How Branding Impacts Food Purchases

While we all base our food-buying decisions on taste, it’s hard to tell just how to hook a customer who has yet to try your product. I recently came across an article by FoodNavigator.com which recaps a study done on what influences the purchasing decisions of wine buyers. Their results are noteworthy for anyone in the food and beverage market.

Authored by Simone Mueller and Gergely Szolnoki, the study looked at which external factors (as opposed to taste and experience) were the best decision makers. Not only was packaging the primary element used to determine the quality of the product, but information on the label was deemed least significant:

Analysing scanner data of red wine sales in two metropolitan US markets we found a significant impact of packaging and front label information on wine prices….it can be concluded that wine packaging is related to price differences that are almost as high as for origin, while labelling information has the smallest impact….

In other words, a premium wine was discernable due to its premium packaging or label and the consumer was able to pick up on that. Even for the casual observer who wouldn't be able to tell you the difference between a metallic ink and a foil stamp, the difference between high-end packaging design and the cheaper conventional labeling is clear. It's also how they decide what will taste better.

The link between fine packaging and a better product is something that producers must keep in mind when considering the costs associated with a new product launch. Gourmet products wrapped in inexpensive packaging are self-defeating. Without experience and taste tests, the consumer will rely on the design to tell them whether the product is worth a try.

To read the study titled Wine packaging and labelling - do they impact market price?, click here. For a brief recap and analysis of the study visit FoodNavigator.com by clicking here.