••• CPG research
Ethical halo for premium private-label products
As reported by RetailWire’s Tom Ryan, a study has found that lower-tier private-label brands don’t benefit from ethical positioning in the form of a consumer’s willingness to pay more. Indeed, such a strategy can backfire against economy brands.
The study, from Concordia University in Montreal and published in the Journal of Retailing, found that, for premium private-label brands as well as national brands, consumers expect to pay more for products with ethical attributes, including claims of being environmentally-friendly, sustainably-sourced or fair-trade.
An earlier Nielsen study found that 66 percent of global respondents said they were willing to pay more for products and services from companies that are committed to positive social and environmental impact. But the Concordia University study found store brands with a lower price point did not benefit from the presence of ethical attributes aimed at enhancing social welfare or environmental protection.
A higher price point signals a standard or premium-quality tier positioning that is further strengthened by benefits associated with the ethical attribute (for example, a healthier product). These sorts of positive evaluations don’t extend to low-priced store brands because ethical attributes aren’t seen as contributing to the economic benefit that comes from purchasing them, said Onur Bodur, Concordia marketing professor and the study’s lead author. In fact, the reverse is true: When ethical attributes are eliminated from economy store brands, their perceived value increases.
••• promotions research
Prize is biggest draw for contest entrants
A survey by Spain-based social media promotions firm Easypromos on the role of prizes in converting visitors to participants in a promotion such as a sweepstakes, photo contest, quiz or trivia contest found that, not surprisingly, the prize was the biggest lure.
Of respondents surveyed across Europe and the U.S., nearly half (48 percent) said the prize was the most important element in participation; 45 percent said it is a major deciding factor.
Eighty-two percent of respondents said that liking the prize was more important than the brand of the prize, with 18 percent saying the brand would drive participation. A quarter said they would be more likely to engage in a promotion that awards prizes that can be shared with others, while 29 percent of respondents said their preferred prizes were tickets and experiences like trips or dinners.
Seventeen percent of consumers listed technology gadgets as the most compelling prize, with other prizes like health and beauty-related items enticing 11 percent of respondents to participate.