EFO705 – “Changing consumer’s attitude of energy drinks in Thailand market” -A case study of Thai consumer behavior toward energy drinks- Master Thesis in Business Studies Authors Group: 2789 Suratssawadee Kuptanon (870113) Thanathorn Pichittachakul (831226) Supervisor Peter Selegård Examiner Ole Liljefors Date of submission: 3 th June 2011 Abstract Date: 2011-05-25 Program: MIMA-International Marketing Course name: Master Thesis (EFO705) Title: Changing consumer’s attitude of energy drinks in Thailand market. A case study of Thai consumer behavior toward energy drinks. Authors: Suratssawadee Kuptanon (870113) Thanathorn Pichittachakul (831226) Supervisor: Peter Selegård Problem: How to change the attitude of Thai young adult consumer regarding to energy drink? Purpose: To describe and analyze the attitude of Thai young adult consumer that effect to the energy drink market in order to develop and change their attitude in the positive way. Furthermore, give the recommendation about the appropriate way to maintain and increase the market share and customer for the marketer. Method: This research use both qualitative and quantitative in the questionnaire survey to conduct the real behavior and attitude of young adult in Thailand market. Basically, the data collection method also divided into two sources which are primary data and secondary data. Moreover, the total respondents in this research are 400 who are young adult and live in Bangkok, Thailand. Also, the theories of attitude change strategies, attitudes and consumer perception are use in this research. Conclusion: The results from the survey show the opportunities for marketer to change their customer attitude by use the main instruments which are advertising and marketing campaigns. Keyword: consumer behavior, change attitude, change behavior, energy beverage, and social drinking II Acknowledgement Over the period of conducting this paper, we have encounters lots of constraints and difficulties. Without the helping hands, we would never accomplish the mission. Therefore, we would like to dedicate this acknowledgement page for those that have contributed to our research. First of all, we would like to express gratitude to the project adviser, Peter Selegård, for being generously instructive all along the semester. The appreciation also goes to the authors’ main and side opponents from group 2675 for their suggestions which are valuable for this paper. We also would like to thank all those who took the time to answer our questionnaire. Lastly, thanks for our family that always support us and give the opportunity to write this paper. Suratssawadee Kuptanon (870113) Thanathorn Pichittachakul (831226) III Table of contents List of abbreviations ............................................................................................................ IV List of Figure ....................................................................................................................... V List of table ........................................................................................................................ VI 1. Introduction ....................................................................................................................... 1 1.1 Background ................................................................................................................. 1 1.2 Problem Statement ...................................................................................................... 2 1.3 Strategic question ........................................................................................................ 2 1.4 Research question ........................................................................................................ 2 1.5 Purpose ....................................................................................................................... 2 1.6 Scope of research......................................................................................................... 3 1.7 Target Audiences ......................................................................................................... 3 1.8 Disposition .................................................................................................................. 3 2. Conceptual framework ...................................................................................................... 5 2.1 Consumer perception and brand perception ................................................................. 5 2.2 Promotion .................................................................................................................... 6 2.3 Integrated Marketing communications (IMC) .............................................................. 7 2.4 Brand Position ............................................................................................................. 9 2.5 Attitude ..................................................................................................................... 10 2.6 Attitude change strategies .......................................................................................... 10 3. Methods and research design ........................................................................................... 12 3.1 Selection of topic ....................................................................................................... 13 3.2 Literature Review ...................................................................................................... 13 3.2.1 Methods for the critical literature review ........................................................... 13 3.2.2 Keywords ......................................................................................................... 13 3.2.3 Database/Website .............................................................................................. 13 I 3.2.4 Mapping and describing the literature ................................................................. 14 Mapping ...................................................................................................................... 14 Reasoning for selected literature .................................................................................. 15 3.2.5 Critical literature review ..................................................................................... 15 A Study of attitude towards energy drinks in Thailand ................................................. 15 Energy Beverage ......................................................................................................... 17 A Structural Theory of Attitude Dynamics................................................................... 17 Behavior Management and Behavioral Change ............................................................ 17 Young adults’ social drinking as explained by an augmented theory of planned behavior .................................................................................................................................... 18 Consumer response to gift promotion. ......................................................................... 19 IMC: a consumer psychological perspective ................................................................ 19 Relationship of Consumer Attitude and Brand ............................................................. 20 3.3 Research Method ....................................................................................................... 21 3.3.1 Primary Data....................................................................................................... 21 3.3.2 Level of Scale and type of scale .......................................................................... 23 3.3.3 Reliability Test ................................................................................................... 24 3.3.4 Validity of research ............................................................................................. 25 3.3.5 Interpret of mean value. ...................................................................................... 26 3.3.6 Secondary Data. .................................................................................................. 26 4. Empirical Finding........................................................................................................... 28 4.1 Primary Finding......................................................................................................... 28 4.2 Secondary Finding ..................................................................................................... 40 5. Analysis .......................................................................................................................... 42 5.1 The 4 factors that influence on Thai young adult to buy energy drinks ....................... 42 5.1.1Brand Perception ................................................................................................. 42 5.1.2 Promotion ........................................................................................................... 43 II 5.1.3 Integrated Marketing Communication (IMC) ...................................................... 45 5.1.4 Brand Positioning ............................................................................................... 47 5.2 The perception and attitude of Thai young adult towards energy drinks ..................... 49 5.2.1 A cognitive component .......................................................................................