An increasing number of consumers are purchasing store-brand merchandise and their use of coupons is down slightly.
Those are two of the findings of Better Homes and Gardens magazine's 1997-1998 Consumer Panel study, a broad-based polling of food and shopping trends and attitudes. This is the first of a three-part report on the results of this study, which have been provided to SN.
Perhaps reflecting a booming economy, consumers showed their lowest level of concern over food prices since this survey began in 1984, with only 37.1% reporting they are more concerned about the cost of food now than two years ago. More than half, 57.5%, were equally as concerned about food costs as they were two years ago.
In the 1995 survey, 43.4% were more concerned about food prices than they were two years earlier, and the level of concern peaked in 1992, when 55.2% of the shoppers were more concerned with food prices than they had been.
Other survey results indicated consumers may be visiting supermarkets a bit less frequently these days, and that the percentage shopping warehouse clubs or supercenters is holding fairly constant.
Better Homes and Gardens sent a questionnaire on shopping and food issues to 500 members of its consumer panel, made up of the magazine's subscribers, in September, receiving 426 responses. The median age of the respondents was 47.5, and median income was $58,879, well above the U.S. family household median income of $36,234. Other characteristics of the panel, all women, were 78% married, 38% with children under 18, 92% owning their own home, and 39% with some college education.
The second report on the survey, which will run in SN next week, covers convenience buying, including consumer views on prepared foods and precut produce and meats. The third section, to run April 27, will look at consumer opinions on nutritional labeling, safe-handling practices and uses of low-calorie and low-fat products.
This year's survey showed shoppers continue to increase their purchases of private-label foods -- 28.2% said they were buying more store brands than two years ago and 66% were buying the same amount.
When asked if they had purchased any private-label food product in the past month, 87.8% replied yes. That "yes" answer has been increasing historically. In 1984, only 50.3% said they had bought a store brand in the past month; in 1988, 80.1% said yes; in 1992, 78.6%; and in 1995, 83%.
The shoppers who said they were buying more private label these days cited as their top three reasons: good value, 90%; wider variety of store-brand products available, 65%; and improved quality, 61.7%.
While only 3.3% felt private-label quality was higher than that of brand-name products, 51.2% rated the quality about the same, and 23% said the quality comparison depends on the product.
Coupon use remains high, but this year 93.4% replied they always or sometimes used manufacturer coupons, compared with 95.9% in 1995 and a high of 97.5% in 1984. This year 24.2% said they always used coupons when shopping.
The three most important factors in coupon use, the panel said, were that the coupon is for a product regularly used, 87.9%; that the coupon provides a significant savings, 76.9%; and that the coupon is for a brand regularly used, 72.4%.
Just over 80% cited Sunday newspaper supplements as their primary source for coupons, followed by newspapers, 77.9%, and magazines, 60.1%. In-store coupon offers were the most likely source for 43.2% and on-package coupons for 49.7%.
Of the consumers who said they always or sometimes used coupons, 19.6% used coupons more frequently than two years ago, and 60.3% said their coupon use was about the same. The 19.6% using coupons more than they did two years ago was down this survey, from 27.3% in 1995, 33.3% in 1992, 42.2% in 1988, and 46.8% in 1984.
Most consumers said they shop at least two different supermarkets in a month's time. Asked how many supermarkets they have shopped in four weeks in addition to the store they go to most often, 31% replied one other supermarket, 40.1% replied two others, and 15.3%, three others. Only 8.5% did not shop in any other supermarkets. Historically, the percentage of shoppers visiting one or two more stores than their regular supermarket has been about 70%.
Supermarkets continue to be the prime source for groceries. Asked where they shopped for groceries in the last 10 days, 97.2% had been to a supermarket and 38.5% had shopped a warehouse club or superstore. Other popular spots for grocery shopping were farmer's markets, 31.7%; convenience stores, 19.5%; independent bakeries, 13.1%; and specialty food shops, 10.8%.
In the last year, 72.8% of the panel members said they had shopped for groceries at a warehouse club or superstore (98.6% had shopped at a supermarket). The clubs and superstores gained a little -- in the 1995 survey, 70.9% had shopped those outlets in the past year.
More shoppers said they'd been to a farmer's market, 67.8%, than to a convenience store, 57.7%, in the past year. More than half, 58.2%, of the shoppers had been to an independent bakery; 38.3% to a specialty food shop, 32.2% to an independent meat market, 32.2% to a health food store, and 27.5% to an independent seafood market.
Panelists estimated they were shopping a little less frequently in this year's survey. Less than half, 48.8%, shopped once a week, compared with 51% in 1995; and 24.4% said they shopped three times a week, compared with 28.2% in 1995; while 16.2% shopped once every eight days to two weeks, compared with 10.7% in 1995.
There were more big spenders this year than in 1995 -- 26.3% said they spent over $100 on groceries in an average week, compared with 22.6% in 1995.
Spending between $40 and $59.99 a week were 21.1% of the shoppers, and 20.9% spend between $60 and $79.99.
Of the 37.1% of this year's panelists who said they were more concerned with food costs than two years ago, 57.6% cited less disposable income as the reason. Other major reasons were different spending priorities, 46.2%, and economic uncertainty, 41.1%
All panelists were asked how they control the amount of money they spend on food. Top responses were using a shopping list, 66.7%; using cents-off coupons, 65.7%; and comparing food prices carefully, 64.8%.
Despite the prevalence of supermarket shopping clubs with their value promotions, only 13.4% of the consumers listed membership in such a program as a way to control what they spend on food. More than half, 54.5%, said they control spending by avoiding convenience stores, and 52.1% by limiting takeout, fast food and restaurant eating. Only 20.4% said they control spending by doing major grocery shopping at a food discount or warehouse store.
Home-meal replacement may be a hot topic in the supermarket industry, but consumers indicated they stick to old favorites when purchasing prepared foods from delis, takeout and other sources.
Asked to check which prepared foods they purchased most often, the panelists listed pizza, 57.3%; breads, 48.4%; salads, 27.2%; fried chicken, 25.8%; sandwiches, 24.9%; roast chicken, 21.8%; and desserts, 21.6%. Just over 9% claimed they do not purchase takeout foods.
Consumers report they are willing to try new products -- 75.1% said they had purchased a new food product in the past month, about the same level as in previous surveys. And the two top reasons also remain constant -- they like trying new products, 39.7%, and they had a coupon for the product, 38.3%.
About a third of the consumers also said they try new products based on friends' recommendations, advertising and samples.
Appearance and freshness are overwhelmingly the most important factors in choosing foods, consumers said.
Factors rating "very important" were appearance of food, cited by 84.5%; product freshness dating, 80.3%; length of freshness, 73.7%; and nutritional value, 58.9%.
Only 26.8% said absence of additives or preservatives was very important in their food choices. Brand names were very important to 17.6%, cents-off coupons to 21.6%, convenience to 31.2%, government warnings to 41.5%, unit pricing to 41.3% and package size to 30%.
Most of those factors, however, are described as either very or somewhat important to about 80% of the consumers; only a tiny percentage said any of those factors was not important at all.
Consumers split most evenly on the importance of cents-off coupons, with 21.6% describing coupons as very important, 43.7% saying they are somewhat important, 27.2% saying not very important, and 5.9% saying not at all important.
When shoppers were asked which factors were important in choosing among brands of a product, consistent quality, 76.8%, and value for the money, 69.5%, led the list of very important factors. Also cited were past experience and familiarity with the brand, 59.9%; confidence in the manufacturer, 49.3%; and packaging superiority, 21.6%. Only 7.7% rated advertising support and special offers such as T-shirts and on-package coupons as very important when deciding between brands -- 39.4% said advertising was not very important and 41.1% said special offers were not very important.
Practing Self Control
How are you controlling the amount of money you spend on food?
Avoid convenience stores 54.5%
Belong to a supermarket-sponsored shopping club 13.4%
Buy in large quantities or bulk 25.4%
Buy at a farmer's market 22.3%
Compare food prices carefully 64.8%
Do major grocery shopping at a food discount or warehouse store 20.4%
Limit takeout, fast-food and restaurant eating 52.1%
Limit number of trips to store 45.8%
Plan and follow a budget 17.4%
Price-shop at several stores 23.5%
Tally cost of groceries as I shop 11.7%
Use a shopping list 66.7%
Use cents-off coupons 65.7%
