Survey Monitor March 2005 | Articles

Health concerns cause half of Americans to read labels

According to a report from Chicago research firm Mintel, in both 2003 and 2004, more than half of Americans cited general health as their primary motivation for reading nutrition labels, while a little less than 25 percent show concern about a specific health issue as their motivator. In other words, for every two people that read nutrition labels because of a specific health concern, five people do so for general health reasons. Clearly, end-products that offer general benefits have wider appeal than those that offer only one benefit.

“As consumers have now begun to think about food as a vehicle for achieving specific health goals, rather than just fuel for the body, the emphasis on food ingredients has shifted,” says David Lockwood, senior research analyst for Mintel. Ingredients that fortify (herbals, vitamins and minerals) and ingredients that reduce (low-calorie sweeteners, low-carbohydrate polyols) have become important elements of the product development process and are crucial to creating healthy and popular foods. Researching the levels and patterns of ingredient usage in new products is one way to understand where the food industry is heading.

Mintel’s research reveals that two-thirds of respondents report making purchasing decisions based on whether the product has the right amount of fat, vitamins and minerals, sugar, and calories. About half say that they make decisions based on salt, artificial sweeteners and carbohydrates. Women are significantly more likely to read ingredient labels than men when buying food and beverages, and the gender gap for vitamins and minerals, sugar, and herbs has widened since 2003.

A majority of consumers (45 percent) combine vitamin pills and eating right to ensure they are getting the necessary nutrients. An almost equal proportion rely solely on the foods that they eat. Of this second group, 29 percent appear to be consciously eating the right foods to get vitamins and minerals, while 14 percent are simply uninterested in vitamins and minerals.

The ingredient categories that most influence purchasing choices are fat, vitamins and minerals, sugar, and calories. The importance of both calories and carbohydrates has decreased, with the importance of carbs falling from fifth place to seventh. This may be signaling an end to the low-carb craze from a consumer perspective. However, a closer look at the continued importance of sugar and the increased importance of artificial sweeteners suggests otherwise.

Simply put, consumers may be becoming better educated about how carbohydrates work in our systems, focusing on replacing the bad carbohydrates - sugar - with artificial sweeteners. For more information visit www.mintel.com.

They like their TV real in Rhode Island

An analysis of reality television watchers from New York-based Scarborough Research finds that Providence, R.I., is the leader in reality television viewing among the 75 local markets in the Scarborough study. Thirty percent of consumers in that local market “typically” tune in to this type of television program versus the national average of 23 percent. Flint, Mich., (29 percent) and Cincinnati (29 percent) round out the top three markets for reality viewing.

Scarborough Research also examined three sub-categories of reality television: reality-talent, reality-adventure and reality-dating. Providence, R.I., and Raleigh, N.C., lead the U.S. cities in reality-talent television viewing. Fourteen percent of consumers in each of these local markets tune in to the genre, versus the national average of 9 percent. Providence and Cincinnati are the top local markets for reality-adventure television with 21 percent of consumers in these markets watching this programming. Nationally, 15 percent of consumers usually watch reality-adventure. Los Angeles, Grand Rapids, Mich., and Kansas City, Mo., are the leading cities for reality-dating, with 30 percent of adults in each of these markets tuning in to this genre, compared with the national average of 23 percent.
When examining the consumer profile of the reality viewer Scarborough found that they are avid restaurant patrons and intend to purchase a broad spectrum of consumer goods, including cars, sporting events tickets and cellular services. Half of these consumers have been to a Chinese/Asian restaurant and one-third ate at a Mexican restaurant during the past month. They are 23 percent more likely than all consumers to have been to a coffee house/coffee bar during the past month. Fourteen percent of reality television viewers plan to buy or lease a new car during the next year. They are 26 percent more likely than all consumers to plan to buy or lease a new SUV and 13 percent more likely to plan to buy or lease a new van or minivan. More than one-third (35 percent) intend to purchase tickets to sporting events during the next year. In addition, these consumers are 33 percent more likely than the national average to switch their cell phone carrier during the next 12 months.

Reality television is drawing a young audience. Reality television viewers are 40 percent more likely than all consumers to be ages 18-34 and 12 percent more likely than all consumers to be white-collar. Fifty-one percent of reality TV viewers have at least one child in the home (compared to the national average of 42 percent) and 30 percent have at least two children in the home (compared to the national average of 24 percent). They are 12 percent more likely than all consumers to be blue-collar and 20 percent more likely to be single.
The data in this report is from Scarborough Research’s USA+ study, a national study of consumer shopping, media and lifestyle behaviors. The database examines a range of television genre programming, covering most types of shows currently available. For more information visit www.scarborough.com.

Study segments Boomer consumers

BoomerEyes, a specialized research division of C&R Research, Chicago, has conducted a study of Baby Boomers, individuals born between 1946 and 1964, to obtain a deeper understanding and an up-to-date analysis of this group.

The BoomerEyes Lifestyle and Psychographic Segmentation study reveals four segments within the broad Boomer population. Defined by their attitudes and behaviors versus age, the segments include: Looking for Balance Boomers, Confident and Living Well Boomers, At Ease Boomers, and Overwhelmed Boomers.

These segments demonstrate how different Boomers are from one another and provide insights into the mindset of this broad group. Some key lifestyle and psychographic traits of each segment:

Looking For Balance

Represent 27 percent of all Boomers.
Have average household income.
Most likely to have kids and have more grandchildren than fellow Boomers.
Worry about future finances, education for their children and job security.
Eighty-seven percent say convenience is key. In fact, 88 percent are driven to find ways to do things faster and more efficiently. And, 40 percent say they feel inundated by all they have to do.
Early adaptors to new products and services - 96 percent say they like to try new things.
Strong advocates of technology.
Slightly older and index higher on the 51-55-year-old age group.

Confident and Living Well

Represent 23 percent of all Boomers.
Highest income of all segments.
Index above average for being married but only half of this segment has kids.
They budget money wisely (68 percent agree) and as a result are not concerned about their financial security or worried about job security.
Most active of the Boomers and, most importantly, feel that they are in control of their lives (91 percent say so).
Travel is one of their favorite pastimes.
Technologically savvy, they own nearly all the mainstream, and some of the latest, digital and tech products. Ninety-five percent like to try new things.
Index higher on the 56-58-year-old age group.

At Ease

Represent 31 percent of the total Boomer population.
Have average household income.
Have average debt and retirement savings.
Fifty percent have kids still living at home. Have grandchildren as well.
Don’t worry about the future, job security or financial security.
Unlike other segments, not searching for convenient solutions or ways to do things faster.
Twenty-six percent say technology is not important.
Index slightly higher on the 57-58-year-old age group.

Overwhelmed

Represent only 19 percent of Boomers - fewer than one in five Boomers.
Lowest income of all segments.
Only group not happy about where they are today.
Not in control of their lives, they worry about the future and their financial security (86 percent say so).
They are more likely to be looking for work.
The least active segment: Health is their biggest concern.
They are intimidated by technology and are well below average on using electronic, digital and tech products.
Index slightly younger than other segments (more likely to be 46-50 years old).
The survey was conducted online with individuals born between 1946 and 1964. A total of 1,040 interviews were completed in August 2004. For more information visit www.crresearch.com.

U.K. households happy to participate in market research

Research by U.K.-based GfK Martin Hamblin has revealed that one in five Britons who are happy to take part in market research surveys have also signed up for the Telephone Preference Service (TPS), which, like the U.S. Do Not Call Registry, allows consumers to request that their number be removed from certain sales and marketing lists.

Nineteen percent of people interviewed in a recent survey said their household was registered with the TPS, yet they had happily completed a full market research interview.

According to current information, one in four British households is registered with TPS. By registering, households request that they should not receive unsolicited direct marketing calls; legislation now deems this unlawful if the consumer has indicated such a preference.
The legislation currently excludes market research. However, there have been concerns that respondents are not able to tell the difference between telemarketing and genuine market research. These latest findings suggest that consumers do understand the difference and are still happy to respond to market research enquiries.

“This is good news for both the market research industry and for their clients,” says David Finney, head of telephone operations at GfK Martin Hamblin. “Some companies are now asking us to screen their sample to remove households registered with TPS. This finding suggests that, whilst we are happy to accommodate them, they need not be concerned about doing this. There are a small number of respondents who are confused about what TPS covers but we have found that by explaining the difference between direct marketing and market research, most respondents are happy to continue with the survey.

“It would be a shame if the market research world accepted TPS screening, thereby removing one in four potential respondents, when this research suggests it is unnecessary. The fewer people that are screened out in this way, the more representative research will be.” For more information visit www.gfkmh.com.

Many willing to buy foreign wine

A Harris Poll finds that American wine drinkers would be willing to try wines produced in many countries in addition to the countries whose wines they normally drink.

For example, 73 percent of wine drinkers say they would consider buying Italian wine but only 44 percent say that they ever do so. Similarly, 52 percent say they would be willing to buy Australian wine although only 32 percent do so now. Substantial numbers of wine drinkers also say they would be willing to try drinking wine from countries which sell relatively little wine in the United States such as Poland, Bolivia and Israel.

These are some of the findings of a nationwide Harris Poll of 1,323 U.S. adults aged 21 and over who buy or drink wine who were surveyed online by Harris Interactive, Rochester, N.Y., between December 8 and December 15, 2004.

Most Americans who buy wine do not do it often and they do not spend very much per bottle. Fully 73 percent of wine purchasers say that they, or people in their household, only buy a bottle of wine once a month or less and, in most cases, the wine costs less than $15 a bottle, with fully 31 percent saying that the last bottle of wine bought cost under $10. Only 36 of wine purchasers have ever bought a more expensive bottle of wine costing $30 or more.

Almost all American wine drinkers (91 percent) sometimes buy or drink American wine. Fewer people drink wine from other countries, with 44 percent sometimes buying or drinking Italian wine and 40 percent buying or drinking French wine.

Other wines which are consumed by substantial proportions of wine drinkers include Australian wine (32 percent), German wine (23 percent) and Chilean wine (16 percent).

The survey strongly suggests that there are big opportunities for many wine-producing countries to increase their sales in the United States. Many more people say they would consider buying wines from other countries than actually do so.

The most interesting finding in this survey may be that many Americans would consider buying wines from countries which currently sell relatively little in the United States. For example, fully 25 percent and 24 percent of wine drinkers say they would consider buying wine from Poland and Bolivia, respectively, even though hardly anybody has ever actually bought or drunk wine from those countries. Even more people would be willing to try wine from Israel (28 percent).

These big differences between those who would be willing to consider buying from a country and those who have actually bought or drunk it are found for most other countries.

The gap between those who have ever bought and those who would consider buying are substantial for each of the following countries:

Australia - 32 percent (who have bought or drunk it) compared to 52 percent (who would consider buying it);

Germany - 23 percent compared to 48 percent;

Chile - 16 percent compared to 36 percent;

New Zealand - 10 percent compared to 41 percent;

Argentina - 9 percent compared to 35 percent;

South Africa - 6 percent compared to 29 percent; and
Greece - 5 percent compared to 36 percent.

For more information visit www.harrisinteractive.com.

Broadband drives online purchases

Nielsen//NetRatings, New York, reports today that 69 percent of retail purchases transacted online were conducted via a broadband connection, compared to 31 percent transacted via narrowband or dial-up access during November 2004. The finding was derived from the Nielsen//NetRatings MegaView Online Retail service, which tracks online consumer retail activity and purchasing behavior and offers marketers competitive benchmarking, dollar spending insights and buyers’ conversion rates.

Custom research from MegaView Online Retail found that broadband consumers spend on average $158.21 per person, 34 percent higher than the $117.89 average spent by narrowband users. In addition, a broadband shopper showed a higher likelihood of converting to an online buyer; the conversion rate for broadband users reached 26 percent, compared to the conversion rate of narrowband users at 21 percent.

“With 55 percent of online surfers utilizing broadband and broadband users spending more money online than narrowband surfers, there should be less concern about alienating the narrowband shopper,” says Heather Dougherty, senior retail analyst, Nielsen//NetRatings. “Increased broadband penetration rates should encourage retailers to maximize the customer experience and rethink their online business strategies to integrate rich media into Web site design and advertising campaigns.”

The findings showed that broadband users connected to the Internet an average of 59 times, 34 percent more than narrowband users, who averaged 44 visits during November 2004. In addition, broadband users visited online retail Web sites more frequently, averaging 18 visits as compared to 14 visits by narrowband users. Broadband users also spent more time online, averaging more than 22 hours while narrowband users spent nearly 18 hours online. For more information visit http://netratings.com.