Consumption of Convenience Meat Products: Results from an Exploratory New Jersey Survey

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Consumption of Convenience Meat Products: Results from an Exploratory New Jersey Survey Rodolfo M. Nayga, Jr. and Zafar Farooq This exploratory study examines the effect of various factors on the decision to consume convenience meat products. Factors important to the decision by consumers to try convenience meat products are fat consciousness, number of adults and children in the household, education level, ownership of a microwave oven, average time to cook dinner, age, and to some extent, income. Background demographic factors that come into play are: a growing number of women, married and single, in the Recent trends in food consumption indicate an work force; more families living on two incomes; the increased interest in convenience food products (prod- impact of advertising and promotion by large food ucts that transfer the time and activities of preparation service chains; and the growth of one-adult households from the consumer to the processor or retailer). (Nayga and Capps 1992). Examples of convenience-driven food products and In essence, increases in real income, declines in services include take-out food, fast-food, frozen household size, and increases in the proportion of entrees, microwavable dishes, and home-delivered women in the work force have contributed to the food (Kinsey 1994). A recent survey indicated that outward shift in demand for convenience food prodgrocery store executives believe that the demand for ucts. Although the food industry recognizes the new convenience foods will increase as a portion of the realities of the marketplace, little information exists on total market basket by the year 2000 (Russo and the factors affecting the consumption of convenience McLaughlin 1992). Moreover, another study by the food products. Among the few studies conducted in Food Marketing Institute and Campbell Soup the past that concerned with convenience products are Company revealed that approximately 15 percent of by Capps and Pearson (1986), Pearson et al. (1986), total food dollars go to take-out purchases; 19 percent Capps (1989), and Capps and Nayga (1991). More of total food dollars is spent on food eaten in restau- specific knowledge of consumer attitude and preferrants; and the remaining 66 percent is spent on food ences is essential so that suitable production and marprepared at home. However, food prepared at home keting adjustments can be made by food processors also includes convenience food products. In essence, and retailers. This information will allow producers, at least one in every three dollars spent on food is processors, and distributors to anticipate trends in now going to convenience food marketers and away retail markets, to improve planning, and to provide from home food outlets. better consumer service. Demand for convenience food products is driven The objective of this exploratory study is to examby the high value of time in society (Kinsey 1994). ine several demographic and psychographic character- Due to increased value of time, consumers today want istics of consumers who have tried convenience meat the food they buy to be easy and quick to prepare. products. The aim of the research is to provide infor- Many Americans are tired and hungry at the end of mation that can be used as a guide to improve effithe day and do not want to cook but want the comfort ciency of the marketing system and quality of conveand ease of eating at home (Senauer et al. 1991). The nience meat products. move toward convenience is also prompted by changes in consumer demographics and lifestyles (Marketing News, 6 June 1988). Some socio-economic and Respectively, Assistant Professor and Graduate Student, Department of Agricultural Economics and Marketing, Rutgers University. The authors wish to acknowledge financial support from the Rutgers University Research Council under grant No. 2-02049. Journal of Food Distribution Research February 95/page 33

Method terms of education, about 37 percent either had no formal education or had reached only primary or A telephone survey of 110 randomly selected secondary schooling and 63 percent had reached at individuals was conducted over the 2nd quarter of least the university or graduate level. About 80 per- 1994. In order to keep costs of the study low, the cent of the 94 respondents had a microwave oven in target areas selected were within the calling exchanges their households. of Central New Jersey. The phone numbers of Roughly 45 percent of the respondents indicated respondents were not obtained from the phone book to that they spend an average of 30 minutes or less cookreduce sampling biases. Instead, the random digit ing dinner while 55 percent revealed spending more dialing method was used. Calls were made on Mon- than 30 minutes on the average cooking dinner. days to Fridays between 7:00 p.m. and 9:00 p.m. or About 45 percent of the respondents are white, 22 on Saturdays and Sundays between 10:00 am and 1:00 percent are black, 15 percent are Hispanic, and 18 p.m.. Of the roughly 150 calls made, 94 respondents percent are of other races. Sixteen percent of the agreed to participate and complete the phone survey. respondents are between 16 and 24 years of age, 46 The details of the random digit dialing procedure and percent are between 25 and 34 years of age, 26 perthe exchange numbers used in the study are available cent are between 35 and 49 years of age, and 12 from the authors upon request. percent are 50 years of age or over. Approximately The length of the phone interview was short. It 14 percent of the respondents had annual household took at most four minutes to complete the survey once incomes of less than $15,000, 43 percent had incomes the respondent agreed to participate in the survey, of between $15,000 and $39,999, 23 percent had Most people who participated answered all the ques- incomes of between $40,000 and $74,999, and 20 tions. There were only two cases where the respon- percent had incomes in excess of $74,999. Fifty five dent disconnected the line while the phone interview percent of the respondents had tried convenience meat was still in process. Information requested in the products. survey included questions related to the respondent's To determine if those respondents who had purprice consciousness, fat consciousness, sex, employ- chased convenience meat products differ from those ment status, length of residency, number of adults and who had not purchased convenience meat products, children in the household, education, ownership of comparative means of the various variables listed in microwave, average amount of time spent cooking Table 1 were computed and analyzed for both groups dinner, race, age, and income. (referred to in Table 2 as "purchasers" and "non- Descriptive statistics of these variables as well as purchasers"). On the scale of 1 to 7, the average the means of the variables for those who have tried price consciousness of purchasers and non-purchasers (purchasers) and those who have not tried (non-pur- is 4.79 and 4.93, respectively. In terms of fat conchasers) convenience meat products were analyzed and sciousness, however, the average fat consciousness of are discussed in the next section. Further, a logit purchasers is a little higher than that of non-purchasmodel was developed and examined using the informa- ers. Moreover, as expected, a higher percentage of tion gathered above. The analysis evaluated the purchasers are employed compared to non-purchasers. hypotheses that a set of variables (mentioned above This result is not surprising considering the generally and listed in Table 1) influence the decision to try higher opportunity cost of time of employed individuconvenience meat products. als compared to unemployed individuals. The proportion of purchasers who have lived in the area for more Results than 5 years is also higher than the proportion of nonpurchasers. Descriptive statistics of these variables are exhibited in An interesting comparison can be made between Table 1. The means of the binary variables reflect the the purchasers and non-purchasers in terms of the proportions of consumers that fall into particular level of education. Based on the means exhibited in categories. In this sample, the average price and fat Table 2, a higher proportion of purchasers have consciousness of the respondents on a seven point reached the university or the graduate level than nonscale (where "1" is not at all conscious and "7" is purchasers. About three-fourths of the purchasers extremely conscious) are 4.85 and 4.90, respectively, have a university or graduate level of education while Males comprise about 47 percent of the sample: only about half of the non-purchasers have a university About 84 percent of the respondents are employed and or graduate level education. Another interesting comabout 52 percent have lived for more than 5 years in parison can be made for ownership of microwave. the area. The average number of adults and children About 90 percent of the purchasers own a microwave in the household are 2.27 and 0.80, respectively. In compared to only 67 percent of the non-purchasers. February 95/page 34 Journal of Food Distribution Research

Table 1 Table 2 Descriptive Statistics of the Variables Examined (Whole Sample) Comparative Means of the Variables: Purchaser and Non-purchaser Samples Variable Mean Std. Dev. Range Purchaser Non-Purchaser Price Consciousnessa 4.85 1.61 1-7 Variable (N = 52) (N = 42) Fat Consciousnessa 4.90 Price Consciousnessa 4.79 4.93 1.72 1-7 Male 0.47 Fat Consciousnessa 5.23 0.50 0-1 4.50 Employed Male 0.50 0.45 0.84 0.36 0-1 More than 5-Year Resident 0.52 Employed 0.90 0.76 0.50 0-1 More than 5-Year Resident 0.56 0.47 No. of adults in household 2.27 1.13 1-7 No. of children in householdo.80 No. of adults in household 2.10 2.50 1.20 0-5 Education No. of children in household 0.46 1.21 No formal - Secondary 0.37 0.48 0-1 Education University - Graduate 0.63 0.48 0-1 No formal - Secondary 0.27 0.49 Owned a microwave oven 0.80 University - Graduate 0.73 0.51 0.40 0-1 Average cooking dinner time Owned a microwave oven 0.90 0.67 30 minutes or less 0.45 0.50 0-1 Average cooking dinner time Greater than 30 minutes 0.55 0.50 0-1 30 minutes or less 0.58 0.31 Race Greater than 30 minutes 0.42 0.69 White 0.45 0.49 0-1 Black 0.22 0.41 0-1 Race Hispanic 0.15 0.35 0-1 White 0.50 0.38 Others 0.18 0.38 0-1 Black 0.21 0.24 Hispanic 0.12 0.19 Age Others 0.17 0.19 16-24 0.16 0.36 0-1 25-34 0.46 0.50 0-1 Age 35-49 0.26 0.44 0-1 16-24 0.15 0.17 50 and over 0.12 0.32 0-1 25-34 0.50 0.40 35-49 0.15 0.40 Annual Household Income 50 and over 0.20 0.03 Less than $15,000 0.14 0.34 0-1 $15,000 - $39,999 0.43 0.49 0-1 Annual Household Income $40,000 - $74,999 0.23 0.42 0-1 Less than $15,000 0.12 0.17 $75,000 and over 0.20 0.40 0-1 $15,000 - $39,999 0.41 0.43 Consumed convenience meat 0.55 0.49 0-1 $40,000 - $74,999 0.24 0.24 $75,000 and over 0.23 0.16 'On a seven point scale (1 = not at all conscious and 7 = extremely conscious). 'On a seven point scale (1 = not at all conscious and 7 = extremely conscious). Journal of Food Distribution Research February 95/page 35

Cooking time appears to be an important distin- likely to purchase convenience meat products than guishing factor as well between purchasers and non- those who have reached at least a university level of purchasers of convenience meat products. As shown education. Consistent with prior expectations, those in Table 2, a higher proportion (58 %) of purchasers who own a microwave oven are more likely to purcook dinner an average of 30 minutes or less while a chase convenience meat products. On the other hand, higher proportion of non-purchasers (69%) cook din- those who on average spend 30 minutes or less to ner an average of greater than 30 minutes. prepare dinner are more likely to try convenience About half of the purchasers of convenience meat meat products than those who spend an average of products in the sample are white. Only 38 percent, more than 30 minutes cooking dinner. however, of the non-purchasers are white. In terms In terms of age, the empirical results indicate that of age, the means in the two samples indicate that a those under the 35 to 49 age category are less likely higher percentage of purchasers compared to non- to try convenience meat products than those under the purchasers are in the 50 and over age category. In 25 to 34 age category. On the other hand, those who fact, 20 percent of the purchasers are in the 50 and are under the 50 and over age category are more over age category while only three percent of non- likely to try convenience meat products than those purchasers are in the same age category. However, a who are under the 25 to 34 age category. These higher percentage (40%) of non-purchasers are in the results seem to imply a nonlinear relationship between 35 to 49 age category. In terms of income, the means age and the likelihood of trying convenience meat of the two samples are relatively the same except in products. The reasons for these results are not clear the $75,000 and over category. A relatively higher and perhaps should be examined further in future proportion of purchasers compared to non-purchasers studies. are in this income category. Only one of the income variables is statistically A logit model was estimated using the maximum significant. Those who are under the $40,000 to likelihood technique to determine the impact of the $74,999 household income category are more likely to variables examined above on the likelihood of trying try convenience meat products than those who are convenience meat products. Maximum likelihood under the $15,000 to $39,999 income category. coefficients are consistent and asymptotically normally distributed. Therefore, conventional tests of signifi- Concluding Comments cance are applicable. The significance level chosen in this analysis was 0.10. The McFadden R 2 is 0.37 and This research explored some of the factors affecting the percentage of correct predictions using the 50-50 the decision to try convenience meat products. classification scheme is 0.77. These values are rea- Descriptive analysis was conducted and a logit model sonable considering the nature (cross-sectional) of the was developed to examine various variables. Factors data used. important to the decision by consumers to try conve- The maximum likelihood parameter estimates of nience meat products were fat consciousness, number the model are exhibited in Table 3. The empirical of adults and children in the household, education results indicate that the more fat conscious the individ- level, ownership of a microwave oven, average time ual is, the higher the likelihood that the individual will to cook dinner, age, and to some extent, income. try convenience meat products. It may be possible Although this study was conducted as an exploratory that some of those who have tried convenience meat effort, this information should assist in the identificaproducts in this study have actually purchased conve- tion of target groups inclined to purchase convenience nience lean meat products. Results also indicate that meat products. the number of adults and the number of children in the Due to the scope of the survey, care must be taken household are negatively related to the probability of when generalizing the results of this study to regional trying convenience meat products. The reason for this or national levels since the community-specific results result is not clear. However, it is possible that larger may not contribute to broad regional or national inferhouseholds prefer to have a home prepared and ences. To provide more definitive information to cooked meal than smaller households. It is also gen- retail marketers, future research may also focus on the erally more expensive to consume convenience prod- factors affecting the demand for convenience meat ucts in larger households than in smaller households. products on a disaggregate level. Contrary to prior expectations, employment status is not a significant factor affecting the likelihood of trying convenience meat products. Those with no formal education or those who have reached only the secondary level of education are less February 95/page 36 Journal of Food Distribution Research

Table 3 References Capps Jr., O. "Added Convenience as Factor in At- Maximum Likelihood Estimates of the Logit Model Home Animal Products Demand." The Economics of Meat Demand. 1989. 203-207. Parameter Standard Variable Estimate Error Capps Jr., 0. and J. M. Pearson. "Analysis of Con- Intercept -0.878 1.856 venience and Nonconvenience Food Expenditures by U.S. Households with Projections to the Year Price Consciousness -0.265 0.230 2000." Food Demand Analysis: Implications for Fat Consciousness 0.329* 0.198 Future Consumption. Ed. Oral Capps and Benjamin Senauer. Virginia Tech, Blackburg, VA. 1986. 233-250. Male -0.191 0.697 Capps Jr., O. and R. M. Nayga, Jr. Leanness and Employed 0.775 1.032 Convenience Dimensions of Beef Products: An Exploratory Analysis with Scanner Data. Bulletin More than 5-Year Resident -0.387 0.640 Number b-1693 of the Texas Agricultural Experiment Station, Texas A&M University, College Number of Adults -0.516* 0.323 Station, TX. 1991. Number of Children -0.602* 0.357 Kinsey, J. "Changes in Food Consumption from No Formal/Sec. Education -1.054* 0.738 Mass Markets to Niche Markets." Food and Agricultural Markets: The Quiet Revolution. Ed. L. P. Schertz and L. M. Draft. NPA Report No. Owned a Microwave Oven 1.830* 0.883 270. Washington, DC. 19-43. 30 Minutes or Less Cook Time1.261* 0.636 Nayga Jr., R. M. And O. Capps, Jr. "Determinants of Food Away from Home Consumption: An Black -0.536 0.777 Hispanic 0.939 1.003 Update." Agribusiness. 8, 6, 549-559. 1992 Other Race 0.694 0.869 Pearson, J. M., K. Walters, J. Axelson, and O. Capps, Jr. Nonconvenience and Convenience Food 16-24 Age Category 0.338 0.925 Use by Younger and Older Elderly Americans. 35-49 Age Category -1.519* 0.796 Virginia Agricultural Experiment Station Bulletin 50 and over Age Category 3.256* 1.801 86-3. Virginia Tech, Blackburg, VA. May 1986. Less than $15,000 Income -0.644 1.113 Russo, D. M. and E. W. McLaughlin. "The Year $40,000-$74,999 Income 1.079* 0.787 2000: A Food Industry Forecast." Agribusiness. $75,000 and over Income 1.416 1.228 8, 6, 493-506. 1992. McFadden R 2 0.37 Senauer, B., E. Asp, and J. Kinsey. Food Trends % of Correct Predictions 0.77 and the Changing Consumer. Eagan Press: St. Paul, MN. 1991. Note: asterisk (*) indicates statistical significance at the 0.10 level. Journal of Food Distribution Research February 95/page 37