Food retail study suggests transparency yields greater brand loyalty
A report released from Label Insight and the Food Marketing Institute (FMI) suggests that grocery shoppers exhibit loyalty to those products that create deeper relationships through information exchange.
A report released from Label Insight and the Food Marketing Institute (FMI) suggests that grocery shoppers exhibit loyalty to those products that create deeper relationships through information exchange. The “Transparency Imperative” report found that shoppers increasingly demand transparency and a closer connection to their food, so much so that 75% are more likely to switch to a brand that provides more in-depth product information, beyond what’s provided on the physical label. When shoppers were asked the same question in 2016 in a similar study by Label Insight, just 39% agreed they would switch brands.
According to the report, 86% of shoppers agreed that if food manufacturers or retailers provided access to complete and easy-to-understand definitions for all the ingredients, it would result in more trust. Nearly as many shoppers (80%) said that they are more likely to be loyal to a brand that provides more in-depth information. More than half of shoppers (54%) are even willing to pay more for a product that has additional product information.
“The new shopper mindset requires brand owners to think about their products well beyond the traditional label and respect a more digitally minded consumer,” said Doug Baker, FMI vice president of industry relations. “The study offers several considerations for how to make the best use of these findings, but overall, they require companies to recognize and communicate the importance of transparency and perform a thorough review of their unique consumer audiences and commerce channels.”
The majority of consumers (69%) say it is extremely important or important that brands and manufacturers provide detailed information such as what is in their food and how it is made. Online shoppers (80%), college graduates (76%), and higher grocery spenders—$125+/week (75%)—were more likely to agree with this sentiment.
When asked to further define what elements define transparency, older generations (Baby Boomers and Generation X) are more likely than Millennials to focus on a complete list of ingredients, ingredients descriptions, and nutritional information. Millennials also focus on these indicators, but they are more likely than older generations to look at allergen information, certifications and claims, explanations of ingredient usage information, and other details such as animal welfare, fair trade, and labor practices.