Close menu-planner/supplier relationship vital for successful new product development.

Abstract

There has been little research undertaken on foodservice buying behaviour and so there are no models to describe it. This is of concern, for when suppliers develop new foodservice products they need to understand the purchasing decision process and the factors that affect the purchasing decision. This paper aims to contribute to knowledge of foodservice buying behaviour through the testing of a model for the adoption of `New Beef' products. During the testing of this model in hotel and motel foodservice operations in Greater Melbourne, Victoria, Australia, factors affecting the purchase decision-process for `New Beef' products were investigated.

The focus of the research reported in this paper was upon `non-task' variable; in particular, risk-reduction activities and assessment of product benefits involved in the evaluation stages of the `New Beef' product purchasing decision-process. The findings have a clear message for those responsible for purchasing in foodservice operations. They indicate that, in the purchasing of `New Beef' products, the trial of a sample before purchase enables a better assessment of the product benefits, so reducing the risk involved in the purchase. Additional risk-reduction activities can be continued after initial purchase, in particular by incorporation of the new product in a dish for the `Specials' menu. Furthermore, the development and maintenance of a close relationship with the supplier was shown to be of particular benefit to foodservice operators during the evaluation stages of the purchase decision-process.

Keywords: Purchasing, Buying Behaviour, Foodservice, New-Product-Adoption.

Introduction

In foodservice operations, purchasing is an important process that affects both food costs and the quality and consistency of dishes on the menu. It is surprising that little research has been undertaken to investigate foodservice-buying behaviour; indeed, there are no models to describe it (Mawson and Fearne 1997). However, as most of the food products purchased by foodservice operations are incorporated into dishes on the menu, foodservice operations are participating in an industrial buying situation and so models of industrial buying behaviour from other industries can be expected to provide some insights into foodservice-buying behaviour. In particular, the `Buygrid' model (Robinson et al. 1967) has been applied to the buying behaviour of restaurant chains in the U.K (Mawson and Fearne 1996). It was the first significant model of industrial-buying behaviour and together with two others proposed by Webster and Wind (1972) and Sheth (1973). has provided the conceptual framework for the study of organisational-buying behaviour (Johnston and Lewin 1994). The `Buygrid' model is an example of a task model, which explains organisational-buying behaviour in terms of the variables directly related to purchasing decisions. Other models, which include variables relating to human factors, are described as non-task models. The Webster and Wind (1972) and Sheth (1973) models combine both task and non-task variables and are described as complex models (Haas 1992).

The `Buygrid' framework presents eight buyphases for three buyclasses of product in a matrix form (Robinson et al. 1967). The three buyclasses include new task, modified rebuy and straight rebuy. When a new product is purchased for the first time this is a new task; if a product is already being purchased but the supplier is being reviewed because of dissatisfaction with the product, price or service then this is a modified rebuy; and, if there is no change, when a product is re-ordered from the original supplier, this is a straight rebuy. The eight buyphases take the buyer through the entire purchasing process but not all the buyphases are involved in every purchase situation. While a new task will involve all of the buyphases, a modified rebuy and straight rebuy will not. For a new task, a problem or need must be recognised, the product required must then be quantified and the characteristics described before the search for sources begins. Proposals are sought from potential suppliers and these are analysed and evaluated before the supplier is selected. An order routine is then determined and finally, performance feedback and evaluation of the product takes place.

The combination of task and non-task variables in complex models is clearly demonstrated by Webster and Wind (1972) in their model, which shows the decision-making process for organisational buying as being `carried out by individuals, in interaction with other people, in the context of a formal organization' (Webster and Wind 1972, p.13) and affected by factors in the environment. The four classes of variables in this model are environmental, organisational, group and individual. Two more classes were added by Sheth (1973): product and information. Product characteristics related to type of purchase, perceived risk and time pressure while information characteristics included sources of information, which contributed to the expectations of individuals involved in the decision-making process.

While little attention has been paid to buying behaviour in relation to new food products, the purchasing process has been extensively documented. Purchasing by the larger foodservice organisations is generally undertaken by specialised purchasing departments (Riegel and Reid 1990). In the majority of these firms, purchasing departments have the primary responsibility for forecasting product needs. Riegel and Reid (1990) found that purchasing was seen increasingly as an integral part of corporate strategy as well as having a cost and quality control function. However, hotels were less likely to engage in corporate purchasing than other types of foodservice operations. One half of the purchasing departments made all food-purchasing decisions, but were less likely to be involved in recipe development or menu development (Riegel and Reid 1988). In a case study of purchasing strategies and decision-making processes used by restaurant chains in the U.K., Mawson and Fearne (1996) applied the `Buygrid' model (Robinson et al. 1967) and showed that procurement procedures differed with different buying situations. They found that the new task buying situation for innovative products involved both price and quality considerations. In one of the restaurant chains, a review group was set up comprising the marketing manager, the buyer, the assistant buyer, two or three site-catering managers and one site-general manager. The decision on the type of product, however, did not necessarily come from this group: it could come from the marketing department or any permutation of these sections. Once the decision was made, the buying department became involved. The assistant buyer for sensory testing then selected samples of `good' products, which met the price criterion. A `blind tasting' was carried out involving the assistant buyer, the buyer and the review group and then a small number of these products were selected for trials in one or two of the restaurant chain's outlets. Such trials lasted for a period of one week or longer. Mawson and Fearne (1996) reported that the restaurant chains found the new task situation carried more risk, so the procurement procedure was more complex than a rebuy. Greater risk was also perceived to be associated with new suppliers. Price was the determining factor once all the other criteria had been met. Mawson and Fearne (1996) concluded that the `Buygrid' model was a good predictor of procurement procedures for restaurant chains.

Factors Affecting the New-Product Adoption Process

Models of the new-product adoption process are relevant to foodservice purchasing because they also involve a buying decision-making process. Webster (1969) outlined a framework for analysis of new-product adoption in industrial markets utilising the five stages of Roger's (1962) early rural diffusion model for new products; 1) Awareness, 2) Interest, 3) Evaluation, 4) Trial and 5) Adoption. In 1983, Rogers revised his earlier model of …