Presents results of a survey of Southern California supermarket customers relating to such items as unit pricing, open code dating, and private label products.Consumer/Household Economics,

Hernandez, Lanny

English

Research Papers in Economics

their stores, but well planned and executed 30ne recent study, indicatedthat news-
advertising programs can do a lot more. papers are the dominant medium, and the only
medium used by all respondents. The median
lStephen Baker,
expenditurefornewspaperadvertisingwas 68%
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Change”, Advertising Age, December 2, 1968, “Food Chain Advertising Expenditure Study”,
p. 98. New York. Food Ad Bulletin, No. 5, January
9 1972,
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1972, p. 30.
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WESTERN CONSUMERS’ ATTITUDE TOWARD THE FOOD INDUSTRY
by
Lanny Hernandez
University of Southern California
Los Angeles, California
Presents results of a survey of
Southern California supermarket
customers relating to such items
as unit pricing,open code dating,
and private label products.
The study was conducted at the request
of the Western Association of Food Chains
to determine how supermarket customers view
the food industry. Particular emphasis was
placed upon determining consumer knowledge
and use of unit price information and open
code dating, consumer knowledge and percep-
tions of private label products, and their
recall of certain images.
The study was designedand conducted by
twenty-nine students of the Food Marketing
Management Program at the University of
Southern California. Under thedirection of
Dr.JamesH. Stevenson, Professor of Market-
ing and Head of the Program, these students
interviewed 1,018 California shoppers.
The sample plan was designed to give a
geographically representative sample of
Southern California shoppers. The respon-
dents were interviewed as theyentered their
February 73/page 97
localmarkets,and thesemarket locationswere
chosen in approximate relation to the mar-
ket share of each chain or independent.
Results
Fifty percent of the consumers inter-
viewed indicated that they shopped at two
or more foodstores during the previous week
and that duringthatweek, they averaged 2,5
shoppingtrips, Forty percentsaid thatthey
shopped three or more times per week.
When questioned as to what should be
improved in supermarkets to better satisfy
consumers,those interviewedmentioned faster
check-out and lower prices most often. In
additionto quality meats, fresh produce and
store location,low prices and fastcheck-out
also were rated as important factors in
selecting a supermarket. Consumers rated
price per pound and fat content as the most
important considerations when purchasing
fresh meat.
The value of food coupons was investi-
gates using threedifferent questions. six-
ty percent of those intervieweddidnot feel
that “couponsrepresentan important savings
. . . .in food purchasing”. Seventy
Journal of Food Distribution Researchpercent said they would notbe influenced to
shop at a conveniently located market which
offered a “20 cents off’’coupon. When three
coupons were offered, 55%said they would be
influenced. When grouped by income level, it
was evident that respondents in lower income
levels responded more positively to coupons
than those in higher income groups.
The use of unit pricing and open code
dating are two issues currefitly being de-
bated by supermarket chains and consumer
groups throughout the country. Forty-six
percent of responding consumers could cor-
rectly interpret a unit price tag and sixty
percent of those who understood unit price
information used it in everyday shopping.
When presented with an example of open
code dating, half of the consumers correctly
identified the meaning of the date. More
than one-quarter thought it was the date
after which the product should not be used,
Younger consumers proved to be more knowl-
edgeable of the meaning of open code dating.
Regardless of their knowledge of the
meaning of the date, only twelve percent of
the respondents stated that they did not
check for date codes on food products. Over
eighty percent do check for date codes on
dairy products.
Knowledge of the store manager’s name
was testedin this study. Only sixteen per-
cent of those interviewed could correctly
name the store manager. Variation in re-
sponse to this question was noticeable from
one chain to another. However, the highest
correct percentage response for a chain was
twenty-two percent, compared to a low of
eight percent.
An area of growth in the food industry
is the use of private label products. Fifty-
seven percent of the respondents correctly
identified the private label brand for the
supermarket in which they were interviewed.
When asked how the quality of private store
brands compares with national brands, sixty
percent rated private brands equal or higher.
WC****
FRESH SEAFOOD DISTRIBUTION
by
Don L. Long and Charles W. Coale
Virginia Polytechnic Institute and State University
Blacksburg, Virginia
Study focuses on the transportation
problems in the distribution of
fresh seafood in Virginia,
The fresh seafood industry of Virginia
is an industry composed of numerous small
volume firms operating in antiquated facil-
ities and utilizing much the same work meth-
ods which have been practiced over the past
50 years. As a result, they are caught in
a major cost-price squeeze. Individually
sales volume per firm is small and each has
little market power, On the cost side, firms
are faced with rising labor and material
costs with again little individual power to
influence them.
Fresh seafood distribution, so far as
the Virginia industry is concerned, is a
matter of “By guess and by God”, Each pro-
cessor operates pretty much in a vacuum in
the areas of distribution and merchandising.
Each finds his own distributors, each makes
his own sales, each arranges for his own
transportation, and each does his own pro-
motion in so far as any is done.
Journal of Food Distribution Research February 73/page 98

WESTERN CONSUMERS' ATTITUDE TOWARD THE FOOD INDUSTRY

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