In most food categories, consumers lean toward brand-name foods over generic or store-brand foods. But their preference shifts when significant price discounts come into play, according to the September issue of the Consumer Food Insights report from Purdue University’s Center for Food Demand Analysis and Sustainability.
Within five different food categories, consumers were asked how discounts on store brands impacted their choices:
Not surprisingly, income level also affected these decisions. More than half (56%) of households making under $50,000 were more likely to choose generic/store brands at a 15% discount, and that percentage jumped to 70% for a 30% discount. Meanwhile, discounts had little impact on households making more than $50,000, with more than half sticking with brand-name products.
When asked what they believe about brand-name foods, many consumers said brand-name beverages (62%) and snack foods (51%) taste better than store-brand products. However, taste wasn’t much of a factor in the other three categories. Most consumers felt there was no difference in nutrition between brand-name and generic/store-brand products, but they leaned toward brand-name foods for higher quality ingredients.
See the full report from Purdue for more consumer insights.