Balancing price and quality

Reflecting continuing concerns over the direction of the US economy, consumers are twice as likely to consider price as a reason for purchasing a brand name product as they were a year ago, according to a survey released last week by the Grocery Manufacturers of America.

According to the report, 'quality' wins hands down as the number one reason people purchase their favourite brands, cited by 26 per cent of respondents, closely followed by the 'familiarity factor' (a brand they already use), at 23 per cent. But our consumer is a fickle one, with 28 per cent listing 'quality' as the top reason and 35 per cent citing familiarity when the same survey was carried out last year in April.

Nostalgia played the same role in 2003 purchasing decisions as in 2002, as 15 per cent of respondents in each survey said the chief reason they bought a particular brand was because they used that brand at home while growing up.

However, 'favourites' and 'price' are clearly intimately linked with 11 per cent of respondents listing 'it is inexpensive' as the top reason for purchasing their favourite brand, compared to six per cent last year.

"The change isn't surprising considering the economic reality many Americans face,"​ said Gene Grabowski, GMA vice president, communications and marketing. "From sliding stocks to unemployment, families are forced to tighten their purse strings. The larger economic market has begun to affect local supermarkets."​

So, what of the media and how powerful is it in influencing the food we buy? The GMA survey would suggest that we possibly overestimate the power of the media. When asked about two issues that had garnered recent media attention - acrylamide in food and obesity in the general public - the results revealed that in 2002, seven in ten people had never heard of acrylamide. In 2003, far from decreasing, this number actually jumped to eight in ten.

And in July 2002, an overwhelming majority (71 per cent) had no plans to change their diet, compared to 67 per cent in 2003. Slightly more people report having already changed their diet, up 4 per cent from last summer (8 per cent versus 12 per cent). The same number as last year, 12 per cent have the 'tomorrow syndrome' - they maintain they plan to change their diet, but have not done so yet.

Of particular interest to food manufacturers, retailers and foodservice outlets, the GMA​ survey highlighted the fact that when it comes to who is responsible for obesity, the majority of Americans believe that individuals should look to themselves.

More than eight in ten Americans still blame some individually controlled factor, either the individual, a lack of exercise or watching television for obesity (83 per cent in 2003, 86 per cent in 2002). Notably, only 5 per cent blame the fast food phenomenon or larger portion sizes, and 4 per cent hold food manufacturers themselves responsible.

In addition, 78 per cent agreed either 'strongly' or 'somewhat' with this statement: overweight and obese Americans have no one to blame but themselves for making unhealthy food choices. Of those, 62 per cent 'strongly agreed' with the statement, indicating the depths of feeling that Americans have on this issue.

Sixteen percent either 'strongly' or 'somewhat' agreed with a second statement: overweight and obese Americans are not solely responsible for their food choices, because restaurants and grocery stores do not offer enough healthy food alternatives.

"The results indicate that Americans clearly prescribe a dose of personal responsibility as a solution to the issue,"​ Grabowski said. "The role of the food industry ought to be to offer smart choices to the public and then help the public select those choices, which we will continue to do."​

The questions were part of a nationwide omnibus survey of 1,000 adults conducted from 5-11 February 2003 for GMA, the US association for food, beverage and consumer product companies.