Dining out has become a new pastime

Going out to eat has become as American as baseball, apple pie and mom. On average, Americans eat at sit-down restaurants five times per month, according to a new survey by Maritz Marketing Research Inc. (For this survey, Maritz defines a sit-down restaurant as any eating establishment excluding fast-food restaurants.) While the majority of people (67 percent) eat out between one and five times each month, 21 percent dine out six or more times in a month. Only 12 percent of Americans say they never eat at a sit-down restaurant.

More than half (55 percent) of those who eat at sit-down restaurants spend less than $10 per meal. On the other hand, a surprising 12 percent typically spend over $25 per meal when they go out to eat.

What makes the restaurant experience so attractive for consumers? Twenty-eight percent of America's restaurant patrons say the primary reason they go out is that they don't want to cook, and 28 percent go out when they need a break from their daily routine. Only 4 percent cite relaxation, business or pleasure as primary reasons for dining out at sit-down restaurants. (Respondents could choose more than one item.)

Several factors influence choice of restaurant. Thirty-seven percent of restaurant-goers say that an eating establishment's "variety of food" affects their choice, while 23 percent choose "price," and 21 percent say "quality of food." Factors such as "healthy menu items," "cleanliness," and "smoking policy" seem less important. (Respondents could choose more than one item.)

Americans put significant consideration into tipping a waiter or waitress. Seventy percent say that a server's ability to provide fast, efficient service guides the size of the tip they leave. Thirty-two percent note that a server's friendliness influences the size of the tip, and 17 percent say that attention to detail, such as frequent drink refills, and correctly delivering special orders makes them more likely to give larger tips. Only 3 percent of Americans who go to sitdown restaurants always tip a server the traditional 15 percent or 20 percent without considering service quality.

It's prom time, do you know what your kids are doing?

It's spring, the time when teens think about parties and proms. But for many of their parents, spring is a time to worry about their children's risky behaviors. And in the 1990s a discussion about the birds and the bees is no joking matter.

When asked about risky behaviors, over half of parents (58 percent) say they are very concerned about their child riding in a car with a drunk driver and 50 percent say they are very concerned about the threat of AIDS. Many parents are also very concerned that their teenager will drink and drive (49 percent), use drugs (48 percent) or become sexually active (45 percent). Comparatively fewer parents are very concerned that their child will smoke cigarettes (37 percent).

When asked which single issue they are most concerned about when thinking about their teenagers, 28 percent of parents are most likely to say the threat of AIDS is of most concern. A similar proportion (22 percent) say they are most concerned that their teen will ride in the car with a drunk driver. Comparatively smaller proportions mention becoming sexually active (14 percent), drinking and driving (13 percent), or drug use (11 percent) as their biggest concern for their teenaged child.

Fortunately, most parents talk to their teens about sex (89 percent), drinking (94 percent), using drugs (96 percent), drinking and driving (92 percent), smoking (94 percent) and the threat of AIDS (87 percent). These results were part of a new survey released today by Prevention magazine and Cable News Network (CNN).

Furthermore, few parents wait until a crisis to talk with their teens. Almost eight in ten parents spoke to their children about drinking and driving (82 percent), drugs (81 percent), drinking (80 percent), sex (79 percent), and AIDS (77 percent) when they thought the time was right, rather than because of a problem needed to be addressed immediately.

And this time comes when the children are at a fairly young age. On the average, parents talked with their teenager about each issue before that child reached the age oftwe]ve. And among parents with more than one teenager, 23 percent say their youngest was younger when they spoke to that child than their older teenagers were when they spoke to them.

Parents appear somewhat hopeful that their teenager will follow their advice. Fewer than one-half of parents think their teenagers definitely will follow their advice about AIDS (48 percent), smoking (46 percent) or drugs (45 percent). Comparatively smaller proportions think their teenagers definitely will follow their advice about sex (28 percent), alcohol use (37 percent) or drinking and driving (39 percent).

"Parents are clearly concerned about talking with their children about these important safety issues," says Thomas Dybdahl, marketing research director for Prevention magazine. "And that's a good beginning to the process of prevention and reducing risk. The question is whether teens are listening to their parents as well as they think."

"The poll shows that parents are doing more than crossing their fingers," says Dan Rutz, executive producer of CNN Health and Medical News. "Most are talking to their kids about some of the dangers of growing up. Now, if they just keep it up! A natural and ongoing dialogue is the best bet for a smooth and safe transition to adulthood."

The vast majority of parents (90 percent) concede that it is harder for their kids to be teenager today than it was for them. However, 59 percent say they would not be too worried (26 percent) or not at all worried (32 percent) if their teenaged sons or daughters behaved like they did when growing up.

Almost half of parents (45 percent) also tend to think their teenagers are better behaved than they were when they were growing up. and an additional 41 percent say they are acting about the same. But, the parents who think their teens are better behaved than they were are more likely than others to say they would be very worried if their teenager behaved like they did when they were growing up (38 percent vs. 4 percent).

With today's threat of AIDS, parents who say they aren't worried if their kids behave like they did may be deluding themselves. Forty-eight percent of parents confided that they were sexually active as teenagers, and roughly the same proportion (54 percent) think their teenagers will be sexually active before getting married.

Among the other Prevention/CNN survey highlights:

Although parents of teenaged girls and teenaged boys are equally concerned about AIDS, parents of girls are more likely than parents of boys to say that they are most concerned about their teenager becoming sexually active (22 percent vs. 7 percent).

Ninety percent of parents say they know their teenagers' closest friends, and among these parents, 79 percent say they know the parents of their teens' closest friends. Only 61 percent of these parents say they have talked about issues like smoking, drinking and drug use with parents of their teenagers' closest friends.

The Prevention/CNN poll on risky behaviors was conducted April 17 through 20, 1995. The telephone survey of 400 randomly selected parents of teenaged children was administered by Parkwood Research Associates, and has a margin of error of plus or minus 5 percentage points. 

Long distance ads annoy, confuse most consumers

In a recent national survey of more than 1,000 Americans, 78 percent reported being sick of the advertising and hype about long distance services. Nearly six out of 10 (59 percent) said they were confused about available calling plans. The survey was conducted by CDB Research & Consulting Inc., the research subsidiary of Creamer Dickson Basford, an international public relations firm.

A total of 59 percent agreed they were confused by the many different calling plans to choose from. Another third (34 percent) disagreed with the statement, while 8 percent did not know. A higher proportion ofthose in the 18-24 age range (68 percent) agreed they were confused.

Overall, 78 percent of Americans acknowledged that they were tired of all the advertising and hype about long distance telephone services; 15 percent disagreed and 7 percent did not know. Those with annual incomes of $50,000 or higher were even more likely to agree (89 percent), as were those in the 18-34 age range (83 percent), a key finding since both groups are important markets for long distance services.

The majority of Americans (60 percent) feel all the major long distance providers charge the same. In spite of feeling this way, they appear to consider cost savings within reach of a careful consumer: Sixty-two percent agreed that by choosing the right provider and calling plan, you can save a lot of money on long distance calls.

"Though consumers want to choose a long distance provider that will save them money, they are clearly confused about the various options available," says Larry Chiagouris, managing director of CDB Research & Consulting Inc. "They appear to be cynical about the claims for cost savings made by providers," he adds.

In a separate survey, additional data regarding consumers' motivations in choosing a long distance provider were collected from long distance users in CDB Research & Consulting's National Consumer Panel. The data indicates cost savings is not the only factor in the choice of a provider; only 50 percent believe their current providers are saving them money over other providers. In addition, when asked why they use their current provider, loyalty to the provider was mentioned as a reason as often as cost savings.

"Long distance companies may be missing opportunities to cultivate customer loyalty by leveraging their heritage, image and brand equity, which appear to play an equally important role as cost savings in getting customers to stay with that provider," says Chiagouris.

Study finds strong brand loyalty for feminine protection products

Menstrual periods may not be a topic for polite conversation but they are a fact of life ... at least for women and, increasingly, the men who love them, according to a poll in the current issue of EDK Forecast, an executive newsletter that tracks women consumers' attitudes, values and lifestyles. The poll found that women are no longer embarrassed to mention the previously unmentionable - in fact, two thirds (62 percent) of the 500 women aged 18-50 polled have sent their husbands or boyfriends out to buy tampons or sanitary pads for them. And 90 percent report that the men asked to run the errand went willingly - or at least they went.

"While euphemisms still abound, most women and men recognize that menstruation is just a fact of life and not cause for embarrassment," says Ethel Klein, publisher of EDK Forecast and president of EDK Associates. "And the commercials that appear on television touting absorbency or wings don't make women or men cringe. Eighty percent of women say these ads are perfectly fine, and only a third say that all these ads offend is their intelligence."

TV advertisements for tampons and pads don't offend the sensibilities- women don't want them taken off the air - but they aren't particularly persuasive either. When it comes to feminine protection, women tend to stick with the brands they know and trust. Three quarters (75 percent) of women always buy the same brand of tampon or pad. The few women who are willing to try something new may be susceptible to the power of persuasion. Forty-three percent of women who switched said they did it because they read about something new, another quarter (26 percent) had a coupon for another brand.

Today more information than ever is available about women's health, but some myths still persist. A quarter (24 percent) of women still hear that menstrual cramps are all in their head. And the more a woman suffers from menstrual pain, the more likely she is to hear that refrain (40 percent of women with very painful periods, compared with 14 percent of women who have no pain).

But for the pain that is associated with menstrual cramps, painkillers are available to women and women buy them. Two thirds (61 percent) of women who experience some discomfort during their periods turn to over the counter pain relief. One in ten (11 percent) uses prescription drugs, and only five percent rely on chamomile tea or other home remedies. A quarter (23 percent) of women in pain, however, do nothing at all.

"The market for feminine hygiene products and related painkillers is in no danger of disappearing," says Klein. "While women tend to stick with the products they know and trust, clever television ads that don't offend women's intelligence, reinforced by a print campaign that lays out product benefits, can create a niche in the market."

The EDK Forecast poll of 500 women nationwide was conducted January 6 - 8, 1995. lt has a margin of error of four percent. EDK Forecast is published ten times a year.

Study shows effects of promotions on shoppers' choices

A promotion effectiveness study conducted by Clayton/Curtis/ Cottrell, a Boulder, Colo., market research firm, details the impact of advertising and promotions on brand choices in 223 product categories. The study is broken into two distinct parts - "The Role Of Promotions On How Shoppers Plan And Execute Their Shopping Decisions" and "The Role Of Promotions On Consumer's Brand Loyalty, Brand Trial And Brand Conversion."

For each of the product categories, shoppers were given a list of brands and asked to assume that all of the brands are the same price and size. Included within the list of brands were generic and private label store brands if applicable to the category. Shoppers were first asked to select the brand they would select first, then the brand they would select second and third in the event their first or favored brand is not available. The brands selected by shoppers first, second and third are very important because the selection process is free of all other influences, especially the influences of price and positioning in the store. The brand that a shopper will select first is attitudinal. A shopper's attitude toward a particular brand is the result of a number of influences that have been accumulated over time.

In some categories, shoppers may have an attitudinal preference toward a favorite brand and will repeatedly purchase that brand when they make their selection in the store. In other categories, shoppers may have an attitudinal preference toward a favorite brand but will select another brand when making the selection. When shoppers do not select their favored brand, the reason is almost always related to a combination of price and their perception of risk if the brand does not prove to be satisfactory. A shopper is more likely to be influenced to purchase a lowerpriced brand if the brand has a frequent purchase cycle and low-use risk.

For example, a six-pack of carbonated soft drinks purchased twice weekly at a discounted price of $1.39 and consumed very quickly is a low risk. A package of chewing gum purchased frequently at a discounted price of $0.25 is a low risk if the product proves to be unsatisfactory. However, a tube of toothpaste, even if discounted to $1.79, or jar of mayonnaise, discounted to $1.69, purchased every six weeks and consumed incrementally over the six week period is a much higher-risk if the product is unsatisfactory. The risk of a pain reliever discounted to $2.79 and used over a period of three months that does not meet performance expectations is too much for many shoppers to trade-off a discount versus their favorite brand.

According to Robert Cottrell, president of Clayton/Curtis/Cottrell, "In many categories, the brand that shoppers indicate they would select first is different from the scanner data history of what shoppers actually purchase the most. The comparison of the attitudinal data provided in this study compared to scanner data for each category provides a measure of the role and effectiveness of advertising and promotion in both the short and long term."

For example, the brand of beer that shoppers indicate they would select first, all things equal, is Coors Light. Yet, scanner data indicates that Coors Light is not the most often purchased brand of beer. The fact that shoppers indicate they would select Coors Light first is a measure of the effecti veness of Coors' long-term marketing and promotion activities. Even though shoppers have this attitude and perception of Coors Light, they are often influenced to purchase another brand when making the selection decision. The shopper's deviation from established attitudes is also a demonstration of the influence and effectiveness of another brand's short-term promotion activity.
 

Another example of shopper attitudes versus historical scanner data is with salad or cooking oil. Crisco is the brand that shoppers indicate they will select first, all things equal, yet Crisco is not the most often purchased brand according to past scanner data. The value of creating a long-term brand image and reputation is a major goal of manufacturers. Yet, it is not clear that manufacturers know, exclusive of scanner data, the measure of shoppers' attitudes toward their brands.

International companies restructuring marketing to spark global sales

Marketing decisions in international companies are being increasingly coordinated on a global basis to meet the needs of worldwide customers and new product introductions, according to a study by The Conference Board, the New York City-based global research and business membership organization.

The study is based on interviews, case studies, and a survey of more than 50 senior marketing officers in the U.S. and Europe. It finds that the marketing function is being dramatically restructured in some international companies into separate account groups to foster faster global sales growth. In other global companies, the marketing function is likely to become multi-disciplinary - including executives from marketing, sales and manufacturing .

"For many companies, foreign sales are becoming critical in the wake of weakening national trade barriers, and head office marketing managers are responding by developing new approaches," says Stephen Gates, a Paris-based senior research associate in The Conference Board's Human Resources/Organizational Effectiveness department and author of the report. "As global marketing advances, however, these marketing directors may need to provide added encouragement to foreign subsidiary managers whose control over marketing decisions is declining."

Just over half of this study's survey participants indicate that country managers' control over the marketing budget is being reduced, while a third state that the marketing function is being eliminated from the foreign subsidiaries.

To avoid demotivating the country managers who implement global marketing plans, several practices can be followed:

  • let country managers retain local brands and marketing budgets;
  • solicit country managers' contributions for new product development;
  • give country managers Eurobrand team leadership roles;
  • provide international transfers to country managers.

"Although global coordination of marketing decisions and practices is increasing, local or national conditions and pressures still exist," concludes Gates. "When overlooked, the result is often failed global product launches and demotivated country managers. More than many other business activities, the marketing function runs the risk of disastrous results by overstandardization on a global basis. The global marketing function can avoid narrow, head office vision by seeking input from its network of marketing managers."

Companies are realizing that global coordination depends on the strategic nature of the marketing activity, the essential qualities of the product or service, and national differences in marketing practices. Strategic marketing activities, such as product positioning, affect many of the other aspects of the marketing effort, and consistent worldwide marketing policies are generally more appropriate. Conversely, marketing activities such as sales promotion do not respond well to global coordination .

The study also shows that whether the essential value of the product or service is derived from its physical or emotional attributes also helps determine the marketing to be used. If the product's strongest attributes are physical, global coordination of product design and packaging may best protect its value. If the product or service's appeal is based on emotional attributes, global coordination of brand name and advertising activities may be the best approach .

Brand positioning, package design, and advertising are the marketing activities that are increasingly coordinated on a worldwide basis. But imposing uniform marketing practices worldwide without careful study of local market conditions can result in costly mistakes, The Conference Board study shows.