Speaking Out About Malt

Speaking Out about Malt Case 8. 3 Page 404-405, Moral Issues in Business The case of Whitewater Brewing and Mary Davis touches upon several views and moral issues that are not specifically black or white. Case 8. 3 specifically deals with a business called Whitewater Brewing Co. Whitewater Brewing, as its name sounds, is a manufacturer of alcoholic refreshments, selling its brands to various consumers. The article in particular focuses upon a specific Whitewater product, Rafter. Rafter is being targeted to match other similar products that are bottled in a 40 ounce size. The unfortunate part is that these 40 ounce size refreshments are not only popular with inner-city teenagers but in the area where Whitewater sells these 40 ounce products there is already a community alcohol related problem. Whitewater is not in foreign territory, numerous other companies already have sold similar products in the same area targeting the same clientele. More importantly due to its popularity this product produces good revenue for Whitewater. Enter into this scenario an employee of Whitewater Brewing Co. , Mary Davis, an Associate Vice President. Mary has decided to further her education and is attending a course at an outside school, with her husband who was pursuing his MBA. My intention is to try to determine whether or not Mary or Whitewater were following any ethical practices, determine why they made the choices they did, and to attempt to determine if there is any validity to their reasoning. Mary begins working on a term project studying the making of wine and beer. Research shows Mary that several companies’ market products that are high alcohol based and sold at a very low price point, and not considered a premium product, strictly to satisfy a specific market niche. As Mary’s investigations continue she begins to insert her own feelings and viewpoints into her findings and her paper become a reflection of her personal viewpoints, and not necessarily those of her employer. For the opposite side of the case Whitewater Brewing is basically working like it should; trying to maximize profits for its shareholders marketing products to satisfy consumer needs. In this case, that need is a malt liquor sold in 40 ounce containers and targeted to specific customers. This is nothing new, as other businesses are already in this market. The one caveat here is that none of the companies markets their malt liquors under their name; almost to distance themselves from the negative social implications resulting from the sales of malt liquors, specifically to this target audience. Separately and apart neither Mary Davis or Whitewater marketing products would have been a â€Å"Case 6. 3† were it not for the fact Mary Davis IS an employee of Whitewater. More so it never would have bubbled to the surface had Mary Davis done what she did; which was to ultimately write an article for a paper discussing her personal views on malt liquors wherein she states, again her views, as to the social responsibilities of businesses that produce malt liquors. In stating her personal opinions Mary now has pitted herself again the views of the business. Because Mary’s article is viewed negatively by Whitewater, the CEO of Whitewater fears the article will have a negative impact to profits and to the product(s) they sell. They also feel this could lead to legislation that would ultimately result is direct product loss and loss of revenue. These would be fairly legitimate concerns for any business, in my opinion. So if a socially responsible company produces bad products are they bad? One can argue especially in the case of liquor manufacturers that there is heavy investment to provide a product that is intended for good use and that they aggressively help to pass legislation helping to address those who use their products in a negative manner. So morally and ethically Whitewater, in my opinion, is doing what they are intended to do. Specifically they are trying to make money, and to do so in an ethical manner. No company can be wholly responsible, in every circumstance (but in a specific few), for the immoral or unethical behavior of others utilizing their products. Ralph Jenkins, CEO of Whitewater, writes to Mary Davis to express the company’s views on her behavior and to ask her to first clear all further comments (regarding her personal views on liquor production) with the business. Mary feels this to be an invasion of her right to free speech. Additionally Mary informs Ralph Jenkins that she seeks to pursue her article further and even speak at an engagement about her views (personal ones). Mr. Jenkins remains adamant that Mary adhere to his requests further escalating things to state she can either comply or resign. So does Davis have a moral right to free speech in the workplace, or can Whitewater determine the extent to her ‘free’ speech? Also what would Davis’s best path ethical path be? The second is the easiest to answer so I will do that now. Davis could simply put resign, enabling her to champion her beliefs and become a martyr for her cause, as it were. As for the first question the answer is not a simple clear cut one, and ultimately will be an individual one. Currently there is already legal precedent that allows companies to require employees not to â€Å"act or speak disloyally†. Take the following case: In Korb v. Raytheon, 574 N. E. 2d 370, 410 Mass. 581 (1991), Raytheon terminated Lawrence Korb after receiving complaints of his public involvement in an anti-nuclear proliferation nonprofit known as the Committee for National Security (CNS) and his advocacy of reduced defense spending. On February 26, 1986 The Washington Post ran an article describing Korb's speech at a press conference held the day prior as â€Å"critical of increased defense spending. † Following the publication of the article, several military officials â€Å"expressed their disapproval† of Korb's comments. [77] Despite writing a letter of retraction which ran in The Washington Post, Raytheon terminated Korb's position after it continued to receive â€Å"Navy, Air Force, and Armed Services Committee objections. [78] In adjudicating Korb's claim of wrongful discharge, the Supreme Judicial Court of Massachusetts found â€Å"no public policy prohibiting an employer from discharging an ineffective at-will employee. † His claim under the State Civil Rights Act was dismissed as well. In affirming the lower court’s decision to dismiss, Justice Abrams wrote: â€Å"Although Korb has a secured right to speak out on matters of public concern, and he has a right to express view s with which Raytheon disagrees, he has no right to do so at Raytheon's expense. [79] The above article shows one perspective of the courts on this matter. Furthermore Mary Davis needed to be sure her personal opinions could withstand the scrutiny of being challenged for slander, unless there was very strong specific data supporting her views. Despite Mary’s strong personal views, even if validated, she is in conflict by the very nature of working for Whitewater and having such strong personal views. She may have morally sound arguments about liquor products but she is ethically wrong then for working in the liquor industry. My view is that Mary’s intent, though ethically sound, is still less ethical than that of Whitewater. Mary attempts to peanut butter spread the first amendment right to free speech across the board, when in fact Whitewater too has rights and expectations within the first amendment. While Mary is entitled to do as she chooses outside of work; there are limitations when her choices can have specific negative impacts to her employer. And for these impacts she can be held accountable legally, despite her moral righteousness. In conclusion there is no clear path to moral righteousness and ethical behavior. What I feel is important is that in the end we can do either in a manner that withstands legal implication (much of it already established) and exercise our own personal moral conviction in a manner that does not leave us conflicted. QUESTIONS FROM THE BOOK. 1. Do you think Mary Davis acted irresponsibly or disloyally? I don’t believe at the time Mary Davis intended to act irresponsibly or disloyally; however Mary should have thought more about the big picture and talked with her management first about her intentions. This is a particularly tough issue; as this does touch upon the right to free speech. Depending upon what sort of agreement the company has with Mary would speak volumes as to her ‘rights’ outside of work and expectations as to how she is expected portray her company. Mary also should have known that media sensationalism is what they are in business for. Her views were liable for their interpretation and hence liable to be misconstrued or mis-utilized; as they were. Does Whitewater have a legitimate concern about her speaking out on this issue? Mary’s concern is legitimate; of that there is no doubt. However as an emissary of her company she is responsible both inside work and outside work to present an image of her company that is positive. Or she could choose to work elsewhere. If Mary were to choose her moral high ground and leave the company she would be commended for her actions that follow her beliefs. Does the company have a right to abridge her freedom of expression? The company does have some right to abridge her freedom; particularly if they have a company handbook which specifies their expectations (within reason). Mary’s views and activities outside of work have no real concern to her company; but ethically Mary is working in an industry where serving liquor is the nature of business. These companies often display and rely on laws and policies to inflict rules regarding consumption and abuse. That individuals abuse their products is really not completely their fault. Ethically they are trying to be responsible and they are after all in the business to sell and make a profit. 2. Is your answer to question 1 affected by whether you agree or disagree with the views Mary Davis expressed? I think for the zealots on either side of the spectrum individual views would impact whether they agreed or disagreed with Mary Davis. However, it is my belief that you need not side nor disagree with Mary to realize that her behavior and that of Whitewater brewing are dealing with ethical grey matter. The company has rights as much as Mary does; and each can make choices that would resolve this conflict. Mary can leave Whitewater and then no longer be under their scrutiny or Whitewater can have specific policies on expected behavior that reflects the company position. Communication is at the core of the problem. If either side had communicated among themselves could have avoided this situation; and who knows; perhaps Whitewater being community responsible may have given Mary a different tact to utilize that would have made her and Whitewater happy. 3. Should there be any limits on an employee’s freedom of expression? If not, why? If so, under what circumstances is a company justified in restricting an employee’s right to speak out? This is a tenuous issue as there are already many amendments to current laws of free speech. I understand that businesses have a right to ensure viability and employee comments can adversely affect them. I think so long as there is clear communication up front about business policies regarding this and that they are communicated regularly and clearly then it becomes a buyer/employee beware situation. Again within reason individuals should still be able to express themselves; particularly when there is no direct verbiage that is specific about a business. I am an opponent to a business screening by Facebook etc as what a person does on their time does not necessarily prove they would be bad at work. Statistics aside we all know you can make data to support whatever view you want today. The bigger question is the legal one; and companies basically in my opinion wield a heavy sword (meaning they have deep pockets for legal issues) to drive their views and challenge you to dispute them. So one question we should be asking is once hired by a business â€Å"Are you now their property which can be used in any way, and discarded when no longer needed? † After all, today one can be dismissed without cause, employee at will. Take for instance the following article:http://www. bs2. com/freespch. htm The First Amendment to the U. S. Constitution establishes freedom of speech in the USA. There are several major limitations on this freedom: Only the government is prohibited from restricting speech. Private corporations are free to censor speech of their employees. Freedom of speech is not absolute, even when government regulation or law is concerned. For  example, freedom of speech does not give one the right to commit perjury. See the beginning of my essay on infotorts for more examples. Since 1977, the U. S. Supreme Court has retreated from protecting freedom of speech even for government employees, as explained in my separate essay. Fundamentally, an at-will employee in the USA can be terminated at any time, and for any reason – or  no  reason  at  all – and the courts will not intervene to protect the ex-employee from allegedly unfair treatment by the employer. Courts have repeatedly recognized that â€Å"any  reason† includes a â€Å"morally  wrong† or â€Å"morally  reprehensible† reason. I  have briefly discussed the history of at-will employment in the USA and criticism of this doctrine in a separate essay. The combination of: o legal protection for freedom of speech of employees of for-profit and non-profit corporations and other non-governmental employers, and the freedom of employers to terminate employment at any time, for any reason means that employees in private industry have no legal rights to freedom of speech. (end of art icle) The case presentation doesn’t specify whether the newspaper article identified Mary Davis as an employee of Whitewater. Is that a relevant issue? Whether Mary Davis was identified or not is not necessarily relevant. Once stated, today there should be an assumption that someone, anyone, can ultimately determine ownership. This is especially true if the information is anything but verbal and has been recorded in any way, manner, or form. Does it matter what position in the company Mary Davis holds? To a degree the fact that Mary Davis is high up in the corporate chain bears a more significant impact. In a higher position Mary is more an emissary of the business and as such expected more to promote the business image. However despite her position as an employee of a business she is bound to the requirements of that business, especially once specified to her. Or she can choose to follow her conscience and resign. . What do you think Mary Davis ought to do? Clearly Mary Davis should resign; or fold to the demands of her boss and refrain while employed by Whitewater from expressing her personal views on any liquor related issues. What moral considerations should she weigh? Mary simply needs to weigh what is important to her; her work, money, job and family stability or her moral considerations and the poss ibility that she would need to shift employment in order to not have direct involvement in an industry she believes to be practicing unethical behavior. Does she have conflicting obligations? Mary does have conflicting obligations. If so what are they? They are her obligations to survival, money, job stability, employment, etc. On the other side is her obligation to her conscience and her moral beliefs, particularly the one that is contrary to the production and sale of malt liquor to individuals (specific individuals). 5. Is the company right to be worried about what Mary Davis writes or says, or is the board of directors exaggerating the potential harm to Whitewater of her discussing these issues? The company is totally right to be worried about Mary Davis. There is many a story about David and Goliath where a single individual toppled a business based upon their personal beliefs. 6. Assume a CEO like Ralph Jenkins is legitimately worried that an employee is making damaging statements about the company. How should the CEO handle the situation? My opinion is that the CEO would need to sit with the employee and state the business doctrine as it were. Next would be to ask open ended questions to see if there was an option where both needs could be met satisfactorily without any negative repercussions to either party involved. Is discharge or some sort of discipline called for? Initially, discharge or discipline may not be called for; unless policies had been clearly stated beforehand. Should the company adopt a formal policy regarding employee speech? All companies should have formal policies regarding employee speech. Moreover these should be communicated in plain simple language and reiterated yearly to ensure everyone remains cognizant of the policies. If so, what policy would you recommend? I recommend a policy that is developed with the individuals at all levels of the business to ensure varied concerns are addressed and the needs of the business (their viewpoint) is clearly understood. Works Cited Customer, A. â€Å"Amazon. com: Moral Issues in Business (9780495007173): William H. Shaw, Vincent Barry: Books. † Amazon. com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & More. Web. 16 Jan. 2012. . â€Å"First Amendment to the United States Constitution. † Wikipedia, the Free Encyclopedia. Web. 16 Jan. 2012. . â€Å"Freedom of Speech. † Dr. R. Standler's Professional Homepage. Web. 16 Jan. 2012. ;http://www. rbs2. com/freespch. htm;.

Free Essays on Foreign Policy With North Korea

Foreign Affair ~ North Korea I.) Peace talks failing Economist 11/1/02 â€Å"Presented with the evidence of their uranium enrichment, a key material needed in the development of nuclear weapons, North Korean officials reportedly told Americans that they considered the 1994 nuclear peace deal â€Å"nullified† and have adamantly refused to discuss any form of a nuclear treaty with the United States.† Analysis: This indicates to us that North Korea has no desire to promote de-escalation of nuclear arms in the international arena and refuse to have any negotiation talks with the U.S. As a result we must apply militaristic force on this nation as all economic, political, and diplomatic tools have been exhausted. II.) Corrupt government will not be reformed with out direct involvement from the Economist 11/1/02 Economist 11/1/02 a.) â€Å"In an ironic twist South Korea and China actually support U.S. military strikes on North Korea to prevent further U.S. involvement. For if this communistic government does not see reform in the near future it would lead to political chaos and instability in North Korea, damaging stability in the region and promoting U.S. forces to move closer to the borders of these two countries.† Analysis: As we can see here Asian countries usually shy on U.S. involvement in their region are pressuring our nation to launch military strikes as they see a political collapse along with further U.S. involvement eminent if action is not take in the near future. b.) Jane’s Defense Weekly 10/16/02 â€Å"The fact is that the United States is simply not sending a clear message condemning North Korea for its failure to compromise with nuclear peace treaties. The U.S. still gives over 500,000 tons of heavy fuel oil and 3.8 million in food aid a year to the Korean government and has not given any indication that it will ease up on the handouts after North Korea refused to recognize the nuclear peace treaty las... Free Essays on Foreign Policy With North Korea Free Essays on Foreign Policy With North Korea Foreign Affair ~ North Korea I.) Peace talks failing Economist 11/1/02 â€Å"Presented with the evidence of their uranium enrichment, a key material needed in the development of nuclear weapons, North Korean officials reportedly told Americans that they considered the 1994 nuclear peace deal â€Å"nullified† and have adamantly refused to discuss any form of a nuclear treaty with the United States.† Analysis: This indicates to us that North Korea has no desire to promote de-escalation of nuclear arms in the international arena and refuse to have any negotiation talks with the U.S. As a result we must apply militaristic force on this nation as all economic, political, and diplomatic tools have been exhausted. II.) Corrupt government will not be reformed with out direct involvement from the Economist 11/1/02 Economist 11/1/02 a.) â€Å"In an ironic twist South Korea and China actually support U.S. military strikes on North Korea to prevent further U.S. involvement. For if this communistic government does not see reform in the near future it would lead to political chaos and instability in North Korea, damaging stability in the region and promoting U.S. forces to move closer to the borders of these two countries.† Analysis: As we can see here Asian countries usually shy on U.S. involvement in their region are pressuring our nation to launch military strikes as they see a political collapse along with further U.S. involvement eminent if action is not take in the near future. b.) Jane’s Defense Weekly 10/16/02 â€Å"The fact is that the United States is simply not sending a clear message condemning North Korea for its failure to compromise with nuclear peace treaties. The U.S. still gives over 500,000 tons of heavy fuel oil and 3.8 million in food aid a year to the Korean government and has not given any indication that it will ease up on the handouts after North Korea refused to recognize the nuclear peace treaty las...

Tarchia - Facts and Figures

Tarchia - Facts and Figures Name: Tarchia (Chinese for brainy); pronounced TAR-chee-ah Habitat: Woodlands of Asia Historical Period: Late Cretaceous (75-65 million years ago) Size and Weight: About 25 feet long and two tons Diet: Plants Distinguishing Characteristics: Large, armored head with slightly larger than usual brain; quadrupedal posture; sharp spikes lining back About Tarchia Heres more evidence that paleontologists have a good sense of humor: Tarchia (Chinese for brainy) earned its name not because it was particularly smart, but because its brain was the tiniest smidgen bigger than those of comparable ankylosaurs, among the dumbest of all the dinosaurs of the Mesozoic Era. The trouble is, at 25 feet long and two tons Tarchia was also bigger than most other ankylosaurs, so its IQ was probably just a few points above that of a fire hydrant. (Adding insult to injury, it may well be the case that the type fossil of Tarchia actually belonged to a closely related genus of ankylosaur, Saichania, the name of which translates, equally ironically, as beautiful.) The ankylosaurs were among the last dinosaurs to succumb to the K/T Extinction 65 million years ago, and when you look at Tarchia, its easy to see why: this dinosaur was the equivalent of a living air-raid shelter, equipped with massive spikes on its back, a powerful head, and a broad, flat club on its tail that it could swing at approaching predators. The tyrannosaurs and raptors of its day probably left it in peace, unless they were feeling particularly hungry (or desperate) and ventured to flip it onto its enormous belly for a relatively easy kill.

Contract Law Essay Example | Topics and Well Written Essays - 1750 words

Contract Law - Essay Example In equity, injunctions may be administered or sometimes exact contract performance. Both solutions offer the party that has incurred losses an upper hand in terms of the bargaining benefits or in other words expectation damages that may be of higher value as compared to just reliance damages with regard to promissory estoppels. Generally, one may define a contract in nonprofessional’s language as a promise or responsibility that is legally enforceable to oversee the occurrence or no occurrence of something. However, a contract may not be equalized to a legal promise especially when the agreement larks consideration. Several elements validate a contract as stated below (Richard, 2007). Elements of a contract 1. An offer: This is the willingness expressed by the offering party, on a given set of terms, with a motive that in any case the other party accepts that offer; a contract will bind him or her. It is optional in that it may be written, or it can be orally done. 2. Acceptan ce This is the willingness expressed by a party, to absolutely and unconditionally, accepts all the terms that have been set out in the offer. It can either be done orally or written, and the approval must be a reflection of the initial offer that was made. 3. Consideration A consideration is a valuable offering exchanged between the promisee and the promissor with a reciprocal as an assurance. An act or a payment may be regarded as the valuable thing also an act of forbearance is acceptable. 4. Mutual assent Mutual assent is normally achieved by offer and acceptance under common law, in that, here an unqualified party and that accept an offer causes no variance to the terms of the offer. A counter-offer A counter-offer cannot be equalized to an acceptance. It extinguishes the initial offer. In this case, one is not eligible to accept the initial offer after making a counter-offer. However, asking for more information or clarification may not be regarded as a counter-offer and thus does not render the offer extinguished but the party is still eligible to accept if it so desires. Max-Eco Ltd case study In this project, I will assess Max-Eco Ltd, which has been involved in a business deal with Jack’s company to supply timber according to Fred’s set standards. Fred is the director of Max-Eco Ltd. However, after six months, Fred discovers that Jack was not meeting the standards set in their previous deal and feels like the other party had breached the contract they set together. According to the agreement, Jack was supposed to supply Max-Eco Ltd with timber only from the U.K and that they must be treated with only plant-based varnish. Instead, Jack decided to treat the timber, which sometimes he ordered from South America due to its unavailability in the U.K, with chemical-based varnish. Now Fred wants compensation from Jack for failing to meet the set standards. Contract terms Prior to making a contract agreement, often variety of statements are mad e by either party with an aim of enticing or encouraging the partnering party to sign into the contract. The two parties are required to agree as to which of the made statements qualifies to be a part or a term of that particular contract agreement. At the same time, they must identify which statements should be considered as not a part or a term that make up the contract and should be regarded as just pre-contract talks. Therefore, terms server a pivotal role in the establishment of a contract as they bind the

An objective analysis of disparate impact & its effects on age & Research Paper

An objective analysis of disparate impact & its effects on age & gender discrimination - Research Paper Example Disparate impact can also be said to have occurred on the event that the non-protected groups seem to be favored by a policy than the protected groups, without a clear justification of such an occurrence. Additionally, disparate impact is observed to have occurred, in a situation where there was an alternative avenue that would have been exploited to enhance the equal treatment of the minority/protected members to their non-protected group members, but the avenue was not applied. However, the difference in the research perspectives was that the intentions of protecting against disparate impacts might interfere with the institutional means of achieving its objectives (Kaminshine, 2005). The similarities and differences in perspectives are affected by the research in that; the laws protect individuals against intentional discrimination, which is different from disparate impact discrimination, resulting from the application of a neutral policy without any intention of causing discrimina tion. Therefore, it can only be declared unlawful by the application of statutes and regulations (Grover, 1996). ... is that, factors such as height, which are likely to lock out more women than men should be avoided in the recruitment process, since they will cause sex-based disparate impact discrimination (Kaminshine, 2005). Additionally, the application of recent factors in the recruitment process, such requiring for a qualification that is not older than a given number of years should also be avoided since the recent factors are likely to cause age-based discrimination. For example, on the event that an organization is recruiting using a certain period qualification, it might end up locking out the members of a certain age group, who may have develop a need for a job, for example a bereaved spouse, who needs a job to continue supporting the family, after the death of her husband. This is likely to cause age-based discrimination (Grover, 1996). The application of the disparate-impact approach impacts positively on the society, through providing an equal opportunity to all, without discriminating on the basis of gender, race or age. However, the adverse effect of this approach is that it seeks to align the end results with the demographics, which is detrimental in that, it would result to the application of the quota system by institutions, which is yet another unfair practice (Kaminshine, 2005). There are various disparate impact theories which include: Discriminatory Purpose Theory is a theory that addresses the issue of proving purposeful discrimination, where the complainant has the sole duty of proving that the discrimination that occurred against him/her was purposeful (Pamela, 1991). The complainant also has the duty to show that there were other alternative avenues which could have been exploited to guard against such discrimination, but they were not applied. Fault Theory

Do Some Elements Of Religion Have More Weight Than Others Essay

Do Some Elements Of Religion Have More Weight Than Others - Essay Example However these elements do not hold same value as each other. Elements like belief system, rituals and emotional experience have more value than other elements of religion. Belief system has always been the foundation of a religion and without it the pillar of religion would shake. Every religion is based on certain beliefs and faith and hence it has more weight than other elements. Without belief there a religion cannot exist. According to (Cline,2011)â€Å"Religion is certainly a type of belief system, but not all belief systems are religion. Differentiating religious from non-religious belief systems is sometimes easy, but other times rather difficult†. Religious beliefs gives a meaning and perception to a person’s imagination .Religious beliefs are supernatural in nature and people believe in it with full faith .People and various communities throughout the world have been believing in sets of rules and customs since ages, which is passed on to them by their ancestor s. These religious belief systems are based on the writings and teachings made by the founder of these religious concepts. The ideas and thoughts of religion are codified in to belief system and hence it’s of high value.... Even though the religion has 8 elements few element can be seen as totally absent. We can see that element like true devotion and self realization is absent .The people are now more in to religion for material benefits and there is not honesty or truth in their practice of religion. People are not pure in their thought and actions even though they follow the customs and rituals of their religion. To be faithful in religion, one must be pure in thoughts and deeds and in the present religious practice it is more of outwardly action that inward. Sometimes people practice a religion just for namesake and there is no meaning to it from their part. In ancient times, God and religion was really sacred concepts and people gave it prior importance than people of these times. Another element totally absent in religion is the process of self realization. People all over the world do pray and perform rituals, but they fail to acknowledge the divinity inside them. This problem arises due to the l ack of education from religious perspective. People believe that God is an outwardly thing and pray and struggle before God. They fail to understand that God exist in the core of our heart and realizing him is the sole way to be happy. People mostly love God for their self benefit and not out of natural love for him. When one understands that God is inside him, he will be blissful and content with life. People need to enquire about self and his purpose on this earth in order to prove his love to God. Scientology is a concept which believes that human beings are immortal and it concentrates on human rights. As per (Kent,1997) â€Å"Although some social scientists insist that Scientology is a religion, the more appropriate position to take is that the

Purchase intentions for ready to eat products

Purchase intentions for ready to eat products Research Question: The research focuses on determining the consumer preferences and purchase intentions for packaged and ready to eat food products. Moreover, we also look into how and to what extent factors like relationship of social, demographics, psychographic/ lifestyle, personal and external media influences the purchase decision Synthesis and Application Consumer decision- making styles in short, shopping styles like lifestyles, are a prominent area of interest in consumer behaviour studies. Consumer choice processes vary according to the type of product involved, the timing and the people involved (Burns Gentry, 1990:520). Although brand decision-making represents a fair amount of deliberation during consumer decision making, it does not represent the whole consumer decision-making process (Harrel, 1990:739). (Alet C Erasmus, Elizabeth Boshoff and GG Rousseau, 2001) Consumers purchasing decisions take place over a period of time. The overall goal during this decision process is to evaluate various alternatives and choose the product that satisfies the consumer in an optimal way. Consumers get influenced by several major factors while they make their decisions. These factors can be grouped as social, cultural, pscyhological, and personal factors( Kotler Armstrong, 1997: 141). In addition, increase in the number and variety of goods, stores, and shopping malls, and the availability of multicomponent products and electronic purchasing capabilities have broadened the sphere for consumer choice and led to complicated decision making. (Hafstrom et al., 1992). One or more specific shopping styles dimensions may influence consumer-shopping choices, and these influences are relatively enduring (Sproles and Kendall, 1986). Broadly speaking, these are 3 types of approaches in studying consumer decision-making styles: Psychographic/lifestyle approach, which identifies hundreds of characteristics related to consumer behaviour; Consumer typology approach, which classifies consumers into several types; Consumer characteristics approach, which focuses on different cognitive dimensions of consumer decision-making (Fan et al., 1998). Since ready to eat packaged food has met a stiff resistance on health grounds, the decision maker in the family is also an important aspect. Prior research in this area has found that mothers make the purchasing decisions for monthly food expenditures of the family however, fathers carry out the act of purchasing. Promotional activities such as commercials, new product development efforts, packaging, pricing distribution strategies all play a significant role in determining the person that makes the purchasing decision in the family (Elif Akagà ¼n Ergin, Handan ÃÆ'-zdemir, Bà ¼lent ÃÆ'-zsaà §macÄ ±, 2005) Sproles and Kendall (1986) developed a Consumer Style Inventory (CSI) based on the assumption that consumer decision-making behaviour can be explained by eight central decision-making dimensions that influence a consumers decision making behaviour. The eight decision-making style dimensions were: perfectionism/high-quality consciousness, brand consciousness, novelty consciousness, price/value consciousness, impulsive/careless shoppers, recreational and hedonistic shopping consciousness, confused by over-choice shoppers, and habitual and brand/store loyal shoppers. Despite the eight-dimensional structure being confirmed in the original study, there are indications that the eight-factor model does not hold good in real life. Packaged food industry: Consumer behaviour Favorable nutrition information presented on a Nutrition Facts panel also led to more positive attitudes toward the product, nutrition, and purchase intentions and reduced perceived disease risk. The effects of the nutrition information on all dependent variables were more pronounced in the menu context than in the package context, even though the nutrient values were identical. (John C. Kozup, Elizabeth H. Creyer, Scot Burton, 2003). Moreover, that social class is basically inferior to income as a correlate of buying behavior for the consumer packaged goods. Perhaps some types of packaged foods not covered in this study would have shown greater purchasing relationships with social class; e.g., frozen shrimp and other types of cocktail snacks. (Myers, Stanton and Haug, 1971) These products tend to be criticized because:-   They typically are high in fat and calorie contents The reduced time cost and nutritional content associated with these foods is specifically blamed for obesity Sometimes Genetically Modified Foods are used Sometimes an irradiation process is used If heat processing is used the vitamins are lost Preservatives are always used Packaged food: Indian market In developing countries like India, the preferences of the consumers clearly indicate their priority for cleanliness/freshness of food products followed by price, quality, variety, packaging, and non-seasonal availability. The consumers preference of marketplace largely depends on the convenience in purchasing at the marketplace along with the availability of additional services, attraction for children, basic amenities and affordability (Jabir Ali, Sanjeev Kapoor, Janakiraman Moorthy, 2010) Consumer demand for detailed information regarding content and nutrition of packaged food products is likely to increase due to booming organized retail sector in India. There is awareness about different types of information on the food labels displayed on packaged food products, however, usage of such information as one of the criteria while purchasing packaged food product is relatively low. Indian consumers assign very high importance to information about food ingredients and nutritional contents of the food. They also have very strong preference for brand and the taste of the product. This preference makes them purchase a packaged food item even though it may not meet their criteria of healthy food or may contain some harmful ingredients. Most lifestyle products such as breakfast cereals, readymade dressings etc. that would mostly be used by people who have relatively higher levels of income and education would pay more attention to various kinds of label information. Moreover, the awareness regarding label information is dependent on the consumers level of education, income and kind of occupation. (Sushil Kumar and Anuttera Pandit, 2005) Additionally, researchers have also shown that as convenience becomes the goal for households, with an increase in the number of urban population, working women and income levels, RTE has become the fastest growing sub-segment in the packaged food category. However, in India home cooked food is the first choice. At the moment, regional and non-vegetarian cuisines are relatively under-serviced, with concentration on the vegetarian. RESEARCH METHODOLOGY The Research Design chosen is: Exploratory Research: Secondary Data Articles, Journals , Depth Interviews, Focus Group Discussions Conclusive Research: Descriptive Survey and Observation Firstly an exploratory research was conducted to gain insights and understanding about consumer buying behavior and customer preferences vis a vis RTE food products. This was done through the review of academic literature and depth interviews of retailers to identify relevant psychographic factors influencing customer purchase decisions. Secondly descriptive research has been undertaken in order to Profile the heavy users( frequent shoppers) of RTE products Quantitatively analyze the specified population exhibiting certain behavior regarding customer preferences Understand the degree of association of marketing variables with respect to packaged food products Make suitable recommendations. Data will be collected through structured questionnaires designed for the consumers. Depth interviews will be conducted for Retailers in Kozhikode. These responses have been analyzed by various statistical methods. Pretesting: Since our questionnaire has a majority of multiple choice questions there was a possibility of encountering order/position bias. This was done away with by having various sample forms filled with orders of questions as well as choices changed and finally the present form was frozen. The wording of certain questions was also changed after some rounds to pretesting making them more effective for understanding. For example Question 9 in the questionnaire has been changed from e.g. Before Pretesting: Q8. What influences your decision for the food products that you consume? After Pretesting:Q8. What influences your (as an individual) decision on choice of food products you purchase? Sampling technique Sampling methods are classified as either  probability  or  non-probability. In probability samples, each member of the population has a known non-zero probability of being selected. Probability methods include random sampling, systematic sampling, and stratified sampling. In non-probability sampling, members are selected from the population in some nonrandom manner. These include convenience sampling, judgment sampling, quota sampling, and snowball sampling Random sampling  is the purest form of probability sampling. Each member of the population has an equal and known chance of being selected. Systematic sampling  is often used instead of random sampling. It is also called an Nth name selection technique. After the required sample size has been calculated, every Nth record is selected from a list of population members. Stratified sampling  is commonly used probability method that is superior to random sampling because it reduces sampling error. A stratum is a subset of the population that share at least one common characteristic. Convenience sampling  is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. Judgment sampling  is a common non-probability method. The researcher selects the sample based on judgment. This is usually an extension of convenience sampling. Quota sampling  is the non-probability equivalent of stratified sampling. Like stratified sampling, the researcher first identifies the stratums and their proportions as they are represented in the population. Then convenience or judgment sampling is used to select the required number of subjects from each stratum. Snowball sampling  is a non-probability method used when the desired sample characteristic is rare. It may be extremely difficult or cost prohibitive to locate respondents in these situations. Snowball sampling relies on referrals from initial subjects to generate additional subjects. Sampling technique that we will use in our research will be the Convenient Sampling. The data will be collected through soliciting responses to the questionnaire designed for the study. The respondents will be contacted either in person or through e-mail. Sampling frame: Sampling frame is the actual set of units from which a sample has been drawn. In the ideal case, the sampling frame should coincide with the population of interest. For our research, the sampling frame that we will use consists of retail shops, groceries stores and malls. This sampling frame will ensure that the respondents chosen for the survey are the actual consumers/customers of the ready to eat food. E-mail will also be used to as a medium of data gathering. Since the people who usually consume the ready to eat food belongs to the relatively younger age group, the use of e-mail to invite the response will make sure that the survey is directed to the right target population. Sample size: The  sample size  of a  statistical sample  is the number of observations that constitute it. A larger sample size leads to increased  precision  in estimates of various properties of the  population. The sample size of 200 has been chosen for the survey. As according to central limit theorem, a sample of size of minimum 30 observations is required to perform statistical analysis. This sample was large enough to provide the data which could be further used for analysis and interpretation. Data Collection: The data will be collected through the questionnaires. The questionnaires will be filled either through soliciting replies through e-mails or contacting respondents personally. Thus the primary source of the data will be used in the analysis. Data Analysis We have designed our questionnaire such that the responses would give us nominal and interval data. We will be using the following techniques to analyze this data Univariate/ Bivariate Analysis Correlation and regression Multivariate Techniques such as cluster analysis, factor analysis (as applicable) ANNEXURE FOCUS GROUP DISCUSSION (FGD) Introduction The purpose of the discussion was to conduct evaluative research to determine (in order of priority) Understand the perception of the target audience about Packaged Ready to eat food Identify the main factors that influence a buyer to buy the products Understand the need of getting varieties in the ready to eat food material Identify the consumer preference of ready to eat food products Target Audience As per our understanding, ready to eat food would be generally preferred by Married women who dont get time to cook food Young working professionals and college students who stay in flats as bachelors Working population who travel a lot Focus Group Attributes There were 6 participants and discussion was moderated by a moderator. We selected participants from the PGP13 and PGP14 batches of IIM Kozhikode such that there were 2 female students who got married and were working before joining IIM K shared their past experiences 2 students (1 male and 1 female) who joined as freshers shared their experiences as graduation students and also as MBA students 2 students (both males) shared their experiences while they were working in jobs that involved a lot of travelling, before joining IIM K Seating pattern was as shown in the figure P3 P4 P22 P- Focused Group participants P5 P6 P1 M- Moderator M Beginning the Focus Group Discussion: The moderator welcomed the group with his introduction and facilitated introduction of the group too Moderator gave an overview of the topic This is an attempt to know the preferences regarding Packaged Ready to Eat foods from the young bachelors, from working women as they have to take care of the food at home and manage time also and from college going students who have scarcity of time and also look for variety and different taste in the products Subsequently the moderator set the ground rules. The moderator used predetermined questions and an assistant moderator took careful notes. Topics Discussed in the group Question: If ready to eat products are easily available in the market how many of you would like to purchase? Discussion: The group members had different preferences. Some members were concerned about the variety of products available and the price for the quantity. There was a small discussion around the usage of the pack and time factor. One member talked about how he started buying RTE as he stayed alone and this was very convenient to make and it gets ready in few minutes. It saves a lot of time and energy. Ranking was given to different attributes and the final rankings are as follows Taste Time saving activity Easier availability Increased convenience Food variety Price Question: What kind of options should be present in packaged food that you would plan to purchase? Discussion: Everyone was of the opinion that instant mix and packaged snacks like pasta, vermicelli, noodles and ready to cook Indian curries are essential. The final ranking was as follows: Confectionary (preferred across the group) Instant open and eat (preferred by young population) Instant mix to cook like dosa powder, gulab jamun mix (preferred by female users) Frozen food like peas, sweet corn (used for quick preparation of food by married women) Question: Are you brand loyal or would you be ready to switch to a different brand? Discussion: The group was split between brand-loyal and non brand-loyal customers. Brand loyal customers specified major brands like MTR, Kelloggs, ITC when they went for buying RTE foods. And the non brand- loyal customers switched among products whichever they found the best in taste or always looked for a change or went for trials of new products. However, even the brand loyal customers showed inclination to change brand if variety and better taste is available in novelty products. Question: Are you too particular about the cuisine in RTE foods? Discussion: The group consensually came to a conclusion that it preferred different cuisines depending on the time of the day. 1. Chinese- cup noodles, noodles, soups (evening snacks) 2. Mexican- cornmeal (in the morning hours) 3. Italian- Pasta, Bread 4. Indian- gravy, ready mix (main course) Question: Where do you usually shop for Ready to eat foods? Discussion: People had different options for shopping since RTE foods are easily available in the market. They mentioned the following options available whichever was closer to their residence Retail outlet Shopping malls Kirana stores Confectionary stores Question: What influences your decision on choice of food you purchase? Discussion: The group members were influenced by several factors while making a decision to buy a particular product from the various options available in the market of RTE foods. A list of influential factors which they specified is as follows: Advertisements Prior usage experience Friends/ neighbors Retailer on the shop Question: Do you consider price as a major criterion to choose among the products available? Discussion: Most of the group members said that price was not as important a criterion as taste and quality. Moreover the price range of these kinds of products was within range of Rs 50-100, it didnt play a very big role in buying decision process. Inference From the following inferences of the focus group discussion, we designed our questionnaire People do take cuisine into consideration while purchasing packaged food. Taste was the most important criterion followed by ease in making and time consumed. Time was a major factor too as the target segment was young and working population and for them time is always scarce and critical. Word of mouth also played an important role in considering new products for consumption. Value for money in terms of quality and variety was considered to a certain extent before buying a packaged food product. QUESTIONNAIRE Questionnaire instructions Please answer all the questions Unless specified, please select only one option as a response for each question Questionnaire design Q1. Do you buy ready-to-eat (Packaged) food? 1 = Yes 2 = No Q2. In a typical week, how often do you buy packaged food? 1 = Less than once 2 = 1 to 3 times 3 = 4 to 6 times 4 = More than 6 times Q3. Why do you buy packaged food? (More than one option can be chosen) 1 = Convenience 2 = Taste 3 = Nutrition 4 = Quality 5=Price 6 = any other reason, please specify _______________ Q4. Please indicate your food preference. 1 = Vegetarian 2 = Non-vegetarian 3 = Both Q5. What cuisine do you prefer? (More than one option can be chosen) 1= Indian 2 = Chinese 3 = Italian 4 = Mexican 5 = Others, please specify _______________ Q6. Generally during which phase of week do you consume packaged food? 1=Monday to Friday 2=Saturday to Sunday = All days Q7. From where do you buy processed food? (More than one option can be chosen) 1=Retail outlet 2=Shopping malls 3=Kirana stores 4=Confectionary stores, 5=Others, please specify _______________ Q8. What influences your (as an individual) decision on choice of food products you purchase? (More than one option can be chosen) 1 = Children 2 = Advertisements 3 = Spouse 4 = Friends 5 = Retailer on the shop 6 = Others Q9. What is your age group? 1 = 15 to 25 years 2 = 25 to 35 years 3 = 35 to 45 years 4 = Above 45 years Q10. What is your occupation? 1 = Student 2 = Public Service 3 = Private Service 4 = Self-employed 5 = Homemaker 6 = Other, please specify _______________ Q11. Do you live with your family? 1 = Yes 2 = No Q12. What is your monthly income (in Rs.)? 1 = Below 15000 2 = 15000-25000 3 = 25000-35000 4 = Above 35000 5 = cannot disclose Q13. Usually, where do you consume packaged food? 1 = Home 2 = Workplace 3 = Both 4 = Other Q14. On a scale of 5, how satisfied are you with the packaged food, where 1 is least satisfied and 5 is highly satisfied? 1 2 3 4 5 Q15. On a scale of 5, how likely are you to recommend packaged food to others, where 1 is least likely and 5 is highly likely? 1 2 3 4 5 DEPTH INTERVIEW OF RETAILERS We plan to have depth interviews with 1-2 retails and ask them following questions: Which category of food sells more? Which type of packaged food is preferred? Do you have refrigeration facilities? For how many years you have been in the retail business? How many customers visit your shop every day? Which is the peak hour of your business? What age group of customers visits your shop? Which type of customers prefers packaged food? Has the sales of packaged food changed over the last three years?