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Empirical Testing of the Impact on Consumer Choice Resulting from Differences in the Composition of Seemingly Identical Branded Products

Empirical Testing of the Impact on Consumer Choice Resulting from Differences in the Composition of Seemingly Identical Branded Products PDF Author:
Publisher:
ISBN: 9789276150329
Category :
Languages : en
Pages :

Book Description
Differences in composition of seemingly identical branded (food) products (DC-SIP) has been a source of growing concern in the EU in recent years. In 2013, the European Parliament drew attention to the fact that findings of various surveys show that "on a long-term basis consumers are concerned about possible differences in the quality of products with the same brand and packaging which are distributed in the single market" (European Parliament 2018). In 2016, leaders of the EU Member States (MS) brought up the issue of DC-SIP in the European Council and agreed to investigate the existence of the practice further and to eventually finding a solution at European level., During his State of the Union Address in 2017, President Juncker explicitly referred to the issue of companies selling seemingly identical products with a different composition in different MS. To provide a snapshot into how widespread this situation was in the EU, in close collaboration with experts from Member States' competent authorities and stakeholders of the food chain, the Joint Research Centre (JRC) developed a harmonised methodology for the comparative testing of DC-SIP in food across MS (European Commission, 2018). The result of the application of this methodology to different products found that 9% and 22% of evaluated food products had differences in composition but had identical or similar front packaging, respectively. The rest of the food products evaluated were either identical (33%), had similar compositional characteristics (9%) or had a different composition and also a different front package (27%) (European Commission 2019). This report aims to contribute to the existing studies on differences in composition of seemingly identical branded (food) products (DC-SIP) by verifying whether the presence of DC-SIP influences consumer preferences and willingness to pay for a different version of the same branded product. The study used two different methodologies, an (online) discrete choice experiment (DCE) and a sensory testing experiment (referred to as "lab experiment"), in six MS (i.e. Germany, Hungary, Lithuania, Romania, Spain, and Sweden) with a total of 10,600 respondents so that the following could be analysed: (i) consumers' willingness to pay (WTP) for different versions of the same branded food products, and (ii) the impact of information on DC-SIP on consumer preferences for domestic or other-country versions of a product.

Empirical Testing of the Impact on Consumer Choice Resulting from Differences in the Composition of Seemingly Identical Branded Products

Empirical Testing of the Impact on Consumer Choice Resulting from Differences in the Composition of Seemingly Identical Branded Products PDF Author:
Publisher:
ISBN: 9789276150329
Category :
Languages : en
Pages :

Book Description
Differences in composition of seemingly identical branded (food) products (DC-SIP) has been a source of growing concern in the EU in recent years. In 2013, the European Parliament drew attention to the fact that findings of various surveys show that "on a long-term basis consumers are concerned about possible differences in the quality of products with the same brand and packaging which are distributed in the single market" (European Parliament 2018). In 2016, leaders of the EU Member States (MS) brought up the issue of DC-SIP in the European Council and agreed to investigate the existence of the practice further and to eventually finding a solution at European level., During his State of the Union Address in 2017, President Juncker explicitly referred to the issue of companies selling seemingly identical products with a different composition in different MS. To provide a snapshot into how widespread this situation was in the EU, in close collaboration with experts from Member States' competent authorities and stakeholders of the food chain, the Joint Research Centre (JRC) developed a harmonised methodology for the comparative testing of DC-SIP in food across MS (European Commission, 2018). The result of the application of this methodology to different products found that 9% and 22% of evaluated food products had differences in composition but had identical or similar front packaging, respectively. The rest of the food products evaluated were either identical (33%), had similar compositional characteristics (9%) or had a different composition and also a different front package (27%) (European Commission 2019). This report aims to contribute to the existing studies on differences in composition of seemingly identical branded (food) products (DC-SIP) by verifying whether the presence of DC-SIP influences consumer preferences and willingness to pay for a different version of the same branded product. The study used two different methodologies, an (online) discrete choice experiment (DCE) and a sensory testing experiment (referred to as "lab experiment"), in six MS (i.e. Germany, Hungary, Lithuania, Romania, Spain, and Sweden) with a total of 10,600 respondents so that the following could be analysed: (i) consumers' willingness to pay (WTP) for different versions of the same branded food products, and (ii) the impact of information on DC-SIP on consumer preferences for domestic or other-country versions of a product.

Empirical Testing of Consumers' Perceptions of Differences in Package and Product Version of Seemingly Identical Branded Food Products

Empirical Testing of Consumers' Perceptions of Differences in Package and Product Version of Seemingly Identical Branded Food Products PDF Author:
Publisher:
ISBN: 9789276601760
Category :
Languages : en
Pages : 0

Book Description
Differences in composition of seemingly identically branded food products, also known as dual food quality, occur when a good is marketed as identical (i.e. under the same brand and with the same or similar package), but its composition differs substantially across Member States. In this context, what makes consumers perceive goods as identical based on their presentation and, in particular, front-of-pack design remains an open question. The present study addresses this knowledge gap by collecting data on consumers' perceptions of the front-of-pack designs of seemingly identical branded food products. The purpose is to understand how variation in the front-of-pack of a seemingly identical branded food product affects consumers' ability to perceive packages as different, whether this translates in believing that products are different, and their ability to take informed transactional decisions. The study uses primary data collected through an online survey to provide insights on two fronts. First, it gives information about whether, and under what circumstances, the front-of-pack presentation allows consumers to identify versions of products; second, it indicates whether these differences translate into consumers believing that the products are different. Overall, the results indicate the influence of front-of-pack design elements on the perception of package and product differences and on consumer choices; however, these differ between design elements and products, highlighting the need for a case-by-case assessment. This suggests that noticeable changes in some packaging elements do not convey differences in the product. Overall, claims about the origin of ingredients, changes in package colour and images and logos making a claim about the quality of the product show the largest impacts. The findings could provide authorities and interested stakeholders dealing with this topic with useful insights.

Consumer Processual State of Confusion

Consumer Processual State of Confusion PDF Author: Jane Choi
Publisher:
ISBN:
Category : Branding (Marketing)
Languages : en
Pages : 417

Book Description
Trademark litigations alleging identity infringements by global brands have attracted significant media attention, highlighting the need for empirical investigation into the concept of consumer confusion around brand identity. Given the importance of colour to brand and packaging decisions, and the significant revenue spent by global competitors on branding and brand protection, it is surprising that the impact of colour on consumer confusion is not yet fully understood. Colour is often the most visually salient aspect of a product, and thus packaging colours are an invaluable cue for consumers in their product and brand identification processes—particularly with respect to product choice decisions in the fast-moving consumer goods (FMCG) category. This research investigated the effect of consumer confusion in the context of FMCG packaging colours. The objectives of this research were to: (1) explore the nature of consumer confusion in the context of brand choice, (2) understand the cognitive and emotional effects of confusion on consumers, (3) assess the effects of varying degrees of discriminability in packaging colour on consumer confusion,and (4) establish the role of brand familiarity in the relationship between colour and consumer confusion. Nine research hypotheses were proposed and tested to achieve these four objectives. A new definition of confusion is proposed in this research. Confusion is defined as a cognitive state, characterised by a discomforting uncertainty triggered by the perceived mismatch or contradiction between a stimulus and pre-existing schema. This definition overcomes the limitation of extant research that conceptualises consumer confusion only as an outcome, i.e. an incorrect attribution.This research theorises that a consumer processual state of confusion (CP-SoC) arises when multiple brands in the same product category use similar packaging colours, but that the outcomes of CP-SoC are moderated by brand familiarity. Three experimental studies were conducted to investigate the influence of brand familiarity on the relationship between packaging colour similarity and consumer confusion within the FMCG context. The first study explored the effect of the three main colour attributes (hue,saturation, and lightness) of secondary colours (purple, orange, and green) on choice response time. Different degrees of discriminability in terms of hue,saturation, and lightness were found across the colours. The second study involved the development of the CP-SoC scale. This scale, measuring perceptions of confusion, correlated well with an accepted behavioural measure of confusion(response time). This demonstrates convergent validity and indicated that the new scale was an appropriate proxy for confusion. The final study investigated the influence of colour similarity and brand familiarity on confusion (operationalised using the CP-SoC scale) in a 3 (colour:identical, similar, different) ́ 2 (brand: familiar, unfamiliar) ́ 2 (product category: milk chocolate, energy drinks) full factorial repeated-measures design. An interaction effect was found for similar (but not identical or different) colours across familiar and unfamiliar brands and the two product categories. In the milk chocolate category, similarly-coloured packages of a familiar brand produced higher levels of confusion than an unfamiliar brand. However, in the energy drink category, there was a reversal of this effect.These findings indicate that: (1) as expected, similar colours are inherently more confusing than different colours in a brand identification task, and (2) brand familiarity differentially moderates the effect of colour similarity on confusion across product categories. Specifically, the effect of colour similarity on consumer confusion is more pronounced in an FMCG category that is relatively ‘newer’ (energy drinks) than a more established FMCG category that has been in the market for more than a century (milk chocolate). This suggests that the effects of stimulus similarity on consumer confusion are more complex than previously thought and warrant continued in-depth investigation.

An Investigation of the Influence of Family Branding on Consumer Brand Choice in Selected Frequently Purchased Packaged Goods

An Investigation of the Influence of Family Branding on Consumer Brand Choice in Selected Frequently Purchased Packaged Goods PDF Author: Joseph N. Fry
Publisher:
ISBN:
Category : Brand name products
Languages : en
Pages : 438

Book Description


A Tale of Two Brands

A Tale of Two Brands PDF Author: Ying Zhu
Publisher:
ISBN:
Category :
Languages : en
Pages :

Book Description
Consumers' purchase decisions typically involve two brands: the manufacturer brand (the "what brand to buy" decision) and the retailer brand (the "where to buy" decision). While extant research suggests that consumers' product evaluation is affected by both, much less is known about how the two brands jointly affect consumers' preferences. Building upon prospect theory and mental accounting principles, I hypothesize that the joint effect of the two brands on consumers' evaluation of different products depends on the reference point evoked, and whether each of the two brands is perceived as a gain or loss relative to the reference point. Five lab experiments provide empirical support for the hypothesized effects. Study 1 reveals that the joint effect of manufacturer and retailer brands depends on the reference product in a manner consistent with prospect theory and mental accounting principles. The results of Studies 2 and 3 show that the majority of participants use a reputable brand sold at a reputable retailer as their reference product. For this group, there is a positive interaction effect of the manufacturer and retailer brands on consumers' willingness to pay. Study 4 extends the results of Study 3 by testing the theoretical framework using a non-price measure of consumers' product evaluation (i.e., attitude toward the offer). The results provide converging support for hypothesis 1 and 2 as well as demonstrate the mediating role of gain and loss feelings, thus providing preliminary evidence for the proposed cognitive process. Finally, Study 5 provides supporting evidence for the predictions through the use of a priming method. This research contributes to the literature on behavioral decision theory and branding by extending the study of mental accounting from quantitative information (e.g., money, time) to qualitative information such as that derived from brand reputation. The findings have prescriptive implications as they can help managers understand how their brands can be leveraged, how consumers react to reference products available in the marketplace, and how to best price products across different outlets depending on the reputation of their brands and the reputation of the outlets.

Essays on Dynamic Consumers' Brand Choice

Essays on Dynamic Consumers' Brand Choice PDF Author: Nahyeon Bak
Publisher:
ISBN:
Category :
Languages : en
Pages : 85

Book Description
This dissertation is a collection of essays on consumer's state dependent choice. In many consumers packaged goods markets, consumer's brand choice is highly persistent because of state dependence where past choice directly influence present choice. Chapter I investigates why consumer choices show state dependence by testing two competing theories: learning and switching costs. To test them, I used a Nielsen consumer panel data set including a long history of repeated purchases by 28,724 households from 2006-2015. Reduced form estimates suggest that the results align with learning, but not switching costs. I also find the only the first and second brand experiences affect present choice. In Chapter II, consistent with reduced-form analysis, I hypothesize that under learning behavior, if consumers try a new brand, consumers are likely to choose a smaller size than before because of uncertainty on product information, if not, consumers are likely to choose a bigger size than before because of lower price per unit with a bigger size. However, under switching cost behavior, consumers size choice will not be affected by brand switching decision. To test this causal relationship between brand switching decision and size choice, I adopt double machine learning method. Compared to previous reduced-form analysis, double machine learning model specifies a set of control variables without human judgement and it provides a causal parameter. Also, compared to naive or prediction based machine learning models, it overcomes the regularization bias by using Neyman orthogonality and over-fitting problems by using sample splitting method. As a result, I find that consumer's new trial on a brand leads to choose a smaller size choice than before where it supports learning behavior, not switching costs behavior. These reduced form studies of Chapter I and II motivate structural approaches to empirical modeling. Chapter III tests the two competing theories with a structural demand model that incorporated variety-seeking behavior. Previous studies failed to explain how states affect two decisions: not only persistent brand choice, but also brand switching that usually variety-seeker have shown. To incorporate these decisions, I develop a dynamic panel demand model with multiple discreteness choices for estimating preferences where some consumers switch brand frequently even most consumers show persistent brand choice. I first find that consumers learn fast, which disputes previous slowdown learning models such as Bayesian learning. Second, state dependence of consumer choice diminishes with time elapsed from each purchase. These findings are robust to controlling variety seeking behavior or not. Combining Chapter I, II, and III, I conclude that with the assumption on myopic consumers, because of learning behavior, consumers show persistent brand choice in the initial shopping period, but as they exposure to the same brands again and again, they become satiated the brand. In other words, consumers show diminishing marginal utility over quantity consumed. Therefore, consumers switch a brand.

Role of Reference Points in Consumer Choice and Product Design

Role of Reference Points in Consumer Choice and Product Design PDF Author: Ying Natasha Zhang Foutz
Publisher:
ISBN:
Category :
Languages : en
Pages : 260

Book Description


Consumer Information Processing Research

Consumer Information Processing Research PDF Author: William L. Wilkie
Publisher:
ISBN:
Category : Consumers
Languages : en
Pages : 28

Book Description


A Critical Analysis of how Susceptibility to Interpersonal Influence, Social Comparison and Ethnic Identification Influences Consumers' Status Consumption, Desire for Unique Products and Preference for Prominent Brand Markings

A Critical Analysis of how Susceptibility to Interpersonal Influence, Social Comparison and Ethnic Identification Influences Consumers' Status Consumption, Desire for Unique Products and Preference for Prominent Brand Markings PDF Author: Natalie Jenee Baucum
Publisher:
ISBN:
Category : African American consumers
Languages : en
Pages : 188

Book Description
"Brand prominence refers to the brand markings (e.g., company name, slogan, logo, sounds or colors) that visually identify a company, its products or services (Truex, 2016). A relatively new concept to consumer research, one of the goals of this dissertation was to establish a theoretical framework that examines the social-psychological and consumer behavior factors that influence consumers' preference for prominent brand markings (CPPBM). Reference group theory and social comparison theory were used to create the theoretical framework. The other goal of this study was to examine if a person's identification with his/her ethnic origin has any impact on their consumption behavior. To accomplish these research goals, first a CPPBM measurement was created and tested since no standing measurement existed. Results showed the CPPBM scale has three dimensions (i.e., high, low and no preference for prominent brand markings) and eight measurement items. The finalized CPPBM measurement was then combined into the full survey. The full survey was pre-tested and revised before being disseminated via an online survey URL created in Qualtrics using convenience sampling. The proposed theoretical framework was tested using surveys collected from 594 consumers of African descent (i.e., participants self-identified as African American, Black and Caribbean) living in the United States. Structural equation modeling (SEM) in AMOS 24 was used to test the framework. Results of the analyses showed the following factors had a direct and indirect influence on the brand markings consumers choose: normative consumer susceptibility to interpersonal influence (CSII), informational CSII, social comparison orientation, status consumption and desire for unique consumer products. Informational CSII had a positive effect on status consumption while normative CSII had a negative effect on the concept. Social comparison orientation had a positive effect on status consumption as well as desire for unique consumer products. In terms of which factors directly influenced CPPBM, findings showed normative CSII, status consumption, and desire for unique consumer products to impact CPPBM. Post-hoc analyses showed status consumption had the strongest influence on high preference for prominent brand markings while desire for unique consumer products had the strongest influence on low preference for prominent brand markings. The last results were related to how much does a person's commitment to and exploration of their ethnic origin (i.e., ethnic identity) impact their consumption behavior. Findings showed ethnic identity to moderate the relationships between normative CSII (i.e., positive effect), informational CSII (i.e., negative effect) and status consumption confirming its effect on consumer behavior. Ethnic identity also had a direct, negative effect on status consumption. The academic understanding of brand prominence was extended in this study by empirically confirming a theoretical framework that explains why consumers prefer certain levels of brand markings. An academic understanding of how a person's self-identification, commitment to and exploration of their ethnic origin (i.e., ethnic identity) influences their consumption of status goods was also discovered in this study. In addition to findings being discussed, theoretical and managerial implications are provided as well as suggestions for future research."--Abstract from author supplied metadata.

Agricultural Productivity and Producer Behavior

Agricultural Productivity and Producer Behavior PDF Author: Wolfram Schlenker
Publisher: University of Chicago Press
ISBN: 022661980X
Category : Business & Economics
Languages : en
Pages : 316

Book Description
Agricultural yields have increased steadily in the last half century, particularly since the Green Revolution. At the same time, inflation-adjusted agricultural commodity prices have been trending downward as increases in supply outpace the growth of demand. Recent severe weather events, biofuel mandates, and a switch toward a more meat-heavy diet in emerging economies have nevertheless boosted commodity prices. Whether this is a temporary jump or the beginning of a longer-term trend is an open question. Agricultural Productivity and Producer Behavior examines the factors contributing to the remarkably steady increase in global yields and assesses whether yield growth can continue. This research also considers whether agricultural productivity growth has been, and will be, associated with significant environmental externalities. Among the topics studied are genetically modified crops; changing climatic factors; farm production responses to government regulations including crop insurance, transport subsidies, and electricity subsidies for groundwater extraction; and the role of specific farm practices such as crop diversification, disease management, and water-saving methods. This research provides new evidence that technological as well as policy choices influence agricultural productivity.