••• sensory research
What are the flavor trends for 2015?
Beyond Savory 2.0
Using formal and grassroots market research tactics, Sensient Flavors and Fragrances says it has identified four primary consumer interests – hybrid flavors, regional inspiration, creative sourcing and savory updates – that inform eight up-and-coming flavor trends for 2015.
As detailed by Ian McMurray of Ingredients Network, hybrid flavors, or unconventional flavor pairings, will remain popular through the year ahead. Specifically, Sensient predicts the following two flavors will be on the rise:
Smoked chantilly – Food menus continue to feature smoked, roasted, toasted and burnt flavors. Pairing this profile with vanilla- or brandy-infused chantilly cream evokes a new level of interest by combining two unexpected, but harmonious flavors.
Maple mirch (mirchi) – The popularity of Indian cuisine is growing as consumers learn the depth and breadth of this particularly rich heritage. Mirch, Hindi for chili pepper, brings spice and heat from India and combines it with maple, a fan favorite in the Western world. This East-meets-West hybrid pairs the familiar sweetness with the exotic Indian flavor creating something consumers will be eager to try.
Consumers are also becoming more curious about regionally-inspired flavors as they look to food as a gateway to the world’s cultures. In 2015, regional flavor trends take their cues from the equator:
African blue basil – A perennial basil, this variety is a sterile hybrid of two breeds that yields an unexpected flavor with anise undertones.
Falernum – Falernum is a sweet syrup boasting hints of almond, ginger, cloves, lime, vanilla and allspice. It’s often paired with rum in Caribbean and tropical drinks but it’s popping up in non-alcoholic beverages like coconut water and is expected to hit the food market in coming years.
Long winters and droughts are forcing manufacturers to consider alternative food sources and become more conscious of sustainable resources. Specifically, desert plants are rising in popularity:
Desert wildflowers – Though polarizing, floral flavors are on the rise for 2015 and the mild flavor of the desert wildflower makes it a popular pick that can be enjoyed by all.
Cascara tea – Commonly consumed in Bolivia (where it’s called sultana), cascara tea is made from the dried berries of the coffee plant and is often mixed with cinnamon.
Category-blurring flavor trends like “Savory 2.0” are firing on all cylinders. As consumers take inventory of their pantries, savory updates on traditionally sweet applications are proving to be viable alternatives as long-term staples. Whether it is sugar replaced with salt or repurposing more familiar flavors, this trend will include:
“Everything bagel” spice blend– A longtime favorite, this versatile spice blend contains poppy seed, kosher salt, sweet onion sugar, sesame seed, garlic, onion and fennel.
Salted satsuma – The perfect balance of sweet and savory, the addition of salt elevates this summertime favorite. Satsuma, a Japanese orange varietal, gained popularity in New Orleans in recent years. It is another citrus expected to appear in flavor undertones in 2015.
The consumer insights were developed utilizing Sensient’s Trends to Taste program, a proprietary predictive process that filters trends from the broad, consumer, macro level down to finished concepts that best demonstrate each flavor profile.
www.sensientflavorsandfragrances.com
••• retailing research
Consumers still not sold on mobile payment
More education needed to reach critical mass
A lack of awareness may stand as a significant barrier to the use of mobile payment at stores, according to a newly-released consumer survey, reported CSP Daily News. The study, commissioned by San Jose, Calif.-based electronic payment firm Verifone, showed half of the consumers polled were unfamiliar with mobile technologies such as near-field communication (NFC) and mobile wallets. Similarly, half of the respondents said they were unlikely to shop in a store because it used in-store tracking technology to provide offers on mobile devices.
“This is a classic case of new technologies needing to reach critical mass before consumers come on board,” says Joe Mach, senior vice president and general manager of vertical solutions at Verifone. “Today, in 2015, the pieces are fitting into place. What’s essential now is for the industries driving the mobile payment revolution, from finance to retail to systems providers, to educate consumers on mobile payment’s benefits and easy use.”
Conducted online by Wakefield Research, Arlington, Va., among 1,000 adults 18 and older, the survey took place between December 16-23, 2014, timed to coincide with maximum consumer interest in retail payment options.
More than half of the respondents (53 percent) said it was important for more stores to install devices that enable consumers to pay with their smartphones, indicating wide receptivity to mobile pay options once they are provided. The response was significantly higher among younger consumers, with 64 percent of respondents aged 40 and below agreeing that more stores should install devices that allow customers to use smartphones to pay.
Additionally, 84 percent of the respondents said they would use their smartphones to pay for small and medium purchases, such as a cup of coffee or pair of jeans.
Other key survey data points included:
Credit and debit cards remain the primary method of payment for 63 percent of all survey respondents, with 6 percent favoring alternative payment options such as PayPal, and 4 percent preferring mobile wallet services.
A total of 54 percent of the survey respondents are familiar with Europay MasterCard Visa (EMV) technology, a payment method that enhances data security. Of this group, 39 percent use credit or debit cards that have EMV chips as their primary or secondary payment method; among respondents under 40 years of age, 49 percent use credit or debit cards that have EMV chips as their primary or secondary payment method.
More than half of the respondents, 56 percent, are willing to continue shopping at a store whose credit card information was stolen; the number of consumers who are less likely to continue shopping at such a store was 44 percent.
Among the advantages cited to using smartphones instead of traditional payment methods, speed of use ranked first (34 percent), followed by freedom from carrying a wallet (29 percent), access to mobile deals (24 percent), ease in tracking spending (23 percent) and safety of personal data (18 percent).
“The survey data illustrate a typical early adopter scenario – high awareness among younger consumers, which is the essential precursor to mass market adoption,” says Mach. “The mobile payment industry is an industry on the cusp, with so many components essential to success, such as EMV and ApplePay, coming into focus for the first time and delivering real value to the end user.”
Wakefield Research engaged survey respondents first with an e-mail invitation, followed by a 13-question online survey. Magnitude of variation is approximately 3.1 percentage points. Survey data breakouts are available by gender, age, geographic region (Northeast, South, Midwest and West) and regional character (urban, suburban and rural).
••• retailing research
Study shows store remodels pay off
We like what you’ve done with the place
A study conducted by Tracey Dagger and Peter Danaher of Monash University, Melbourne, Australia, found that after remodeling the retail environment, sales to new customers increased by up to 44 percent, while sales to existing customers increased by 7 to 10 percent. These additional benefits persisted for at least a year following the remodel.
As reported by Australia-based Marketing magazine, other findings included:
New customers to the remodeled stores increased from 13 percent to 17 percent; new customers visited the remodeled stores 16 percent more than before, compared with a 2 percent increase for existing customers; and new customers increased their spending by 14 percent, whereas existing customers did so by 7 percent.
New customers had much higher perceptions of the remodeled stores’ retail environments (including atmosphere and layout), service quality and customer satisfaction than existing customers. But the study found no difference in short-term behavioral intention.
On average, retailers remodel their stores every seven to 10 years. Dagger recommends that managers view store remodeling as a strategic marketing investment rather than “a necessity to endure.” “The in-store experience continues to have high relevance; retailers must keep their appearance modern, fresh and in line with that of competitors. The look, feel and mood of a firm’s retail or service environment are unique and crafted purposefully to contribute to the brand and ultimately, its profitability,” she says.
The researchers collected information at two different retail stores before and after remodels in order to draw their conclusions.
Study 1 looked at an equipment retailer and service provider in a worldwide industry worth $100 billion annually. Its store remodel involved moving the retail servicescape into a previously unused area of the store including opening the store via a different door. It took about one month to complete.
Before the remodel, immediately afterwards and 12 months afterwards, customers to the store were given surveys to complete either in-store or return via postage-paid envelope (1,666 customers were surveyed).
Study 2 looked at a large department store in a shopping mall of a major metropolitan city, with combined annual sales of more than $3 billion. This store’s remodel was much more significant than the first, as was its data collection method.
The store’s outdated decor underwent an eight-month transformation including a redesigned store layout, new lighting, floor coverings, decor, furniture, fixtures and fittings, upgraded fitting rooms, parents room and employee areas, redecorated and painted walls and ceilings, remodeled kiosks and retrofitting heating and air conditioning systems.
The study also compared another of the retailer’s stores as a control store, since the remodel caused significant disruption to the store during the eight months, and to account for external factors including seasonality, advertising and promotions. The control store was in a similar suburb, of a similar outdated condition, with similar products, sales and customers.
Rather than handing out surveys to collect a sample, the study used data from the retailer’s loyalty program, of which 70 percent of customers are a member, to collect a census of all transactions for 12 months before remodeling and eight months during and 12 months after (May 2010 to December 2012).
••• shopper research
Are stores overmatched on price-matching?
Consumers like to compare
As reported by Helen Leggatt of BizReport, almost three-quarters of U.S. shoppers (71 percent) Webroom specifically to compare prices, according to Displaydata, and 32 percent admit to showrooming to compare prices. Such behavior is causing headaches for physical stores that can’t roll out changes to prices or promotions with the same speed as online stores.
Consider this: While Amazon makes pricing changes 2.5 million times each day, physical stores such as Walmart and Best Buy currently only make about 50,000 price changes per month.
Displaydata’s report, Rethinking Retail: Getting the In-Store Price Right in a Digital Age, the second in a series, states that “because digital platforms can react quickly and flexibly to variables such as competitor pricing, stock availability, sell-by dates and inclement weather, there is a perception among consumers that stores aren’t offering the same value for the money.”
According to the report, 42 percent of U.S. shoppers believe retailers offer different prices online than they do in-store and 72 percent have been deterred from making a purchase in-store because they think the price is too high.
This is where electronic shelf labels can play a major role in the in-store shopping experience. As well as providing dynamic pricing across all stores, they enable retailers to keep pricing aligned with online and even display real-time competitor pricing to reduce the likelihood of showrooming. “At the end of the day, whether they are looking for the lowest price, the largest quantity or the latest promotion, today’s consumers crave clarity and value in all channels,” concludes Displaydata in its report. “Electronic shelf labels are enabling omni-channel retailers to offer transparency and clarity in the store, ensuring the price is right at every touchpoint.”
••• shopper research
Online is great but stores still matter
Smartphones used for researching products
Despite all the pressure that brick-and-mortar retailers are feeling from online and mobile commerce, physical stores are still the primary place shoppers turn to buy things, according to an annual consumer survey by PricewaterhouseCoopers.
The Total Retail: Retailers and the Age of Disruption report, as reported by PYMNTS.com, found that only 27 percent of U.S. respondents buy products online every week, up from 23 percent a year ago, but well below the 37 percent who shop in-store every week. And fewer people say they get lower prices or better deals online than in-store than a year ago – 52 percent, down from 59 percent.
Another sign of brick-and-mortar’s strength: While 68 percent admit to having ever engaged in showrooming – shopping in-store and then buying online – 73 percent said they had done the reverse (the top reasons: instant, no-cost delivery and the ability to see or try on products in the store).
And while mobile devices are rapidly becoming an integrated part of many U.S. consumers’ shopping experience, more than half of U.S. consumers never buy using smartphones (53 percent) or tablets (55 percent). In contrast, 94 percent of consumers say they have bought online using a PC. But 46 percent of U.S. consumers said they have researched products on their phones and 45 percent have used their phones for price comparisons.
Social commerce and mobile payments are still in their early days as shopping tools and the survey shows it. Only 4 percent of U.S. consumers said they’ve bought something directly through social media, although 35 percent said social media has spurred buying in at least some cases. (Facebook is the overwhelming favorite for social media, with 50 percent saying it’s regularly part of their shopping experience.)
••• consumer psychology
Plane passenger proximity propels purchases
By buy
Airplane passengers are 30 percent more likely to purchase in-flight amenities, like snacks and entertainment, if another passenger next to them makes a purchase first, Mashable reported.
That’s the conclusion of new research out of Stanford University, which looked at purchases on 2,000 flights. Pedro M. Gardete, assistant professor of marketing at the Stanford Graduate School of Business, analyzed the data that included 65,525 purchases by 257,000 airline passengers. “Because the transactions were made with via credit card, Gardete had precise information about the transactions, including the buyers’ flight numbers, seat numbers, what they bought and what time they bought it,” writes Eilene Zimmerman, for the business school’s publication.
For airlines, ancillary revenue – money made from selling extras like food, beverages, entertainment and seat upgrades – is more than a side business: Airlines made more than $31 billion on “extras” in 2013.
“Without ancillary revenue, the airline industry would be at a loss overall,” says Jay Sorensen, president of IdeaWorks, a company that tracks ancillary revenue.
That revenue has been growing fast in recent years and airlines want the trend to continue. “We know now people are prone to social influence,” says Gardete. “This is the bread and butter of marketing companies right now, as they try to find the best way to approach consumers.”
Marketers are interested in showing how companies can influence customer decisions to make them purchase more but Gardete’s research can also serve as a warning to passengers. So next time you’re flying, ask yourself – did you really want to buy that cheese tray before your neighbor ordered one?
Gardete’s study will be published in the Journal of Marketing Research.
••• science and tech
Pew study examines scientists’ view of media, public
Seeking engagement with wider audiences
American scientists believe they face a challenging environment and the vast majority of them support the idea that participation in policy debates and engagement with citizens and journalists is necessary to further their work and careers, according to a report by Lee Rainie, Cary Funk and Monica Anderson of Pew Research.
A survey of 3,748 American-based scientists connected with the American Association for the Advancement of Science (AAAS) finds that 87 percent agree with the statement “Scientists should take an active role in public policy debates about issues related to science and technology.” Just 13 percent of these scientists back the opposite statement: “Scientists should focus on establishing sound scientific facts and stay out of public policy debates.”
This widely-held view among scientists about active engagement combines with scientists’ perspectives on the relationship between science and society today in several ways.
Most scientists see an interested public: 71 percent of AAAS scientists believe the public has either some or a lot of interest in their specialty area.
Many scientists see debates over scientific research findings in the media: 53 percent of AAAS scientists say there is a lot or some debate in the news about their field.
A sizable share of scientists believe careers can be advanced by media coverage of their work and social media use: 43 percent of AAAS scientists say it is important or very important for scientists in their specialty to get coverage of their work in news media, up from 37 percent who said that in a 2009 survey. Some 22 percent described it as either “very important” (4 percent) or “important” (18 percent) for career advancement in their discipline to promote their findings on social media such as Facebook or Twitter. Still, a majority of AAAS scientists say it is not too or not at all important for career advancement to have their research covered in the news (56 percent) and 77 percent say it is not too or not at all important for career advancement to promote their findings on social media.
At the same time, most scientists believe that science news coverage can pose problems for science: 79 percent of scientists believe it is a major problem for science that news reports don’t distinguish between well-founded and not well-founded scientific findings. Further, 52 percent of scientists say that simplification of scientific findings is a major problem for science in general.
These insights come at a time when science topics are increasingly part of the public debate. Pew Research findings from this survey showed an overall drop among AAAS scientists in how they rate the state of science in general and their particular scientific field. Scientists also express concerns about the precarious state of research funding, some of the influences on how funding is allocated and difficulties they feel hinder the capacity of science disciplines to attract the best talent to the field.
Nearly all the AAAS scientists (98 percent) say they have some level of interaction with citizens at least from time to time and 51 percent have at least some contact with reporters about research findings.
In addition, nearly half of AAAS scientists – 47 percent – use social media to talk about science or read about scientific developments at least some of the time. Some 24 percent of these AAAS scientists blog about science and research.
The scientists who are most likely to be involved in public activities show distinct patterns by age, by the level of public debate and public interest they perceive in their specialty and by discipline. Virtually all scientists engage with citizens. Mid-career and older scientists are especially likely to speak to reporters. Younger scientists are more likely to use social media. And blogging is something that equally spans the generations under age 65.
There is also evidence in the survey that the most engaged often use multiple methods and platforms to connect with the public. In other words, those who want to engage tend to do so in multiple ways.
Some 41 percent of AAAS scientists report that they “often” or “occasionally” do at least two of these four activities: 1) talk with non-experts about science topics, 2) talk with the media, 3) use social media or 4) blog. Nearly half, 48 percent, do one of these four activities either often or occasionally, and 11 percent do none of these on an “often” or “occasional” basis. Those who are more engaged by this metric are slightly younger; 46 percent of those ages 18 to 49 and 44 percent of those ages 50 to 64 are more engaged, compared with 33 percent among those ages 65 and older. A somewhat larger share of women (44 percent) than men (39 percent) report doing at least two of these activities on a more frequent basis.
Traditional information and peer networking activities are the most common ways scientists stay up-to-date. However, digital methods are now a common part of the learning toolkit for many scientists. Fully 84 percent of AAAS scientists read journal articles outside of their primary fields or scientific discipline. In addition, 79 percent say they attend professional meetings, workshops and lectures.
At the same time, digital communications are also a common part of the learning activities of scientists as they connect with peers: 58 percent get e-mail alerts from journals in their specialty; 56 percent get e-mails from general science journals; 32 percent belong to e-mail listservs; 19 percent follow blogs by experts their fields; and 12 percent follow tweets or other postings in social media by experts in their field.
The survey of scientists was conducted online with a random sample of 3,748 U.S.-based members of the American Association for the Advancement of Science (AAAS) from September 11 to October 13, 2014. The survey was conducted under the direction of Princeton Survey Research Associates International.