Purpose: This paper aims to summarize the results of an empirical project to understand the perceptions of consumers of the future high end products in the USA. This project was a precursor of a larger global project on the topic. Design/methodology/approach: The approach utilizes the consumer insights-driven process, rule-developing experimentation (RDE), introduced by the senior authors and developed in cooperation with Wharton School of Business (University of Pennsylvania). The empirical part was conducted with qualified US consumers (middle- and upper-middle class respondents). Based on a series of in-depth qualitative interviews with global leaders of luxury and premium companies, star designers and thought leaders, five dimensions of high end offering were identified, with each dimension having a unique set of four factors (elements). The second part included a quantitative survey based on RDE (modified conjoint analysis) conducted in the USA with 373 qualified middle- and upper-middle class respondents to discover the driving forces behind their perceptions of high end. Findings: There are four distinct consumer mindsets towards future high end products. The segmentation is based on a disciplined experimentation afforded by RDE and produces a more targeted understanding of the consumer mind. Practical implications: The paper provides insights of what might drive the consumer perception of high end products in the near future. The pattern-based consumer mind-set segmentation creates actionable directions for corporations in answering today's big question "How can brands migrate from being cost-driven commodities to higher margins and profits?" The answer is in the high end. Originality/value: The approach offered here could help designers and brand managers to efficiently create better products that consumers like and perceive as high end. This will result in higher margins and help marketers to differentiate their respective products from the competition.
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This paper describes a study into consumers' reasons for buying socially responsible (SR) products, such as Fair Trade products and organic meat. As opposed to other studies, we use a qualitative approach based on 25 in-depth interviews and include several different products in the research. This leads to several new results, such as: (1) buying SR products is perceived as an imperfect moral duty; (2) low quality of SR products is a dissatisfier, but high quality not a satisfier; (3) the attitude towards SR products is related to the reputation of charitable funds; (4) the demand for SR products is negatively related to the frequency of purchasing SR products; (5) reflection on SR products raises the demand for SR products; (6) consumers that have witnessed the social problems that SR products aim to alleviate purchase more SR products. Finally, we find that the demand for different SR products is correlated: if a consumer buys one SR product, it is more likely that (s)he purchases other SR products as well.
The production, use, disposal and recovery of packaging not only generates massive volumes of waste, it also consumes raw materials, water and energy (Fitzpatrick et al. 2012). Simultaneously, consumers have shown an increasing interest in products incorporating sustainable and social attributes (Kletzan et al., 2006). As a result, environmentally friendly packaging, also called ecofriendly or sustainable packaging, has become mainstream. In this context, packaging is more than just ensuring the product's protection and easing transportation, it is also a communicative tool (Palmer, 2000) and it becomes associated with multiple drivers of the purchasing process. Consequently, companies face pressure to innovate responding to consumer demands, and focusing on sustainable solutions that reduce harmful materials and favour green alternatives for both, the product and the packaging. Although the above has triggered research on consumer choice for sustainable products and alternatives on sustainable packaging, the relation between sustainable packaging and consumer behaviour remains underexplored. This research unpacks this relationship, i.e., empirically verifies which dimensions (recyclability, biodegradability, reusability) of sustainable packaging are perceived and valued by consumers. Put differently, this research investigates consumer behaviour towards the functions of sustainable packaging in terms of product protection, convenience, reliability of information and promotion, and scrutinises the perceived credibility of the associated ethical responsibility claims. It aims to identify those packaging materials and/or sustainability characteristics perceived as more sustainable by consumers as well as the factors influencing actual consumer choice towards sustainable packaged products. We aim to gain more insights in the perceptual frame that different types of consumers apply when exposed to sustainable packaging. To this end, we will make use of revealed preference methods to measure consumer valuations of sustainable packaged products. This game-theoretic approach should provide a more complete depiction of consumers' perceptions and preferences.
