University of Twente Student Theses

Factors influencing consumers’ adoption of and resistance to functional food product innovations : an impirical investigation into adoption and resistance to functional food product innovations among German customers, to provide new opportunities in health claims regulated markets

Mack, Florian (2018) Factors influencing consumers’ adoption of and resistance to functional food product innovations : an impirical investigation into adoption and resistance to functional food product innovations among German customers, to provide new opportunities in health claims regulated markets.

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Abstract:	Foods with added health benefits, known as functional foods, are trending with consumers and provide potential for innovation and differentiation for suppliers. However, their unique selling proposition cannot be communicated properly to the consumers, due to the European health claims regulation. There are significant market-related and regulatory boundaries, making it hard to launch and establish these products, especially on the German market. This study aims to provide knowledge and new opportunities to this matter, by examining several factors, in addition to health benefits, which influence adoption or resistance of new product innovations in the field of functional food among German consumers. To this end, findings in adoption and resistance literature, as well as in functional food acceptance, are aggregated to propose factors, as well as to propose a conceptual model integrating the research streams into a single framework. A review of related literature reveals the relevance of innovation characteristics and adoption barriers in the context of functional food innovations. This study accounts for innovation adoption being a process, distinguishing by the two separate dependent variables adoption intention and adoption behavior. To be able to test the relationship with multiple linear regression, primary data was collected by means of an online-survey given to consumers on the German market (N = 316). Next to the testing of factors in a general manner, a case experiment is included, using a particular functional food product invention, to complement the findings. 183 participants stated the intention to adopt this presented product, of which 67 bought it directly through the survey, thereby showing adoption behavior. Drawing from the results of this study, it can be said that there is a positive influence on the innovation adoption of a new functional product if it is perceived as having a relative advantage due to health benefits, as well as being triable before purchase and compatible with the consumers' personal values. On the other hand, a perceived unfavorable price-to-value relation, bad taste, and distrust towards the claims made by the suppliers, might impede the decision to adopt the innovation. A barrier resulting from habit change and physical risk has been shown not to be a significant predictor of the behavior and intention to adopt. The results suggest that even in health claims regulated markets, there might be a good chance for suppliers to successfully realize adoption of their new product innovation, by focusing efforts on these influential factors, next to health benefits. Most notable for research in the field might be the importance of trialability for the consumers, as well as the fact that the extent of the effects differs for almost all factors amongst the two stages of innovation adoption.
Item Type:	Essay (Master)
Faculty:	BMS: Behavioural, Management and Social Sciences
Subject:	85 business administration, organizational science
Programme:	Business Administration MSc (60644)
Link to this item:	https://purl.utwente.nl/essays/75033
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