Consumer segmentation based on commitment to local products in Hungary

Abstract

Local products and short supply chains play an important role in national economies, as well as in creating a sustainable economy and society. In our research, we examined Hungarian consumer attitudes using a model related to the consumption of local products. The model analyses the reasons for buying or not buying local products. To explore consumer attitudes, we launched a nationally representative consumer survey of 500 people. The data obtained were analysed by factor and cluster analysis, which led to well-separated consumer segments being identified. The main arguments in favour of buying local products were a sense of security (local character) stemming from the knowledge of a product’s origin, a belief in their health properties, and support for local communities. We were able to identify three factors by factor analysis. These are External and Internal Product Features, Purchasing Benefits from Emotional Commitment, and Support for Local Producers and Local Merchants. Four clusters were identified along the factors: Emotional (36.5%), Local Patriots (15.0%), Passive (21.2%), and Conscious (27.3%). Each segment can be targeted with different marketing messages. The Conscious can be influenced with more rational messages, the Local Patriots and the Emotional with more emotional messages. The primary target group for local products is the Conscious, to whom the Local Patriots and the Emotional can be added. It is also possible to target the three groups through certain messages. However, Passives are difficult to address because their behaviour is characterised by a high degree of disinterest.