Commentary

Product Transparency Creates Trust

According to Label Insight's 2016 Transparency ROI Study, consumer demand for product transparency is on the rise, and brands that fulfill this demand by providing comprehensive product information are poised to grow market share and revenue. Nearly 90% of consumers say transparency is important to them across every food product category, and 40% say they would switch to a new brand if it offered full product transparency.

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Patrick Moorhead, CMO of Label Insight, says "… this study reveals what matters most to consumers in terms of the products they use and consume… draws a clear correlation between transparency and improved consumer trust, enhanced brand loyalty, and overall long term value in repeat purchase… "

The report addresses the impact of transparency on consumer loyalty and purchase behavior, and provides guidelines for brands on how to develop trust among consumers. Key findings include:

  • 81% of consumers say they would consider a brand's entire portfolio of products if they switched to that brand as a result of increased transparency
  • 56% report that additional product information about how food is produced, handled or sourced would make them trust that brand more
  • 73% say they would be willing to pay more for a product that offers complete transparency in all attributes
  • 94% of respondents say they are likely to be loyal to a brand that offers complete transparency
  • 86% of 18 to 34-year-old women with children say they would pay more for food products with completely transparent information

Moorhead concludes by noting that "… consumers place transparency above many other factors… switch to competitive products that provide detailed product information… providing information consumers want in one place… brands… create lasting trust and valued relationships… with customers…"

To access the complete report from LabelInsight, please visit here.

 

 

 

1 comment about "Product Transparency Creates Trust".
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  1. Ed Papazian from Media Dynamics, September 6, 2016 at 8:30 a.m.

    Yes, but do consumers actually behave the way they claim they would in such highly impressionistic  studies? Indeed, what do consumers expect in terms of "transparency? How many bother to read the labels or the fine print on the products they buy? How many really want to go to the bother?

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