Beyond the Label: Evaluating the Contents of Canned Fruit Cocktail

Transcription

1 Beyond the Label: Evaluating the Contents of Canned Fruit Cocktail A comparison study on consumer preference, brand loyalty and the Standards of Identity of two brands of fruit cocktail Nancy Snyder NUTR 205 Spring 2012 School of Exercise and Nutritional Sciences, San Diego State University, San Diego, CA 92182

2 ABSTRACT Over the years, store brands have been gaining shelf room and market share by offering the same products to consumers at a lower price. However despite the price advantage, many consumers still opt for national products based on many factors which include trust, loyalty, packaging and perception of quality. Despite consumer preferences and perceptions, both national and private brands must meet the same requirements set forth by the FDA in regard to quantity, quality and size. Two brands of canned fruit cocktail, Del Monte and Albertsons, were evaluated and compared in terms of consumer preference, standards of identity, and standards of reasonable quality. The purpose of this study was to investigate two things: first, to determine consumers preferences and buying behavior for two different brands of fruit cocktail; and second, to evaluate the contents of each can to determine if both brands met the required standards. San Diego State University undergraduate and graduate students (n=43) completed psychographical and demographic surveys, and then measured 24 cans against the USDA s Standards of Identity and Standards of Reasonable Quality for fruit cocktail. Key words: fruit cocktail; brand loyalty; consumer preference; packaging; standards of identity

3 INTRODUCTION In today s supermarkets and grocery stores, there is growing competition on the shelves among various brands working to market the same (or similar) products. Store brands are no exception, as they are staking their claim on the shelves, offering consumers more affordable options. This proves quite beneficial to the consumer, as he or she is presented with a great variety of products to choose from. From the standpoint of the producer, however, this may prove rather challenging, as there are various factors that may weigh for or against their product. In the case of canned foods, such as fruit cocktail, consumers are at a disadvantage of being able to select the food they find most visually appealing, and must therefore weigh solely on labeling, packaging, price, or perceived quality of the brand. However, with brand names and colorful labels aside, all products must pass the same federal standards of fruit contents in regard to quantity, quality, size and shape. What influences a consumer to choose one fruit cocktail can over another? One would assume that when it comes to various brands of the same product, consumers would simply reach for the lowest selling item on the shelf store brand products. However, according to a global report on private label trends, this is not the case (Nielsen 2005). Despite private labels offering, on average, a 31% price advantage over national brands, a substantial percentage of consumers do not prefer, nor buy, store brands on a regular basis. In fact, only 17% of sales in 2005 were attributed to the purchase of private label products (Nielsen 2005). In a study of those that did purchase store brand products, income, education, and size of household were the main reasons behind their buying decision (Glynn 2009). Brand Loyalty and Perceived Quality For the majority of the population, we know that many factors, aside from price, come into play in the buying process. In one study, it was determined that brand familiarity plays the most crucial factor in the initial buying process, and from there, repeat purchases of the same product are executed merely

4 out of habit (Lin and others 2009). Over 400 individuals were surveyed through on-line questionnaires and in-person interviews, and the results indicated that consumers were most concerned with quality, which they perceived to be higher with national brands. However, when it came to store brands, the more familiar the participants were with a particular retailer, the more confidence they had in purchasing their product (Lin 2009). These results suggest that retailers could increase product familiarity and quality through promotional activities, such as providing free, in-store food samples. These findings correlated with another study that showed that positive attitudes toward store brands increase with store loyalty (Manzur and others 2011). When shoppers are loyal to one particular store, they tend to develop a greater familiarity with the products being offered, and therefore are more willing to try store labeled products over national products. Specialization Perhaps one reason why national brands are perceived to be of higher quality than store brands is because, often, national brands specialize in one particular category of food, whereas store brands offer products in various sectors. In the case of the two products used in this study, Del Monte specializes in canned fruits and vegetables, whereas Albertsons provides products ranging from breakfast cereal to soda. Because of this, consumers put more of their trust in a brand they believe dedicates their entire business to perfecting the quality and taste of their particular product. This theory was put to the test in 2008 during a Swedish study that surveyed over 2,000 participants (Anselmsson and others). In terms of preference, manufacturer brands out-performed store brands, and additionally, participants preferred brands that specialized in single-category items over multi-category brands. Packaging Product packaging is another important factor that can play a role in buying behavior. Influential factors might include design, colors, pictures, words and celebrity endorsements. In a study measuring

5 consumers preferences of various chocolate bars, visually-appealing packaging was the number one decisive factor in product selection (Patwardhan and others 2010). Subjects generated a more positive impression of the product based on the perceived enjoyable experience they expected to obtain when consuming that particular bar of chocolate. Some marketers intentionally target the children of shoppers with product packaging and design. In an interesting study, it was found that parents buying behavior is heavily influenced when they are accompanied by their children (Ogba 2010). As a result, many adult consumer goods, as well as various family food products, have been designed with bright colors and catchy labels to attract the eyes of children who perceive them as fun eatertainment. Additionally, an adult may aim toward buying health foods such as fruit cocktail that appear more fun in an attempt to get their child to select more nutritious foods at home. Nutrition Claims Perceived health benefit is another reason a consumer might be drawn toward one product over another. In an attempt to draw favorable attention to their product, many manufacturers display nutrition claims such as fat free and zero trans fat on the front of their labels. However, whether or not these nutrition claims have any effect remains questionable. In a 2011 study conducted by Berning and others, favorable nutrition claims were added to various popcorn products. This actually resulted in the opposite effect; fewer purchases were made of the healthy popcorn, and an increase was observed in purchases of the less healthy popcorn products. Consumers stated that their reasoning behind this was due to the fact that they perceived the availability of additional information as unfavorable. In another study, products with positive nutrition claims increased subjects perceptions of the product in regard to health, however, their perceptions had no impact on their buying behavior (Borgmeir 2009).

6 Product Placement Finally, product placement is another important factor that influences a shopper s buying behavior. In an in-store experiment, the effects of shelf placement (low, medium, high) on consumers purchases of various brands of potato chips were investigated (Sigurdsson 2009). The results confirmed the importance of item placement, as consumers selected products significantly more when placed on the middle shelf as compared to the top and bottom shelves. In addition, products placed at the entrance of stores also increased consumers purchases of that product over others. Standards of Identity and Reasonable Quality No matter a consumer s liking or aversion of a product based on various reasons discussed above, the Food and Drug Administration (FDA) is responsible for protecting the health and safety of the public through the regulation of all food products. The FDA establishes and maintains food standards, such as the Standards of Identity and Standards of Reasonable Quality, which products are required to follow in order to be labeled as that product (Brown 2011). For example, in order to be labeled fruit cocktail, the product must contain a specified portion of peaches, pears, grapes, pineapples, and cherries; a specified brix measurement of syrup; as well as meet the required color and character for all ingredients contained in the can (USDA 2006). All products, regardless of being private or nationallylabeled, are held equally accountable for these standards. The purpose of this study was two-fold: first, to determine if a national brand of fruit cocktail is more preferable over a store brand, and if so, for what reasons; and second, whether both products are equally reliable in achieving the federal standards required of them.

7 Methods Demographics, buying behavior, and psychographical data for all panelists were collected through the administration of two short surveys (refer to Appendix). Following the surveys, the Standards of Identity and Standards of Reasonable Quality evaluations were performed. To increase statistical power, the evaluations were conducted on 12 Del Monte brand and 12 Albertsons brand fruit cocktails. Panelist Demographics The panelists consisted of 43 (n=43) untrained students at San Diego State University enrolled in the Introduction to Science of Food nutrition course. Panelists ages ranged from 19 to 43, with an average age of ± Five of the panelists were male and the remaining 38 were female. Eightysix percent (86%) of the panelists were undergraduate students and 14% were graduate students in the Food and Nutrition undergraduate and graduate programs. Of the 43 panelists, two were married, one was divorced, and the remaining 88% were single. Sixty-seven percent (67%) of the panelists had two or more roommates, 28% lived with one other roommate, and 5% lived alone. Only one panelist was reported as being a smoker. Furthermore, 12% of the panelists were reported to have food allergies, while the remaining 88% did not. Environment The panelists conducted their evaluation in the food preparation lab at San Diego State University. Section 1 of the course performed their evaluation in the morning and Section 2 performed their evaluation in the afternoon. Each section was divided into six different groups, ranging from three to four panelists in each group. Groups were designated to a counter-top station, on which their evaluation was performed. The room was well-lit with a temperature set at 68 F, and the noise-level was fair. Panelists performed their evaluations wearing lab coats and plastic gloves.

8 Psychographical Data and Buying Behavior Of the 43 panelists surveyed, 72% reported they were not loyal to national brands of food. The remaining 28% stated quality and reliability as being the two main reasons for being loyal to national brands. Ninety-five percent (95%) of surveyed panelists stated that they evaluate labels prior to purchasing foods. In regard to fruit cocktail, only 16% of panelists reported buying this product. Of those 16%, one panelist purchases fruit cocktail less than once a week, and six panelists purchase fruit cocktail less than once a month. In regard to consumption preference, one panelist eats fruit cocktail plain, while the remaining six panelists consume it with other foods. Forty-three percent (43%) of those that purchase fruit cocktail purchase a lite version of the product. Upon evaluation of Del Monte and Albertsons brands of fruit cocktail, 95% of the panelists preferred the label design of Del Monte (bright colors, food imagery), and all 43 panelists perceived Del Monte to have a higher price point. Upon factoring price into the equation, 56% stated they would still purchase the Del Monte brand due to trust, quality, and appearance. Of the remaining 44%, respondents listed price and nutritional value (less sugar) as being the main reasons for why they would purchase the Albertsons brand. Measurement of Standards of Identity Each of the 12 lab groups were responsible for the evaluation and data recording of one can of Del Monte fruit cocktail and one can of Albertsons brand fruit cocktail. The purpose of the standards of identity evaluation was to determine the percentages of total fruit, packing medium and individual fruit. All weights were recorded in grams in the Standards of Identity & Reasonable Quality for Fruit Cocktail handout (refer to Appendix).

9 First, the group was instructed to obtain the weight of each unopened can of fruit cocktail. Next, the group was instructed to empty the contents of one can into a bowl. The empty can, along with its lid, were then weighed again in order to determine the net weight of the can contents (weight of full can - empty can). For accuracy, a second net weight was recorded using a different method. The group was instructed to weigh an empty bowl and label it with the word syrup. Next, the group poured the contents of the can into the bowl, recorded the weight again, and performed calculations for a second net weight of can contents (bowl with contents - empty bowl). This procedure was repeated for the second can of fruit cocktail. After obtaining the net weights of the can contents, the groups were to next determine the net weights of fruit and syrup. The group was instructed to weigh and record the weight of an empty bowl and then label it fruit. Next, the group poured the contents from the bowl labeled syrup into a holding container. While holding a sieve over the syrup bowl, the group poured the contents from the holding container back into the bowl, allowing the syrup to drain for several minutes. The drained fruit was then placed into the fruit bowl. The weight of the syrup and fruit bowls were recorded again, and net weight calculations were performed for total drained fruit and syrup (refer to Appendix). The procedure was repeated a second time for the contents of the second brand of fruit cocktail. Next, the group labeled and weighed five medium-sized, empty beakers with the names of each of the five fruit ingredients: cherries, peaches, pears, pineapple, and grapes. The group then separated the fruit and placed each piece into the appropriately labeled beaker. The beakers were then weighed again, and the net weight of each type of fruit was recorded. The weights of each of the five fruit types were added together to obtain the weight of the total sum of fruit pieces. This procedure was repeated for the second brand.

10 The final step was to determine the percentages of total fruit and individual fruit weights. To obtain the total fruit percentage, the weight of the total drained fruit was compared against the second net weight of can contents. To obtain the individual fruit weight percentages, each individual fruit weight was compared against the net weight of total drained fruit (refer to Appendix for percentages). From there, the group had to establish whether the cherry and pineapple pieces met the quantity requirements set by the Standards of Identity of fruit cocktail. For each g of fruit cocktail, there had to be at least one cherry half. Additionally, there had to be one cherry half for any additional fraction above 56.7 g. For the pineapple standards, there had to be at least one pineapple sector for each g, as well as one sector for each additional fraction above 56.7 g. Measurement of Standards of Reasonable Quality The purpose of the Standards of Reasonable Quality evaluation was to determine the percentages of non-uniform pieces of peach, pear, pineapple and grapes. First, the team had to measure the length of the longest side of each piece of pear, pineapple and peach. Pieces that exceeded ¾ inch or were less than 5/16 of an inch were established as non-uniform and placed into the appropriately labeled beakers used in the previous Standards of Identity evaluation. The weight of each beaker was recorded, and the weight of non-uniform pieces was determined by subtracting the weight of the empty beaker from the previous evaluation. This was repeated until the non-uniform weights and percentages (compared against drained fruit weight) were determined for peaches, pears, and pineapple for both brands of fruit cocktail. Lastly, the group counted and recorded the total number of grapes for each brand. Grapes that were split, crushed or contained capstems were determined non-uniform and were placed into appropriately labeled beakers and then weighed. The percentages of non-uniform grapes were calculated using the total weights of grape contents that were measured in the previous evaluation.

11 Cost Per Serving The cost per serving (1/2 cup = 124 g) of each brand of fruit cocktail was calculated using the equation in Table 1. The pricing was determined so as to compare the cost benefit of the Albertsons brand of fruit cocktail over the Del Monte brand. Table 1. Equation used to determine cost per serving of fruit cocktail

12 REFERENCES Anselmsson J, Johansson U, Persson N The battle of brands in the Swedish market for consumer packaged food: A cross-category examination of brand preference and liking. Journal of Brand Management 16: Berning J, Chouinard H, McCluskey J Do positive nutrition shelf labels affect consumer behavior? Findings from a field experiment with scanner data. American Journal of Agronomic Economics 93(2): Borgmeier I, Westenhoefer J Impact of different food label formats on healthiness evaluation and food choice of consumers: A randomized-controlled study. BMC Public Health 9:184. Brown A Understanding Food: Principles & Preparation. 4 th ed. United States: Thomson & Wadsworth p. Glynn M, Chen S Consumer-factors moderating private label brand success: further empirical results. International Journal of Retail & Distribution Management 37(11): Lin C, Marshall D, Dawson J Consumer attitudes towards a European retailer s private brand food products: An integrated model of Taiwanese consumers. Journal of Marketing Management 25(9): Manzur E, Olavarrieta S, Hidalgo P, Farias P, Uribe R Store brand and national brand promotion attitudes antecedents. Journal of Business Research 64(3): Ogba I, Johnson R How packaging affects the product preferences of children and the buyer behavior of their parents in the food industry. Young Consumers 11(1): Patwardhan M, Flora P, Gupta A Identification of secondary factors that influence consumers buying behavior for soaps and chocolates. IUP Journal of Marketing Management 9(1): Sigurdsson V, Saevarsson H, Foxall G Brand placement and consumer choice: An in-store experiment. Journal of Applied Behavior Analysis 42(3): The power of private label: A review of growth trends around the world executive report. AC Nielsen Global Services; Available from: Accessed February 24, United States Food and Drug Administration, United States Standards for Grades of Canned Fruit Cocktail.

13 APPENDIX See attached documents for the following: Psychographical Questionnaire Demographic Questionnaire Standards of Identity/Reasonable Quality Lab Tables Cost Per Serving Analysis