I caught a quick, one-sentence summary on the news the other day about a recent study that concluded consumers’ perception of whether a food was healthy or not were based on price. Curious to know more, I researched the study and thought that you would be interested in learning about it. The results are applicable to pricing, whatever product, service, or information you are selling.
The study was conducted by Fisher College of Business at The Ohio State University in Columbus with 884 subjects, a combination of adults and college students, in five different experiments. The first one involved telling participants about a fictitious new product called Granola Bites. Half of them were advised that the product received a grade of A- for healthiness, and the other half were instructed it received a C. They were asked to estimate the price of the product. Those in the group with the A- rating guessed that the product was more expensive than those in the group who had been told the C rating.
The second experiment had the participants consider two breakfast crackers that were identical. The researchers explained that one cracker had a higher price than the other and asked which one was healthier. Overwhelmingly, the participants chose the higher-priced cracker.
In the third experiment, researchers told participants that a co-worker would be ordering lunch. Half of them were instructed that the meal ought to be healthy. All of them were able to view the options of two different chicken wraps, including the price. The members of the group that was instructed to select the healthier choice picked the expensive one more often.
The fourth experiment offered two granola products to the participants. Both were promoted as benefiting eye health, one with vitamin A and one with DHA. When the DHA was priced higher, participants concluded that DHA was more important to eye health than when the products were priced the same.
The fifth experiment asked participants to evaluate a fictitious product with the slogan “the healthiest protein bar on the planet.” One group was told the price was .99 and subsequently read many more reviews on the product than the other group that was given the price of $4 for the product. The first group could not believe that the product was healthy due to the price and attempted to find the truth about it via reading more reviews.
The study was well-designed in the diversity of the participants involved and the five different experiments completed to assess the results. The outcomes of all five arrived at the same conclusion that price affects consumers’ perception of healthiness of a product. A healthy product has a higher price. Some of this perception may have come from experiences of encountering healthy foods that had higher prices. Some may have come from reports that buying healthier foods costs more. A 2013 study at the Harvard School of Public Health in Boston found that was a small amount, $1.50 per day, but the healthier food was higher.
In reality, consumers can find healthier choices by watching seasonal offerings and sales and becoming informed through reading and looking at labels. The trouble for businesspeople who are setting prices is that consumers don’t take the time to become informed. They go with the perceptions that they have acquired. The question for your business is “What are those perceptions regarding your products, services, or information?”
Do you know what those perceptions are? If not, find out by asking your customers.
This week's marketing trivia challenge is If you were pricing a healthy product, how would this study affect your pricing? E-mail me your answer.
The study was conducted by Fisher College of Business at The Ohio State University in Columbus with 884 subjects, a combination of adults and college students, in five different experiments. The first one involved telling participants about a fictitious new product called Granola Bites. Half of them were advised that the product received a grade of A- for healthiness, and the other half were instructed it received a C. They were asked to estimate the price of the product. Those in the group with the A- rating guessed that the product was more expensive than those in the group who had been told the C rating.
The second experiment had the participants consider two breakfast crackers that were identical. The researchers explained that one cracker had a higher price than the other and asked which one was healthier. Overwhelmingly, the participants chose the higher-priced cracker.
In the third experiment, researchers told participants that a co-worker would be ordering lunch. Half of them were instructed that the meal ought to be healthy. All of them were able to view the options of two different chicken wraps, including the price. The members of the group that was instructed to select the healthier choice picked the expensive one more often.
The fourth experiment offered two granola products to the participants. Both were promoted as benefiting eye health, one with vitamin A and one with DHA. When the DHA was priced higher, participants concluded that DHA was more important to eye health than when the products were priced the same.
The fifth experiment asked participants to evaluate a fictitious product with the slogan “the healthiest protein bar on the planet.” One group was told the price was .99 and subsequently read many more reviews on the product than the other group that was given the price of $4 for the product. The first group could not believe that the product was healthy due to the price and attempted to find the truth about it via reading more reviews.
The study was well-designed in the diversity of the participants involved and the five different experiments completed to assess the results. The outcomes of all five arrived at the same conclusion that price affects consumers’ perception of healthiness of a product. A healthy product has a higher price. Some of this perception may have come from experiences of encountering healthy foods that had higher prices. Some may have come from reports that buying healthier foods costs more. A 2013 study at the Harvard School of Public Health in Boston found that was a small amount, $1.50 per day, but the healthier food was higher.
In reality, consumers can find healthier choices by watching seasonal offerings and sales and becoming informed through reading and looking at labels. The trouble for businesspeople who are setting prices is that consumers don’t take the time to become informed. They go with the perceptions that they have acquired. The question for your business is “What are those perceptions regarding your products, services, or information?”
Do you know what those perceptions are? If not, find out by asking your customers.
This week's marketing trivia challenge is If you were pricing a healthy product, how would this study affect your pricing? E-mail me your answer.
No comments:
Post a Comment