Socio‐demographic basic factors of German customers as predictors for sustainable consumerism regarding foodstuffs and meat products

An important step in promoting sustainable purchase behaviour is to explore the understanding of responsible consumerism from the consumers’ point of view. For this purpose, a study among 1040 German consumers was carried out using a two‐pronged approach. First, open‐ended questions were used to explore the characteristics of sustainable food consumption in general as well as the willingness and meaningfulness of a low‐meat diet from the consumers’ point of view. After that the interactive structure behind the term was studied using a quantitative empirical method. As standard of evaluation the four underlying socio‐demographic factors gender, age, wealth and education are used. Apart from the consumers’ financial situation, the applied statistics show significant correlations of the propensity for sustainable consumerism to each of the above factors. Women, middle‐aged and well‐educated consumers show a greater tendency to purchase environmentally and socially sustainable products. Accordingly, the suitability of socio‐demographic factors is confirmed in this study. The open‐ended questions fathom what attributes consumers connect with sustainable food consumption, in particularly with regard to the consumption of meat. It is clear that attributes that affect consumers directly and attributes which can be directly influenced by their actions are better perceived by the consumer. Altruistic factors or abstract aspects of food consumption (e.g. climate protection) are generally of less significance. Conversely, factors which concern the value added chain, like for example, origin and processing, have priority. To conclude, the findings enable the identification of the variables determining the sustainability construct. This allows policy makers to develop customized incentive systems. Similarly, private sector stakeholders are enabled to adapt marketing activities and their product mix to consumer demands.     

Retail environment and manufacturer competitive intensity

We study how the intensity of competition and the degree to which manufacturers enjoy market power depends on the retail environment in a given market. Past research has discussed the growing importance of retailers and the power they enjoy over manufacturers. Yet, the empirical literature to date has not determined which retail characteristics have the largest impact on competitive behavior.Our starting point is the estimation of a structural demand-and-supply model, where both consumers’ decisions and the strategic interactions between manufacturers and retailers are explicitly modeled. We identify the type of competitive behavior of manufacturers by measuring the deviation from a Bertrand-Nash equilibrium. This measure of competitive conduct is expressed as a function of key retail characteristics such as size of the retailer, its assortment depth, and category expertise.We illustrate the proposed approach using data for the ground coffee category in Germany. Our findings indicate that retail characteristics have indeed a significant effect on competitive intensity among upstream firms and on their ability to exercise market power. Hence, a manufacturer considering entry into a new market should not only take into account its competitors but also the specifics of the retail environment in this market.     

Brand placements in video games: How local in-game experiences influence brand attitudes

Brand placements are omnipresent in video games, but their overall effect on brand attitudes is small and varies substantially between studies. The present research takes an evaluative conditioning perspective to explain when and how brand placements in video games influence brand attitudes. In two experiments with a 3D first-person video game, we show that only brands encountered during positive in-game experiences benefit from the placement, but not those encountered during negative in-game experiences. Building on the cognitive processes underlying evaluative conditioning, we also show that brand attitudes largely depend on the memory for the pairing of a brand with positive/negative in-game experiences. Pairing memory and thus also evaluative conditioning effects increase when players attend to the pairing of brands and positive/negative experiences, for example, when such pairings are a central part of the game's storyline. Overall, our findings show that evaluative conditioning and its cognitive mechanisms can be utilized to explain and predict advertising effects in applied settings, such as brand placements in video games.