly the benefits and abundance of whole foods on offer at the Café. Categorise them by nutrient value or health benefits. This will simplify decision making and speed up the purchase process.

Provide a new product line similar to “Better-Bowls”. These are similar to impulse lines, they will draw the consumer and his or her family in and where further complimentary purchases will be made. Pairing a cheap meal with a barista made coffee is a perfect example of a high return and value for money sale.

Set up a stall at the Eumundi Marketplace, it offers the opportunity to increase product awareness whilst developing a B2C relationship.

Stay up to date with current market research, endorse trends and make all prices justifiable. Once a strong enough relationship is formed with the consumer, that consumer will begin to follow the businesses ideas. As digital natives become the face of the mature population, your business can more readily endorse digitally based marketing innovations such as; gamification and virtual reality. Imagine being able to see how healthy you will look after one year on “Better-Bowls!”

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ReferencesABS, A. B. o. S., 2011. Census Quickstats Sunshine coast (R). [Online] Available at: http://censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/LGA36710?opendocument&navpos=220[Accessed 14 May 2016].

ABS, A. B. o. S., 2016. Underlying Causes of Death (Queensland). [Online] Available at: http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/3303.02014?OpenDocument[Accessed 10 May 2016].

Ajzen, I., 1985. From Intentions to Actions: A Theory of Planned Behavior. Action Control, pp. 11-39.

Alder, R., 1996. Stereotypes won't work with seniors anymore.. Advertising Age, 67(46), p. 32.

Autry, A. & Berge, Z., 2011. Digital natives and digital immigrants: getting to know each other. Industrial and Commercial Training, 43(7), pp. 460-466.

CWC, C. W. C., 2016. Cafe Nurcha. [Online] Available at: https://coastalwellbeing.com.au/cafe-nurcha/[Accessed 20 April 2016].

Eklan, D., 2009. The psychology of colour: Why winners wear red. .. New Scientist, 203(2723), pp. 42-45.

Fishbein, M., 1979. A theory of reasoned action: Some applications and implications.. Nebraska Symposium on Motivation, 27(1), pp. 65-116.

HEG, T. H. E. G., 2016. Healthy Eating Statistics. [Online] Available at: http://www.thehealthyeatingguide.com/healthy-eating-statistics/[Accessed 14 May 2016].

Hosseini, Z. et al., 2015. Application of the theory of reasoned action to promoting breakfast consumption. Medical Journal of the Islamic Republic of Iran, 11 November, 29(1), p. 289.

King, S., Weber, A., Meiselman, H. & Lv, N., 2004. The effect of meal situation, social interaction, physical environment and choice on food acceptability. Fifth Rose Marie Pangborn Sensory Science Symposium, 15(7-8), pp. 645-653.

Market, T. O. E., 2016. Our Market Today. [Online] Available at: http://www.eumundimarkets.com.au/About/history[Accessed 19 May 2016].

Maslow, A., 1943. A Theory of Human Motivation. Psychological Review, 50(4), pp. 370-396.

Padel, S., 2005. Exploring the gap between attitudes and behaviour: Understanding why consumers buy or do not buy organic food. Bitish Food Journal, 107(8), pp. 606-625.

Pounis, G. et al., 2013. Consumption of healthy foods at different content of antioxidant vitamins and phytochemicals and metabolic risk factors for cardiovascular disease in men and women of the Moli-sani study. European Journal of Clinical Nutrition, 67(2), pp. 207-213.

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Solomon, M., Russell-Bennett, R. & Previte, J., 2013. Three Hierarchies of Effect . In: J. Hoban, ed. Consumer Behaviour: Buying, Having, Being 3ed. Frenches Forest, NSW: Pearson Australia, p. 210.

White, K. M. et al., 2010. Predicting the consumption of foods low in saturated fats among people diagnosed with Type 2 diabetes and cardiovascular disease. The role of planning in the theory of planned behaviour. Appetite, October, 55(2), pp. 348-354.

Zhang, J. & Mao, E., 2016. From Online Motivations to Ad Clicks and to Behavioral Intentions: An Empirical Study of Consumer Response to Social Media Advertising. Psychology & Marketing, 13(1), pp. 155-164.

AppendicesAppendix 1: The Three Product Levels

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Appendix 2: Theory of Reasoned Action Structure

Appendix 3: Example Application Theory of Planned Behaviour to Exercising

Appendix 4: Maslow’s Hierarchy of Needs and Robbin’s Six Human Needs Compared

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Appendix 5: Three Hierarchy of Effects Models

(Solomon, et al., 2013)

Appendix 6: Health Food Consumption Motivation Tool (Example)

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(Pounis, et al., 2013)

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