Progress 10/01/02 to 09/30/07
Outputs
The investigator left abruptly in 2006 and did not submit a report
Impacts
This study and its results have attracted a lot of attention, leading to several invited presentations and seminars.
Publications
- No publications reported this period
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Progress 01/01/05 to 12/31/05
Outputs
1. Integrated Brand Communications: For many products, marketing communications raises expectations with buyers that the consumption experience does not match. In those cases of disconfirmed expectations, consumers will not buy the product again and persuade others to not try this brand. Repeat purchases, however, are vital for food producers in order to survive in today's highly competitive market place. An experiment was designed to provide information on how to synchronize brand beliefs (evoked by marketing communications) with product experiential attributes (consumer sensory evaluations). Consumers were first exposed to a brand message (i.e., healthy, exciting, refreshing, etc.), and then asked to sample the novel fruit juice beverage. Data analyses (1) identified most effective brand messages leading to consumer initial purchase intentions, and 2) determined correlations between brand beliefs, product experiential attributes, and repeat purchase intentions. 2.
Package Design: The packaging of any product plays a pivotal role beyond protecting the content. In today's cluttered and crowded market place, packages have to stand out, grab buyers' attention, and communicate brand messages. While increasing numbers of products come in innovative packaging, little is known on how these appeal to buyers and what - if any - price markups can be asked for it. An applied research project generated information and new knowledge supporting packaging design decisions of beverage producers. Data were collected from consumers both in Brazil and the U.S. on a novel fruit juice beverage, marketed either in traditional Tetra Pak or in a contemporary organic bottle design. Findings indicate that a significant number of consumers prefer the organic design, particularly individuals with a more developed sense of aesthetics. They were also willing to pay a premium price. However, a further comparison suggests that packaging preferences and price premium are lower
when consumers have been initially introduced to, and are used to, the original packaging. 3. Family Business: A large number of Oregon businesses are family-owned or operated. Some emphasize their ownership while others don't. Little is known on how actual and potential customers respond to the family business cue. An applied marketing research project examined whether/how the family business characteristic can be developed into a competitive advantage for retail outlets. Dr. Mark Green, director of OSU's Austin Family Business Program, participated as co-investigator. Data were collected from a sample of young consumers, contrasting family-owned with corporate retail outlets. Findings indicate that consumers do perceive differences between both types of ownerships. Corporate stores are being perceived as providing better value-for-money and offering a wider selection. Family businesses are being perceived as offering higher quality, being more trustworthy, and providing better
service. Differences extend onto customer satisfaction but do not lead to differential loyalty.
Impacts
1. Based on the findings of this study, businesses in the fruit juice and wine industry are adjusting their approach to product and brand design. More attention is being paid to ascertain that brand message and product experience are consistent, with positive impact on consumer satisfaction and repeat sales. 2. For their new product launch, the beverage producer selected the organic packaging design in order to increase market share and profitability. Oregon food and beverage manufacturers have started changing their mind set and considering the importance of packaging as a premier tool for targeting market segments and elevating their products above competitors' offers. 3. This study and its results have attracted a lot of attention, leading to several invited presentations and seminars. Follow-up research will expand the initial knowledge base to other types of businesses and will examine options for effectively utilizing the family business characteristic.
Publications
- Branding Agribusiness and Food Products. Seminar, College of Agriculture, Dept. of Agricultural Economics, November 1 - 3, 2005, Kiel University, Germany (invited).
- The Role of Store Image in Explaining Consumer Loyalty to Family Business vs. Corporate Chain. Family Firm Institute Conference, October 21-22, 2005, Chicago, IL.
- The Interplay of Consumer Schema, Brand Image Beliefs, and Product Experiential Attributes: Can Branding Fool the Palate? Pangborn 2005, Annual Conference of the Sensometric Society, August 11-13, 2005, Harrogate, UK.
- The Influence of Ambient Scent on Consumer Nostalgic Memories and Behavior. Pangborn 2005, Annual Conference of the Sensometric Society, August 11-13, 2005. Harrogate, UK.
- Orth, U., Bourrain, A. (2005). Ambient Scent and Wine Consumer Exploratory Behavior: A Causal Analysis, J. Wine Research, 16(2):137-150.
- Orth, U., Bourrain, A. (2005). Optimum Stimulation Level Theory and the Differential Impact of Olfactory Stimuli on Consumer Exploratory Tendencies. Advances in Consumer Research, 32:116-125.
- Orth, U., McGarry Wolf, M, and T. Dodds (2005). Dimensions of Wine Region Equity and Their Impact on Consumer Preferences. Journal of Product and Brand Management, 14(2):88-97.
- Consumer Behavior in 3-Dimensional Virtual Wine Stores. 2nd International Wine Marketing Symposium, July 6-8, 2005, Sonoma.
- Creating and Managing Regional Umbrella Brands: A Comprehensive Quantitative Approach. 2nd International Wine Marketing Symposium, July 6-8, 2005, Sonoma.
- Building, Branding, and Selling the Green Message. 2005 Oregon Wine Industry Symposium, March 8 - 9, 2005, Corvallis, OR (invited).
- Wine Commercialization and Marketing at the International Level. Business seminar, Institute Superieur d'Agriculture Rhones-Alpes ISARA, January 26, 2005, Lyon/ France (invited).
- International Consumer Markets for Agricultural and Food Products. SIRHA (Food Fair), Club Agro-alimentaire, January 25, 2005, Lyon, France (invited).
- Strategies for Internationally Marketing French Wine - The U.S. Perspective. 1eres Rencontres du vin (1st Wine Symposium) - Quelles pratiques commerciales developper face a la crise du vin? Vitisphere/ Institute Superieur d'Agriculture Rhones-Alpes ISARA, January 25, 2005, Lyon/ France (invited).
- Branding The Oregon Garden. Marketing Seminar, The Oregon Garden, May 15, 2005, Silverton, OR (invited).
- Orth, U., P. Oppenheim, and Z. Firbasova (2005). Measuring Message Framing Effects Across Europe, J. Targeting, Measurement and Analysis for Marketing, 13(4):313-326.
- Orth, U., and R. De Marchi (2005). The Interplay of Consumer Schema, Brand Image Beliefs, and Product Experiential Attributes: Can Branding Fool the Palate? Pangborn 2005, Proceedings of the Annual Conference of the Sensometric Society, Volume 11.
- Orth, U., and A. Bourrain (2005). The Influence of Ambient Scent on Consumer Nostalgic Memories and Behavior. Pangborn 2005, Proceedings of the Annual Conference of the Sensometric Society, Volume 12.
- Orth, U., and R. Metoyer (2005). Consumer Behavior in 3-Dimensional Virtual Wine Stores. Proceedings of the 2nd International Wine Marketing Symposium, July 6-8, Sonoma.
- Presentations: Marketing Research for Family Businesses. Family Firm Institute Regional Meeting, November 18, 2005, Lake Oswego, OR (invited).
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Progress 01/01/04 to 12/31/04
Outputs
1) Brand Oregon: Developing Efficient Place-based Marketing Strategies A research project was continued focusing on measuring the benefits wine buyers associate with a given origin, their distinct lifestyle, and behavior as determinants of preferences. Data collection was supported by collaborators in California, Texas, the UK and Argentina. The results reveal consumer preferences for wine origins with significant variation depending on respondent location. Further results include the competitive positions of wine origins from the perspective of consumers and a number of distinct consumer segments based on their lifestyle. Six motivational factors were found to drive consumer wine preference: functional value (quality), price (value for money), social, emotional, environmental, and altruistic value. Changes in the motivational factors were found to affect wine region preferences. 2) Low-cost Point-of-purchase Stimuli for Promoting Innovations. A research project
investigated the potential of peer group influence to stimulate consumer exploratory behavior. The study measured consumer choice of different wine brands for different consumption occasions and the differential impact of personality and social factors. It established the brand benefits and product attributes that consumers seek, e.g. when choosing wine for themselves, to host friends, or as a gift. In addition, individual values and consumer in-groups were found to affect corresponding behavior. Implications focus on how to better match offers to consumer personality and consumption occasion. 3) Persuasive Marketing Communications Playing on Consumer Emotions. A project, supported by DeMarchi, one of the world's largest suppliers of fruit products, examined effects of advertising and product experience on purchase intention. The study simulated the chain of events in a product innovation context. Collaborators participated from OSU's Sensory Lab. Results indicate how brand image
affects purchase intention jointly with product experiential attributes such as taste. In addition, findings show how brand image can be reinforced by matching experiential attributes (mouthfeel, color, taste, aftertaste, etc.). 4) Research in Progress: Promoting Small and Family Businesses A large number of Oregon agribusiness, food, and related businesses are relatively small and/ or family-owned and operated. Little is known on how actual and potential customers respond to the cue 'family business'. One research project is dedicated to providing a knowledge base on how to develop the family business characteristic into a competitive advantage. Dr. Mark Green, director of OSU's Austin Family Business Program, participates as co-investigator.
Impacts
1) The identification of consumer motivational factors driving response to product origins allows for crafting persuasive and tailor-made geographical umbrella brand messages. Understanding the benefits buyers associate with a given origin, their distinct lifestyle, and behavior are key prerequisites for developing a successful branding strategy as an umbrella over Oregon's diverse agribusiness and food industry. The research triggered development and became an integral part of the Oregon wine industry strategic plan. Following several presentations and publications, other states and industries (i.e. beef, tourism, wood products, nursery stock, berries) expressed a desire to acquire and adapt the model to meet their specific requirements. 2) Understanding the factors that drive consumer preferences is a key prerequisite for successfully developing and communicating products and brands. The results of these studies help marketers of fast-moving consumer goods to design
products and brands that address the benefits sought by specific segments more holistically. Projects in areas 3 and 4 are expected to assist a broad range of agribusinesses in developing competitive marketing communications.
Publications
- Orth, U., K. Lopetcharat, T. Shellhammer, and M. McDaniel (2004). Promoting Brand Benefits to Consumers: The Role of Psychographic and Lifestyle Factors, Journal of Consumer Marketing, 21(2): 97-108.
- Orth, U., K. Lopetcharat (2004). Consumer-based Brand Equity: A Comparative Approach, Journal of Food Products Marketing, 10(4).
- Orth, U., Bourrain, A. (2004). Optimum Stimulation Level Theory and the Differential Impact of Olfactory Stimuli on Consumer Exploratory Tendencies. Advances in Consumer Research, Association of Consumer Research Annual Conference, October 27-29, Portland, OR, forthcoming.
- Orth, U., and A. Bourrain (2004). Consumer Response to Scent-evoked Nostalgia. In: Developments in Marketing Science, Proceedings of the Academy of Marketing Science (AMS) Annual Conference, Vancouver, BC, May 26-30.
- Orth (2004). OPTIMUM STIMULATION LEVEL THEORY AND THE DIFFERENTIAL IMPACT OF OLFACTORY STIMULI ON CONSUMER EXPLORATORY BEHAVIOR, Association of Consumer Research Annual Conference, October 26-29, 2004, Portland, OR.
- Orth (2004). CONSUMER BEHAVIORAL RESPONSE TO SCENT-EVOKED NOSTALGIA, Academy of Marketing Science Annual Conference, May 26-29, 2004, Vancouver/ BC.
- Orth (2004). I'M LOVING IT: THE ROLE OF EMOTIONS IN CONSUMER BEHAVIOR. Agribusiness Seminar, Kiel University, December 21, 2004, Kiel/ Germany.
- Orth (2004). UTILIZING NOSTALGIC MEMORIES TO PROMOTE WINE INNOVATIONS. College of Business Seminar, Heilbronn University, July 12, 2004, Heilbronn/ Germany.
- Orth (2004). MARKETING RESEARCH FOR THE SMALL FRUITS INDUSTRY: HOW TO AVOID EXTINCTION. NorthWest Center for Small Fruit Research Annual Conference, Boise, ID, December 2, 2004.
- Orth (2004). MATCHING WINES TO CONSUMER PERSONALITY AND OCCASION. Stimson Lane Vineyards and Estates, August 5, 2004, Woodinville, WA.
- Orth (2004). COMPETITIVE STRATEGIES FOR WHITE WINES. Wine Marketing Seminar, Heilbronn University, July 12, 2004, Heilbronn/ Germany.
- Orth (2004). MARKETING YOUR FAMILY BUSINESS: SIZE MATTERS, COMPETITIVENESS COUNTS. Austin Family Business Conference, June 17-19, 2004, Welches, OR.
- Orth (2004). WHY CONSUMERS (DO NOT) BUY OREGON WINE . OSU Grapevine Research Days, March 2-3, 2004, Corvallis/ OR.
- Orth (2004). GETTING CONSUMERS OUT OF THEIR BUYING RUTS: FINDINGS FROM A STUDY ON RETAIL ATMOSPHERICS. OSU Grapevine Research Days, March 2-3, 2004, Corvallis/ OR.
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Progress 01/01/03 to 12/31/03
Outputs
Objective 1: The origin of a product as a potential source of market value has received considerable attention in marketing. Geographical umbrella brands are designed to play on consumer perceptions and inferences about products 'made in' or associated with a given place. Carefully managed and systematically exploited such brands provide businesses and industries with a significant and sustainable edge in the national and international competition. The key for crafting and managing corresponding strategies is insight into how consumers perceive and respond to the cue 'wine origin'. An applied marketing research project was conducted for the purpose of generating a knowledge base on how to establish an advantageous position of Oregon wines in consumers' minds. Including more than 400 consumer responses from several U.S. states and a number of foreign countries, the study measures consumer motivational factors and links those to consumer behavior, lifestyle and wine
preferences. Results include the competitive position of Oregon wine relative to competing origins, profiles of distinct consumer segments and profiles of wine origins according to drivers of consumer preferences. Objective 2: Consumers can vary greatly in their value composition. Therefore, they may seek a range of different benefits from products and brands and will react differently to offerings and marketing communications emphasizing selected benefits. A study was conducted to identify the factors influencing consumer preferences for beer utilizing an Oregon consumer panel. Five dimensions of utility were identified, such as functional, value for money, social, positive and negative emotional benefit. In order to support decisions on product (brand) design, market segmentation and positioning, those dimensions were profiled against consumer preferences, lifestyle, demographic and behavioral variables. Objective 3: Overcoming consumer reservations about buying unfamiliar brands,
wines, or varietals constitutes a major marketing challenge. Many individuals perceive new choices as risky and shy away from exploring new offers or just seek out more information about wines unknown to them. Product design, packaging, labeling, advertising and selling efforts are common tools for wine marketers to overcome reluctance and effectively stimulate consumer exploratory tendencies. Other retailers have discovered the potential of store atmospherics as a tool credited with almost mystical capabilities. An applied research project investigated consumer response to ambient scent in a wine retail context. Different scents were diffused and data was collected on consumer mood, exploratory tendencies and preferences for a number of wines. It was determined that appropriately scenting a retail environment in conjunction with establishing positive consumer mood can 'soften up' consumer reservations and encourage exploratory behavior. Label color, text and grape variety were the
attributes being used by consumers to express risk taking, variety seeking or curiosity-motivated behavior.
Impacts
1) The identification of consumer motivational factors driving response to product origins allows for crafting persuasive and tailor-made geographical umbrella brand messages. Understanding the benefits buyers associate with a given origin, their distinct lifestyle, and behavior are key prerequisites for developing a successful branding strategy as an umbrella over Oregon's diverse industry. To establish 'Brand Oregon' as distinctive and superior in consumers' minds, a number of message formats and executions can be developed and pre-tested to ascertain the intended effect on target audiences. Other agribusiness industries (i.e. wood products, nursery stock, berries) have expressed a desire to adapt the model to meet their specific requirements. 2) Understanding the factors that drive consumer preferences is a key prerequisite for successfully developing and communicating products and brands. The results of this study help marketers of fast-moving consumer goods to
design products and brands that address the benefits sought by specific segments more holistically. 3) Practical implications of the results focus on the use of pleasant and unpleasant ambient scents for supporting new product introduction, switching behavior and consumer information seeking. Dissemination of the results further directs marketers' attention to innovative and sophisticated marketing tools (i.e. retail atmospherics) that reach beyond the common use of labels, advertisements, and point-of-purchase displays.
Publications
- Orth, U.; Firbasova, Z. (2003). The Role of Consumer Ethnocentrism in Food Product Evaluation. Agribusiness - An International Journal, 19(2): 137-153.
- Orth, U. (2003). Consumer Response to Environmental Stimuli in Tasting Rooms. Proceedings of the British Columbia Wine Institute Conference, July 13-16, Penticton, BC.
- Orth, U. (2003). Promoting Brand Oregon Emotion Benefits, Proceedings of the Oregon Horticultural Society, 34th Symposium, Portland, OR.
- Orth, U. (2002). Adding Credibility Beyond Ecolabels. in: Ecolabels and the Greening of the Food Market, 131-140, ed. W. Lockeretz, Tufts University Press, Boston, MA.
- Promoting Brand Benefits to Consumers. Marketing Seminar, Institute Superieur d'Agriculture Rhones-Alpes ISARA, October 6, 2003, Lyon/ France.
- Promoting Brand Oregon Emotion Benefits. Oregon Horticultural Society, 34th Symposium, January 28, 2003, Portland, OR.
- Adding Credibility Beyond Ecolabels. Conference on Ecolabels and the Greening of the Food Market, Tufts University, November 7, 2002, Boston, MA.
- Contemporary Wine Branding. Stimson Lane Vineyards and Estates, November 20, 2003, Woodinville, WA.
- Buy Oregon? Why (Not)!. Oregon Wine Board, November 18, 2003, Salem, OR.
- Current Issues in Wine Marketing Research. Rhone Valley Wine Industry Meeting, October 8, 2003, Lyon/ France.
- Consumer Response to Environmental Stimuli in Tasting Rooms. British Columbia Wine Institute Conference, July 13-16, 2003, Penticton, BC.
- Why We Buy What We Buy: Consumer Value Orientations and Preferences. Northwest Tree Fruit Growers Seminar, May 21, 2003, Hood River, Oregon.
- Marketing Across State, National, and Cultural Boundaries. Grape Day/ Oregon Wine Industry Symposium, March 14, 2003, Corvallis, Oregon.
- Craft Brews: Consumer Preferences and Psychographics. Widmer Borthers Brewing Co., November 15, 2002, Portland, OR.
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