Progress 09/01/03 to 08/31/08
Outputs
OUTPUTS: The overall project outputs consist of four related studies using mixed-methods investigation of consumers' adoption of new processed foods and changing supply chain relationships in India. The qualitative component of the studies provided cultural interpretation and validation of the constructs and measures to be used in the empirical studies. The empirical component was conducted using self-report surveys. The results of these investigations were (and will continue to be) disseminated through an array of different print sources and presentations. Conference presentations and publications, journal publications, and professional publications have been written and will continue to be written. Because there have been no previous studies of this subject, the findings of the project have been well received in that they make significant contributions to the knowledge base in cross-cultural consumer behavior and supply chain relationships. PARTICIPANTS: PIs: Dawn Pysarchik and Murari Suvedi PIs were engaged in all aspects of the project: initial proposal writing; project design; survey development and implementation; data collection, analysis, and interpretation; writing of manuscripts, presentations and reports. Graduate research assistants (GRAs) at Michigan State University: H-J Choo, A. Dutta, Z-S Yun, J-P Yu, S.Chowdhury, D. Jain. GRAs assisted with development of focus group interview and survey instruments, content analysis of focus group interviews, data entry of survey data, statistical analysis, manuscript writing, and research presentations. Consultants in India: I. J. S Jaswal,.Punjab Agricultural University, Ludhiana, India N. Bhatia, Lady Irwin College, University of Delhi, New Delhi, India P. G. Chengappa, University of Agricultural Sciences, GKVK, Bangalore, India B. M. Shashidhara, University of Agricultural Sciences, GKVK, Bangalore, India D. Sen, Bidhan Chandra Krishi Viswavidyalaya, Nadia, West Bengal, India R. S. Singhal, Food & Fermentation Technology Dept., University of Mumbai, India. Consultants hired the research assistants (RA) from their universities in India; participated in RA project training; directed focus group interviews and survey data collection; conducted the initial socio-economic analysis of data collection sites; consulted with PIs on cross-cultural issues related to project design, data collection and interpretation. Over the life of the project, 22 graduate and undergraduate RAs in India were involved in the project. Indian RAs participated in project training sessions, focus group interviews, and survey data collection and data preparation. There were many opportunities for training and professional development of faculty colleagues in India, in addition to graduate and undergraduate students at MSU and in India. Due to the uniqueness of the project and the opportunity to learn from engagement with a multi-cultural research team from the U.S. and India, Indian faculty colleagues, and students were eager to participate in the project. Indian RAs were provided with a certificate of project participation, which provided evidence of their involvement in this professional development experience. Several master's students were in the process of applying for doctoral programs and felt that the certificate contributed positively to their application. TARGET AUDIENCES: Outcomes of the project produced new and detailed information about Indian food markets and products, which included demographic and psychographic profiles of target markets for new food products, and marketing strategies to reach the target markets. Additional cross-cultural information about structuring effective supply chain relationships is also a project outcome. The outcomes are of benefit to U.S. agribusinesses (e.g., food producers, brokers, wholesalers, agents, retailers) who wish to enter Indian markets through franchise, joint venture, or strategic alliance arrangements. The results also are of benefit to companies currently operating in India. Key project outcomes are being disseminated through professional presentations, outreach activities, and journal and trade publications. Research methods training was conducted through a series of training sessions for faculty and RAs. As the project outcomes generated new knowledge about food markets and supply chain management in India, this information will be included in several courses that are taught at MSU. PROJECT MODIFICATIONS: There were no changes in the approach of the project from the original proposal; the work plan for the project was met. Due to some notable and unanticipated findings and efficiencies in project expenses, a no cost extension was approved to collect additional data that would enhance and amplify some of the key findings of the study. Specifically, further investigation was conducted into food retail shopping behavior in India (switching costs, perceived risk, product involvement, product innovation, and social norm compliance). Manuscripts are being prepared to elaborate on the findings of this newer component of the project.
Impacts
Changes in Indian consumer markets in the past few years are unparalleled since the opening of Indian markets to foreign investment. The findings of this project, therefore, produced new knowledge that is critical to successfully entering Indian markets in a dynamic economic environment. Project results advanced theory and model development of new food product adoption in India and understanding of changing supply chain relationships. Cutting edge findings were translated into practical and cross-culturally appropriate marketing strategies to assist U.S. agribusinesses in market entry into India and engaging in effective channel relationships. Significant contributions were made in the cross-cultural interpretation of key antecedent behavioral and marketplace factors that decrease risk in new product adoption in six major value-added (processed) food categories. The findings provide unique insights into the rapidly evolving consumer marketplace in India, which is challenging the traditional values and attitudes of Indian consumers. Because Indian consumers have limited experience with new value-added food products, the relationships among several factors were analyzed in a series of structural equation models. Path analysis results indicate that Indian consumers' new product purchase decision making is affected not only by personal characteristics (preferences and involvement with food) but also by risk relief strategies resulting from information search (product familiarity, past satisfaction, and perceived benefits). The competitive environment between fresh and value-added foods in India cannot be overstated. Expected value (e.g., intrinsic and extrinsic search attributes) versus perceived value (e.g., experience and credence attributes) when adopting new products become important predictors in consumer decision making. These results confirm the critical role of risk relievers in purchase decisions of new products in India. In addition, the importance of integrated marketing communications, which can increase expected value by emphasizing the search attributes or cues of new foods, becomes critical. Discussion of the relative advantage of different marketing strategies contributes to the practical application of the research findings. Another important outcome of this research was the confirmation that Indian food retailers are not in sync with Indian consumers. Several divergences were found but chief among them were that Indian retailers overestimate the importance of price when consumers evaluate overall food quality, overstate the importance of brand when consumers assess nutrition and freshness in foods, and underestimate the importance of brand when consumers assess food taste. This information is important to determine target markets for new food products. Publications and presentations emanating from the project were recognized through awards from professional organizations.
Publications
- Kim, Y.H., Pysarchik, D. T., Yun, Z. S. 2008. Social and personal factors influencing new product adoption among Indian consumers. American Collegiate Retailers Association, Durango, Colorado. May 16.
- Kim Y. H. 2008. Exploring Indian consumers adoption of new value-added food. Master of Science research project from this USDA-funded project, Michigan State University, East Lansing, Michigan.
- Yun, Z. S, Pysarchik, D. T. 2008. Reducing risk in new product adoption among Indian consumers. Page 42 in Proc. European Institute of Retailing and Services Studies Conference. Zagreb, Croatia. July 15.
- Yun, Z. S., Verma, S., Pysarchik, D. T., Yu, J. P., Chowdhury, S. (2008). Cultural Influences on New Product Adoption of Affluent Consumers in India, International Review of Retail, Distribution and Consumer Research, 18 (2), 203-220.
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Progress 01/01/07 to 12/31/07
Outputs
The overall goal of the project is to determine the critical antecedents to Indian consumers' adoption of processed food products in the context of changing industry structure and channel relations in the processed food industries of India. The objective is to identify and profile consumer segments in India that, through their characteristics, behavior and usage patterns, are likely to become important market segments for processed foods. The project objectives for all aspects of the project (qualitative and empirical data collection) have been completed. Regarding the qualitative phase, 100 1.5-hour focus group interviews were conducted and subsequently an empirical study of 1,484 consumers of value-added food was completed in the following Indian cities: Bangalore, Delhi, Mumbai, Hyderabad, Calcutta, and Ludhiana. During 2007, data were analyzed and an array of professional, industry and lay publications or presentations were prepared, some of which have been
published or presented (see separate outcomes listings), some are under review, and others are about to be submitted for consideration. Based upon project results that reflected the dynamic food retailing environment in India, several key constructs were identified that we believed could provide enriched insight into food retailing in India in more deeply investigated. Constructs included consumer decision factors associated with food retail shopping behavior in India, specifically, switching costs, perceived risk, food product involvement, food product innovation, and motivation to comply with social norms. We proposed that this more indepth investigation would allow us to refine our recommendations related to market entry and market segmentation strategies for American agribusinesses. Therefore, a proposal for a no-cost extension to conduct a supplementary study of key constructs was submitted and approved. Thus, a complementary survey instrument was developed, approved by the IRB,
and pretested in India. Using a research protocol identical to the original study, additional data have been collected in Delhi/New Delhi, Bangalore and Ludhiana; data collection will be completed in January 2008. Currently, the sample size is approximately 500, which we anticipate will grow to approximately 550 once data collection is completed.
Impacts
At the completion of this study, our expectation is that detailed demand information about Indian processed food markets will have been established, including consumer cultural factors, and market segmentation opportunities. Further, marketing strategies for niche products that would be appropriate for direct investment, cooperative alliances and franchising will be developed. Results will be shared widely with the processed food industry, trade organizations and academic researchers.
Publications
- Yu, J. P., Dutta, P. K. & Pysarchik, D. T. (2007). The Impact of Reference Groups and Product Familiarity on Indian Consumers' Product Purchase. Korean Academy of Marketing Science, 17 (2), 75-97.
- Yun, Z. S., Verma, S., Pysarchik, D. T., Yu, J. P., Chowdhury, S. (2007). The Influence of Personal and Group Level Factors on Indian Consumers New Food Product Adoption. 14th International EAERCD Conference on Research in the Distributive Trades. Saarbruecken, Germany (June 28), p. 48.
- Yun, Z. S., Verma, S., Pysarchik, D. T., Yu, J. P., Chowdhury, S. (2008). Cultural Influences on New Product Adoption of Affluent Consumers in India. International Review of Retail, Distribution and Consumer Research.
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Progress 01/01/06 to 12/31/06
Outputs
The overall goal of the project is to determine the critical antecedents to Indian consumers' adoption of processed food products in the context of changing industry structure and channel relations in the processed food industries of India. The objective is to identify and profile consumer segments in India that, through their characteristics, behavior and usage patterns, are likely to become important market segments for processed foods. All aspects of the qualitative and empirical data collection are complete. Regarding the consumer studies, 100 1.5-hour focus group interviews were conducted and subsequently an empirical study of 1,484 consumers of value-added food was completed in the following Indian cities: Bangalore, Delhi, Mumbai, Hyderabad, Calcutta, and Ludhiana. During 2006, data were analyzed and an array of professional, industry and lay publications or presentations were prepared, some of which have been published or presented (see separate outcomes
listings), some are under review, and others are about to be submitted for consideration. During 2006, special efforts were devoted to the preparation of industry publications that present key findings with practical applications for U.S. marketers of value-added food products who seek expansion into the rapidly emerging Indian markets.
Impacts
At the completion of this study, our expectation is that detailed demand information about Indian processed food markets will have been established, including consumer cultural factors, and market segmentation opportunities. Further, marketing strategies for niche products that would be appropriate for direct investment, cooperative alliances and franchising will be developed. Results will be shared widely with the processed food industry, trade organizations and academic researchers.
Publications
- Yun, Z-S., Yu, J-P., Pysarchik, D. 2006. Antecedents to Indian consumers new product purchase decisions: The role of expected and perceived value. European Institute of Retailing and Services Studies, Recent Advances in Retailing and Services Science Conference, Budapest, Hungary. Proceedings:250.
- Pysarchik D. 2006. Market development in India: Processed food industries. Presentation at Agricultural Markets and Trade Project Directors Meeting: Washington, DC.
- Yu, J. P. 2006. Theoretical perspectives of supplier-buyer long-term relationships in India. Doctoral dissertation, PhD Dissertation from the project Michigan State University, East Lansing: Michigan.
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Progress 01/01/05 to 12/31/05
Outputs
The overall goal of the project is to determine the critical antecedents to Indian consumers' adoption of processed food products in the context of changing industry structure and channel relations in the processed food industries of India. The objective is to identify and profile consumer segments in India that, through their characteristics, behavior and usage patterns are likely to become important market segments for processed foods. Phase I (qualitative research) of this project was completed. One hundred 1.5 hour focus group interviews were conducted in five research sites in India: Delhi, Mumbai, Hyderabad, Calcutta, and Ludhiana. Transcriptions of each focus group session were completed; content analysis has been completed and coded. Phase II (empirical research)-- from the focus group results, the empirical survey instruments have been developed, translated into the local languages, pretested in India, and subsequently revised. Using the revised instruments,
empirical surveys of Indian consumers were conducted in six research sites in March 2005 in India: Delhi, Mumbai, Hyderabad, Calcutta, Ludhiana and Bangalore. A total sample of 1,484 respondents was realized. Data have been coded and prepared for analysis. Lay, trade and research publications are being prepared.
Impacts
At the completion of this study, our expectation is that detailed demand information about Indian processed food markets will have been established, including consumer cultural factors, and market segmentation opportunities. Further, marketing strategies for niche products that would be appropriate for direct investment, cooperative alliances and franchising will be developed. Results will be shared widely with the processed food industry, trade organizations and academic researchers.
Publications
- Chung, J.E., Yu, J.P., Pysarchik, D.T. (2006). Cue utilization to assess food product quality: a comparison of consumers and retailers in India. International Review of Retail, Distribution and Consumer Research.
- Refereed Professional Conference Proceedings Chung, J.E., Yu, J.P., Pysarchik, D.T. (June 2005). Cue utilization to assess food product quality: a comparison of consumers and retailers in India. The 13th International European Association for Education and Research in Commercial Distribution Conference on Research in the Distributive Trades, Proceedings, Lund, Sweden.
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Progress 01/01/04 to 12/31/04
Outputs
The overall goal of the project is to determine the critical antecedents to Indian consumers' adoption of processed food products in the context of changing industry structure and channel relations in the processed food industries of India. The objective is to identify and profile consumer segments in India that, through their characteristics, behavior and usage patterns, are likely to become important market segments for processed foods. Phase I (qualitative research) of this project was completed. One hundred One and one-half hour focus group interviews were conducted in five research sites in India: Delhi, Mumbai, Hyderabad, Calcutta and Ludhiana. Transcriptions of each focus group session were completed; content analysis has been completed and coded. Publications are being prepared. Phase II (empirical research)-- from the focus group data, the empirical survey instruments have been developed, pretested in India, and subsequently revised. Data collection using the
revised instrument will begin in March 2005.
Impacts
At the completion of this study, our expectation is that detailed demand information about Indian processed food markets will have been established, including consumer cultural factors, and market segmentation opportunities. Further, marketing strategies for niche products that would be appropriate for direct investment, cooperative alliances and franchising will be developed. Preliminary results from the qualitative phase of the research will be made available through publications and presentations in 2005.
Publications
- Pysarchik, D., Yu, J-P, Chung, J-E. 2004. Processed Food Quality Perception: A Comparison of Consumers and Retailers in India. Working paper.
- Byun, S. E., Choo, H. J., Pysarchik, D. T. 2003. Market potential of processed foods in India: Supply chain perspectives. In J.R. Evans (Ed.), Retailing 2003: Strategic Planning in Uncertain Times: Special Conference Series, Vol. x, Academy of Marketing Science and American Collegiate Retailing Association, Columbus, Ohio, 181-190pp.
- Choo, H-J, Chung, J-E,, Pysarchik, D. T. 2004. Antecedents to new food product purchasing behavior among innovator groups in India. European Journal of Marketing, Vol. 38, No. 5/6, 608-625pp.
- Dutta, P. K., Pysarchik, D. T., Yu, J. P. 2004. Indian consumers= new product purchases: The influence of reference groups and product familiarity. 11th International Conference of the European Institute of Retailing and Services Studies on Recent Advances in Retailing and Services Science, Prague, Czech Republic, 47pp.
- Ling, S.S., Pysarchik, D. T., Choo, H. J. 2004. Adopters of new food products in India. Marketing Intelligence and Planning, Vol. 22, No. 4, 371-391pp.
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Progress 01/01/03 to 12/31/03
Outputs
The overall goal of the project is to determine the critical antecedents to Indian consumers' adoption of processed food products in the context of changing industry structure and channel relations in the processed food industries of India. The objective is to identify and profile consumer segments in India that, through their characteristics, behavior and usage patterns, are likely to become important market segments for processed foods. The first stage of this new project is to conduct focus group interviews with Indian consumers. The focus group interview schedule has been developed and 100 focus group interviews are being conducted in five research sites in India: Delhi, Mumbai, Hyderabad, Calcutta and Ludhian. Interviews are scheduled to be completed in April 2004, at which time content analysis will be completed. Publications outlining the results will be prepared within the balance of the year.
Impacts
At the completion of this study, our expectation is that detailed demand information about Indian processed food markets will have been established, including consumer cultural factors, and market segmentation opportunities. Further, marketing strategies for niche products that would be appropriate for direct investment, cooperative alliances and franchising will be developed.
Publications
- No publications reported this period
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