Consumption of Luxury Food: Essay Essay

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1. Introduction This chapter will function as an debut to the construct of Luxury nutrient consumerism in Harrods Patisserie and Bakery Food Hall. It will measure client trueness inducements. pricing and ballyhoo around its luxury nutrient. 1. 1 Overview of Harrods and Luxury nutrient consumerism Harrods covers 1. 2 million square pess of terrain. in the very bosom of one of London. England’s most esteemed countries. Knightsbridge. The historical architectural landmark. along with the Egyptian Escalator. which was envisioned by Mr. Al-Fayed himself. is listed by English Heritage.

With no less than seven floors devoted to the finest-quality international trade names. every bit good as a deluxe Food Hall that is like no other. It is no admiration that Harrods attracts about 15 million people through its doors every twelvemonth. ( hypertext transfer protocol: //factoidz. com/harrods-the-famous-british-landmark-department-store-changes-ownership-in-2010-and-remains-out-of-british-hands/ ) The United Kingdom and many parts of the E. U have been sing slow growing and development. However. harmonizing to information from this web site which states…Harrods says its Knightsbridge site is Britain’s largest store. selling an array of manner. nutrient and luxury goods…

Qatar Holdings bought Harrods from Mohamed Al-Fayed for a reported? 1. 5 billion last May. ( World Wide Web. fasttrack. co. United Kingdom ) This could merely hold been possible if net incomes had a successful recorded path rate. In 2010. gross revenues in Harrods received? 519. 8million. go forthing Charles digby harrods with a net income of? 86. 5million ( World Wide Web. fasttrack. co. uk ) As consumer wealth additions. so does the demand for more premium. value added merchandises as opposed to cost-reduced trade good merchandises. The state of affairs is partially created by an progressively flush society and a widening spread with the divide of rich and in-between category in the current recession.

There are assorted factors act uponing alteration. In the UK 10 % of the population is presently defined as flush – this figure is expected to lift to 30 % . World Wide Web. foodbytesni. com/text. doc The EU forte nutrient market ( as opposed to the premium nutrient market ) is deserving ˆ33. 5 billion – ( 4. 6 % of entire EU nutrient & A ; imbibe spend ) . In Britain and Ireland it is valued at ˆ6. 1 billion ( 4. 5 % of entire nutrient & A ; imbibe spend ) . It is forecasted to turn to ˆ7. 5 billion in 3 old ages. It is normally known that yesterday’s luxury becomes today’s necessity. Luxury tends to be rare and expensive.

With the above net income figures. the research worker can merely presume that Harrods appears to be the victor in the Patisserie and Bakery Market. With the definition of poorness wholly different in the western universe to the ratio of poorness in developing states. luxury ingestion of Patisserie and bakeshop is considered voguish and it’s demand in Harrods is of all time turning. Although we may presume that luxury nutrients are related to income. during this current recession in the UK with tapering income. the demand for Harrods Luxury Patisserie and Bakery nutrients has increased over this period of clip.

I have noticed this as the research worker is employed in Harrods nutrient production unit. Although. the usual scenario for other departmental shops may be to cut down monetary values during recession. Harrods luxury Patisserie and Bakery nutrients have retained its monetary values and popularity. In fact with the VAT addition from 17. 5 % to 20 % the gross revenues in this subdivision of the nutrient halls has shown no major downswing. Hence. it is my sentiment that demand is so great for Harrods Luxury Patisserie and Bakery that consumers of any income group visit Harrods to purchase even the lowest cost luxury Patisserie and Bakery nutrients which has been a conducive factor.

Charles digby harrods is globally known as unique. as it has an association with category. quality and distinguishes itself from the remainder of it’s rivals. This survey is limited to merely respondents above the age of 18 old ages and will merely be carried out on 30-50 respondents. The survey is narrowed to consumers of Harrods Patisserie and Bakery merchandises and non consumers of the remainder of the nutrient halls. The survey will non cover the life manner and overall economic criterion of the respondents. This has been consciously left out to avoid prolongation of the survey.

Hence. the survey will be unable to analyze the fiscal background of the respondents in deepness. Last. although luxury nutrient ingestion is a macroeconomic map. this survey will merely concentrate on a remarkable market. 1. 2 Research Questions 1. Is the recession impacting Consumption of Luxury Food in Harrods Food’s Patisserie and Bakery Food Hall? 2. What are the cardinal facets or countries of consumer disbursement behavior forms in Patisserie and Bakery Food Halls. Harrods? 1. 3 Aims of the Research The aims of the survey are as follows:

A ) To look into client ingestion and disbursement behavior with luxury Patisserie and Bakery nutrients in Harrods. B ) To do recommendations to Charles digby harrods on how to heighten their gross revenues and keep their market portion in luxury Patisserie and Bakery nutrients. 1. 4 How will the aims be achieved? Objective ( A ) will be achieved through scrutiny of secondary informations. Objective ( B ) will be achieved through findings of primary informations through the usage of questionnaire study and secondary informations through Harrods nutrient industry one-year studies. Chapter TWO Literature Review 2. Introduction.

This chapter will demo the bing literature in the field of Consumer Behaviour from a planetary position and contract it down to consumer behavior in Harrods. UK. It will include selling constructs. psychological constructs and factual statistics. The luxury market is immensely increasing. and there have been important alterations towards consumer behavior ( Strauss & A ; Howe. 1999 ) . Foods that are expensive have a certain entreaty and are regarded as luxuries for particular occasions instead than day-to-day repasts. Conversely. nutrients that are widespread and inexpensive have less entreaty.

Europe is considered to be the cultural centre of manner. interior design. and culinary art. Gourmet cookery has become a all right art. and visitants to the country can happen about any type of nutrient. and the tendency more late has become luxury nutrients. luxury sweets etc. hypertext transfer protocol: //www. foodtourism. com/ From the literature I have read it can be summarized that the current coevals enjoys passing money on luxury trade names due to disposable income and life style that this coevals avails of due to their income or that of their parent’s earning. 2. 1 A theory of luxury.

When Marie Antoinette purportedly said ‘let them eat cake’ . she was seen as a luxury drug addict whose out-of-control disbursement grated on the hapless and unfortunate Gallic people. But today. bar has become one of the favorite luxury nutrients. A revolution has taken topographic point where persons in the universe have got richer. Luxury is no longer the embracing of the male monarchs and Queenss of France but the mass selling phenomenon of mundane life. Simply put. luxury has become luxuri? cation of the common topographic point ( Twitchell. 2001 ; Berry. 1994 ) . 2. 2 Definitions of luxury merchandises. forte and premium nutrients.

In order to understand a luxury merchandise. it is indispensable to distinguish it from ordinary merchandises on the footing of its indispensable features. Luxury merchandises. forte and premium nutrients are defined by their monetary value. quality. aesthetics. clannishness. and symbolic significance. To specify them. their definitions are summarised below. 2. 2. 1 Luxury merchandises Luxury is defined as quality possessed by something that is overly expensive hypertext transfer protocol: //ardictionary. com/Luxury/5550 As they are extremely associated with their nucleus merchandises. common definitions of luxury trade names refer to specific associations with their merchandises.

The indispensable features of luxury trade names hence correspond mostly with those of luxury merchandises. Consequently. their definition can be derived from that of luxury merchandises as follows: Luxury trade names are regarded as images in the heads of consumers that comprise associations about a high degree of monetary value. quality. aesthetics. rareness. inordinately and a high grade of farther non-functional associations ( c. f. Heine 2010 ) . As luxury merchandises and trade names include a high evaluation for their features ; this marks a distinction for luxury makers.

Even amongst luxury merchandises there are differences such as accessible luxury merchandises. which are low-cost for most consumers from time-to-time and some are sole luxury merchandises. which are low-cost merely for the wealthy. 2. 2. 2 Forte or epicure nutrients. Forte or epicure nutrients are alone foods/delicacies. which sometimes exploit regional individuality. They are less reliable than artisan merchandises. ( Workman C. 2005 ) 2. 2. 3 Premium nutrients. Premium merchandises use quality ingredients and careful methods but can be made on an industrial graduated table. ( Workman C. 2005 ) 2. 2. 4 End Merchandise.

Merchandises made by craftsmans have optimal gustatory sensation. texture. and flavours or olfactory property. ( and nutrition/health benefits ) . They resonate with topographic point. tradition and civilization ( genuineness ) . and reflect the manufacturer. his/her accomplishment. personality and ethos. and the method of production. They frequently have an established and stable repute. Often they are made for fresh ingestion locally. or are available in limited measures. supplying a alone. sole experience ( frequently including the purchase e. g. at a market/direct with the manufacturer ) . They hence besides have a high prestigiousness factor and high profile with regard to the measure produced and distributed.

Manufacturers of artisan merchandises are normally hands-on from production through to gross revenues. They are really experient. skilled and demo an uncompromised committedness to their trade. trade and to the superior gustatory sensation of their merchandises. Often there are little Numberss of people doing any one sort of artisan merchandise. ( Workman C. 2005 ) 2. 3 Food Tourism During the twentieth Century. industrialization began to endanger artisan manufacturers and many abandoned their traditional techniques. But in the past two decennaries. there’s been a revival in demand for quality merchandises made by time-honored methods…Food touristry has become large concern. worth about?

4bn a twelvemonth. ( Lane M. 2005 ) Food has many functions to play for consumers: it is functional ( prolonging life ) ; it plays a cardinal function in our jubilations ; it is a conduit for socialising ; it is entertaining ; it is sensuous and animal ; and it is a manner of sing new civilizations and states. For many. nutrient becomes extremely experiential ( i. e. much more than functional ) when it is portion of a travel experience. it can go sensuous and animal. symbolic and ritualistic. and can take on new significance and significance.

Even the most basic repast can be etched in memory everlastingly when it is eaten when surrounded by amazing scenery or at the terminal of a particular twenty-four hours researching a new metropolis. ( Hall M and McIntosh 2000 ) Swarbrooke and Horner have stated that nutrient touristry stakeholders such as eating house and coffeehouse proprietors. cookery school suppliers. festival organisers. hotel and resort directors. bed and breakfast operators. and nutrient manufacturers. By understanding how tourers make their determinations to buy and/or devour nutrient merchandises we will be able to derive a better apprehension of when we need to step in in their decision-making procedure.

Appropriate intercession can. in bend. be used to carry them to buy ‘our’ nutrient merchandises and services. Consumer behaviour research is the survey of why people. either separately or in groups. purchase the merchandise they do and how they make their determination ( Swarbrooke and Horner. 1999 ) . Food touristry is something that is going more normally understood. But how would person make up one’s mind where to travel. and what to see? hypertext transfer protocol: //www. foodtourism. com/ Tourists who enjoy luxury nutrient and patisserie by and large make every effort to at least visit Harrods while in the UK.

Frequently. like the research worker at the visit foremost to Harrods tourers merely visit and see. but. at their 2nd visit at least a little sum of luxury nutrient or patisserie is purchased. Although. consumer disbursement has slowed down in the UK. Harrods has shown an addition in net incomes in their Patisserie and Bakery subdivision with its luxury nutrient points. 2. 4 Consumer purchasing behavior Kolb M. ( 2006 ) associates Maslow’s theory and consumer buying as she states Maslow’s theory has a direct application for selling because many of these demands are met through the purchase of merchandises.

Infact. one time a consumer has all the nutrient. vesture and shelter they need. all other purchases are made to run into higher demands. Therefore. the research worker can province that in order to run into some portion of one’s ego esteem demands. UK and international consumers may be associating to Harrods luxury Patisserie and Bakery nutrient to see self realization and therefore for Harrods this has created a niche. The involvement in premium. forte and artisan merchandises is besides influenced by the inactive growing in population. which has lead to a inactive growing in overall food market gross revenues.

In this state of affairs. nutrients that command a premium monetary value and higher borders go the lone growing sector. and hence go the mark of multiples. Artisan. forte and premium nutrients are hence deriving broader distribution in the multiple retail sector. Workman C ( 2005 ) 2. 5 Consumer purchasing Trends The growing of forte all right nutrient is attributable to Increasing consumer richness as consumer wealth addition. so does the demand for more premium. value added merchandises as opposed to cost-reduced trade good products…10 % of population in UK is defined as flush – this figure is expected to lift to 30 % .

When it does premium nutrient. including forte nutrient is expected to account for 45 % of entire nutrient gross revenues in UK. The forte market is deserving? 4. 2 B in UK and has grown from 20 % from 3. 5 bn in 2003. British all right nutrient consumers spend? 900 per twelvemonth on all right nutrient. Workman C ( 2005 ) CHAPTER THREE Research Methodology 3. 1 Introduction This chapter discusses the different facets involved in the methodological analysis used to carry on the present survey of Consumption of Luxury Food in Harrods Food’s Patisserie and Bakery Food Hall.

It highlights methodological attacks which will let range of the Research survey in a sustained procedure of planning and design. The consideration of the procedure will act upon the pick of methods and attacks that will be presented. This chapter. for that ground contains a treatment of the research intent. research attack. research scheme. informations aggregation methods. informations analysis and quality criterions. 3. 2 Research Purpose Yin ( 1994 ) states that research intent can be grouped and classified as exploratory. descriptive or explanatory.

Exploratory research is conducted to clear up the nature of a job. where the intent is to supply penetrations and understanding. non to supply conclusive grounds. Exploratory research is conducted with the outlook that subsequent research will continue ( Zikmund. 2000: Bryman. 1989 ) . An exploratory survey method is used when the purpose is to develop proposition of future research ( Yin. 1994 ) . A descriptive research is used when the major aim is to depict something. such as population or a phenomenon. It seeks to reply who. what. where and how inquiries. In a nutshell. it does non give the account of the cause of the findings.

However. when work outing a concern job. it is frequently adequate with the information obtained from depicting a state of affairs and it is non required to cognize why things are the manner they are ( Zikmund. 2000 ) . In order to execute a descriptive research. the research worker must hold anterior cognition of the job state of affairs and the information needed is clearly defined. In fact. this is the major difference between exploratory and descriptive research. every bit good as that the descriptive research must be structured and the methods for the selecting beginnings of the information and collection informations are pre-planned and formal ( Malhotra. 1996 ) .

In explanatory research. the accent is on analyzing a state of affairs or a job in order to explicate the relationship between variables ( Saunders et Al. . 2000 ) . Harmonizing to McNabb ( 2008 ) typical aims for explanatory research include explicating why some phenomenon occurred. construing a cause-and-effect relationship between two or more variables. and explicating differences in two or more groups’ responses. The intent of this Research Study is to derive an apprehension of Harrods success within it’s luxury nutrient service specifically their Patisserie and Bakery section Food Hall. Knightsbridge. London. UK.

In order to accomplish this aim. the Research Study will necessitate to see three nucleus elements which will be how Harrods’ conducts their design. execution and rating scheme of the client. Since the purpose of the research is to depict how Harrods operates within the Luxury nutrient service industry. the survey is descriptive in nature. 3. 3 Research Approach Harmonizing to Zikmund ( 2000 ) research can be conducted in different ways and includes both a theoretical and a methodological attack.

The theoretical attack can either be deductive or inductive. and the methodological attack is qualitative or quantitative ( Zikmund 2000 ) 3. 3. 1 Qualitative versus Quantitative Research Zikmund ( 2000 ) further provinces that when roll uping information. either qualitative or quantitative informations can be collected. Qualitative attack may see the undermentioned methods for garnering information like: Participant Observation. Non-participant Observation. Field Notes. Brooding Diaries. Structured Interview. Semi-structured Interview. Unstructured Interview. and Analysis of paperss and stuffs.

In contrast. quantitative methods for research techniques include assemblage of quantitative informations. like information covering with Numberss which is mensurable. Statistics. tabular arraies and graphs. are by and large used to show the consequences of these methods. They are distinguished from qualitative methods. The survey. under focal point is quantitative utilizing an explorative design. This sort of method is widely used to derive acquaintance with a phenomenon that is non adequately explored. The research worker feels the demand to research this issue since there is non much informations associating to Consumption of Luxury Food in Harrods Food’s Patisserie and Bakery Food Hall.

3. 4 Sampling Techniques The existence will consist of ‘simple random sampling’ method to choose samples. This will enable the research worker achieve the coveted information. Harmonizing to Kumar ( 2008 ) . this type of sampling is besides as opportunity sampling or chance sampling where each and every point in the population has an equal alteration of inclusion in the sample and each one of the possible samples. in instance of finite existence. has the same chance of being selected. To choose the sample. ‘each item’ in this research survey will be assigned a figure from 1 to 100.

The sample study will cover respondents in the age group of 18 old ages and above merely. This will guarantee that the respondents are old plenty to understand and reply inquiries in the interview agenda. 3. 5 Population The sample size of this survey is intended to be 30-50 respondents. in the age group of 18 old ages and supra. The survey will hold to be completed in Harrods Patisserie and Bakery Food Hall. Knightsbridge. London. The population will merely include consumers and buyers from the above nutrient hall. 3. 6 Research Instruments

For the intent of this research analyze both primary and secondary informations relevant to this subject will be used. Without the usage of both instruments the research survey will non verify facts and the range of analysis if non used together will non do the research interesting. 3. 6. 1 Primary Data Primary information for this research survey will ensue from firsthand experience with the usage of questionnaires for preliminary assemblage of informations. Questionnaires will be prepared anterior to in-depth interviews with respondents at Harrods. 3. 6. 2 Secondary Data Beginnings.

For the range of this research survey Secondary Data Sources will include literature reappraisal with beginnings from the library. web. and studies. Other secondary beginnings of informations will be sourced and will include thesis. newspapers and internal company studies. 3. 6. 3 Data Collection Instruments This subdivision will include the 30-50 respondents finishing a questionnaire. The interview agenda will be prepared on the footing of survey aims and purposes with structured unfastened ended and near complete inquiries. Section A may cover income. Section B may cover types of Luxury nutrient and subdivision C on ingestion of luxury nutrient.

3. 6. 4 Interviews At the clip of the respondents’ finishing the questionnaire the research worker will interview the respondents. This attack will enable the research worker addition a better comprehension of consumer disbursement on Luxury Food points in Harrods. CHAPTER FOUR 4. 0 PROPOSED ANALYSIS This chapter will foreground the Research program as it will sketch the stairss for carry oning the research in footings of description. timing and presentation. It will be used as a usher to put to death and supervise the undertaking which will enable the research worker to accomplish the intents of the research.

The information collected will be analysed and presented graphically in tabular arraies and charts. This will so enable empirical findings to be compared. In order to transport out statistical analysis of the quantitative informations obtained. the Statistical Package for Social Studies ( SPSS ) and Microsoft Word package will be used to develop a comprehensive and flexible statistical analysis and informations direction for the research. This will enable a scope of tabulated studies. graphs. pie charts. and analysis. 4. 1 Agenda.

|Planned activities | | | |March |April |May |June |July | |Topic Selection |X |X | | | | |Literature Review | |X |X | | | |Meeting with Group | |X | | | | |Meeting with Supervisor | |X |X |X |X | |Seek Permission from Harrods | | |X | | | |Write up Questionnaire for informations aggregation | | |X | | | |Data Collection at Harrods | | |X | | | |Analysis of informations & A ; Findings | | |X |X |X | |Write up of Dissertation Introduction | | | |X | | |Write up of Dissertation Overview | | | |X | | |Drawing up drumhead and decision | | | | |X | |Proof Reading | | | | |X | |Presentation of Research | | | | |X | |Final Submission | | | | |X | .

Chapter FIVE ANTICIPATED OUTCOMES The consequences of this research will supply a specific penetration for Harrods Patisserie and Bakery Food Hall into consumer behavior. tendencies and forms. Second. the research findings and recommendations may edify Harrods on ways to go on to remain on top of the market in any economic clime as a planetary trade name. Last. the findings may lure Charles digby harrods to make a more vigorous forecasted selling scheme to provide to its tourer and local tendencies throughout the twelvemonth.

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