The importance of the regional aspect for the purchase behaviour of consumers concerning food products - a comparing example of three different less favoured regions of Germany

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The importance of region of origin in influencing consumer behaviour for food products

- a survey in three German regions -

B. Wirthgen, H. Kuhnert, M. Altmann, U. Demmin & A. Wirthgen
University of Kassel

Preliminary notes

This study is not yet completely analysed. In this workshop some interesting results shall be presented and discussed. The authors have decided to present some findings already at this stage as they believe that the regional aspect for consumers purchase behaviour is especially important considering the development of regional marketing concepts in less favoured regions.

The research was initiated due to the growing importance of regional marketing concepts which they obtain in the context of regional planing concepts. It is necessary to examine, whether the regional 'triumph card' actually deserves the consideration which is given to it by policy.

Introduction

In Germany and in other countries of the EU it is increasingly recommended for single regions to develop regional marketing concepts. These could be concepts for products or services, which are based on the image of the individual regions.

The development and the adoption of regional concepts is supported by government policy in the hope to promote the development of the - mostly less favoured - region. In this context, it is assumed that a considerable part of the consumers show a purchase behaviour favouring the product originating from their own region. Up to now there are only a few studies (HENSCHE et al. 1993, WOLFRAM 1997 and HAMM et al. 1997), which furthermore present partly varying findings towards the importance of the regional aspect for the food purchase behaviour of consumers.

HENSCHE et al. (1993, S. 127) state that in North Rhine-Westfalia (NRW) there is a consumers preference for food produced in their local region. 30 % of the interviewees would preferably buy food products originating from their own region.
WOLFRAM (1997, Sonderbeilage 2) states from his research as well this preference of NRW-consumers for regionally produced food. However, his findings show a strong limitation considering the willingness to pay. Only one third of the interviewees preferring products from NRW would also be prepared to pay a higher price for them.

Preliminary results

The following pages briefly summarize the main preliminary results of our survey in three different German regions (see figure 1):

Figure 1: Regions of the consumer survey

Table 1 shows the research design of the project. The originally planed East-West-comparison with North Hesse and Thuringia was extended to a second East-German region Saxony-Anhalt. The extension was necessary as the research showed, that food from Thüringen has an outstanding regional image. The research regions are neighbour countries. In each region the population of cities and small towns was equally interviewed by direct consumer survey.

Table 1: Research design of the study "Buying behaviour for regional food products"

Objective:	Importance of the regional origin for the purchase decision
Survey:	Consumer survey by face to face interviews
Place of survey:	The survey was undertaken in three regions: West-Germany: North Hesse as LFA (except Kassel) and East-Germany: Thuringia and Saxony-Anhalt as objective 1 areas
Sample:	328 interviews with one third in each region: only housekeeping persons sex: 70 % females and 30 % males age: 4 quotas for age-groups with further restrictions
Object of research:	Regional food products (defined as produced in the region - not depending on the raw material) by means of a presented product list (see table 3)
Analysis methods:	Cross tabulations Factor analysis Cluster analysis Regression analysis
Criterion for measuring the relevance of consumers attitudes for their purchase behaviour:	Purchase intensity of regional products with the help of a purchasing index

The following table 2 presents the varying importance of criteria when purchasing food. These criteria were asked at the beginning of the interview. The attributes were read to the interviewees and ranked by them in terms of five-pole-scale from 1 (very unimportant) to 5 (very important). The flavour- and health-orientated criteria have greater importance for the interviewees than the more altruistic motives. The aspect "regionally produced" was classified as altruistic. Aspects concerning flavour are still of greater importance than health criteria. This was already stated in other research findings. Marketing criteria such as price, mark of origin and quality marks are still seen as less important.

Referring to the regional differences it shall be mentioned that

the criterion "regionally produced" is of higher value for East German consumers than for the average of the sample; North Hesse consumers on the other hand ranked this aspect lower than the average;
the price criterion seems to be of greater importance for East-Germany than for West-Germany, which means that the East German consumers are usually more price sensitive than the West Germans;
there seem to be regional differences as well concerning the aspect "healthy". Thuringia showed the highest mean values. Compare here also table A2 in the appendices where the regional factor values are shown as deviation from the mean value.

Table 2: Importance of purchase criteria when buying food (North Hesse, Thuringia, Saxony-Anhalt)

Criteria	Means¹⁾²⁾
Egoistic, hedonistic orientated criteria - Freshness - Flavour - Appearance	4.7 4.6 3.5
Egoistic, health-orientated criteria - Healthy - Not gen-technically produced - No preservatives - Organically produced	4.3 (4.0)³⁾4.0 3.7
Altruistic criteria - Environmental packaging - Not gen-technically produced - Organically produced - Regionally produced - Producer known	4.0 (4.0)³⁾3.7 3.6* 3.4
Marketing criteria - Price - Mark of origin / country of origin - Quality mark - Brand	3.8* 3.8 3.6 2.7

¹⁾ Signifikant regional differences with a confidence level of 95 % are marked with *. ²⁾ Scaling: 1 (very unimportant) to 5 (very important). ³⁾ Mean value is only of very limited validity as many interviewees showed a lacking knowledge about the expression - in these cases the statement was marked after explanation.

Question: How important are the following criteria for your food purchase?

Source: WIRTHGEN et al. 1997, University of Kassel

Table 3 presents a list of all products and product groups which were used to measure the actual purchase behaviour for regionally produced food products. This list covers approximately 60 to 65 % of all food expenditure of an average 4 head consumer household.

Table 3: Product list in order to estimate the actual purchase behaviour for regional food products

Vegetables	Meat
Fruits	Milk
Potatoes	Cheese and other milk products
Bread, cakes and pastries	Eggs
Sliced cold meat and sausages	Honey and jam

Questions: Which of these products do you buy intentionally with origin from your region? How much of the total amount of each product group do you spend on food originating from your region (more than 30, 50, 80 or 100 %)?

Source: WIRTHGEN et al. 1997, University of Kassel

Figure 2 presents the findings of the measuring of attitudes. An attitude matrix including 24 items towards the regional purchase was developed (for the most important statements see appendices) and read to the interviewees for ranking. This was done by means of a five-pole-scale from 1 (I do not agree at all) to 5 (I totally agree). The factor analysis was used to cut down the numerous statements into four factors which are presented in figure 2. The four factors were examined towards their contribution to the explanation of the purchase intensity and the purchase behaviour for regionally produced food products. This led to following important findings:

Factor 1, which reflects the regional image and the regional identity contributes most to the explanation of the shown purchase behaviour for regionally produced food.
Factor 2 expresses the political aspects of the regional purchase, in other words the will to support the region with one´s own purchase. This factor as well explains a high part of the purchase behaviour for regionally produced food. Compared to table 2, this factor seems obviously to be of greater influence for the interviewees in this approach than in the direct evaluation of the main general purchase criteria.
Factor 3, the willingness to pay more for food products originating from one´s own region, and
Factor 4, the convenience aspect when purchasing food, can only explain a little of the purchase behaviour. This could be caused by the fact that the willingness to pay more is only partly of relevance for the examined product line from the region, hence in the covered East German regions the majority of the interviewees stated to buy regionally produced food products cheaper than the comparable products from other origins. The small factor value of factor 4, the quick and convenient purchase, is a consequence of the relative good availability of regional products at retailers, bakeries and butchers. The direct purchase from the farmer, which is usually connected with higher effort, seems to play an only less important role. Only on average 10 % of the interviewees who buy regional food products (from North Hesse more than from the other regions) indicate to buy these direct from the farmer (this usually means at the farm gate). In contrast to this, the convenience factor plays the important role for the purchase of direct marketing products. This is shown in earlier researches of KUHNERT, WIRTHGEN and ALTMANN 1990, S. 75ff.

All four factors together explain 33 % of the purchase behaviour for regionally produced food products (r² = 0.326). Such a low r² does not provide a statistical ensured result for the correlation of the attitude structure (factors) and the purchase behaviour. However, such results can offer helpful approaches for marketing decisions.

The reached r² of 0.326 is quite acceptable considering the fact of a psychological approach towards the examination of food products which are not or only rarely marked and from the fresh food assortment. Generally considering this kind of research, first there are difficulties when trying to cover all possible behaviour-relevant attitudes as independent variables and later problems come up due to the time pressure for the interviewees answering the question after the actual purchase behaviour as dependent variable. This is especially valid for not clearly defined products such as "regionally produced food products".

Figure 2: Contribution of the factors to the explanation of the purchase behaviour when buying regionally produced food products

r² = 0.326

Source: WIRTHGEN et al. 1997, University of Kassel

In further analysis it was tried to group the sample in different types of buyers in other words in consumer segments. Using the cluster analysis it is possible to group interviewees with similar attitudes ( in this case concerning the regional product). As an example, cluster 5 is presented in figure 3. This cluster showed the highest purchase intensity for regional products. All here underlying scores favour an on average higher purchase intensity of these products. This cluster includes all these interviewees who in addition to their positive attitude towards their own region target to actively support the region with their purchase. Therefore this cluster is named the "Regional Patriot". The structures of attitudes of the other clusters are made available in the appendices.

Figure 3: Cluster 5 "Regional Patriot" (n = 112 )

Selected cluster with the highest purchase intensity of regionally produced food products

Source: WIRTHGEN et al. 1997, University of Kassel

Further characteristics of this cluster:

The major part of the interviewees are from Thuringia;
this group is of a higher age than the average and does not include any apprentices/students;
other socio-demographic data represent the average of the total sample;
A total of 89% of the interviewees said that food products from their region play an important/very important part in their food purchase.

Conclusions

As a clear purchase criterion, the characteristic "regionally produced" does not play the important role. The aspects freshness, flavour and health seem to have much greater importance than the regional origin.
However, the purchase intensity of regional food is relative high, particularly of product groups like - bread, cakes and pastries; artisanal

- meat and sausages; products

- eggs.

On average 80 % or more of these products are intentionally bought from their own region by 50 % of the part of the interviewees who buy intentionally regional products and could also state roughly how much they usually buy. These regional buyers usually purchase on average about 6 food products originating from their own region. Only roughly 5 % of the interviewees do not buy any regional food products with the initial intention to buy some.

The high part of regional food purchases can probably be explained by the freshness- and quality image of these products. This is usually also the case for regional artisanal products. Often the reason for purchasing these products is their freshness and not their regional origin.
The importance of the regional aspect concerning food purchases can highly fluctuate depending on the region.
Regionally produced food products do not have to be more expensive. Here exist regional differences.
Both attitude-dimensions concerning the region - 'image' and 'political attitude' - contribute almost equally to the explanation of the purchase behaviour towards regional food products.
The ideal consumer of regional food products should have the following attitudes:

Positive attitude towards the region as the production location of food products (image);
positive political attitude towards support of the region;
willingness to pay more for regionally produced food products, although it is not necessary at all for many of these products;
acceptance of longer shopping distances, in case the desired regional product is not available at the usual point of sale.

Consequences for the regional marketing:
- The emphasis of the political component of the regional aspect is of equal importance as the image component (in East-Germany even more than in West-Germany).
- Labelling products with a mark of origin (especially for products originating from a specific region) should get more consideration as it is currently the case. This is especially valid for North Hesse.
- Conventional retailers should take more regional food products in their assortment.
- In West-Germany the price of regional products plays a secondary role. It seems that there, the regional products could be priced higher than products from other origins. This is of particular validity for farmhouse products and organic products.

The Authors

WIRTHGEN, Bernd: Prof. Dr., Department of Agricultural Marketing, University of Kassel, Witzenhausen

KUHNERT, Heike: Dipl.-Ing. agr., Research assistant of the Department of Agricultural Marketing, University of Kassel, Witzenhausen

ALTMANN, Marianne: Dr., CO-CONCEPT, Luxemburg (Marketing-Planing)

DEMMIN, Urbain: Student of the ENITA, Clermont-Ferrand, Practical training, Department of Agricultural Marketing, University of Kassel, Witzenhausen

WIRTHGEN, Antje: Msc., Research assistant of the Department of Agricultural Marketing, Institute for Horticulture, University of Hannover

References

HAMM, U.; M&UUML;LLER, M. u. E.-M. FLICK (1997): Einkaufsverhalten in Norddeutschland. Schriftenreihe der Fachhochschule Neubrandenburg, Reihe A, Fachbereich Agrarwirtschaft und Landespflege, Band 1.

HENSCHE, H.-U.; HAUSER, A.; REININGER, G. u. C. WILDRAUT (1993): Verbraucherpräferenzen für Nahrungsmittel aus der näheren Umgebung - eine Chance für marktorientierte Landwirte. Empirische Ergebnisse aus Nordrhein-Westfalen. Marketing der Agrar- und Ernährungswirtschaft, Heft 7. Wissenschaftsverlag VAUK Kiel KG.

WOLFRAM, R. (1997): Entwicklung des ländlichen Raumes - Konzepte zum Aufbau regionaler Vermarktungsstrukturen in Nordrhein-Westfalen. Agra-Europe Heft 12, Sonderbeilage, S. 1-18.

KUHNERT, H.; WIRTHGEN, B. und M. ALTMANN (1990): Verbrauchereinstellungen zur Direktvermarktung und zum Direkteinkauf landwirtschaftlicher Produkte. Arbeitsberichte zur angewandten Agrarökonomie, Nr. 11. University of Kassel, Witzenhausen.

APPENDICES

Table A1: Results of the factor analysis

Factor 1 Positive image of regionally produced food products Factor loading Means¹⁾

v 113 I have high confidence in food products from North Hesse/Thuringia/Saxony-Anhalt. 0.8 4.1

v 117 I am proud of our regional specialities. 0.8 3.9

v 128 Products from our region belong traditionally to us. 0.64 4.1

v 114 I feel happy in this region. 0.6 4.4

v 112 I especially enjoy products from this region. 0.56 3.5

v 124 Food products from my region guarantee freshness. 0.46 3.8

Factor 2 Political motives for the purchase of regionally produced food products Factor loading Means

v 131 I buy regionally produced food products in order to avoid long transport distances. 0.7 3.8

v 129 I buy regionally produced food products in order to support local farmers. 0.66 3.8

v 126 I buy food products originating from my region in order to ensure/preserve jobs. 0.61 3.7

v 119 I always want to know, where the food products - which I buy - come from. 0.61 3.6

Factor 3 Willingness to pay more for regionally produced food products Factor loading Means

v 120 I am not willing to pay more for a product originating from this region. -0.75 2.6

v 116 I would accept a higher price for food products with guaranteed freshness. 0.72 3.9

v 130 I would accept a higher price for a product which is labelled with a mark of origin from my region. 0.57 3.4

Factor 4 Importance of convenient and fast purchase when buying food products Factor loading Means

v 123 Convenience plays the most important role when I buy food. 0.68 2.8

v 115 I don't think a lot about my food purchase, I just want to have it done. 0.65 2.2

v 118 For a certain food product, I would even go and have a look in several shops, if it's necessary. -0.6 3.7

¹⁾ Scaling: 1 (I don´t agree at all) to 5 (I totally agree).

Source: WIRTHGEN et al. 1997, University of Kassel

Table A2: Factor values in comparison of the regions concerning the importance of the regional aspect, = 0,00

North Hesse Saxony-Anhalt Thuringia

F 1 Positive image -0.50 0.15 0.38

F 2 Political motives 0.00 -0.15 0.16

F 3 Willingness to pay more -0.04 -0.12 0.17

F 4 Convenient purchase -0.23 0.07 0.17

Source: WIRTHGEN et al., 1997, University of Kassel

Table A3: Factor values in comparison of the clusters concerning the importance of the regional aspect, = 0,00

Cluster 1
n = 91 Cluster 2
n = 53 Cluster 3
n = 49 Cluster 4
n = 23 Cluster 5
n = 112

F 1 Positive image 0.69 -1.34 -0.80 0.63 0.30

F 2 Political motives 0.18 -0.19 -0.21 -2.29 0.50

F 3 Willingness to pay more -0.76 -0.35 0.51 0.30 0.50

F 4 Convenient purchase 0.52 -0.66 1.30 -0.65 -0.55

Purchase intensity of regional food 0.10 -0.53 -0.40 -0.75 0.51

Source: WIRTHGEN et al. 1997, University of Kassel

Factor 1	Positive image of regionally produced food products	Factor loading	Means¹⁾
v 113	I have high confidence in food products from North Hesse/Thuringia/Saxony-Anhalt.	0.8	4.1
v 117	I am proud of our regional specialities.	0.8	3.9
v 128	Products from our region belong traditionally to us.	0.64	4.1
v 114	I feel happy in this region.	0.6	4.4
v 112	I especially enjoy products from this region.	0.56	3.5
v 124	Food products from my region guarantee freshness.	0.46	3.8
Factor 2	Political motives for the purchase of regionally produced food products	Factor loading	Means
v 131	I buy regionally produced food products in order to avoid long transport distances.	0.7	3.8
v 129	I buy regionally produced food products in order to support local farmers.	0.66	3.8
v 126	I buy food products originating from my region in order to ensure/preserve jobs.	0.61	3.7
v 119	I always want to know, where the food products - which I buy - come from.	0.61	3.6
Factor 3	Willingness to pay more for regionally produced food products	Factor loading	Means
v 120	I am not willing to pay more for a product originating from this region.	-0.75	2.6
v 116	I would accept a higher price for food products with guaranteed freshness.	0.72	3.9
v 130	I would accept a higher price for a product which is labelled with a mark of origin from my region.	0.57	3.4
Factor 4	Importance of convenient and fast purchase when buying food products	Factor loading	Means
v 123	Convenience plays the most important role when I buy food.	0.68	2.8
v 115	I don't think a lot about my food purchase, I just want to have it done.	0.65	2.2
v 118	For a certain food product, I would even go and have a look in several shops, if it's necessary.	-0.6	3.7

	North Hesse	Saxony-Anhalt	Thuringia
F 1 Positive image	-0.50	0.15	0.38
F 2 Political motives	0.00	-0.15	0.16
F 3 Willingness to pay more	-0.04	-0.12	0.17
F 4 Convenient purchase	-0.23	0.07	0.17

	Cluster 1 n = 91	Cluster 2 n = 53	Cluster 3 n = 49	Cluster 4 n = 23	Cluster 5 n = 112
F 1 Positive image	0.69	-1.34	-0.80	0.63	0.30
F 2 Political motives	0.18	-0.19	-0.21	-2.29	0.50
F 3 Willingness to pay more	-0.76	-0.35	0.51	0.30	0.50
F 4 Convenient purchase	0.52	-0.66	1.30	-0.65	-0.55
Purchase intensity of regional food	0.10	-0.53	-0.40	-0.75	0.51