An exploratory research on the relationship between perceived risk, information search behavior and the purchase decision of first time mothers.
THESIS PAPER
Executive Master in Management Studies (part-time)
Supervisor:
Dr. Ed Peelen
Amsterdam Business School, University of Amsterdam
by
Aya Mass-Forstner Student Number: 10528792
ayamass@gmail.com
Table of Contents
Abstract ... 3
1. Introduction ... 4
1. Literature review ... 7
1.1 Perceived Risk ... 7
1.2 Information Search Behavior ... 8
2. Research Conceptual Model ... 11
3. Methodology ... 14
3.1 Research Design ... 14
3.2 Sample and Procedure ... 14
3.3 Measures ... 15
4. Data Analysis and Results ... 20
5. Discussion ... 31
5.1 Theoretical Implications ... 34
5.2 Practical Implications ... 35
5.3 Limitations and Future Research ... 36
References ... 39
Appendix 1- New Baby Shopping list ... 43
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This is an exploratory qualitative research with a practical inclination. It focused on examining the relationships between first time mothers and their pre-purchase behavior in regards to baby products. Baby formula and baby stroller were chosen as the antecedents for this research. This pre-purchase behavior included measuring of the ‘perceived risk’ in regards to the purchase in question. The pre-purchase behavior also covered the relationship between that ‘perceived risk’ and the information search behavior (structured versus unstructured), information channels used and ultimately the purchase decision. The data was collected using online surveys filled by 173 first time mothers from 21 different nationalities. The main findings and implication which emerged from this research were particularly relevant to the study of ‘perceived risk’. Results indicated that the lower the perceived risk the more structured the information search process would be. This was a new addition to the existing body of knowledge. In addition results suggested that ‘perceived risk’ as a construct may be too broad, and should be considered to be broken down into its different components in order to get to the bottom of a certain relationship. The research has found differences in the mix of information channels used for the two products tested. Also higher levels of perceived risk were registered among the pregnant respondents in comparison to the already mothers. Finally, this research has pointed out several new relationships and provided relevant issues for further research.
4 1. Introduction
“In the course of a lifetime, a person undergoes several changes of status. At each change, an old self perishes, as it were, and a new one is born.” (Metcalf, 1991, p. 30). Endless clichés have been written about motherhood and how it transforms women. Giving birth and becoming a mother for the first time is, for most women, the most profound transition they go through in life. Life transitions have been shown to lead to changes in consumption patterns (Thomsen and Sørensen, 2006; Mathur, Moschis, and Lee, 2008; Sevin and Ladwein, 2007). 30 years ago Andreasen (1984) has researched the topic of readiness to change in the context of marketing and consumer choices. His work suggested that ,ceteris paribus, life transitions are a change agent for consumption behavior in most households. Life changes refer to major transitions a consumer undergoes; from relocation to another country, to marriage, divorce, pregnancy and motherhood, the ‘empty nest’, death of a spouse and so forth. The existing literature regarding ‘transitional consumers’ with a focus on motherhood as a life transition and its connection to consumer behaviour and consumption choices or decisions is rather fragmented (Thomsen and Sørensen, 2006; Carrigan and Szmigin, 2004; Moryosseff, 2012; Sevin and Ladwein, 2007). This is
somewhat surprising given that the transition into motherhood is the most profound transition in a woman’s life (Fischer and Grainer, 1993). This transition also entails numerous purchases done over a very short span of time. In the United States expectant and new mothers are a large consumer segment with a substantial spending power. Babycenter.com (a leading information online platform for mothers) has reported $1.3 trillion in annual spending of mothers in 2013 (Millennial Mom Rapport, 2014). While this is a commercial website, they have conducted serious studies and have provided an indication that this consumer group is a very interesting and important one for marketers to know and understand (Sevin and Ladwein, 2007).
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Due to the many changes a women experiences during her pregnancy and early motherhood the transition into motherhood is a time in life characterized by a great need for information. Starting from pregnancy and delivery, followed by caring for a newborn and the general wellbeing of the mother and baby. As consumers mothers are also searching for
information regarding products and services related to the baby. Naturally in modern time with multiple brands and products to chose from, expectant and new mothers will try to achieve some level of knowledge about products that most likely they have no previous experience with. Among these products one can find: baby strollers, diapers, pacifiers, bottles, baby sling and so on. Existing research suggested that there is a need for further investigation of the data sources used by first time mothers and their varying significance (Moryosseff, 2012). When aggregating the reasons listed above it became clear this research would be an exploratory research with a strong practical inclination. The aim of this research was to examine the relationships between the antecedents leading to the information search, the ‘perceived risk’, the information search behavior, information channels used and finally the certainty level of the mother in her purchase decision. An attempt was made to examine the existence of a possible mediating effect of information search behaviour and information search channels on the purchase decision of first time mothers. A rather small amount of research can be found in this area, most of the ones that do exist are qualitative and present findings based on interviews (Thomsen and Sørensen, 2006; Moryosseff, 2012; Sevin and Ladwein, 2007). Existing research examined the way consumption helps first time mothers make that transition into the maternal role, sort of rite of passage (Sevin and Ladwein, 2007; Mercer, 2004; VOICE Group, 2010). A research gap exist between this need for consumption and the way these first time mothers approach it. The focus of this research was the pre-purchase part of the consumption experience, and the search for information. Due to the
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need to get a large sample group in order to test the suggested relationships this research used quantitative data collection methods. As a result of the need to further focus the baby products tested, two baby products were chosen to use as the antecedents of this research: baby stroller and baby formula. These products were chosen since they are both high involvement products. High involvement refers to products’ relevancy to the maternal role attainment (Mercer, 2004;
Thomsen and Sørensen, 2006). The relevancy of these products to either the baby’s wellbeing (in the case of baby formula) or to the mother (baby stroller is one of the most expensive items in her shopping list) is likely to causes the mother to be very concerned, interested and active in regards to information search and making a purchase decision. In addition, a preliminary unofficial survey was done in two mother’s Facebook groups. Mothers were asked what were the most searched products for them as first time mothers. Out of 126 mothers which replied, 78 reported that baby strollers were at the top of their list. Baby formula was likely to create high
involvement not because of its price but because it is a product that is integral to the baby’s wellbeing and development. Both these products hold great consequences to the mother and baby, therefore are likely to be central in her information search.
7 1. Literature review
1.1 Perceived Risk
“Consumers’ perception of risk is considered to be central to their evaluations, choices and behaviours” (Campbell and Goodstein, 2001, p.440). The notion of ‘perceived risk’ was
introduced by Raymond A. Bauer in 1967 (Stone and Grønhaug, 1993). This concept triggered much research which peaked around the 1970’s. A considerable part of the literature approached the concept of ‘perceived risk’ using two terms; uncertainty and consequences. Higher levels of uncertainty and/or higher likelihood of negative consequences increase the ‘perceived risk’ experienced by the consumer (Campbell and Goodstein, 2001). In the case of this research, if a first time mother is faced with the need to purchase baby formula the ‘perceived risk’ she associates with this purchase may increase due to the fact she has no prior knowledge or
experience with baby formulas, thus experiencing high uncertainty. Or because of the chance the formula will not fit her baby’s needs (i.e. negative consequences). ‘Perceived risk’ is often measured using 5 components: financial, performance, physical, psychological and social (Chaudhuri, 1997; Campbell and Goodstein, 2001; Stone and Grønhaug, 1993). Consumer’s ‘perceived risk’ can be driven by a single component or by a combination of several. Not all components must play a role, mainly since not all of them are always applicable for all products. For instance the financial element is more relevant for the purchase of a baby stroller which cost several hundred Euros than to a baby formula costing around €10-15. On the other hand, the physical component has far greater relevance when buying a baby formula which relates directly to the baby’s wellbeing and development. Whereas a baby stroller provides the same physical
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benefits for a baby almost regardless of the brand used and the price paid (Thomsen an Sørensen, 2006). In order to handle the emotions and sentiments triggered by ‘perceived risk’ consumers engage in various behaviours. These behaviours include brand loyalty, reliance on word-of-moth information and well-known brands (Campbell and Goodstein, 2001). Another way consumers use to reduce risk is “by searching for information that will enable them to act with a degree of confidence in situations of uncertainty”( Chaudhuri, 1997, p.82).
1.2 Information Search Behavior
“Before it can have any tangible and direct impact on consumer choice behavior, information must be acquired, perceived, comprehended and, in many cases, placed into memory and
successfully retrieved at some later point in time.“ (Jacoby, Chestnut and Fisher, 1978, p. 532). Information search has been researched in the past (Jacoby, Chestnut and Fisher, 1978) and is getting renewed interest in recent years from marketers due to an explosion of information sources, channels and access mediums. Furse, Punj, Girish and Stewart (1984) have created a typology of individual search strategies which in combination with the work of Jacoby, Chestnut and Fisher (1978) have contributed to future research. The research of information search
patterns won much attention in the last decade (Plasmeijer, 1999; Huang, Lurie and Mitra, 2009; Bishop and Barber, 2012), however not much focus was given to ‘transitional consumers’ in that context, and specifically first time mothers (Sevin and Ladwein 2007).Women in their first pregnancy or first time mothers often have no prior experience with baby goods or relevant product knowledge of what need to purchased. They are faced with an enormous amount of options which may trigger uncertainty. Therefore first time mothers often have a great need for product information. Unlike other consumers faced with a purchase decision with no prior
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knowledge or experience, first time mothers being ‘transitional consumers’ are faced with dozens of such purchase choices which have to be made over a rather short period of time. If we look at a sample shopping lists for first time mothers which can be found online (see appendix 1) we find between 40-60 items, all of which need to be purchased over the span of a few months. As much as these items are necessary for the baby they are also helping the woman to make that transition into motherhood (VOICE Group, 2010; Thomsen and Sørensen, 2006; Moryosseff, 2012).
This need for information is preceded by need recognition. This term refers to the
situation where the consumer recognises they have a need and start considering how best to fulfil that need (Engel, Blackwell and Miniard, 1990). The next step after the need has been recognized is search for information. Initially an internal information search would be conducted. The
internal information search is a scan of our memory which aims at determining whether we have enough knowledge in order to make a purchase decision or do we need to search for additional information (Engel, Blackwell and Miniard, 1990; Plasmeijer, 1999). If a consumer’s internal search failed to produce satisfactory information a pre purchase external search will follow. This refers to information searched outside of the consumer’s personal memory and knowledge. Jacoby et al (1976) have identified three main elements of the external search: depth, sequence and content. These were the building blocks for future research. Engel, Blackwell and Miniard (1990) building on Jacoby et al (1976) have described the external pre purchase information search using the same three key dimensions: degree (depth), direction (content) and sequence (see table 1). The search degree, also referred to as intensity is used to describe the overall amount of search. Direction of search is used in regards to the details of the search in terms of which information is being searched. The sequence refers to the order of the search (Engel, Blackwell and Miniard, 1990; Plasmeijer, 1999).
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Table 1 Dimension of external pre purchase search (Engel, Blackwell and Miniard, 1990) Degree/ Intensity of
search
How many brands are examined? How many stores are visited?
How many attributes are considered?
How many information sources are consulted? How much time is spent on search?
Direction of search Which brands are examined? Which stores are visited?
Which attributes are considered?
Which information sources are consulted? Sequence of search In what order are brands examined?
In what order are stores visited?
In what order are product attribute information processed? In what order are information sources consulted?
The variations between search behaviors can derive from external or internal environmental factors. External factors include task complexity, time pressure, information format and so on. Internal environmental factors include personal characteristics. Other factors are: product importance to the consumer, perceived risk, purchasing experience and brand loyalty (Jacoby, Chestnut and Fisher, 1978; Bishop and Barber, 2012). This research focused on the sequence aspect of search behavior, namely structured versus unstructured. The research conceptual model illustrates how the theoretical concepts of ‘perceived risk’ and ‘external information search’ play into the consumer decision making process of first time mothers as ‘transitional consumers’.
11 2. Research Conceptual Model
The field of ‘consumer behavior’ covers the consumption process from stimuli to mental responses, evaluations, intentions and behavior (Zajonc and Markus, 1982; Armitage and
Christian, 2003) In this research a focus was given to the consumption process from stimuli until behaviors. The conceptual model ends at a purchase decision (i.e. intentions) and does not continue to examine its execution into an actual purchase behavior. Within this sequence a greater focus was given to the information search process of first time mothers. Figure 1 illustrates the conceptual model of this research, which presents a consecutive turn of events as often happens in reality. The stimuli in this case is the need to purchase baby goods, more precisely baby formula and baby stroller. Theses antecedents were speculated to lead to a certain level of ‘perceived risk’ due to the reasons covered in the theoretical background. Which in turn was expected to lead to information search behavior using various information channels, and finally a purchase decision should have been made.
Figure 1: Research conceptual model
The ‘perceived risk’ level of the mother is a key variable in this research. When designing the survey two antecedents were used in accordance with the research questions. The first
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antecedent was a baby stroller and the second was baby formula. These two products were used since they were likely to trigger high perceived risk. That was mainly because they involve high financial expense in the case of the stroller and high impact on the wellbeing and development of the baby in the case of the baby formula. As explained in the literature review when a consumers’ experience of perceived risk is high, they are likely to start searching for information (Campbell and Goodstein, 2001). The model focused on two elements of the information search behavior. First, whether the search behavior was structured or unstructured. Second, which information channels were being used during that search process. The choice to focus on the structure level of the information search originated from an insight provided by Nutricia’s digital marketing
manager, Tom de Waard. He explained that Nutricia divided first time mothers into two groups which vary in their search characteristics, mainly by the degree of structure in their information search. Given that this research has practical inclinations a choice was made to focus on the structure level of the information search and less focus was given to other aspects of it. This is an exploratory research, testing the above mentioned relationships in a new context, therefore no hypothesis were formulated but rather research questions.
1. Research question 1. Is there a difference in perceived risk, search behavior and type of information channels used between women in their first pregnancy and first time mothers?
2. Research question 2. Is there a significant relationship between the perceived risk level and the number of channels used?
3. Research question 3a. What is the mediating effect of the search behavior and the type information channels on the relationship between the perceived risk of the mother and her purchase decision in the context of baby formula?
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4. Research question 3b. What is the mediating effect of the search behavior and the type information channels on the relationship between the perceived risk of the mother and her purchase decision in the context of baby stroller?
14 3. Methodology
3.1 Research Design
In order to best answer the research questions a survey was chosen as the preferred data collection method (see appendix 2). Questionnaires are a common research tool used in
quantitative studies. Its strengths are mainly in its ability to reach many respondents rather easily by sending out surveys. Having the ability to use an online medium makes the cost of conducting such research very low. The data collection process is also faster than interviews for example. By using surveys one can extend its reach and have respondents from various countries and cultures. Using questionnaires can keep a researcher bias out of the research, and also provide an ultimate confidentiality atmosphere which promotes honest answers from respondents (Kahn, 2011; Whittaker and Williamson, 2011). A questionnaire was chosen for this research as it is the most likely to provide the necessary statistical data to suggest if there is a mediating effect of
information search structure and information channels on the purchase decision of first time mothers. Also given the exploratory nature of this research an online questionnaire enabled to get comments and insights from 173 women from 21 different nationalities residing in various
countries, whereas other methods would have provided access to fewer, less diverse respondents.
3.2 Sample and Procedure
The target population for the survey was first time mothers who were either pregnant (with their first child) or have given birth to their first child not more than a year ago. The reasoning for choosing this sample groups was that according to many commercial websites and
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parenting portals, in this time frame the majority of the information search is conducted, and purchase decisions are made. Another advantage of limiting the respondents group to women in this stage of their pregnancy or motherhood, was that it increased the chance that the decision making process would still be undergoing or at the very least very fresh in their minds. Since the research relies on self reporting this is highly important. The survey was translated to three languages (English, Dutch and Hebrew), and was distributed worldwide. The translation to Hebrew and Dutch was done by native speakers of each language who are also fluent in English and have completed academic degrees, so they were familiar with academic research tools and requirements. The questionnaire was written focusing on two baby products as the antecedent: baby stroller and baby formula. The reasoning for choosing the abovementioned two products was elaborated in the introduction. Another reason for choosing baby formula was an offer from Nutricia to assist in sending out the survey via their numerous partners, newsletters and websites. The choice of that product should have created an incentive for them. Unfortunately, however, that cooperation did not produce any respondents. Babycenter.com were willing to facilitate publishing the survey in their community groups, this resulted in great numbers of relevant respondents.
3.3 Measures
The research included one dependent variable, one independent variable and two mediators. The background variables that the participants were asked to report included: Income level, nationality, marital status, education level, profession, whether or no they had experience taking care of kids, whether or not they had experience with baby products, if they had already made a purchase decision about the products asked about in the survey, how much time do they use
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searching information on the internet per week and which is their preferred device for information search.
The independent variable, ‘perceived risk’, is a continuous variable measured by a 9-point scale. It is an existing measure taken from Chaudhuri (1997), and was originally developed by Jacoby and Kaplan (1972). As described in the literature review several aspects compose the concept of perceived risk. For this measure a decision was made to use the relevant baby product in the relevant perceived risk aspect. For example, the performance component was relevant to a baby stroller more than to baby formula; therefore this was used in the following statement: ”What are the chances that there will be something wrong with the <baby stroller> or that it will not perform according to your expectations?”. The physical component of ‘perceived risk’ was more relevant in the context of baby formula, thus used as follows: “What are the chances that <baby formula> may not be safe; that is, it may be harmful to your baby’s health and/or development?”. This measure examined five components of perceived risk (financial,
performance, physical, psychological and social), using five statements that the respondent was asked to score on a 9-point scale. In addition to the five components an overall perceived risk question was included in the original measure. In this survey it was duplicated to ask once about baby formula overall ‘perceived risk’ and once about baby stroller overall ‘perceived risk’. This is the statement used: “On the whole, considering all sorts of factors combined, about how risky would you say it was to buy a <baby stroller>?” In total, this measure included seven statements. Important to note that the 9-point scale was designed in such a way that score 1 meant very high chances and score 9 meant very low chances. As a result a lower score indicates lower confidence (higher perceived risk) and a higher score indicates higher confidence (lower perceived risk). The original measure was used to measure ‘perceived risk’ in regards to branded products and was
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used for multiple products, therefore was found appropriate also for this research. Cronbach’s alpha for this measure in this study sample was 0.748.
In order to measure the first of the two mediators (i.e. the structure level of the mother’s search behavior), a measure developed by Pauline Plasmeijer (1999) was used. This mediator is a continuous variable measured by a 5-point scale which used a set of 14 statements designed to measure how structured or unstructured is the information search behavior of the respondent. The original measure was used in a research examining prepurchase external search for financial services, and it draws from the three dimensions described by Jacoby et al (1976) and Engel, Blackwell and Miniard (1990). It focused on the sequence subset of the search and examined structured versus unstructured search behaviour. In table 2 the determinants of the construct are specified. Naturally, some of the wordings in the statements were slightly modified to fit the two products used in this research. For example: “I only read information about <baby strollers> if I happen to come across it.” Or “I set aside a considerable amount of time for asking for information about <baby strollers>.” The same set of statements was used twice, once to check search behavior for baby stroller and once for baby formula. This measure has an alpha of 0.796 when used as a measure for search behavior for a baby stroller and an alpha of 0.582 when used as a measure for search behavior for baby formula.
Table 2- Determinants of the construct “structured versus unstructured search behaviour” (Plasmeijer 1999)
Determinants Structured Unstructured
Intentional search/ incidental learning Pacing (internal/ external)
Active / passive search behavior Consumer control
Retrieval / delivery media
Intentional Internal Active High Retrieval Incidental External Passive Low Delivery
18 Systematic / unsystematic search
Level of satisficing Sensitive to time pressure
Systematic High Low Unsystematic Low High
The second mediator used in this research was the information channel used by the respondent. This is a discrete variable measured by ranking order questions. The intention was to see which channel mix was more in use by the sample group. Given that mothers these days use a mix of different channels, a ranking order question has the benefit of allowing an insight into the preferences within that channel mix, something which would not be possible in multiple choice questions. Respondents were asked to rate the channels they have used according to the amount of time spent using each. They were asked to rank twice the same set of channels, once for the information search process for baby formula and the once for baby stroller. Each set consisted of seven channels: visiting physical shops and talking to sales people, family and friends, medical professionals ( midwife, doula, doctor), caregivers (day care staff, nanny), interactive online (groups, forums, chat rooms), commercial company website, websites offering reviews and product comparisons.
The dependent variable of this research, the mother’s certainty level in her purchase decision, was a continuous variable which measured how certain was the respondent about her purchase decision. This variable was measured using a single statement with which the
respondent had to rate the extent to which she agreed or disagreed with. The statement was: “I am very certain about the product I have chosen”. And the ranking ranged from 1(strongly disagree) to 5 (strongly agree). At the end of the survey respondents were given an option to share
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products as first time mothers. This was an open ended question that provided some interesting insights.
20 4. Data Analysis and Results
The data analysis was performed using SPSS version 22. In total, 625 respondents started filling out the survey, out of which 173 questionnaires were valid (N=173). The exclusion criteria for this survey were: not completed questionnaires, women who were not first time mothers, or that their baby was more than 12 months old. Table 3 presents the background information of the sample group.
Table 3: Frequencies of background variables (N= 173)
Background variable Scale Percent
Income level bellow average 16.2 Average 58.4 Above average 22.5 Education level University 73.4 High school 15.0
Have not graduated from high
school .6
Other 8.1
Family situation
Single/ living alone 2.3
Living with a partner 19.1
Married 72.8
Other 2.9
Made a purchase decision about baby formula
Yes 36.4
No 63.6
Made a purchase decision about baby stroller
Yes 90.2
No 9.8
Prior knowledge or experience with baby products
Yes 47.4
No 49.7
prior experience taking care of babies
Yes 49.7
No 47.4
For how long have you been searching for information before making your baby stroller purchase
decision
Less than a month 31.8
1 to 3 months 40.5
3 to 6 months 16.8
21 For how long have you been
searching for information before making your baby formula
purchase decision
Less than a month 27.2
1 to 3 months 8.7
3 to 6 months 4.6
More than 6 months 1.7
I am not using baby formula
since I breastfeed exclusively 50.9
Time spent using the Internet per week
Less than an hour .6
Between 1-10 hours 26.6
Between 10 and 25 hours 42.2 Between 25 and 40 hours 20.2
More than 40 hours 10.4
Preferred information search device
Mobile 55.5
Tablet 19.7
Lap top 24.9
In order to answer the first research question: is there a difference in perceived risk, search behavior and type of information channel used between women in their first pregnancy and first time mothers, a one-way ANOVA analysis was used (see table 4).
Table 4: Differences between ‘already mothers’ and ‘mothers to be’ in research variables.
Mothers to be (N=50) Already mothers
(N=123) Difference Perceived risk M=5.87, S.D=1.34 M=6.38, S.D=1.33 F(1,172)=5.25* Ranking of information channel- Commercial company website M=5.64, S.D=1.44 M=5.08, S.D=1.57 F(1,172)=4.71* M=Mean S.D= Standard deviation *. P< 0.05 level. **. P< 0.01 level.
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The analysis showed a significant difference in two variables: the ‘perceived risk’ and the amount of time used searching commercial company websites for baby formula. In table 4 we see that the ‘perceived risk’ experienced by the ‘already mothers’ is significantly lower than that experienced by the ‘mothers to be’. As explained in the measures chapter, the scale used for perceived risk gives a low score for high perceived risk and a high score for low perceived risk. That is, the higher the score the more confident and certain the respondent felt, the lower the score the less confident and certain the respondent felt. Table 4 shows that ‘mothers to be’ are less confident than ‘already mothers’. We also see that ‘mothers to be’ ranked the information channel ‘commercial company websites’ higher than ‘already mothers’, meaning that the pregnant group spent more time using this information channel. All other variables did not significantly differ between the two groups.
For answering the second research question about the relationship between the perceived risk level and the number of channels used, two new variables were created: one for number of channels used for baby formula and another for the number of channels used for baby strollers. The analysis has shown that there is no association between the ‘perceived risk’ and the number of channels used, for either of two products tested in this research. However, the number of channels used for baby formula information search was associated with the number of channels used for the baby stroller information search (r=.24, p<0.01).
As a preliminary step for testing the mediation effect in research question 3a, a correlation matrix was created. A Pearson correlation analysis was performed on all the continuous variables in order to check which background variables were associated with the research variables. Table 5 presents a correlation matrix for the antecedent baby formula. The table shows that only the ‘perceived risk’ variable was related to income level. All other variables
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did not have significant associations with the background variables. Since income level and education level are ordinal variables a Spearman correlation was conducted and no significant association was found. In regards to all other variables (not background variables) table 5
presentsseveral significant associations. The more structured the search behavior the lower was the perceived risk. The more time spent using commercial company website as an information channel the higher was the perceived risk. The higher the income level the lower the perceived risk. The more time spent visiting physical shops the more structured the information search behavior. The more time spent using commercial company websites the less structured the information search behavior becomes. The more structured the information search process, the higher the certainty in the purchase decision made. Due to the absence of a significant
association between the dependent, mediators and independent variable, the preliminary condition for conducting a regression analysis was not met (Barron and Kenny 1986). Another attempt was made to see if a mediating effect could be found when fine tuning the sample group. Women who indicated they are breastfeeding exclusively were detracted from the sample. The idea was to check if this additional focus would provide the necessary correlations. The result was slightly different but still did not provide the necessary correlations to indicate that a mediating effect does exist.
24 Mea n P erc eived R isk Mea n S ea rc h be h avior f ba by fo rmula info. Channe l Visi ti ng physi ca l shop s info. c ha nne l F ami ly and fr iends info. Channe l Medica pr of essi ona ls info. Channe l C are give info. Channe l Inte ra cti onli ne info. Channe l C omm erc ial c ompany we bsit e info. Channe l We bsit es of fe ring r eview s C erta int y leve l about the pr oduc t chose n. educ ati on leve l incom e leve l
Mean Perceived Risk 1
Mean Search behavior for baby
formula .174
*
1
Visiting physical shops -.017 .301** 1
Family and friends .026 .179* .033 1
Medical professionals .036 -.077 -.336** -.206** 1
Caregivers .111 .158* .055 .129 .109 1
Interactive online -.007 -.081 -.295** -.271** -.148
-.253** 1
Commercial company website -.162* -.221** -.244** -.224** -.190*
-.381** -.126 1
Online product reviews and
comparisons .018 -.295 ** -.494** -.351** -.072 -.528** .177 * .188* 1
Certainty in purchase decision .145 .403** .343** -.097 -.273** .064 .031 -.054 -.136 1
education level -.022 .028 -.011 .106 -.006 -.022 .009 -.045 -.017 .027 1
income level .160* -.101 -.036 -.082 -.057 -.045 -.020 .015 .187* -.015 n/a 1
*. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed).
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step was conducted as for the previous question.A Pearson correlation analysis was performed on all the continuous variables in order to check which background variables were associated with the research variables. In table 6 we see that ‘perceived risk’ was related to the background variable- education level. All other variables had no significant associations with income or education levels as background variables. Since income and education levels are ordinal variables a Spearman correlation was conducted here as well, and no significant association was found between the two. Table 6 presents all the correlations for the antecedent baby stroller, similarly to the antecedent baby formula, there were also few significant associations missing. Out of the three associations necessary for a regression analysis, there was only one available. That was the correlation between ‘perceived risk’ and confidence level in the purchase decision. Exactly the one missing in the previous research question. Therefore there was no reasoning for conducting a regression analysis (Barron and Kenny 1986).
Similarly to question 3a, since there was no significant association between those three elements, there was no reasoning for conducting a regression analysis. Nevertheless several other significant associations did exist. The lower the ‘perceived risk’ the higher was the certainty level in the purchase decision made and the education level of the respondent. Significant associations were also measured between the different information channels. The more time spent visiting physical shops and talking to sales people, the less time was spent searching for information via medical professionals, interactive online websites, and websites offering product reviews and comparisons. Similarly, the more time she spent searching for information using family and friends, the less time was spent on information search using interactive online websites,
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was spent searching for information using medical professionals more time was also spent using caregivers as an information source. Whereas less time was spent on all the online channels (interactive websites, company websites, and websites offering product reviews and
comparisons). This line was maintained in the usage of caregivers as an information channel. The more time spent using it the less was spent using company websites, and websites offering
27 Mea n P erc eived Ri sk Mea n S ea rc h be h avior for ba by st rolle r info. Channe l Visi ti ng physi ca l shop s info. c ha nne l F ami ly and fr iends info. Channe l Medica pr of essi ona ls info. C ha nne l C are give info. Channe l Inte ra cti onli ne info. Channe l C omm erc ial c ompany we bsit e info. Channe l We bsit es of fe ring r eview s C erta int y leve l about the pr oduc t chose n. educ ati on leve l income leve l
Mean Perceived Risk 1
Mean Search behavior for baby
stroller .100 1
Visiting physical shops -.045 -.072 1
Family and friends -.078 .078 -.052 1
Medical professionals .098 .089 -.294** .067 1
Caregivers .009 .101 -.149 -.022 .249** 1
Interactive online .095 -.122 -.290** -.232** -.222** -.094 1
Commercial company website -.077 .020 -.052 -.313** -.372** -.362** -.129 1 Online product reviews and
comparisons .011 -.048 -.342
**
-.415** -.266** -.274** .011 .131 1 Certainty in purchase decision .251** .117 -.053 -.079 .000 .090 .074 .026 -.019 1
education level .160* -.139 -.148 -.021 .038 -.041 .172* .004 .015 .013 1
income level -.022 .116 -.042 .066 -.057 .012 -.066 .080 .012 .086 n/a 1
**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).
28
were all available. A correlation analysis was conducted between the different statements of the ‘perceived risk’ variable, the structure level of the search behavior and the certainty level in the purchase decision. The leading reasoning was to check the possibility of the ‘perceived risk’ measure to be too general for this research. In light of the previous results, a speculation emerged that maybe information search helps the mother to alleviate the perceived risk only for certain aspects of the ‘perceived risk’ but not for others. The results showed that when breaking down the concept into the five components of perceived risk: financial, performance, physical, psychological and social (Chaudhuri, 1997; Campbell and Goodstein, 2001), a significant
correlation existed between the financial component of ‘perceived risk’ (related to baby stroller in the survey), and the search behaviour for baby stroller (r=.17, p<0.05). The lower the financial ‘perceived risk’, the more structured the search behaviour would be. A significant correlation also existed between the financial ‘perceived risk’ and the certainty level in the purchase decision (r=.22, p<0.01). The lower the financial ‘perceived risk’, the more certain the mother would be in her final purchase decision. Another component of the perceived risk that showed similar results was the physical aspect (related to baby formula in the survey). A significant correlation was found between the physical ‘perceived risk’ and search behaviour for baby formula (r=.15, p<0.05). Meaning the lower the physical ‘perceived risk’ the more structured the search
behaviour for baby formula would be. A significant correlation was also identified between the physical ‘perceived risk’ and the certainty level in the purchase decision (r=.23, p<0.05). The lower the physical ‘perceived risk’ the more certain the mother would be in her final purchase decision. No further significant correlations were found.
29
An additional analysis examined how frequent was the respondents use of the different information channels. Namely, what was the most common ranking the respondents gave to the information channels based on the time they spent using each channel. A paired t-test was conducted and its results are presented in table 7. This analysis provided an insight into the preferred mix of touch points used by the sample group. One can see that the ranking is different between the two antecedents tested in this research.
Table 7: paired t-test of information channels for baby formula and baby stroller
Mean Std. Deviation T df Sig. (2-tailed) Pair 1 Baby stroller-Visiting physical shops 3.1618 1.79707 -5.807 172 .000 Baby formula-Visiting physical shops 4.2717 2.15697 Pair 2
Baby stroller-Family and
friends 2.6763 1.55868
Baby formula-Family and
friends 2.5318 1.48064 Pair 3 Baby stroller-Medical professionals (midwife, doula, doctor) 5.5376 1.50774 20.879 172 .000 Baby formula-Medical professionals (midwife, doula, doctor) 2.2890 1.52031 Pair 4 Baby stroller-Interactive online (groups, forums, chat rooms)
3.2486 1.49478
-4.644 172 .000 Baby formula-Interactive
online (groups, forums, chat rooms) 3.9191 1.49974 Pair 5 Baby stroller-Commercial company website 4.5029 1.50048 -5.040 172 .000 Baby formula-Commercial company website 5.2428 1.55108 Pair 6 Baby stroller-Websites offering reviews and product comparisons
30 Baby formula-Websites
offering reviews and product comparisons
31 5. Discussion
The results showed no significant difference between the two groups in regards to the search behavior for baby formula or baby stroller. The lack of significant difference in regards to search behavior can be explained by the purchase time. Most women purchase baby strollers for instance during their pregnancy, so while their response may have been recorded in different times of their pregnancy or motherhood, the purchase time was similar and so was the search behavior. The lack of significant difference between the two groups in regards to the search behavior for baby formula is rather surprising since baby formula is purchased by some women prior to their delivery and by others only when they start working, stop breast feeding and start looking for alternatives. In this context it is important to mention the International Code of Marketing of Breast-milk Substitutes, published by the World Health Organization (1981). This code has set very strict limitations regarding marketing efforts of any kind by baby formula producers and distributors. The WHO code (1981) states that breast feeding is superior to baby formula in every possible way and that baby formula companies are not allowed to contact pregnant women or mothers of babies until six months old for any marketing, samples, information or any other sales oriented attempt. This of course poses great difficulty on those commercial companies. It is also possible that this code had some effect on the search behavior of the test group in this research. Another important point to mention in this context is that 50.9% of the sample group stated it is not looking for information regarding baby formula as they were breastfeeding exclusively. Existing literature suggested that parents or future parent have existing ideas about baby formula in comparison to baby feeding (Shaker, Scott, and Reid 2004), Those ideas partly generated by
32
the WHO code (1981) have a lot to do with their ultimate decision regarding bottle or breast feeding.
A significant difference was identified between the pregnant and mother group in regards to their ‘perceived risk’. Mothers reported a lower ‘perceived risk’ than pregnant women. That distinction could possibly be explained by the greater uncertainty, in regards to baby products, experienced during pregnancy due to the theoretical nature of the thoughts and considerations during the pregnancy. That in comparison to after giving birth when all considerations and contemplations are much more realistic with a real, tangible baby as a reference point. Relying also on a personal interview with Tom de Waard, Nutricia’s digital marketing manager, which provided an insight to the practical aspects of this topic. He explained that there is a clear division between ‘mothers to be’ and ‘already mothers’ in regards to their information consumption needs. ‘Mothers to be’ search and need a lot more information than ‘already mothers’. Some of it has to do with the abundance of free time available for pregnant women in comparison to the hectic first few months with a newborn at home. As a result it is possible to assume, building on the theoretical and practical background , that the confidence level of an ‘already mother’ in her purchase decisions for baby products increases with her experience in taking care of her baby (Campbell and Goodstein, 2001).
The second significant difference between the pregnant and already mothers group was concerning the usage of commercial company websites as an information channel. Pregnant women used it more than new mothers. To the best of my efforts no previous theory was found that could offer an explanation. It is likely that after the baby was born, a mother automatically has additional channels which include a more personal dimension than a commercial website.
33
Those newly acquired channels may include: care givers, other mother circles, etc’. As a result she may perhaps make more usage of those channels that offer a personal facet to the product recommendation.
The results for the second research question showed that there is no connection between ‘perceived risk’ level and number of channels used. This is rather interesting as it was indeed a surprising result. While theory is often contradictory in regards to information search as a behavioral tool designed to deal with and lower ‘perceived risk’ (Gemünden, 1985), in the context of this research we saw that this was not the case. As Gemünden (1985) elaborated, this correlation depends on the complexity of the product at hand. Another possible explanation can be found in the free text the respondents in this research were allowed to add. Despite the fact that this is not a qualitative research, and no official analysis was performed on the free text added by the respondents, several interesting impressions arise from it. The respondents were given an option to share anything they would like to add about their experience with searching for information about baby products as a first time mother. An answer that repeated itself quite often was the feeling that there is an “endless ocean of information available”, some of it quite “scary and intimidating”, “too many information channels and contradictory recommendations”. This is often daunting and “adds to the already existing stress and anxiety”, many women said they were “overwhelmed”. One cannot ignore the overruling sentiment which comes across loud and clear. There is a possibility that in the case of baby products, once a mother dives into the information search process, it does not alleviate her perceived risk, but rather add to it. This point deserves further attention in future research.
34
The data analysis for research questions 3a and 3b provided no indication of a mediating effect. However few interesting correlations were found. First, an interesting pattern emerged regarding the different information channels. The more time spent using the ‘online information channels’ the less was spent using the ‘offline information channels’. There is a distinction in the literature between ‘online’ and ‘offline’ information seekers and their characteristics (Cotten and Gupta, 2004). However there is no indication that there is a tradeoff of a sort between online and offline channels. It is possible that this distinction is only valid in the context of this research, however further research needs to be conducted if it can be applied in a greater scale. Another potentially interesting relationship can be suggested looking at the use of the ‘medical
professionals channel’. When examining the results it seems that this channel is used in addition to the other channels and not on its own. Meaning when information was searched and not found via other channels, only then the medical professionals are approached for advice in regards to baby products.
The last analysis which separated the different components of ‘perceived risk’ is very interesting for its theoretical and practical implications. The results raise the possibility that the overall ‘perceived risk’ construct may be too general and unified. Separating it to the different components may help to identify the source of the correlation.
5.1 Theoretical Implications
The theoretical findings and implication which emerge from this research are particularly relevant to the study of ‘perceived risk’. The results indicated that the lower the perceived risk the more structured the information search process would be were a new addition to the existing body of knowledge. The second key implication has to do with ‘perceived risk’ as a construct
35
comprised of five components. The results of this research suggested it may be too broad, this potentially could pose some difficulty to identify the source of whatever correlation being researched. In other words, the construct should be broken down to its different components in order to get to the bottom of a certain relationship. For instance the source of a perceived risk a consumer experiences can be derived from a financial aspect of the product in question. In this case the perceived risk can be alleviated only if this specific component is addressed. If a
correlation between perceived risk and another variable is researched it is important to know that not all component of perceived risk will have the same relevancy or impact on the overall
perceived risk score, this may create misleading results in a study. Therefore it is recommended to score each component of perceived risk on its own as well as the overall perceived risk. This may give a researched the option to provide a more thorough insight into a certain correlation.
The different ranking the respondents gave for the two antecedents used in this research suggests that different information channels are used when searching for information for two different products, even when seemingly they belong in the same consumer goods group.
5.2 Practical Implications
The practical implications of this research include a distinction between pregnant women and mothers in regards to their perceived risk levels. This should be noted by marketers when
addressing those women. The difference found in regards to the information channels used among these two groups should also have some consequences for marketing efforts. This finding should be considered in combination with the average ranking to the time spent using each of the information channels for each of the products (baby formula and baby stroller). A special
36
information channels for the two products examined. Clearly different channels are preferred for different products, even within the niche of ‘baby products’. Background information gathered in this research may also have interesting implications to marketers. Those include the time of day in which mothers are more likely to be searching for information. Also mobile phone being the medium mostly used has importance to software and application development in order to stay relevant for first time mothers. The role of the website needs to be re-examined in the sense of its contribution to helping the first time mother to chose a brand and a product. A key goal for marketers should be finding a way to reassure first time mothers in their choices in an era of information overflow and general confusion these mothers experience. Social network sites are often perceived as the ‘village elders’ of modern days and first time mothers use them to seek advice and recommendations. The challenge for marketers is to create these platforms that will help first time mothers to introduce more structure and confidence to their information search process. The difference between ‘mothers to be’ and experienced ‘first time mothers’ also suggest that different language or cues should be used, and these two groups, although very similar, are also very different in many aspects.
5.3 Limitations and Future Research
The main research limitations lie in its focus on two products which may not be relevant to all first time mothers. For examples, some women may use baby slings or other alternatives and would not purchase a baby stroller, these women would not have their data reflected accurately. Breastfeeding mothers would find the entire section on baby formula irrelevant. For that reason there was a “neutral” option in the 5-point scale. Furthermore there were additional questions in the survey which allowed them to state that baby formula was not a relevant product for them as
37
they were breastfeeding exclusively. Additional research should include a more flexible antecedent (i.e. not specific products). Using a variety of products would help to examine the ‘perceived risk’ level triggered by different antecedents. While this research used self reporting as the data collection method, its main limitation was that it did not provide live and accurate data on information search but a relied on the memory of the respondents to report in retrospect. Future research should consider using online data collection in combination with self reporting. This may provide a deeper, more accurate understanding of information search patterns
mentioned in the literature review.
The online offline channel trade off is a topic which is worth additional research which will try to determine if trade off like this does exist on a greater scale. Or is it determined per product searched. Another finding of this research which is worth further attention is the difference in perceived risk reported by the pregnant sample group and the already mothers. One can assume that ‘perceived risk’ and the certainty level regarding purchase decision are co-dependent in the sense that it is difficult to define which caused the other. If a mother has already made a purchase decision her ‘perceived risk’ is likely to go down. But it is also possible that her initial perceived risk was lower, therefore making her more confident in her purchase decision. This point is worth additional attention in future research. Another limitation indirectly related to ‘perceived risk’ involves the high percentages (nearing 50%) of respondents which reported to have previous experience taking care of babies or knowledge regarding baby products. Of course it is possible that what they consider to be experience is merely helping with a little sibling when they were young teenagers, or few babysitting hours. Which many people would agree is quite different than being a mother taking care of her first newborn. Nevertheless these respondents perceived themselves as having this experience which may have influenced their experience of ‘perceived
38
risk’. Future research should consider to include only women with no previous experience or knowledge.
The impression arising from the statements made by the respondents about the information overload they experienced deserve an additional attention. The topic should be further studied in a phenomenological study about the experience of women searching for information. (interviews or focus groups).It may be interesting to use such a research to try and identify the source of the ‘perceived risk’. It may be plausible that the ‘perceived risk’ is deriving from certain product aspects that cannot be alleviated by more information or product knowledge. In such cases the information search would have no effect on the certainty level regarding the purchase decision. This may explain the lack of mediating effect in this research.
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Appendix 1- New Baby Shopping list
as copied from http://community.babycenter.com/post/a10748605/baby_checklist-_new_baby_shopping_list
New Parent? Having a first Baby? This newborn baby checklist is a complete list of newborn needs - everything your baby needs! You'll be prepared for one of the most precious days of your life! Remember when buying clothing - only buy a few in one size as your baby will grow very fast!
What the Baby Will Need at the Hospital 1. Undershirt
2. An infant outfit such as a stretch suit, nightgown, or sweater set 3. A pair of socks or booties
4. Baby receiving blanket, cap and a heavier baby blanket if the weather is cold 5. Diapers and wipes (some hospitals provide an initial supply of these)
6. Safety pins or velcro attaching strips, and rubber or nylon pants (if you are using cloth diapers)
7. Infant car seat 8. Diaper bag
Nursery
Essential:
- Crib (no more than 2 ¼ inches between slats)
- Fitted crib sheets (2-between spit-up and leaky diapers, you'll use both)
- Waterproof crib mattress (tight enough so two fingers can't fit between the mattress and crib) - Storage for baby clothes and gear (closet, dresser, or armoire)
- Receiving blankets (3 to 5, great for swaddling at first and then as blankies)
- Baby monitor (not needed in small apartments where you can hear your baby everywhere)
Nice-to-have:
- Changing table (money-saving alternative: change your baby on your bed)
44 - Colorful mobile (the more engaging, the better) - Supportive rocker or chair for feedings
Clothes for Year One
Essential: Items needed for each stage: 0 to 3 months, 3 to 6 months, 6 to 9 months, and 9 to 12 months
- Pajamas/sleepers-ideally, footed pjs during cooler seasons to minimize wrestling with baby socks that always pop off (3 to 6 per stage)
- Onesies-to wear alone or layer for extra warmth, short-sleeved or long-sleeved depending on the season (3 to 6 per stage)
- Soft tops and bottoms for daytime (4 to 6 per stage after the first few months- initially, pjs and/or onesies are fine all day)
- Cotton hats (1 to 2 for stage one-birth to 3 months-and during cooler seasons) - Socks (3 to 6 pairs per stage)
- Sleep sack-highly recommended once your infant outgrows swaddling, a sleeveless zip-front "sack" that's zipped over his pajamas or onesie to keep him cozy while sleeping without putting him at risk for SIDS (only 1 needed)
For winter months, depending on your climate: - Sweaters (2 to 3)
- Fleece bunting or snowsuit (a fleece, zip-up lining for the infant carrier is also handy) - Warm hat
For summer months:
- Bathing suit, baby sunglasses, and sun hat Nice-to-have:
- So-cute-you-could-die baby outfits (but keep in mind, dresses get seriously tangled up in babies' knees during the squirming and crawling stage-usually between 7 and 11 months)
Diapering
Essential:
- Disposable diapers (50 to 60+ per week-no, I'm not kidding) or cloth diapers (24 to 36+ depending on your tolerance for washing them)
- Diaper wipes
- Petroleum jelly or A+D ointment (to apply during each diaper change) - Diaper rash cream with zinc oxide (to use if your child gets a rash) - For cloth diapering, diaper covers to prevent soaking through to clothes
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Nice-to-have:
- Odor-preventing diaper pail and refills Health and General Care
Essential: - Thermometer
- Infant pain reliever (don't use before 2 months without consulting your pediatrician) - Bulb syringe (for suctioning out stuffy noses)
- Brush or comb (even if you have a baby baldie, you'll use these eventually) - Baby lotion (for dry skin after the first few months)
- Prepackaged first-aid kit Nice-to-have:
- Humidifier (to help with decongestion during colds) Bathing
Essential:
- Plastic infant tub with supportive sling or baby-sized sponge to prevent slipping (used until your baby can sit up)
- Inflatable baby tub (provides support in the real tub when your baby first sits up) - Baby shampoo
- Washcloths (2 to 4) Nice-to-have:
- Bath toys (from about 6 months on)
- Hooded towel (otherwise a regular towel will work)
- Soft cover for bathtub spout (once your baby is in the big tub at about 7 to 8 months) Baby-on-the-Go
Essential:
- Car seat (to be secured facing backwards until your child is 1 year and 20 pounds)
- Stroller (either a travel system, which works for all ages, or a universal frame stroller to use with your infant car seat and then a toddler stroller starting at about 6 months)
Nice-to-have:
- Front carrier, sling, or baby backpack (a carrier can be used when your infant is 8 pounds, and a backpack can be used at 6 months)
46
- Portable crib (great for travel, and the removable bassinet is a perfect play space or bedside sleeping option for your infant those first few months at home)
Nursing Moms Essential:
- Nursing pillow (to keep your baby in position and save your back) - Breast pads (to prevent leakage)
- Lanolin cream (to prevent chaffing)
- Cloth diapers or burp cloths (4 to 6 for catching baby spit-up while burping after feedings) - Breast pump (electric or manual, only essential if you want to continue breastfeeding after maternity leave) - Pump carrying case, plastic bags for storing milk in the freezer, and supplies - Bottles (2 to 3 for serving pumped milk)
Nice-to-have:
- Bottle warmer (for warming refrigerated breast milk if your baby prefers the warm stuff) Bottle Feeding
Essential:
- Bottles (5 to 8 in the 9-ounce size only)
- Nipples of different sizes as baby ages (stage 1 for infants, moving up to stage 4) - Dishwasher caddy (to wash the plastic nipples)
- Cloth diapers or burp cloths (4 to 6)
- Formula (ask your pediatrician for a personalized recommendation) Nice-to-have:
- Bottle warmer Feeding Solids Essential:
- Highchair or booster seat with an infant-appropriate seating position
- Baby food (stage 1 at about 5 months, stage 2 at about 6 months, and stage 3 starting about 7 to 9 months-or you can make your own from the beginning)
- Baby spoons (3 to 5) - Plastic baby bowls (4 to 6)
- Sippy cups (starting at about 8 to 10 months, 4 to 6 needed) Childproofing
