Going healthy: how product characteristics influence the sales impact of front-of-pack health symbols

Manufacturers increasingly adopt health symbols, which translate overall product healthiness into a single symbol, to communicate about the overall healthiness of their grocery products. This study examines how the performance implications of adding a front-of-pack health symbol to a product vary across products. We study the sales impact of a government-supported health symbol program in 29 packaged categories, using over four years of scanner data. The results indicate that health symbols are most impactful when they positively disconfirm pre-existing beliefs that a product is not among the healthiest products within the category. More specifically, we find that health symbols are more effective for (i) products with a front-of-pack taste claim, (ii) lower priced products, and (iii) private label products. Furthermore, these results are more pronounced in healthier categories than in unhealthier categories. Our findings imply that health symbols can help overcome lay beliefs among consumers regarding a product’s overall healthiness. As such, adding a health symbol provides easy-to-process information about product healthiness for the consumer and can increase product sales for the manufacturer.

In-store promotion and customer value on private label product purchase intention

This study aims to determine the influence of in-store promotion in the form of price discount and price package on customer value and purchase intention. The research sample was 120 consumers purchasing the private label products in modern stores using a purposive sampling technique. The data were then analyzed using SEM PLS. The result revealed that all hypotheses were accepted and each variable studied showed a strong and significant influence on each other, especially in terms of its influence on the purchase intention. In-store promotion is a more influencing variable of purchase intention in private label products than customer value. The result also pointed out the three most dominant items forming in-store promotion, customer value, and purchase intention. Those items are the frequency of discount program, the products’ quality, and the reference group that helps the company promoting private label products, usually friends’ recommendation. These findings are expected to be used by decision-makers in retail businesses to formulate in-store promotional activities and create customer value following the target market to increase consumers’ willingness to buy private label products. Acknowledgment The authors would like to express their gratitude to the Doctoral Dissertation Research Grant Program of the Ministry of Research, Technology, and Higher Education for funding this research. The authors highly appreciate the assistance, suggestions, and inputs from both editors and reviewers of this article.

The impact of packaging on consumer behavior in the private label market – the case of Slovak consumers under 25 years of age

Although there were many consumer behavior studies, their focus was on traditional brands. Despite that, their conclusions and recommendations can serve as a model for private label research. This paper aims to find out the influence of packaging on consumer purchasing decisions in the yoghurt segment. Attention was drawn to Slovak consumers under the age of 25 years. To achieve the aim, survey, structured questionnaire (549 randomly chosen respondents) and blind test (20 respondents) methods were used. For a deeper analysis, four hypotheses were set out and tested using statistical methods of Pearsons’ Chi-Square Test, Friedman test, Mantel-Haenszel Chi-Square Test, Phi Coefficient, Cramer’s V Coefficient and correspondence analysis. The results proved that almost 58% of respondents bought private labels sporadically, over 20% of respondents bought them multiple times a week, and over 18% of respondents bought them once a week. In terms of perceived quality, it can be said that quality of private label products is perceived as good and adequate, they evoke impression of adequate quality at a reasonable price, the decisive factor for their purchase is a combination of reasonable price and quality, and the reasons not to buy are high price, low quality and lack of information about the producer. Regarding the impact of packaging on respondents’ purchasing decisions, it is found that less than 34% of respondents believe that packaging of private label products is unattractive, and up to 33% of respondents think that packaging does not affect them. AcknowledgementThe paper was supported by the research project GA SUA No. 8/2019 “Private labels as the alternative to purchase”, which is solved at the Department of Marketing and Trade, Faculty of Economics and Management, Slovak University of Agriculture in Nitra.

Rational and irrational behavior of Slovak consumers in the private label market

Rational and irrational consumer behavior has already been the subject of several studies. Although their attention was mostly focused on traditional brands, these studies and their conclusions may also serve as a model for private label research, which is now increasingly coming to the forefront. Private labels are gradually becoming an adequate purchase alternative to traditional brands. The aim of the paper was to find out the influence of packaging and chosen marketing communication tools, on consumer purchasing decisions in the dairy segment. An anonymous questionnaire survey was chosen as the main research method, where participated 1,116 respondents from all over Slovakia; which was subsequently supplemented by the blind test involving 20 respondents under the age of up to 25 years. Seven chocolate-flavored yogurt samples were examined in the blind test; while the samples were such traditional brands by traditional producers as well as private labels. Interestingly, identical products were investigated ”“ products from the traditional producer, both under its brand and under the retailer's private label. The results of our research proved some interesting findings ”“ more than 28% of respondents buy private label products regularly and more than 53% buy them sporadically; whereas respondents do not buy private labels, mainly because of their lack of interest to try something new, assuming poor product quality and inadequate price; they buy them mainly because of lower prices compared to traditional product brands, comparable quality to traditional brands and good experience; respondents perceive private labels as good products of adequate quality and private labels evoke that products are adequate quality at a reasonable price. Although most respondents have no opinion on the packaging of private label products, more than 31% of them consider their packaging as unattractive and almost 36% think that their packaging does not affect them, but the results of the blind test partially refused this opinion.