People´s subconscious feelings about CBD (canabidiol)

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PEOPLE’S SUBCONSCIOUS FEELINGS ABOUT CBD (CANABIDIOL)

Afonso Costa Gomes Graça Machado

Project Work presented as partial requirement for obtaining

the master’s degree in Information Management

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ii NOVA Information Management School

Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa

SUBCONSCIOUS OF PEOPLE ABOUT CBD (CANABIDIOL)

by

Afonso Costa Gomes Graça Machado

Project Work presented as partial requirement for obtaining the master’s degree in Information Management with a specialization in Marketing Intelligence

Supervisor: Prof. T.S. D., Ph.D.

October 2022

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1

ABSTRACT

The cannabis sector in Portugal, as well as in Europe, is going through a long journey towards its regulation and legalization. Opinions are divided on the two sides of the coin, with some who argue with support in some scientific studies already carried out that cannabis has positive therapeutic properties, however, in an opposite opinion we have its negative connotation to the drug and its psychoactive effects. As this plant has several components and THC (Tetrahydrocannabinol) is the only responsible for the psychoactive effects, due to a generalization the perception of CBD (Cannabidiol) has also been affected. Currently, the CBD (Cannabidiol) suffers from a serious problem of transparency and honesty, which means that society is still not properly informed about this substance, making room for fraud and other suspicions. The focus of this study will be to understand the current perception of CBD (Cannabidiol) by the Portuguese population and to understand how this affects the market and how the situation can be changed/improved. For this, the study will be supported by an analysis of scientific literature and build a qualitative market research and apply it in focus group to draw conclusions based on the opinions of potential consumers.

KEYWORDS

TABU; Cannabidiol; Educating; Market Research

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2

INDEX

Table of figures ... 4

Introduction ... 5

Literature Review ... 7

1.1. Explanation and Introduction to Cannabidiol ... 7

1.2. Review of existing literature on Cannabidiol ... 8

1.2.1. Studies that have already been done on CBD ... 8

1.3. Consumer Behavior ... 10

1.3.1. Behavioral economics (BE) ... 11

1.3.2. Utility Theory ... 12

1.3.3. Follow the Leader ... 12

1.4. Information Seeking Behavior ... 13

1.4.1. Consumer information and non-information that leads or not to consume13 2.4.2 information seeking behavior theory ... 13

Methodology ... 17

Market Research analysis and conclusions ... 18

1.5. Focusing first on the 99 respondents (45% of the target audience) who have never consumed CBD: ... 19

1.6. individual and comparative analysis of the 121 respondents ... 23

(corresponding to 55% of the study done) who ALREADY consumed CBD: ... 23

Conclusions ... 27

Bibliografia ... 28

Appendix ... 29

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3

LIST OF ABBREVIATIONS AND ACRONYMS

CBD Cannabidiol

THC

Tetrahydrocannabinol

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4

TABLE OF FIGURES

Figure 1- Behavior Model According to Wilson 1981 ... 14 Figure 3-How would you rate your knowledge about CBD? - for all those who have NEVER consumed CBD .. 19 Figure 4-Have you tried out of curiosity or your own initiative to research information about CBD? ... 20 Figure 5-What led you to never have consumed CBD? ... 21 Figure 7-if you had more information would you be more willing to consume? ... 23 Figure 8-How do you consider your knowledge about CBD? Considering that you have already consumed ... 24 Figure 9-How did you learn about CBD? ... 25 Figure 10-How likely are you to recommend CBD to a friend or relative? ... 26

Table 1 Weighted Sample Characteristics ... 9

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5

INTRODUCTION

The CBD market is relatively recent in Portugal and Europe, as it has been a constant struggle to liberalize its marketing, and only in recent years has a law been established binding the liberalization of the sale of CBD-derived products for both Pharmaceutical and Industrial purposes. “The problem is, it’s still considered a “high-risk” business. So, to be able to sell CBD online, a business faces onerous regulations, challenges, and paperwork.”, “Yes, medical marijuana and other products are more legal in more areas than ever. But there’s no guarantee that legislation will continue moving forward forever.

A backlash is always possible." (Star, 2021)

CBD, or Cannabidiol, is one of more than 100 compounds (Cannabinoids) found in the Cannabis plant, being the second most prevalent compound, only surpassed by the illegal THC or Tetrahydrocannabinol. Unlike THC, which is known for its psychoactive effects, the effects of CBD are positive and have immense therapeutic and recreational potential. “According to a report from the World Health Organization, "In humans, CBD exhibits no effects indicative of any abuse or dependence potential…. To date, there is no evidence of public health related problems associated with the use of pure CBD." (Grinspoon, 2021)

This Project is directly related to a company (TABU) that is recently entering this market, and that from the beginning faced two problems associated with the commercialization of these products.

First, we have an uninformed consumer who has no knowledge of the numerous positive properties that this substance (cannabidiol) provides; second, a market in which corporate communication is directed towards the negative connotation of the substance, as it is one of the components of cannabis, and little information on its properties related to mental health and lifestyle improvements.

TABU's mission is to solve this problem by educating the consumer and creating a movement that aims to fight the “Taboo” that exists around the CBD in Portugal, informing people, using scientific studies. Furthermore, the association with the psychoactive effects of Cannabis is existent and insists on not disappearing, which makes this substance a target of criticism and distrust.

By analyzing this problem, we intend to understand if we are really facing an industry that may be expanding or if, on the contrary, it has no growth potential. For this, the focus of this study is to understand how the lack of information affects the consumer's perception of the potential of these products, and if, consequently, an informed and aware consumer of the properties and characteristics of the product is more susceptible to buying it.

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6 In the first chapter we present an introduction to the Theme, raise the problematic and enunciate the most important terms for a better understanding of the study. Here we also present the company that is directly associated with this project and how it, in practice, as a trader, has encountered the problems that are presented throughout this Thesis.

In the second chapter CBD and the difference between CBD and THC become imperative for us to move into the theoretical component of proving some hypotheses.

For the conclusion, the last chapter will be dedicated to the analysis of the data obtained by the questionnaire crossing these data with the theoretical conclusions of the study. A bibliography will also be presented here, as well as some appendices and a summary of all the material studied.

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7

LITERATURE REVIEW

1.1. E

XPLANATION AND

I

NTRODUCTION TO

C

ANNABIDIOL What is CBD?

Cannabidiol or CBD is one of over one hundred cannabinoids (Cannabinoids are chemical messages that activate cell receptors, acting like keys that open a lock. Both are embedded in all cell membranes in the body, such as the brain, organs, connective tissues, glands, and in immune cells. In addition, they are also located at the intersection of the various systems of the body, and thus allow their coordination, as well as communication between different cells) Cannabis sativa L , the second most prevalent active constituent of the plant, with Tetrahydrocannabidiol (THC) the only psychotropic constituent of cannabis coming first. Both similar at the microscopic level - as they share the same molecular formula (C213H30O2) - are two substances that interact with the CB1 and CB2 receptors, found in the endocannabinoid system present in all mammalian species including humans.

Cannabinoids interact with this system that is responsible for various aspects of our immune system, pain receptors, and mood. CBD was first isolated in 1940 and structurally characterized in 1963. CBD can be consumed in many ways, some examples are, oils, herbs, cosmetics, vaporization, food, beverages.

What is the difference between CBD and THC?

Accp Journals raised a question of great relevance to understand the difference between these components -CBD and THC: Do They Complement Each Other Like Yin and Yang?"

(Pennypacker & Romero-Sandoval, 2020), this is a very common doubt, and it is important to clarify so that it is possible to create clarity about these two cannabinoids, although there are the two presents in the same plants interact in different ways with our brain receptors. Cannabinoid receptors are very briefly and abstractly, proteins that can be activated by Cannabinoids and of fundamental importance for Endocannabinoids to function in our metabolism. Researchers have identified two main types of Cannabinoid receptors: CB1, mostly found in the nervous system, mainly in the brain and spinal cord, is the receptor stimulated by the Exocannabinoid THC - when activated, it produces psychological and emotional effects. And CB2, activated by the Exocannabinoid CBD and concentrated in immune cells and the periphery of the nervous system - when activated they have physiological effects, such as reducing inflammation.

“Cannabinoids like THC and CBD interact with the human body via the endocannabinoid system, or ECS for short. The ECS is responsible for regulating bodily functions like sleep, our immune systems, as well as mood. However, where THC produces a tell-tale ‘high’, CBD is entirely non-euphoric.

This has made it a very attractive, very legal option for many looking to incorporate it into their lifestyle to balance their health and wellbeing” (Elisabeth, 2022)

Unlike THC, which is known for its psychotropic effects, CBD's effects are far removed from that field. Studies have shown that THC has an increased effect on the human brain regarding the release of dopamine - a neurotransmitter associated with the feeling of reward experienced, for example, when taking drugs. In turn, CBD has an opposite behavior, causing dopamine activity to

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8 decrease, this being the main reason why a good portion of researchers believe in CBD's potential for understanding and treating addictions. "CBD is the non-psychoactive portion of the plant, so what that means is you won't have any effects like euphoria" (Chin, 2022)

1.2. R

EVIEW OF EXISTING LITERATURE ON

C

ANNABIDIOL

1.2.1. Studies that have already been done on CBD

During my literature review I found that when searching for cannabidiol, for example in Google scholar, most of the articles that exist on it are scientific in nature, being easy to find a lot of information about the component and acquire theoretical knowledge about its composition, however, it is not what I seek to substantiate and develop the problem at hand that I propose to defend in this thesis. Although, it is an important point because it makes us realize that all these studies never reached the stage of evidence that explains how cannabidiol affects the human being and what effects it provides to its consumer. "Additional Work is Needed to Build Data on CBD Use and Safety" was one of the topics covered in an article written for the U.S. Food and Drugs Administration (FDA) by Stephen M. Hahn, M.D., Commissioner of Food and Drugs and Amy Abernethy, M.D., Ph, Principal Deputy Commissioner, even though the United States is far more advanced than Europe in terms of both legislation and research regarding CBD, they themselves comment on this evidence gap, saying that while there are many groups interested in helping to develop better data on the use and safety of CBD products, it is not enough to fill the pending knowledge gaps because observational studies that are too small or do not include techniques to ensure data quality or methodological rigor are of limited use for public health decision making. It is understandable that anything related to public health should be treated with due rigor and caution, on the other hand, it should be noted that there are already several testimonials from consumers who have used CBD and claim to see clear improvements for their intended purpose.

As this project is market-oriented and with a target audience located in Portugal, but also with the potential to expand to all countries belonging to the European Union, the main focus is to obtain a perception more focused on the ideas of the Portuguese and Europeans, since a barrier associated with product legislation separates the European reality from the rest of the world, not being viable to generalize the ideology that all people around the world have of this product.

However, it is always a good term of comparison and for market evolution analysis to take the example of what happens for example in the United States of America, because it would not be the first example that we have of an industry that grows first in America and later spreads to the rest of Europe (for example, just a few years ago the emergence of uber, a technological advance that has spread to the whole world even though it has had several obstacles due to its lack of regulation and gaps in the different countries where it tried to install). Samantha Goodman, Elle Wadsworth, Gillian Schauer, and David Hammond published in November 2020 a study on "Use and Perceptions of Cannabidiol Products in Canada and in the United States", these same scholars challenged themselves to understand and examine what use consumers in the United States and Canada give to CBD, as well as, frequency of use, types of products, and use for medical conditions. The study also examined the perceived health benefits of CBD oil.

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9 During this research they used information from cross-sectional findings from the 2019 International Cannabis Policy Study (ICPS) , using surveys answered via the internet to a public between the ages of 16-65. Respondents were recruited through the Nielsen Consumer Insights Global Panel and their partners' panels. In the following table we can see the sociodemographic factors used which include gender, age, ethnicity, highest education level

and disposable income. The type of device used to complete the survey was also recorded.

The questions that the respondents were addressed throughout this study covered some topics such as, for example, cannabis use status (in order to understand if they have ever consumed cannabis and if so, how often they do it); CBD product use (at this point it was important to understand if the consumption of CBD product is isolated, that is, they do not consume CBD together with another component of the plant such as THC), if the respondent answered "yes" to the question "have you used any CBD products with no THC (including CBD oil) in the past 12 months? " the following questions were asked: Frequency of using CBD products; Type of CBD products used; Money spent on CBD products; Therapeutic use of CBD products; Perception of CBD oil.

Table 1 Weighted Sample Characteristics

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10 The conclusions drawn from this study were that there is a considerable portion of consumers of CBD products in both the US and Canada. And even with the limited evidence on the use of CBD for therapeutic purposes, over half of the consumers believe that it is beneficial to their health and report using it to treat a wide range of health conditions. From a market perspective we conclude that CBD is at an important and growing stage, although with low levels of knowledge and understanding. It is not clear to what extent in the eyes of the consumer the distinction between cannabis products containing only CBD or those also containing THC is clear, this is largely due to the popularity and wide range of cannabis products containing the sole psychotropic component of the plant (THC). From the perspective of this research, "there is a need to better understand how consumers report CBD- containing products in population-based surveys: if CBD-only products are reported as cannabis products, estimates of cannabis prevalence will be inflated over time as the popularity of CBD increases. Although there is a general movement to adopt the term "cannabis" to avoid the stigma associated with "marijuana", "marijuana" may better differentiate CBD-only products from other cannabis products. Overall, there is a need to clarify how these terms are used by consumers and researchers to ensure that usage of CBD- versus THC-containing cannabis is accurately and consistently reported."

With the study that I propose to carry out, it will be possible for us to have a degree of comparison with the reality of the USA and Canada regarding the perception of the use of CBD. And possibly afterwards we can see how these numbers will behave.

1.3. C

^ONSUMER

B

^EHAVIOR

In the cannabis industry an irrational consumer (who has no information) has less predisposition to buy, and this will be the basic paradigm of this study.

However, generally in more computerized markets and of more "normal" and habitual consumer products (such as clothing, shoes, food, etc.), an irrational and impulsive purchase is usually an easier purchase.

Several marketing theories support this statement: impulsiveness generates a quick and easy sale, and with this, the irrational buyer is more inclined to buy certain products. The impulsiveness of the human being is used by many companies as a sales method. Rook (1987) defines impulsive buying as that which "occurs when a consumer experiences a sudden, often powerful and persistent urge to buy something immediately."

The situation described above does not happen in this industry, why? The Cannabis sector does not yet convey as much confidence. There is not that must trust information and it is associated with a TABU. With this study we intend to verify these points, as well as to understand how the general perception of the respondents is on this subject.

Considering the problematic verified about information in this sector, we will address important issues about information and non-information to the consumer that leads him to consume. To prove this hypothesis, we will try to find answers to the main questions.

1. What drives buyers to buy?

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11 2. Why isn't there more information?

3. What is the opinion of the public?

4. Is there knowledge of the industry?

5. Would they buy just to try it without knowing it?

6. Which people buy the most and why?

7. How could CBD be applied as a business and be of benefit to both the customer and the seller?

8. What are the most effective methods to make this industry known to the consumer knowing the barriers that exist around the passage of information (not being able to appeal to smoking and smoking, not prescribing directly as if we were health professionals - there has to be demonstration of results by qualified experts, more research and investment, more direct consumer proof, constant education of the benefits of the plant, not approaching it as the "new legal herb")

Given this approach the first point of analysis is based on the consumer's own consumption behavior.

1. What can influence irrational consumption: psychological component of the issue 2. Sectors in general: theories proving irrational consumer behavior

3. Impulsiveness and lack of information lead to purchase.

Understanding consumer buying behavior has been a target of study, in the field of marketing, uncovering their attitudes, their influences and predicting their needs, as well as analyzing the purchase decision making process.

Here are some theories that related the lead consumers to impulsive and irrational buying with their non-effectiveness in the cannabis industry

1.3.1. Behavioral economics (BE)

This field of study is based on understanding how human behavior has an influence on their own economic decisions and how they will process information. In the various studies of classical economics, the human being has always been approached as a rational being who makes his decisions logically and consciously, without applying any external influence. In this theory it is verified the irrational and influential behavior (by the environment, beliefs, or emotions) that the human being has when deciding.

This theory holds that people make decisions based on some mentally preconceived idea or some already acquired habit.

"[...] people decide based on habits, personal experience, and simplified practical rules. They accept only satisfactory solutions, seek speed in the decision-making process, have difficulty

balancing short and long-term interests, and are strongly influenced by emotional factors and the

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12 behavior of others[...] Psychological, emotional, conscious, and unconscious influences that affect human beings in their choices, are tentatively incorporated into the models." (Ávila & Bianchi, 2019) In the case of study, this theory is not proven because there are relatively few experiences and people who share them. The consumer at the outset has no basis to create a habit and preconceived ideas can often be fallacious due to lack of information and in turn by the negative character that cannabis still has in our society.

1.3.2. Utility Theory

The concept of utility was developed, among other authors, by Bentham¹and Stuart Mill², who developed rules that can be considered as assumptions of rationality. In general, these authors considered that individuals desired the things (material or non-material) that maximized their utility, pleasure or satisfaction, considering that positive utility is translated into pleasure and negative utility is embodied in pain, disutility or displeasure.

- When people don't know the purposes of use, the way, and the advantages they can get from it, they are not aware of the pleasure and usefulness that the products can bring them.

Automatically, they are not very receptive to their purchase, ending up in a dubious zone. With a limitation of information that enlightens them and encourages them to consume.

1.3.3. Follow the Leader

This Theory Develop by António Rebello de Sousa represents the “imitation" behavior. This type of behavior does not always present the same characteristics, and it is even possible to consider at least three distinct types of FTL behavior, namely, “FTL behavior with incomplete information, FTL behavior with decisional lag, and FTL behavior with manipulation” (SOUSA, A. R., 2009, pp. 291 and following).

In the first place, it was sought to question the indisputability of the principle of economic rationality, as well as the Theory of Rational Expectations itself. We conclude that a substantial part of the behavior of micro and macroeconomic variables is not rationally explainable but has to do with aspects of a psychological nature. From there we start to analyze the FTL behavior - "Follow the leader", trying to characterize it by the imitation effect. This has certain advantages in the passage of information, not proving to be the most viable way, but proving that the psychological part acts in a very strong way in the decision-making part of the human being.

In view of the scientific studies that are not developed, the most efficient alternative method is the growth of confidence in the product based on experiences and recommendations by close and reliable people.

1 Jeremy Bentham was an English philosopher, jurist, and social reformer regarded as the founder of modern utilitarianism

2 John Stuart Mill was the most influential English language philosopher of the nineteenth century and exponent of utilitarianism

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13 Often the information and benefits may not be explained in the best way, but there is always a greater openness to try the product if advised by people close to you - increased confidence.

Another important factor to consider is how the individual makes his or her decisions while faced with the available supply and the environment itself: "However, given the diversity of offers at the level of commercial spaces, most purchase decisions occur within the store environment” (Solomon, 1998). It is already inside the store that the individual changes his decisions and purchases products in a purely emotional way, without analyzing the consequences” (Engel, 1995).

In relation to the sector under study, it is important to point out that the individual does not even allow a direct encounter with the store. There are few stores, there is not much notoriety of any reputable brand, and most of them are not located in crowded spaces, so the customer does not even have the possibility to be carried away by his emotion or impulsiveness of purchase. His encounter with the industry is thus reduced to a direct search. If you go there, you go there with a purpose, there is no organic search.

1.4. I

NFORMATION

S

^EEKING

B

^EHAVIOR

Given the theories found above, we will now prove how the lack of information is the main barrier to the development of the industry leading to non-consumption.

1.4.1. Consumer information and non-information that leads or not to consume (Most relevant issues to address in this topic)

1. Is an informed consumer (in this industry) more likely to buy?

2. How is information passed on?

3. Why is there not more information?

4. What are the most effective methods to make this industry known to the consumer knowing the barriers that exist around the passing of information (not being able to appeal to smoking and smoking, not prescribing directly as if we were health professionals - there has to be demonstration of results by qualified experts, more research and investment, more direct consumer proof, constant education of the benefits of the plant, not approaching it as the

"new legal herb")

2.4.2 information seeking behavior theory

Information seeking models tend to explain information seeking activity as well as the causes and consequences of information seeking.

For this study, we will use some models to explain the need for information seeking behavior given the focus under study. This includes the influences that information has on consumers who seek to acquire

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14 knowledge that allows them to make a more rational and informed decision, especially due to the existing stigma around the cannabis industry.

According to H. Shera (1972) information is described as a message, a signal or a stimulus possessing response potential. However, since in this object of study this response potential is quite small, we know that information does not even reach the consumer.

Each one of us has a search behavior, which leads us to look for information about something, a need is identified to get that information, not finding it makes it impossible to satisfy that need.

For a better explanation and understanding, we will use the Information Behavior Model according to Wilson (1981) where it appears to us as an alternative to "information needs". Thus, the information-seeking behavior arises due to a need detected by the consumer (applying the model to the study in question) and to satisfy that need he uses sources and formal and informal means that he can find. When he finds relevant information and is successful in his search, he ends up using that information to partially satisfy his need, becoming more confident in the product and in turn leading to a greater propensity to purchase and advise the product about which he searched for information.

The information that the consumer has absorbed as useful can be passed on to others, thus initiating a larger information network, leading not only to more people knowing about it, but also more likely to use it.

Figure 1- Behavior Model According to Wilson 1981

Another model of great importance to the study is Blom's (1983) Task Performance Model. This hypothesis focuses on the search process as the context of information needs and the application of information to satisfy needs. According to this model, "the purpose of an information service is to contribute to the successful task performance of the potential users of such a service" and

"information is an input to problem solving, decision-making, planning, or increasing knowledge."

Taking this model to the proposed problematic, one of the challenges for the industry under study is

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15 to be able with the various sources available to spread true and enlightening information that helps it not only the consumer understands this new industry but also help the industry grow on a positive and informative path. If the information passed on helps the consumer to understand the industry and all the benefits it can bring him but does not teach him how to use it in a correct way, the information ends up not fulfilling the total consumer need, keeping these some doubts in the acquisition.

There are many demands placed on an information service especially in this industry since these are the mirror image of the user's own demands. Something new or unfamiliar brings more questions, a greater lack of knowledge, and a greater anticipatory judgment. By not finding the information they need the consumer will become increasingly skeptical of the industry, not getting answers to their questions.

Another factor pointed out in this very important model that had also been addressed in Wilson's model is the influence and mutual exchange of information within the consumer's own social environment.

Summary of Consumer Behaviour Theories

The perception of consumer behaviour becomes fundamental to the advancement of the study, making a parallel between what leads the consumer to consume, and realize that many of these factors do not apply to the cannabis industry.

Irrationality is undoubtedly a factor that is much explored in various companies and by various industries as an active means of leading to consumption, however, the paradigm raised in this project is related to the proof that in the cannabis industry, an irrational consumer (who has less information) is much less willing to consume.

Behavioural economics is about understanding the influence human behaviour has on economic decisions themselves and how they process all the information. Although for many years we thought that human beings are rational and make decisions logically and consciously without being exposed to other influences, the truth is that they are not. We are exposed to all kinds of external influences that affect our power in our decisions and make us create preconceived ideas that are difficult to penetrate. The cannabis industry suffers this difficulty. This theory made us realize that external influences are often negative for CBD, since there are very few past experiences, the consumer is not able to create an idea about the product due to the little scientific information it has and there is therefore a great prejudice around it, thus creating negative and fallacious ideas.

The utility theory develops based on the rationality of the human being, considering that everyone wants to get something according to what can bring them maximum satisfaction. However, even considering this rationality, when a person doesn't know the advantages, the purpose and how to use the product, they end up not understanding how it will "satisfy" them and end up not being receptive to its acquisition. Once again understand how information has an impact on this consumption relationship.

Within the theories of consumer behaviour, the "Follow the Leader" theory represents the imitation behaviour, also contradicting the rational behaviour to consumption. This imitation effect ends up being a way of passing information, not being the most viable, but containing a strong aspect for influence. Therefore, this theory emphasizes the importance of experiences and product

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16 recommendations by people close to us, ending up giving more confidence to the product and being more favourable to buy it. Considering this theory, when we hear more testimonials and more experiences from consumers it also becomes easier for the cannabis industry to enter people's minds and there is more trust and less prejudice about the product itself.

Finally, it is of great importance to point out that the consumer often ends up making impulsive decisions when on the spot. This also represents a problem to be highlighted in this study, which is that the consumer doesn't even get to meet the store itself, because they can't be advertised in the same way, as they are not in places of much passage. In this way, their encounter with the

environment often involves a direct search, ending the possibility of impulsive/emotional buying.

Summary of Theories of information-seeking behaviour

As we have been pointing out throughout this project, information, and the lack of it becomes a very important point for consumption or non-consumption, making it more or less likely to happen. Here we want to prove that unlike the theories of consumer behaviour, often irrational and impulsive, in the case of CBD, information becomes essential, and the lack of it is the biggest barrier to the development of the industry. The main question to prove being, ". Is an informed consumer (in this industry) more likely to buy?"

These theories have contributed significantly to this project to prove that indeed a rational and informed consumer, in this industry, is much more predisposed to buy, since it overcomes the barriers of the preconceived fallacious ideas that revolve around this product.

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METHODOLOGY

Regarding the methodology used in this Thesis project, to substantiate the hypotheses defended “the lack of information affects the consumer's perception of the potential of these products, and if, consequently, an informed and aware consumer of the properties and characteristics of the product is more susceptible to buying it”. We proceeded to the analysis of several existing theories to first prove how consumer behavior is, considering that the irrationality of consumption does not translate into the cannabis sector. Thus, proceeding to the perception of why this happens.

At this point we concluded that the lack of information for a product so recent in the Portuguese market, so little addressed openly and with very little consensus views makes the entry of this product in the consumer's life much more difficult.

To support the part about how the lack of information can really affect consumption decisions, we use several information-seeking models demonstrating the causes and consequences of the information- seeking activity.

To prove in a practical way the theoretical components adopted, to act and position in the study reality, we created a questionnaire through Qualtrics, whose results will be transposed to a descriptive and proving analysis. Using a qualitative analysis to ascertain the reality of our target audience's opinion.

The purpose of the questionnaire is to understand how the level of information may or may not influence the consumer. The first perception will be the knowledge or not of CBD and adapt the answer to the level of information that each group has, understand the reasons that lead or not to consume and how within the hypothesis of having more information they are or not more susceptible to consume it. To conclude, in practice, the subconscious of the Portuguese population regarding CBD.

We will analyze 210 responses from various age groups, all above the age of 18. The public is exclusively resident in Portugal and the company that is part of this project operates only in Portugal.

To analyze the results obtained we used the graphs created on Qualtrics in order to group the results in an analytical way so as to withdraw from these a descriptive analysis to support, analyze and reflect on the theoretical conclusions advocated throughout the thesis.

Despite the difficult task of finding information on this subject, especially scientific information. All the bibliography used was of great importance and greatly enhanced the rationale presented.

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MARKET RESEARCH ANALYSIS AND CONCLUSIONS

In this topic as final conclusions we will descriptively analyze in a combined and individualized way the results of the practical study developed through the questionnaire, where we intend to establish a relationship between the availability of information, and the consumer's view on the product itself, concluding how more information would lead to a greater prospect of consumption. Being the subject the subconscious of people about CBD is of important analysis the general knowledge of the target on the topic, where he acquired this knowledge and of course if he has already used in practice and finally if he would recommend (what we saw is that a very important passage of information when it comes to consumption).

The results presented through graphs where we will be given the number of cases and percentage value considering the total target audience of this study.

Figure 2-Have you ever consumed CBD?

In the first question we found that most respondents have already consumed CBD, it is quite important from here to reach the conclusions of what really made them consume and if when consuming they had information available to do so or if they only did it because it is really something new on the market or if it is mere curiosity if they are occasional or regular consumers.

For those who have not consumed the study advances on issues related to the respondent's own knowledge about the product and what has never made them consume it. This portion of respondents is very relevant for the study to make us really understand if the lack of information was really something crucial that never made them reach for the product.

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1.5. F

OCUSING FIRST ON THE

99

RESPONDENTS

(45%

OF THE TARGET AUDIENCE

)

WHO HAVE NEVER CONSUMED

CBD:

Figure 3-How would you rate your knowledge about CBD? - for all those who have NEVER consumed CBD

Most respondents who have never consumed CBD consider that they are "not at all knowledgeable"

and "slightly knowledgeable", only 1.33% of them consider themselves "extremely knowledgeable".

Given this, we need to understand what makes most respondents "not knowledgeable" and whether this affects their decision not to consume.

Autonomous information seeking could be a way around the situation graphically presented above, however, of the respondents who have never consumed CBD, a significant majority (70%) did not take the initiative in this information seeking (as verified in the graph below). Since marketing in the most popular channels restricts the advertising of the product, it becomes even more complicated to get this information to everyone and is also pointed out as one of the problems.

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20 Figure 4-Have you tried out of curiosity or your own initiative to research information about CBD?

Getting to the bottom of the question, what never really led these respondents to consume CBD?

As verified in the analysis below, 28.57% of respondents point to the reason for not recommending CBD, it is very difficult to recommend a product whose passage of information is so difficult, despite some scientific articles by health professionals that address very well the benefits of the plant, most do not say much about this topic, which means that 26.19% of respondents do not even know what it is used for. Within the 26.19% who answered "other", the reasons are very much to associate CBD with a negative connotation, showing again the lack of information or misleading information that is passed.

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21 Figure 5-What led you to never have consumed CBD?

At this point we conclude that the answers pass a lot by the problem of information and not information as it was also so explained throughout this dissertation, we proceed to directly inquire the target audience about the too much/too little information that exists in this sector. Of important analysis follows the question, whether they really feel that if they got more or better information, they would be more willing to consume.

In the graph below it is shown how 85.33% of the respondents feel that it is a product that has little information.

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22 Figure 6- Do you feel it is a product that still has little information?

In the final and most important analysis of this set of respondents, we only need to understand how the existence of more and better information could change a non-consumer into a consumer.

In the graph below, we see that 36% of respondents answered "can or cannot" to the question if this information would really put them in a position more willing to consume. This answer undoubtedly gives us an open door, a greater willingness of the respondent, if informed, to give the product a chance, even if they have never consumed it. The 29.33% who answered "probably yes" are in accordance with what we have been realizing so far, the preconceived ideas, the lack of information, the brakes they put on the passage of information, make it very difficult for 45% of the people who responded to this study to get the product into their lives. This is a very high number for a product that has so many unknown benefits for society.

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23 Figure 7-if you had more information would you be more willing to consume?

1.6.

INDIVIDUAL AND COMPARATIVE ANALYSIS OF THE

121

RESPONDENTS

(

CORRESPONDING TO

55%

OF THE STUDY DONE

)

^WHO

ALREADY

^CONSUMED

CBD:

Their level of knowledge about the topic under study differs greatly from those who have never consumed it, as we can see in the graph below. The percentage of "not at all knowledgeable" is only 8.54%, and most of them are between "relatively knowledgeable" and "very knowledgeable".

This shows that knowledge about the product really changes the respondent's vision, making him/her a consumer.

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24 Figure 8-How do you consider your knowledge about CBD? Considering that you have already

consumed

Consumers present as the main source of knowledge the passage of information "by word of mouth"

as verified in figure 9. This situation shows that information passed on by a close recommendation creates much more confidence in the product itself, eventually leading to curiosity to consume.

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25 Figure 9-How did you learn about CBD?

Finally, and due to the importance, we were emphasizing of the product recommendation and how it is associated with greater consumption, using the NPS metric, we had 44% of promoters, which leads us to conclude that those who know the product and have already used it would recommend it to a relative or colleague (see figure 10).

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26 Figure 10-How likely are you to recommend CBD to a friend or relative?

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27

CONCLUSIONS

Throughout this project, the most important point was to understand how information and the lack of it, changes the individual's perception of CBD and how he becomes more or less susceptible to its purchase.

Several reasons were enumerated through the theories that show that the impulsive purchase is rarely applied to this sector, not only because of the fallacious preconceived ideas that exist, because of the negative tendency that cannabis still has in today's society, because information is not easily and freely available, because they do not hear the experiences and recommendations of those closest to them, because the product is not for sale in common trade places, among others. All this makes it difficult to place CBD in the lives of individuals. The Utility Theory was something very important to highlight in this project, since CBD does have many medicinal benefits that were stated in the beginning of the project, and that have proven results. However, as this information doesn't reach the public, if not in a direct research way, they don't know the benefits, they don't know how to use it, and they can't see here the maximum satisfaction that this product could bring them in several situations, ending up discarding this option.

TABU, the company behind this project, is very dedicated to "cannabis education" through free channels such as social networks, blogs, etc., giving access to all in order to combat this problem pointed out above, making an individual more aware and more informed, giving him a much more assertive path when buying the product and making the information passed by this consumer to another more reliable, automatically creating greater confidence in the product.

With this study, we can see how the cannabis industry still a long way must go, because of all the mental barriers that are placed on the product and all the difficulty of information.

For all the companies in this sector, the important thing is to provide reliable information, to open minds through practical and scientific demonstration of the properties of the plant. At the end of this project, we can say that an informed consumer is more likely to consume CBD.

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28

BIBLIOGRAFIA

Ávila, F., & Bianchi, A. M. (2019). Guia de Economia Comportamental e Experimental. Economia Comportalmental, pp. 26-39.

Chin, J. (5 de November de 2022). Health. What Are the Health Benefits of CBD?

D`Angelo, P. (2021 de agust de 2021). OpinionBOX. Obtido de Economia Comportamental e a importância de entender as decisões das pessoas: https://blog.opinionbox.com/economia- comportamental/

Elisabeth, D. (2022). FourFive . What is CBD?

Frankenthal, R. (13 de JAN de 2022). O que é comportamento do consumidor e por que entender isso é importante? . MINDMINERS BLOG .

Grinspoon, P. (2021). Cannabidiol (CBD): What we know and what we don't. Harvard Health Publishing .

Hahn, S. M. (2021). Better Data for a Better Understanding of the Use and Safety Profile of Cannabidiol (CBD) Products Subscribe to Email Updates. FDA.

Hammond, D. (2022). International Cannabis Policy Study . Obtido de METHODS :

Ned Welch, R. D. (28 de jun de 2016). Capítulo “Consumo Irracional: Como os consumidores realmente tomam decisões”. Obtido de economia comportamental :

Pennypacker, S. D., & Romero-Sandoval, E. A. (November de 2020). National Library of Medicine . CBD and THC: Do They Complement Each Other Like Yin and Yang?, pp. 1152-1165.

Rook, D. W. (1987). The Buying Impulse . Journal of consumer Research , 189-199.

Samantha Goodman, E. W. (6 de June de 2022). Use and Perceptions of Cannabidiol Products in Canada and in the United States. Cannabis and Cannabinoid Research.

Shera, J. H. (1972). Documentation into Information Science . American Libraries.

Sousa, A. R. (2010). Artigos por António Rebelo de Sousa . Obtido de Da Relevância da Componente Psicológica na Evolução Futura da Economia Portuguesa :

Star, D. (2021). Overcoming The Challenges Of Marketing And Selling CBD. FORBES.

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29

APPENDIX

Survey

1 2 3 4 5

Negativo

o o o o o

^Positivo

Mau para a

saúde

o o o o o

Bom para a

saúde Perigoso

o o o o o

^Bom

Sim, e consegui encontrar informações relevantes

o

Sim, no entanto, não encontrei nada relevante ou baseado em factos científicos

o

^Não

o

Certamente que não

o

Provavelmente não

o

Pode ou não pode

o

Provavelmente sim

o

Certamente que sim Page Break

________________________________________________________________

Bom para a

saúde Perigoso

o o o o o

^Bom

⁹

o

¹⁰

Page Break

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36 Q12 Género?

o

^Masculino

o

^Feminino

o

^Outro

Q13 Idade (Anos)

________________________________________________________________

Outro País

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