The Effects of Marketing Mix on Simultaneous Purchasing Behavior of Dairy Brand Products Using Multivariate Logit Approach

اقتصاد و توسعه کشاورزی

Article 4, Volume 32, Issue 1 - Serial Number 39, March 2018, Pages 83-93   

Document Type: Research Article

DOI: 10.22067/jead2.v32i1.70710

Authors

F. Deldar; H. Mohammadi^* ; A.R. Karbasi

Ferdowsi University of Mashhad

Abstract

Introduction: The dairy industry is one of the main subsectors of Iran's food and beverage industries, since dairy consumption is essential for people's health and dairy consumption reduces health concerns about the spread of diseases such as osteoporosis and Diabetes intensifies. According to the World Food Organization (FAO) in 2014, per capita milk consumption in Iran is about 66.12 kilograms per year, which is a very low comparing to the global average. The global average per capita consumption of milk is 150 kg and Iran's per capita consumption is about one third of the global average per capita consumption of milk. For two main reasons, it can be argued that dairy buyers prefer brand names to not-so-famous brands. First, they are not familiar with the classification of products of unknown brands. Secondly, the disadvantages of dairy products create many health problems for shoppers. Hence, the brand is a capital for dairy companies because customer experiences from these products can help reduce the uncertainty and perceived risk associated with new products. Therefore, the brand image is decisive for better acceptance of products. The main goal of this study is to examine the effects of simultaneous purchases of various dairy products in Mashhad. The importance of this research is that dairy producers gain a higher profitability from various products by knowing the key factors affecting the simultaneous purchase of their own brand products, while respecting consumers and meeting their basic needs. Another goal of the study is to determine the effect of the total marketing mix on the probability of simultaneous purchases of dairy products from Kaleh, Pegah and Razavi brands (ie, checking the complementary and substitute relationship between brands).
Materials and Methods: The statistical population in this study is dairy consumers in Mashhad, which simultaneously and individually buy dairy products from major brands including Kaleh, Pegah, and Razavi. Simultaneous purchases mean that consumers buy their products at the same time at a single purchase. For example, at a purchase meeting, consumers buy Pegah milk, Kaleh Doogh and Razavi yoghurt. In this research, the interactions and simultaneous purchases of the dairy brands associated with marketing mixes and the brand loyalty effect, the time elapsed since the last purchase meeting, the average purchase price, the number of products purchased in the current session and the number of dairy purchases on the probability of buying each brand per week is reviewed.
In this study, stratified random sampling method is used and the categories considered in this study are divided into five categories according to the levels of stability and development in Mashhad. Finally, the questionnaires were completed randomly by visiting the supermarkets and hypermarkets in Mashhad. For summarizing and analyzing the data extracted from questionnaires and estimating regression models, Stata14 software was used. In this study, the Multivariate Logit and Multivariate Probite Models (MVL and MVP) have been used to achieve the research objectives. For those consumers who buy at the same time (or multiple choices), these types of models are more realistic than multinomial Logit and Probit models (MNL and MNP).
Results and Discussion: The results of the calculations showed that the time elapsed since the last session of the purchase for all brands is significant. The effect of this variable on the probability of purchasing Kaleh, Pegah and Razavi brand products is negative, ie, the more time elapsed since the last shopping session, the chances of buying Kaleh, Pegah, and Razavi brand products will be reduced. The variable number of products purchased in the present session has been positive and significant for the likes of Kaleh, Pegah and Razavi brands, but it is not significant for other brands. In other words, the higher the number of products purchased, the greater the likelihood that the customer will buy the products of Kalhe, Pegah and Razavi. The loyalty variable also has a positive and significant effect on the likelihood of purchasing the products of Kaleh, Pegah, Razavi and other brands. That is, the more buyers are more loyal to a brand, the more likely they are to buy their branded products. The results of Multivariate Logit on the impact of marketing mix on the simultaneous purchase of Kaleh, Pegah, Razavi and other brands showed that taking into account the total marketing mix, there is a bilateral complementary relationship between Kaleh and Razavi brands. Moreover, between Kaleh and Pegah, Pegah and Razavi, other brands and Kaleh, and other brands and Pegah there is a mutually complementary relationships. Indeed, when companies generally use these marketing tools, they can increase the demand for their products. Simple effects for marketing mixes for Kaleh, Razavi, and other brands indicate that with the increasing use of marketing mixes for each brand's products, the likelihood of buying products from the company increases.

Keywords

Dairy industry; Marketing mix; Multivariate logit; Simultaneous buying

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