Decision-making process of households on food consumption

Abstract

Decision-making process of households on food consumption is discussed in the post-Keynesian theory of household choice. Since the core assumption of uncertainty is employed, the set of consumption alternatives is restricted to the subset of the known ones. When searching for these alternatives, the consumer faces the search costs expressed by time of search. The sample of Czech households was investigated to ascertain the volume of the search and 57% of households do not seek for any information that are relevant for decision-making on foodstuff purchase. To overcome this activity, the households more likely rely on prices and the range of goods of the closest sellers to them. Searching for information on product is replaced by reliance on habits and recommendations of the others. On the contrary, the uncertainty of real purchase power is of lower significance in food consumption, because the foodstuffs meet the basic physiological needs and dispose of constrained stability in storage. Thus, households cannot always postpone (or bring forward) their consumption. In order to deal with the lack of money, households from lower income levels reduce their expenditures for foodstuffs more often than those from the higher income levels. Consequently, the relationship between the level of income and needs satiation is outlined. 

Consumer Behaviors Toward Novel Functional and Convenient Meat Products in Poland

“…As it was previously observed men buy premium products only after recommendation of majority or all of their friends or relatives. The mentioned behavioral pattern is also consistent with the association for income, based on post‐Keynesian conception of consumer‘s choice identified by Melicharová (). It was revealed that households use “the rule of thumb” during making decision regarding meat and meat products (Melicharová ).…”

“…It may be associated with the structure of the household budget. Households with lower income reduce their expenses on food more often than those with higher income, but simultaneously lower income evokes reduction of the costs by purchasing from local producers (Melicharová ).…”

“…The mentioned behavioral pattern is also consistent with the association for income, based on post-Keynesian conception of consumer's choice identified by Melicharov a (2006). It was revealed that households use "the rule of thumb" during making decision regarding meat and meat products (Melicharov a 2006). "The rule of thumb" recognized as acceptance of social conventions allow to make a decision quickly and efficiently, on the basis of the opinions of others, so in the case of low-income respondents, low financial resources may impose decisions resulting from experiences of the others, helping to avoid wrong choices.…”

The Retail Sales in the Czech Republic and the European Union and the Comparison of Evolution

“…V období zpomalení růstu ekonomiky výdaje na potraviny klesají pomaleji než ostatní výdaje, což koresponduje s tvrzením některých autorů (např. Stávková a Turčínková, 2005;Melicharová, 2006). Jinými slovy, výdaje na nepotravinářské zboží jsou více sladěny s ekonomickým cyklem a spíše ho prohlubují.…”

“…Pokud jde o maloobchodní tržby za potraviny a potravinářské výrobky, hrají významnou roli příjmy domácností, avšak finanční nejistota domácností zde zdaleka nemá takový vliv jako u nepotravinářských produktů s ohledem na vztah těchto skupin zboží k úrovni potřeb, které jsou je jimi uspokojovány (Stávková a Turčínková 2005;Melicharová, 2006).…”