PART IPART I

The Role of Fruit in a Situationally-Defined Japanese Gift Market

Dr. Kenneth C. GehrtDr. Kenneth C. GehrtDr. Soyeon ShimDr. Soyeon Shim

Japanese Fresh Fruit Japanese Fresh Fruit MarketMarket

Agricultural sector steadily declining

(U.S. Agricultural Trade Office

1995; Lee 1994). Opportunities for the U.S.

Research in Japanese Research in Japanese Fruit ConsumptionFruit Consumption

Descriptive statistics (Heim 1994; Riethmuller 1994)

Aggregate demand(Seale, James, Jierwiriyapant 1990; Schotzok 1994)

Paucity of research on Japanese consumer behavior particularly with regard to fruit products.

Meaning of Fresh Meaning of Fresh Fruits to JapaneseFruits to Japanese

Unique role of fresh fruits in Japanese life from both cultural and economic standpoints (Cook 1994; Soliman 1994).

Fruits are not viewed as an essential part of the Japanese diet in same way as in U.S.

Fruits viewed as a luxury item consumed as dessert or purchased as a gift item/high prices.

As a gift, fruits compete not with vegetables but with sweets and various other, sometimes expensive, gift items.

Japanese Gift-Giving Japanese Gift-Giving MarketMarket

Two lengthy gift-giving seasons

O-chugen and O-seibo Everyday gift occasions intrinsic to

social and business etiquette The annual retail gift market

$70 billion

The important role of fruits in the gift market

Gift market not researched

Objectives of Empirical Objectives of Empirical ResearchResearch To identify situational factors that

influence fruit consumption in the gift-giving market.

To delineate a situationally-defined competitive market structure of gift-giving.

Focus Group Interviews with Focus Group Interviews with Japanese Housewives, Tokyo, Japanese Housewives, Tokyo, JapanJapan

Wholesale Market VisitWholesale Market Visit

WholesalWholesale Market e Market PromotioPromotion Centern Center

Retail Market Retail Market Visit - Fruit Gift Visit - Fruit Gift ParlorParlor

Mom & Pop StoreMom & Pop Store (continued)(continued)

Mom & Pop StoreMom & Pop Store (continued)(continued)

Findings from Findings from the Focus the Focus Groups and Groups and Market Market ObservationObservation

Situation #1

• Younger Older Situation #2

• Informal Formal Relationships Situation #3

• Home Visit Gift-Giving Seasons (e.g., O-chugen and O-seibo)

KKey Situational Factors for ey Situational Factors for Gift-GivingGift-Giving

2x2x2=8 situational scenarios• Ex. 1. Older/informal relationship/ casual

home visit (e.g., grandma)

• Ex. 2. Older/formal/gift-giving season (e.g., Husband’s boss, children’s teachers)

KKey Situational Factors for ey Situational Factors for Gift-GivingGift-Giving

Fruit Category• Tangerines

• Oranges

• Grapefruit

• Apples

• Melons

• Grapes ...

KKey Gift Itemsey Gift Items

Food Category • Dried Seafood, Cooking Oil

Dessert Category

• Western Sweets, Japanese Sweets, Rice Crackers

Beverage Category

• Coffee, Green tea, Black tea, Liquor, Fruit Juice

Non-Food Category

• Gift certificates, Flowers

KKey Gift Itemsey Gift Items

Measurement of appropriateness of 18 gift items for 8 different situations ...

Development of the survey Development of the survey instruments in Japaninstruments in Japan

Development of the survey Development of the survey instruments in Japaninstruments in Japan (continued)(continued)

Sample page of Questionnaire

Consumer survey among housewives in 11 metropolitan areas in Japan (N=804)

Survey researchSurvey research

Dummy variable regressionCharacterize each gift itemWith respect to 3 situational factors

Situational Situational Characterization/RegressiCharacterization/Regressionon

Market Market Structure/ClusterStructure/Cluster

Start with 18 products. Pair the two products with most

similar betas. Pair the next most similar products

(or product clusters). Repeat until cluster disparity

coefficient increase precipitously.

ResultResultss

Emergence of Six Distinct Groups in the Gift Market ...

Low Gravity Gift ClusterLow Gravity Gift Cluster Products

• Ordinary Fruits

• Beverages Situations (Based on product

x situational scenario means)• Younger (1st)

• Informal (1st)• Casual Visit (3rd)

Practical Gift Practical Gift ClusterCluster

Products • Foods generally stored in household.

• Foods generally requiring processing before consumption.

Situations• O-chugen/O-seibo [Gift-giving seasons] (1st)

• Informal (2nd)

• Older/Younger (split)Older - Dried seafood, liquor.Younger - Oil/seasoning, black tea.

High Luxury Gift ClusterHigh Luxury Gift Cluster Products

• Japanese Sweets

• Melon Situations

• Older (1st)

• Formal (1st)• Casual Visit (2nd)

Moderate Luxury Moderate Luxury ClusterCluster Products• Grapes• Western Sweets• Flowers• Rice Cakes

Situations• Casual Visit (1st)• Informal (2nd)• Older/Younger (split)

Older - Flowers, GrapesYounger - Western Sweets, Rice Cakes

Single Product Single Product ClustersClusters Gift Certificates

• Holiday (+)

Green Tea• Older (+)

LimitationLimitationss

Other situational factorOne-day HolidaysGender is component of

situation Other gift items

Other fruitsOther foodsOther non food-items

ConclusionConclusionss

Individual, product, and situational characteristics influence gift preference.

Viability of situational segmentation Ability to delineate a situationally-

defined competitive market structure Alternative to traditional

product/consumer-based segmentation methods.

Conclusions Conclusions (continued)(continued)

Japanese gift market profoundly different from U.S. counterpart.

Guidance to exporters regarding positioning strategies.

Suitability of situational segmentation to Japanese gift-giving.

Doomo Doomo Arigatoo Arigatoo

GozaimasuGozaimasu

Questions and AnswersQuestions and Answers