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Food Retail Study Determines Transparency Yields Greater Brand LoyaltyARLINGTON, Va. and CHICAGO, Sept. 18, 2018 /PRNewswire/ -- A new report released today from Label Insight and Food Marketing Institute (FMI) revealed that grocery shoppers exhibit loyalty to those products that create deeper relationships through information exchange. The Transparency Imperative report found that shoppers increasingly demand transparency and a closer connection to their food, so much so that 75 percent are more likely to switch to a brand that provides more in-depth product information, beyond what's provided on the physical label. When shoppers were asked the same question in 2016 in a similar study by Label Insight, just 39 percent agreed they would switch brands. FMI, with support from Label Insight, developed this report with the goal of defining what transparency means to shoppers and how it impacts their food retail purchases. The Transparency Imperative further delves into attitudes and behaviors among health-conscious shoppers, those who are digitally engaged, and reveals how consumers respond across generations. Recognizing these consumer audiences, the report recommends the necessary steps brands should consider to further embrace transparency; relay information beyond just ingredients; understand the specific needs of key shopper groups; meet the increased expectations of online shoppers; and track changing consumer preferences as this trend progresses. In the report, 86 percent of shoppers agreed that if food manufacturers or retailers provided access to complete and easy to understand definitions for all the ingredients, it would result in more trust. Nearly as many shoppers (80 percent) said that they are more likely to be loyal to a brand that provides more in-depth information, beyond what is provided on the physical label. More than half of shoppers (54 percent) are even willing to pay more for a product that has additional product information. "The new shopper mindset requires brand owners to think about their products well beyond the traditional label and respect a more digitally-minded consumer," FMI Vice President, Industry Relations, Doug Baker noted. "The study offers several considerations for how to make the best use of these findings, but overall, they require companies to recognize and communicate the importance of transparency and perform a thorough review of their unique consumer audiences and commerce channels." What is Transparency? When asked to further define what elements define transparency, older generations (Baby Boomers and Generation X) are more likely than Millennials to focus on a complete list of ingredients, ingredients descriptions, and nutritonal Information. Millennials also focus on these indicators, but they are more likely than older generations to look at allergen information, certifications and claims, explanations of ingredient usage information, and other details such as animal welfare, fair trade and labor practices. "We titled this report The Transparency Imperative because as we executed the research to bring the key findings of our 2016 studies current, we see clearly that transparency is only becoming more important to consumers," said Patrick Moorhead, Chief Marketing Officer for Label Insight. "Their attitudes and preferences, particularly with the growth of e-commerce, make it clear that transparency is critical to growth and our industry must take action." Meet the Health-Conscious Shopper The study also found that the presence of children in the home increased the desire for transparency. Shoppers with children are more likely to place greater importance on ingredient information, nutrition and health benefits. They were also particularly likely to find value in accessing detailed product information in-store on their smartphone (87 percent) and to use this method (85 percent). Grocery E-commerce Increases Transparency Expectations Online grocery shoppers expect more product information (76 percent) when shopping online than if they were in a physical store; and 72 percent believe that getting product information is even more important when shopping online. Additionally, 81 percent are willing to switch to a brand that provides more in-depth product information, compared to 75 percent of general shoppers. Methodology Download a copy of The Transparency Imperative here. Additional Resources for The Transparency Imperative:
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