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Healthy brand image

The role of organic and fair trade brand image and the

influence on the health perception of the extension.

____________________________________________________________

Manon van der Wal

__________________________________________

Master thesis Business Administration, Marketing

Amsterdam Business School – University of Amsterdam

Date: 16-07-2015

Student number: 10360212

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Abstract

A 3 (calorie image product: low, neutral, high) × 2 (organic brand image: high vs. low) × 2 (fair trade brand image: high vs. low) mixed experimental design was used to study the predictors of health image of a brand and health perception of extensions. Consumers (N = 124) were presented one of the four scenarios to test the influence of the organic brand image and fair trade brand image on the health image of the brand. Also, the influence of this health image of the brand and calorie image of a product was tested on the health perception of the extension. Organic brand image and fair trade brand image were expected to positively influence the health image of the brand. Health image of the brand was expected to positively influence the health perception of the extension while also weakening the negative effect of calorie image of the product on the health perception of the extension. Moderation analyses involving simple slope analyses were performed by using the PROCESS tool (Hayes, 2012). Results showed a positive significant effect of organic brand image and a significant negative effect of fair trade brand image on the health image of the brand. The health image of the brand had a significant positive effect and the calorie image of the product had a significant negative effect on the health perception of the extension. Theoretical and managerial implications, and limitations and avenues for further research, will be discussed.

Keywords: health image brand, organic brand image, fair trade brand image, calorie image product, health perception extension, health halo, food marketing.

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Statement of Originality

This document is written by Student Manon van der Wal who declares to take full responsibility for the contents of this document.

I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it.

The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.

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Table of Contents

1. Introduction ... 1

1.1. The difficulty of making healthy decisions ... 1

1.2. Heuristics to cope with information overload... 1

1.3. Research question ... 2

1.4. (Un)healthy brands ... 3

1.5. Brand extensions ... 4

1.6. Influencing the health image of the brand ... 6

1.7. Theoretical contributions ... 6

1.8. Managerial contribution ... 7

1.9. Outline.... 8

2. Food marketing ... 9

2.1. The influence of the food industry on the health of the consumer... 9

2.2. Reformulating processed food and drinks to make them seem healthier ... 10

2.3. Using labels to make products to be perceived healthier ... 10

2.4. Health branding ... 11

3. (Un)healthy brand image ... 13

3.1. Health image of the brand... 13

3.2. Organic brand image ... 15

3.3. Fair trade brand image ... 17

4. Brand extensions ... 19

4.1. Extending the brand ... 19

4.2. Feedback effect ... 20

4.3. Heuristics ... 21

4.4. Calorie image of the product ... 22

5. Hypotheses ... 24

5.1. Model of the proposed effects ... 24

5.1.1. Health image of the brand as a dependent variable ... 24

5.1.2. Health image of the brand as an independent variable ... 27

6. Method ... 30

6.1. Participants ... 30

6.2. Qualitative and quantitative pre-test ... 30

6.2.1. Qualitative pre-test ... 31

6.2.2. Quantitative pre-test ... 32

6.3. Design and procedure experiment ... 34

6.4. Dependant variables ... 36

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7.1. Factor analysis ... 38

7.2. Manipulation check fair trade brand image ... 39

7.3. Manipulation check organic brand image ... 40

7.4. Manipulation check calorie image products ... 42

7.5. Testing the proposed model ... 44

7.5.1. Health image of the brand as dependent variable ... 45

7.5.2. Health image of the brand as independent variable ... 47

8. Discussion ... 51

8.1. Interpretation of the results ... 51

8.2. Theoretical implications ... 55

8.3. Managerial implications ... 57

9. Conclusion ... 62

9.1. Answer to the research question ... 63

9.2. Limitations and future research... 63

Appendix A: References ... 67

Appendix B: Questionnaire quantitative pre-test ... 72

Appendix C: Questionnaire experiment ... 78

Appendix D: Core tables SPSS analyses ... 82

Appendix E: Additional analysis ... 90

List of Figures Figure 1. Zonnatura Pure Chocolate biscuit and ingredient list. ... 4

Figure 2. Coca Cola Life advertisement and ingredients and nutrition information. ... 5

Figure 3. Brand image model based on Keller’s model (1993). ... 13

Figure 4. Proposed effects of fair trade brand image, organic brand image, health image of the brand and calorie image of the product on the health perception of the extension. ... 24

Figure 5. Mean scores of organic and fair trade brand image of the brands in the quantitative pre-test. ... 33

Figure 6. Relationship between fair trade brand image and measured fair trade brand image for high organic brand image conditions and low organic brand image conditions. ... 40

Figure 7. Relationship between organic brand image and measured organic brand image for high fair trade brand image conditions and low fair trade brand image conditions. ... 42

Figure 8. Estimated marginal means for calorie image of the products and the differences between high and low, organic and fair trade brand image, conditions. ... 44

Figure 9. Proposed model of effects. ... 45

Figure 10. The effects of organic brand image and fair trade brand image on health image of the brand. ... 47

Figure 11. The effects of calorie image of the product and health image of the brand on the health perception of the extension. ... 50

Figure 12. Coca cola and SPA soft drinks. ... 59

Figure 13. The brand logo of Zonnatura with the subtext “100 % organic”. ... 60

Figure 14. Zonnatura yoga mat. ... 66

Figure 15. The effects of measured organic brand image and measured fair trade brand image on health image of the brand. ... 91

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1. Introduction

1.1. The difficulty of making healthy decisions

Consumers are faced with many decisions about food every day. When do they eat? How much do they eat and what do they eat? Especially the last question is difficult to answer. A consumer can buy food that has the best taste, is the cheapest, the most convenient, the healthiest, or a combination of good taste, price, convenience and health. Achieving a goal in one domain (be healthy) may require a trade-off of a goal in another domain (financial value) (Haws & Winterich, 2013). And if a consumer has made a decision about what is most important, eating healthy for example, he or she will be confronted with new difficult decisions. What does eating healthy mean? What should a consumer focus on and what does the consumer buy? A simple visit to the grocery store becomes really difficult. There are many products by many different brands. All these options could make it hard to choose (Scheibehenne, Greifeneder, & Todd, 2010). All these brands use different messages and labels to claim that their products are healthy: Optimel offers yoghurt drinks with 0% fat, Coca Cola Light is sugar free, products of Zonnatura are organic, Becel offers margarine with Omega 3 and Tony’s Chocolonely only sells fair trade chocolate. To what or to whom should a consumer listen and what should the consumer focus on? How can consumers make a healthy decision?

1.2. Heuristics to cope with information overload

Besides all the information that is offered by brands, consumers can listen to media, the government, health gurus, the internet, and more. Consumers are overloaded with information about healthy and unhealthy food and it becomes harder and harder to decide who to listen to. Because of this overload, consumers try to make the right decision by using simple heuristics, like buying products from healthy brands (Cavanagh & Forestell, 2013). Reading difficult

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books about healthy eating and reading ingredient lists and nutrition labels cost a lot of time and effort for consumers. Also, most consumers are unable to accurately assess nutritional content of certain foods (Peloza, Ye, & Montford, 2015). These consumers use heuristics, also known as inference making, to determine nutritional content. Studies examined the influence of inference making in areas such as labelling techniques, and content claims (Peloza et al., 2015). Organic labels and health claims make products seem lower in calories (Lee et al., 2013; Chandon & Wansink, 2007). Peloza et al. (2015) describe inference making as the process by which consumers use information about one attribute to infer information about another attribute that is either unknown or not readily apparent. For example, organic foods makes consumers automatically perceive them as tastier, lower in calories and fat, and higher in fibre (Lee at al., 2013). Researchers call this the health halo effect. If organic foods are surrounded by this health halo effect, certain brands might be as well. Research on the health halo effect and the use of heuristics by consumers has mostly examined the impact of attributes at the product level such as labels and calorie content (Peloza et al., 2015; Chandon & Wansink, 2007; Lee et al., 2013). The current study will not focus on the product level, but takes it a step higher to the brand level. If a brand is healthy, consumers might believe the products of this brand are healthy too. This health halo effect could make or break a new product from a healthy or unhealthy brand. If this effect surrounds not only products, but also brands, this would mean that a brand could influence the health perception of new products. The success of a brand extension will be influenced by the health image of the already existing brand.

1.3. Research question

Research on the health halo effect and the use of heuristics by consumers has mostly examined the impact of attributes at the product level (Peloza et al., 2015; Chandon &

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Wansink, 2007; Lee et al., 2013). The current study will focus on the brand level and study how far brands can go when it comes to influencing the health perception of brand extension. It will study what the role is of the health image of a brand on the health perception of extensions and study what influences this health image. Previous research measured perceived healthiness of products by asking participants to estimate the number of calories of the product. But are participants able to make an accurate estimation and does calorie image of a product really influence the health perception consumers have about an extension? The research question this current study will answer is: how could brand extensions be perceived healthier by the consumer by using the brand image and product image?

1.4. (Un)healthy brands

The health image of a brand is created in the mind of the consumer, because brand image is described by Keller (1993) as perception about a brand as reflected by the brand associations held in the memory of the consumer. Consumers have a natural tendency to categorize food into the category healthy or the category unhealthy or bad versus good, this is called categorical thinking (Oakes & Slotterback, 2001; Rozin, Ashmore, Markwith, 1996). This indicates that consumers will also categorize brands as healthy or unhealthy. Some brands seem healthy to one group of consumers and unhealthy to the other group. For example, consumers who read nutrition labels and often buy organic food are less influenced by the effect that organic labels have on the health perception of products (Lee et al., 2013). These consumers have created different associations in their mind about organic brands. If the health image of a brand is created in the mind of the consumer, food and beverage manufacturers can probably influence this image. They could use marketing to influence the brand associations to create a healthy brand in the mind of the consumers and use this to create successful brand extension.

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1.5. Brand extensions

If a brand has a healthy image, it might be easier for this brand to sell (healthy or unhealthy) processed food and beverages as healthy products. A brand is a network of knowledge structures consisting of attributes, benefits and attitudes held in the consumers’ mind (Keller, 1993). Whenever a new product is launched by the brand, there is a transfer of this knowledge and attitude from the brand to the new product (Dwivedi, Merrilees, & Sweeney, 2010).

The brand ‘Zonnatura’ claims to sell as little as possible processed products with pure organic ingredients and as little as possible additives. Zonnatura does not use the word healthy in the communication toward the consumer, but this brand probably has a healthy image in the mind of the consumer because of their products and claims of being organic and pure. This healthy image might be transferred to all the products, even to the (less healthy) cookies Zonnatura sells. Zonnatura Biscuits are sold as delicious biscuits that are a source of fibres and fit within a responsible lifestyle. Consumers could think these cookies are healthy, just because the product is from the brand Zonnatura. They focus on the brand instead of on the ingredients, but these cookies still contain sugar and ingredients that are not that natural or organic, like ammonium bicarbonate, an inorganic compound (see Figure 1).

Figure 1. Zonnatura Pure Chocolate biscuit and ingredient list.

Findings show that nutrition information that can be found on the packaging of processed foods helps consumers make healthful food choices. However, consumers often do not have enough time or energy to read these and make hasty decisions (Golan, Mancino, & Unnevehr,

Ingredients

Wheat flour* [gluten], dark chocolat* 25% (cacoa mass*, cane sugar*, cacoa butter*), cane sugar*, whole wheat flour*, sunflower oil* 10%, natural vanilla flavour, skimmed milk powder*, salt, baking powder: ammonium bicarbonate; sodium, thickener: acacia*, antioxidant: rosemary extract*. *from certified organic cultivation.

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2009). If this happens, the consumer will use heuristics (Cavanagh & Forestell, 2013). The current study proposes that these consumers will rate the healthiness of a product with the health image of the brand.

Zonnatura makes a not so healthy product seem healthier, but does this mean that unhealthy brands make their products seem less healthy? The new product and brand Coca Cola Life by Coca Cola Company is market as healthier, and as more natural than the other products of Coca Cola (see Figure 2). The packaging is green, the advertisements have a green and natural background (grass, nature) (Hemphill, 1996) and it claims: sweetness from natural sources.

Figure 2. Coca Cola Life advertisement and ingredients and nutrition information.

However, critics already warn Coca Cola Life is not that healthy (Hertsenberg, 2014). If you look at the ingredients it is hard to deny this criticism (for example, one can of 330ml contains 22 gram of granulated sugar, about four and a halve sugarcanes) (see Figure 2). The interesting thing is: what would have happened if Zonnatura came up with this product instead of Coca Cola? Would it be easier for Zonnatura to make consumers believe a soda is natural and healthy?

Ingredients

Sparkling water; sugar; pigment; E150d; natural flavours (plant extracts), including caffeine; acidifier; phosphoric; sweetener; steviol glycosides.

Nutritive value per bottle (330ml)

Energy: 373kJ / 89kcal Carbohydrates/Glucides: 22g

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1.6. Influencing the health image of the brand

The current study proposes that one of the reasons why the brand Zonnatura is seen as healthy is that it has a high organic brand image. Many studies demonstrated that consumers generally perceive organic foods to be healthier compared to conventional foods (Crinnion, 2010; Lee et al., 2013; Magnusson et al., 2003; Rousseau, 2015). Consumers are not only becoming more conscious about their health and what food does for their health, but consumers are also increasingly interested in environmental and social criteria when buying food products (Rousseau, 2015). This could mean that consumers are more interested in organic and fair trade products. If a high organic brand image can make extensions seem healthier, a high fair trade brand image might have the same effect. Schuldt, Muller and Schwarz (2012) demonstrated that consumers rated chocolate as lower in calories when the chocolate had a fair trade label. There are not many other studies that have explored the influence of fair trade on health perception of products and brands, despite of the growing interest in fair trade products.

1.7. Theoretical contributions

Consumers are becoming more conscious about their health, because of the increased rates of overweight and obesity (Kemp & Bui, 2011). Because of this increased consciousness it is important to know what consumers focus on when they try to make healthy decisions. Previous studies explored this on product level, but not much is known about the influence of health image of the brand and this is what the current study will explore. Also, many studies used calorie estimations of participants as a measure of how healthy products are perceived by these participants. However, these studies did not test if consumers really relate calorie image with the health perception of the product. The current study will demonstrate this influence of calorie image of a product on the health perception of the extension. The result is important

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for further research into health perceptions of products and brands and researchers will know if they could use calorie image as a measure or not. The most important theoretical contribution this study will offer is the knowledge of what consumers see as healthy. The question “Is this product/brand healthy?”, is a very difficult question to answer, but the current study will specifically focus on how consumers try to answer this question in the Netherlands.

1.8. Managerial contribution

The current study is very useful for marketers. The results will tell if marketers should focus on creating a healthy brand image and what influences this image. To construct a solid strategy for a brand, understanding what motivates consumers to purchase a particular product is important (Kemp & Bui, 2011). If the healthiness of the brand image plays a role, marketers could focus more on creating a healthy brand image to sell products easier to health conscious consumers. It could help marketers with creating successful extensions. This study could give marketers insight into what will influence the successfulness of extensions. Is it possible for unhealthy brands to create extensions with a healthy perception (like Coca Cola tries to do with their Coca Cola Life)? Is it possible for healthy brands to create a healthy image for not so healthy products (like Zonnatura tries to do with their cookies)? The results of the study can show how far marketers can go in stretching the healthy brand image to extensions.

Consumers are becoming more conscious about their health, because of the increased rates of overweight and obesity. Healthy food and beverages are becoming more and more popular (Kemp & Bui, 2011). Research is needed to investigate food-related beliefs (like the belief that a healthy brand automatically means healthy food in the consumer’s mind) in order to improve recommendations for healthful eating in a society where obesity is a serious threat to public health (Cavanagh & Forestell, 2013).

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Brands should start thinking about offering healthy products to their customers, because of the increased number of health conscious consumers. It is important to know if these brands could use their current brand to launch healthy products or have to create a new brand with a healthy image.

1.9. Outline

The next chapter will give background information about marketing in the food industry. The chapters that will follow will explain what influences the health image of a brand and the health perception of extensions and how the current study will build onto this already known information. This theoretical background information will be used to propose hypotheses and the method chapter will explain how these hypotheses will be tested in an experiment. The results of the experiment will be explained in the result section what will be followed by the discussion chapter to go into the theoretical and managerial implications. In the end, limitations of the current study will be discussed and suggestions will be given for future research.

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2. Food marketing

2.1. The influence of the food industry on the health of the consumer

The power of the food and beverage industry, an industry that is worth trillions, is extremely high. It consists of thousands of companies and stakeholders and millions of products. This industry influences what kinds of food are produced and how these are made available and against what price (Jackson et al., 2014). Consumers are free in choosing what they eat and drink, but food marketing influences tastes and preferences and therefore choices (Zimmerman, 2011). The food marketing influences tastes and preferences in many different ways. Researchers argued the influence of food marketing on the increase of consumers with overweight and obesity (Jackson et al., 2014). Food intake and overconsumption may be influenced by the perception consumers have of the healthiness of food (Ebneter, Latner, & Nigg, 2013). There is a disproportionately high amount of marketing for unhealthy foods and beverages compared to the marketing for healthier foods and eating healthy (Zimmerman, 2011). Marketing increases the availability of product brands in the mind, increases preferences for those brands, and increases consumption of those brands (Zimmerman, 2011). Branding is used to communicate a value that links a product, brand or the corporate organization to the value of health, so consumers are able to associate the product or organization with being healthy (Chrysochou, 2010). Marketers try to persuade consumers to buy their products instead of the competitions’ what makes daily healthy food choices more difficult to make for consumers, because even unhealthy products can be presented as healthy by marketers. Even if consumers are no longer influenced by certain marketing tools, than manufacturers can change the product they offer and make them (seem) healthier.

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2.2. Reformulating processed food and drinks to make them seem healthier

Consumers are becoming more conscious about their health, because of the increased rates of overweight and obesity (Kemp & Bui, 2011). Marketers should answer the request from consumers for healthier food and beverages. They try to answer this demand in different ways. One way marketers act upon this is by reformulating processed foods to offer products that appeal to health-conscious consumers. These reformulations are often a response of food manufacturers to new labelling regulations and nutrition education programs (Golan et al., 2009). An example is the removal of trans fats by many manufacturers after these fats were identified as a public health problem. Trans fats are uncommon in nature and are produced industrially from vegetable fats to use in processed foods. From January 1, 2006, it was mandatory to disclose trans fat content on food labels in the United States. Manufacturers try to make use of these regulations in a positive way. The manufacturers are stimulated to compete against each other and will try to be the first and the best in responding to these regulations. Manufacturers try to make products healthier by adding functional components, removing dysfunctional components or add good nutrients and remove bat nutrients (like trans fat). They try everything to make their products to be perceived healthier by the consumers (Golan et al., 2009).

2.3. Using labels to make products to be perceived healthier

Manufacturers constantly try to reformulate their products to make them (seem) healthier. After reformulating a product, this should be communicated to the consumer. The new version of the product should be market on the health benefits by using the nutrient content or health claims, as far as allowed by law (Chrysochou, 2010). The manufacturers put these claims or labels, like ‘no trans fat’ on their packaging. Consumers not only acquire expectations about healthiness through nutrition information, but also through these health

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claims and labels (Chandon & Wansink, 2010). Health claims are often misleading; claims such as ‘whole grain’ or ‘0% fat’ are used on packages of processed foods (Cavanagh & Forestell, 2013). Consumers will categorize these products as healthy, because of this claim. Consumers have a natural tendency to categorize food into the category healthy or the category unhealthy or bad versus good, this is called categorical thinking (Oakes & Slotterback, 2001; Rozin et al., 1996). However, these health claims or labels are not always a guarantee that the product really is healthy. Not every product without fat or with whole grain is healthy. For example, a one kilo bag of sugar contains 0% fat, but probably every consumer will agree this bag is not healthy.

The number of products with this label on the packaging increased from 64 in 2003 to 733 in 2007, according to the information from the Datamonitor Product-Scan Inc. database (Golan et al., 2009). According to Mintel’s New Product Launch Database, food and drink product launches during the last six years are dominated by products with health-related claims (like ‘No Additives’, ‘Organic’, ‘All Natural’) (Chrysochou, 2010). Marketers do not do this without a reason, because many studies show the positive effects of these labels. These effects will be discussed in the next chapters.

2.4. Health branding

Brands can reformulate products, put labels or health claims on their products or use health branding to improve the health image of their brand and products. Health, like any other product characteristic, can be transferred from the brand to the product. This means that branding could play an important role in the communication of a product’s health benefits, also known as health branding (Chrysochou, 2010). Health branding is more than just putting a nutrition claim on the packaging. “A health brand is developed when a corporate organization intentionally attempts to communicate implicitly and/or explicitly a value

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universe that links a product or the corporate organization itself to the value health and consumers are able to associate the product/company with this value”, thus Chrysochou (2010). Health branding is the practice of adopting marketing strategies to communicate this value of health. Health branding can be used by companies that want to create a healthy brand image (Chrysochou, 2010).

Branding a product based on the value of health is difficult. First, it is hard to create a healthy brand image. One little scandal can already mess up the whole healthy brand image. The fast food chain McDonald’s was probably never seen as healthy, but the documentary ‘Super Size Me’, about a guy who only eats McDonald’s for 30 days and shows the negative results, did not improve this health image. Second, successfully transferring the desired healthy image to the product is a challenge. Third, consumers do not always trust health messages communicated by marketers. For example, the term ‘superfood’ is not restricted, so every manufacturer can put this term on its products. This resulted in overusing the term and consumers are now less convinced by its message (Borsari, 2008). Besides these challenges, marketers have to take other barriers into account. Legislation restrictions force marketers to adhere to rules. Marketers are also restricted by what the possibilities are in reformulating products into healthy products. Keeping good taste, while also being healthy could be a difficult job too. Even if the manufacturers are able to do this, another challenge is to make it believable in the mind of the consumer. Consumers often perceive good taste and healthfulness to be at odds (Keller, Sternthal, & Tybout, 2002).

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3. (Un)healthy brand image

3.1. Health image of the brand

The current study explores the effect of a healthy brand image on the health perception of the brand extension. When is a brand healthy and when does a brand has an unhealthy brand image? It is important to understand what a brand image is and how this is created in the mind of the consumer to understand what the current study means with the health image of the brand. Brand image is described by Keller (1993) as perceptions about a brand as reflected by the brand associations held in the consumer’s memory (see Figure 3). For a detailed explanation of this model please read Keller (1993).

Figure 3. Brand image model based on Keller’s model (1993).

Figure 3 shows how complex a brand image is and how many elements marketers should keep in mind if they want to create a healthy brand image. The main message that the current study can take from the brand image model of Keller (1993) is that the brand image is held in the consumers mind. This means that one brand can be seen as healthy by one consumer and as unhealthy by another consumer. It depends on the brand associations, and their favourability, strength and uniqueness, which are present in the mind of the consumer if the brand is seen as healthy or unhealthy. The good thing for marketers is that they can try to

Brand image

Types of brand associations Attributes

Benefits

Attitudes Favourability of brand

associations

Strenght of brand associations

Uniqueness of brand associations

Non-Product-Related

Product-Related

Functional Experiential Symbolic

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influence these associations to create that healthy brand image. Researchers have tried to explain different elements that could influence this (un)healthy brand image. The most interesting studies are those that proof the influence of certain attributes and associations that do not improve the healthfulness of a product, but that do increase the perceived healthfulness of a product by the consumer. These are the studies marketers can use to improve the health image of the product or brand. A few examples will be discussed.

Packaging has no influence on the performance of the product (Keller, 1993), however, marketers definitely use the packaging as a tool to influence the health perception and beliefs of a product in the head of the consumer. The way a product is packaged can influence the perception about the freshness (pre-packaged or not) or the packaging can contain organic or fair trade labels.

Schuldt (2013) shows with his study how only a green label can increase the perceived healthiness of a product. In the first study, 93 students, had to rate the healthfulness of either a green labelled candy bar or a red labelled candy bar. The labels conveyed the same calorie content, but the green labelled candy bar was still rated as healthier than the red labelled bar. The second study, with 60 online participants, confirmed the findings. Green labels can promote healthfulness perception relative to a colour-free label. So, these two studies suggest that green labels carry a health halo that encourages consumers to see a relatively poor nutrition food as healthier than without a green label (Schuldt, 2013).

Benefits are the personal value consumers attach to the product, so what the product can do for the consumer (Keller, 1993). Benefits can be distinguished into: functional benefits, experiential benefits, and symbolic benefits. Symbolic benefits are extrinsic advantages of the consumption of the product. These benefits usually correspond to non-product-related attributes and relate to underlying needs for social approval or personal expression (Keller, 1993). For example, healthy brands are becoming more popular on social media. Consumers

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post pictures of their Innocent Juice drinks (Innocent makes natural, healthy drinks) on social media to show to others how healthy they are (Pivotcon, 2013).

3.2. Organic brand image

Also used by marketers are labels on the packaging of the product that inform the consumer about the health benefits or nutritional content. Organic labels are often used to increase the health perception of the product. There is a lot of research on this effect and the current study uses this theories to support the idea that health image of the brand can be improved by the organic brand image. How could the organic brand image improve the health image of the brand and is an organic brand really a healthy brand?

Consumers are exposed to many organic diets that should decrease human disease. Are organic foods truly healthier compared to conventional foods? Or does organic production only have a less negative influence on the environment compared to conventional production (Forman & Silverstein, 2012)?

In the past ten years, the market for organic foods has grown dramatically (Forman & Silverstein, 2012). Organic food is different from non-organic food, because of the use of organic production methods. Organic production methods exclude the use of synthetic chemicals, hormones, antibiotics, genetic engineering and irradiation (Huber et al., 2012; Forman & Silverstein, 2012). The Netherlands Nutrition Centre Foundation (Dutch: het Voedingscentrum) (2015) came up with a simpler definition of organic food: In the production of organic food, environment, animal and human will be taken in to account where possible.

The health benefits of consuming organic foods compared to non-organic food are unclear. Some studies claim there is no current evidence that supports any meaningful nutritional benefits from eating organic foods compared to non-organic foods (Forman & Silverstein,

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2012). There are other researchers that state that studying the effects of organic foods is very difficult due to various and biological reasons (Huber et al., 2012; Forman & Silverstein, 2012). Some organic diets convincingly demonstrated less exposure to pesticides that are associated with human disease (Forman & Silverstein). There is even evidence of higher levels of vitamin C, iron, and other nutrient components in organic foods (Crinnion, 2010). To sum up, there is no clear evidence that organic foods are really healthier than conventional foods. Even if eating organic does or does not improve weight loss or health, marketers only have to focus on what consumers think. As long as consumers think that organic foods are healthy, marketers will focus their strategy on communicating their products are organic. As mentioned before, the (un)healthy brand image is created in the mind of the consumer (Keller, 1993).

Consumers generally perceive organic foods to be healthier (Crinnion, 2010). Magnusson et al. (2003) show that a majority of their respondents (1154 Swedish consumers) perceived it to be quite or very likely and important that environmental, health and animal wellbeing consequences will be influenced by their choice of organic foods. The participants really believed in the influence of organic foods on their health. Rousseau (2015) investigated to what extend consumers base food purchases on the presence and information that is offered by labels. The results demonstrated that the participants (Belgium students) rated organic chocolate as healthier than conventional chocolate. Lee et al. (2013) showed in their study with 115 participants from a shopping mall that organic labels on foods influenced the participants’ perception about these foods. Products that were labelled as organic were perceived as lower in calories and fat, higher in dietary fibre and better in taste.

Different studies show the effects of organic foods and organic labels. These studies studied the effect on product level, for example the effect of labels on products. The current study will take this to a higher level. What is the effect of the organic brand image? Does a

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high organic brand image mean a healthy brand to the consumer? The current study will test the influence of the organic brand image on the health image of the brand. Besides the influence of the organic brand image, the current study expects an influence of the fair trade brand image on the health image of the brand. Studies that already did research on the effects of fair trade will be discussed and used to explain the idea of the proposed effect.

3.3. Fair trade brand image

Previous studies explored the influences on health perception at the product level, the current study will do this at the brand level, but there are also studies that looked at the corporate level and what influences the health perception of products from these corporations. Peloza et al. (2015) explored the influence of corporate-level activities on the process by which consumers use this information to infer information about another attribute that is unknown (inference making). The researchers proposed that a reputation resulting from CSR activities of a company can influence the perceptions of nutritional content of food products sold by this company. With four studies Peloza et al. (2015) demonstrated that CSR leads to a health halo and underestimation of calorie content and overconsumption. So, if consumers do not have enough information about the healthiness of a product, they use inference making to fill in this knowledge gab by using other salient information such as CSR. CSR has nothing to do with the healthiness of products, but consumers still use this information to make healthy eating decisions. Will products also be rated as healthier if companies care about sustainability and fair trade? Is a brand seen as healthy if the fair trade image of the brand is high?

Fairtrade International, the organization that coordinates Fairtrade labelling at an international level, uses the following definition of fair trade: “Fairtrade is an alternative approach to conventional trade and is based on a partnership between producers and

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consumers. When farmers can sell on Fairtrade terms, it provides them with a better deal and improved terms of trade. This allows them the opportunity to improve their lives and plan for their future. Fairtrade offers consumers a powerful way to reduce poverty through their everyday shopping” (Fairtrade Labelling Organizations International, 2011). This means that the term fair trade only informs the consumer about the trading process of the product and its ingredients and tells the consumer nothing about the healthiness or nutrition of the product. However, the health halo effect might also occur when it comes to fair trade.

Schuldt et al. (2012) proposed that fair trade can lead perceivers to see foods as containing fewer calories than they otherwise would. Results of their study showed that the participants (N = 56) rated chocolate as lower in calories when this chocolate was fair trade compared to non-fair trade. There is not much other research that explored the relationship between fair trade and health perception of products or brands, what makes it even more important to study the effects because of the rise of interest in fair trade products (Rousseau, 2015). The current study will study the influence of fair trade on a brand level. Does a high fair trade brand image results into a healthier brand image in the mind of the consumer?

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4. Brand extensions

4.1. Extending the brand

Companies can use established brand names to facilitate entering new markets. One way to do this is by brand extension. With brand extension a current brand name is used to enter a completely different product class (Aaker & Keller, 1990). Vita Coco, a brand of pure coconut water, extended from coconut water to Vita Coco Coconut Oil (a product used for cooking and baking).

A brand is a network of knowledge structures consisting of attributes, benefits and attitudes held in the consumers’ mind (Keller, 1993). Whenever a brand extension is launched, there is a transfer of knowledge and attitudes from the existing brand to the brand extension (Dwivedi, et al., 2010). The current study will research if the (un)healthy image of a brand will be transferred from the existing brand to the brand extension. Whenever a brand extension is launched a perception of fit based on the number of shared associations between the existing brand and the extension is developed. The evaluation of an extension is a function of the extent to which consumers know and like the existing brand and the level of perceived fit between the existing brand and the extension (Dwivedi et al., 2010). This indicates that when a healthy brand launches an extension, the healthy brand image will be transferred to the extension. This effect is positive if the product is healthy or supposed to be perceived as healthy. If a parent brand with an unhealthy brand image wants to launch a healthy extension, this might be hindered by the unhealthy brand image of the parent brand. The attributes, benefits and attitudes held in the consumers’ mind of the existing brand will be transferred to the extension.

Park, Milberg and Lawson (1991) show with their study that evaluations of brand extensions depend on the perceived fit of the new product in relation to the existing brand, but this fit is a function of two factors: the similarity of product feature and the consistency of the

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brand concept. The current study suggest that ‘healthy’ could be such a concept that creates concept consistency between the existing brand and the brand extension. A healthy brand that extends into a category with healthy products will be perceived as a better fit compared to an unhealthy brand that extends into this healthy category. The perceived fit of low fat natural yoghurt in relation to the brand M&M’s might be low, but the perceived fit of low fat natural yoghurt in relation to Zonnatura could be high. The feature similarity is low, but the brand concept consistency is probably high. The current study also suggests that healthy brands have the potential for greater extendibility across different product classes compared to unhealthy brands. Healthy brands could easier extend into unhealthy product classes, and even sell these products as healthier because of the healthy brand image, compared to the difficulty unhealthy brands would have when extending to healthy product classes.

4.2. Feedback effect

Extending into a product category with an unhealthy image (like cookies) with a healthy brand could be risky for healthy brands, because the associations of the new product can be transferred back to the parent brand. This is known as the feedback effect. Feedback effects are the reciprocal impact of the brand extension on the parent brand. This impact can have a positive or a negative effect (Dwivedi et al., 2010). Healthy brands should keep this in mind if they want to extent. Brands with an unhealthy image could make use of this effect if they want to increase the health image of the brand. By extending into healthy product categories, the health image of the brand could improve because of the reciprocal impact of the extensions on the parent brand (Dwivedi et al., 2010). The brand Magnum is probably seen as unhealthy, but if Magnum starts extending into healthy product categories and these new products are seen as healthy, then the health image of the parent brand Magnum could improve. This is not easy, because it will probably be a challenge for Magnum to extend into

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a healthy product category. The unhealthy brand image of Magnum will be transferred to the brand extension what will harm the health perception of the extension. The current study expects that the health perception of the extension will be influenced by the health image of the brand, because consumers use heuristics like these to make healthy eating decisions. Magnum is an unhealthy brand, so the extension of Magnum is unhealthy too. How these kind of heuristics work will be discussed.

4.3. Heuristics

Consumers who are making decisions about food products do this very fast. The elaboration likelihood model (Petty & Cacioppo, 1983; 1993) suggests that consumers may base choices on brand awareness considerations when they have a low involvement. This low involvement could result from a lack of consumer motivation (i.e. consumer does not care about making healthy choices) or a lack of consumer ability (i.e. consumer does not have time or does not know how to read an ingredient list). As mentioned before, consumers are overloaded with information about healthy eating. When consumers are overloaded with information that exceeds their processing limits, they tend to simplify their decision making based on heuristics (Chrysochou, 2010; Cavangh & Forestell, 2013). One heuristic that consumers use to make food choices is based on brands. So instead of basing their decision on, for example the ingredients, consumers base their choice on the brand. In this case, health conscious consumers will prefer products from brands with a healthy image instead of brands with an unhealthy image. A heuristic like this will help the consumer in making decisions fast (Chrysochou, 2010).

Cavangh and Forestell (2013) show in their study that all their participants (66 females) rated cookies with a healthy brand label as more satisfying and as having a better taste and flavour. Also, the restrained eaters (33 females) consumed more of the healthy brand than the

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unhealthy brand. This study shows that the image of the brand influences the rating of the product.

Marketers should make use of the heuristics consumers use in making healthy eating decisions and focus their strategy on creating a healthy brand image.

4.4. Calorie image of the product

Besides creating a healthy brand image, marketers can influence the health perception of the extension with the calorie image of the product. The current study expects that the calorie image of the product influences the health perception of the extension. What does number of calories say about the healthiness of a product? Is a product low in calories heathier than a product high in calories?

Many consumers believe that intervening on calories the best way is to address obesity. To lose weight, individuals should eat less calories and move more. However, trying to eat less and move more is practically and biologically not a good idea (Lucan & Dinicolantonio, 2014). Practically, it is impossible to precisely measure calorie intake and calorie expenditure. Biologically, eating less and move more will result in becoming tired and hungry. The current study will not go into details how this biologically works. Even if focusing on calories does not improve weight loss or health, marketers only have to focus on what consumers think. As long as consumers think that low calorie products are healthy, marketers will focus their strategy on communicating their products are low in calories. As mentioned before, the (un)healthy brand image is created in the mind of the consumer (Keller, 1993).

Research shows different results for the effect of offering calorie information. However, most results show the important role of calorie labelling on food and beverage consumption (Ebneter et al., 2013). To do something about the increased number of people with obese or overweight, a law was implemented in New York City in 2008. Chain restaurants are forced

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to post calories on menus in their restaurants (Bollinger, Leslie, & Sorensen, 2011). Bollinger et al. (2011) studied the effect of this calories posting on the caloric purchases of consumers in all 222 Starbucks locations in New York City, and 94 locations in Boston and Philadelphia. The results showed a fall of the average calories per transaction, probably caused by a combination of learning and salience.

Many studies use estimation of calories to measure the perceived health perception of products or brands by the consumer. These studies use calorie information as a dependent variable or a predictor of food consumption. The current study will study the effect of calorie information on the health perception of extensions. Researchers might use calorie information as a measure of health, but do consumers use calorie information to rate healthfulness of extensions too? Do consumers really think that products that are low in calories are healthier and products high in calories are unhealthy? If they do, this information is not only useful for researchers who use calorie estimations as a dependent variable, but it is also useful for marketers. It will influence the decisions marketers need to make before they extend their brand. Not only the brand influences the health perception of the extension, but also the calorie image of the product category the brand extends into plays a role in the success of the extension.

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5. Hypotheses

5.1. Model of the proposed effects

The current research will study how the health image of a brand is influenced by the organic brand image and the fair trade brand image. The second part studies how health image of the brand and calorie image of the product influence the health perception of the extension. In the first part, health image of the brand is the dependent variable. In the second part, the health image of the brand is one of the two independent variables. In this chapter hypotheses will be proposed and discussed (see Figure 4).

Figure 4. Proposed effects of fair trade brand image, organic brand image, health image of the brand and calorie image of the product on the health perception of the extension.

5.1.1. Health image of the brand as a dependent variable

In the first part, the health image of the brand is the dependent variable of the model and is influenced by the organic brand image and the fair trade brand image.

The health image of a brand is a broad term and it is hard to explain why some brands are seen as healthy and others are not. Branding could play an important role in the communication of a brand’s health benefits, also known as health branding (Chrysochou, 2010). Health branding is more than just putting a nutrition claim or an organic label on the packaging. “A health brand is developed when a corporate organization intentionally attempts

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to communicate implicitly and/or explicitly a value universe that links a product or the corporate organization itself to the value health and consumers are able to associate the product/company with this value”, thus Chrysochou (2010). Health branding is the practice of adopting marketing strategies to communicate this value of health. Health branding can be used by companies that want to create a healthy brand image (Crysochou, 2010). The current study proposes that a way to create a healthy brand image is by communicating that the brand has a high organic brand image and a high fair trade brand image.

Many studies demonstrated that consumers generally perceive organic foods to be healthier compared to conventional foods (Crinnion, 2010; Lee et al., 2013; Magnusson et al., 2003; Rousseau, 2015). In these studies, organic products were perceived as lower in calories and fat, higher in dietary fibre and better in taste. In these studies the influence of an organic image of the product (e.g. in the form of an organic label) on the health image of the product was measured. The current study will take this a level higher, to the brand level, and will explore the effect of an organic brand image on the health image of the brand. It is expected that a brand with a high organic brand image is seen as healthier compared to a brand with a low organic brand image. This results in the first hypothesis. Hypothesis 1: A brand has a healthier brand image when it has a high organic brand image than when it has a low organic brand image.

Not many studies explored the effect of fair trade image on health perception of products or brands. However, consumers are increasingly becoming interested in environmental and social criteria when buying food products (Rousseau, 2015). The number of ethical food claims on the packaging of products, such as ‘fair trade’ and ‘locally produced’, is growing (Barham, 2002). This raises questions about whether these labels cause a health halo effect. As mentioned before, the influence of organic labels is studied by many studies, but it is less clear whether fair trade claims will affect nutrient inferences (Schuldt et al., 2012). Fair trade

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labels only inform the consumer about the trading process and tell the consumer nothing about the nutrition content or healthiness of the product. If it turns out that a fair trade label, just like organic labels, increases the health perception of a product than this would be surprising from a rational perspective and would support the idea of a health halo surrounding the term fair trade (Schuldt et al., 2012).

Peloza et al. (2015) showed that a corporate reputation for CSR leads to a health halo and subsequent underestimation of calorie content and overconsumption. Schuldt et al. (2012) showed that the products of a company that was described as treating its workers ethically were perceived as lower in calories too. Both studies demonstrated the effects of CSR at the corporate level. Another study by Schuldt et al. (2012) studied the effect of a fair trade label on a product and the results showed lower calorie judgments. The influence of CSR and fair trade labels is already studied on corporate level and product level, but the effect of fair trade image on a brand level is not studied yet. The current study will explore the effect of the fair trade brand image on the health image of the brand. It is expected that a brand with a high fair trade brand image is seen as healthier compared to a brand with a low fair trade brand image. This results in the second hypothesis. Hypothesis 2: A brand has a healthier brand image when it has a high fair trade brand image than when it has a low fair trade brand image.

Many studies demonstrated that consumers generally perceive organic foods to be healthier compared to conventional foods (Crinnion, 2010; Lee et al., 2013; Magnusson et al., 2003; Rousseau, 2015). Schuldt et al. (2012) showed that a fair trade label on a product resulted in a lower calorie estimation of the product. Rousseau (2015) showed that some individuals associate fair trade products with organic elements (such as environment-friendly). Rousseau (2015) also showed that individuals associate positive health effects stronger with organic compared to fair trade. The current study expects that the fair trade brand image increases the effect of organic brand image on the health image of the brand, because of the association of

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fair trade with organic elements. It is expected that a high fair trade brand image increases the positive influence of the organic brand image on the health image of the brand. This results in the third hypothesis. Hypothesis 3: The difference in health image of the brand between a brand with a high organic brand image and a brand with a low organic brand image is larger for brands with a high fair trade brand image than for brands with a low fair trade brand image.

5.1.2. Health image of the brand as an independent variable

In the second part of the model, the health image of the brand is one of the two independent variables and influences the health perception of the extension and weakens the effect of the calorie image of the product on the health perception of the extension.

Consumers are overloaded with information about healthy eating. Because of this overload, consumers try to make the right decision by using simple heuristics, like buying products from healthy brands (Cavanagh & Forestell, 2013). Previous research showed that products from a healthy brand were rated as more satisfying and as having a better taste. The product from a healthy brand was consumed more by restrained eaters than the product from an unhealthy brand (Cavangh & Forestell, 2012). So consumers make food choices based on the healthiness of the brand. The products of a healthy brand will be perceived as healthier compared to the products of an unhealthy brand. A heuristic like this will help the consumer in making decisions fast (Chrysochou, 2010).

A brand is a network of knowledge structures consisting of attributes, benefits and attitudes held in the consumers’ mind (Keller, 1993). Whenever a new product is launched by the brand, there is a transfer of this knowledge and attitude from the brand to the new product (Dwivedi et al., 2010). So if a healthy brand extents the brand, the healthy attributes, benefits and attitudes held in the consumers’ mind of this parent brand will be transferred to the

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extension. The same effect will occur when an unhealthy brand extends the brand. The unhealthy knowledge structures will be transferred to the extension with an unhealthy perception of the extension as a result. The current study will explore the effect of the health image of the brand on the health perception of the extension. It is expected that the extension of a brand with a healthy image will be perceived as healthier compared to an extension of a brand with an unhealthy image. This results in the fourth hypothesis. Hypothesis 4: A healthy brand image results in a healthier perception of the extension and an unhealthy brand image results in a less healthy perception of the extension.

Many studies looked at the effect of marketing tools on the number of calories estimated by the participants. Organic labels, green labels, health claims, and other tools make consumers think the product has a lower number of calories (Lee et al., 2013; Schuldt, 2013; Chandon & Wansink, 2007). However, these studies did not look at the effect a low number of calories has on the health perception of an extension. Do consumers believe a product with fewer calories is a healthier product?

Cavanagh, Kruja, and Forestell (2014) show in their study that participants equally liked the unhealthy and healthy brands when low calorie information was offered, but they preferred the healthy brand when high calorie information was offered. This study indicates that calorie information is not always a result, but can also influence likeability of a brand. The researchers also showed that restrained eaters consumed more of a cookie with an unhealthy brand when it was labelled as low in calories. When a cookie was labelled with a healthy brand it did not matter if the product was labelled as high or low in calories. This study shows an interactive effect of number of calories and health image of the brand.

The current study will explore the effect of calorie image of a product on the health perception of the extension. It is expected that a product high in calories (high calorie image) results in a less healthy perception of the extension compared to a product low in calories

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(low calorie image). This results in the fifth hypothesis. Hypothesis 5: The lower the calorie image of the product, the healthier is the perception of the extension and the higher the calorie image of the product, the unhealthier is the perception of the extension.

The current study will also study the interaction effect of the calorie image of a product and the health image of the brand. It is expected that a healthy brand image will weaken the direct effect of calorie image of the product on the health perception of the extension, because Cavanagh et al. (2014) showed that when a cookie was labelled with a healthy brand it not mattered if the product was labelled as high or low in calories. This results in the final hypothesis. Hypothesis 6: The healthier the image of a brand is, the weaker the effect of the calorie image of the product on the health perception of the extension is.

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6. Method

6.1. Participants

145 Dutch individuals participated in the experiment. The participant was asked to rate the brand they were exposed to on familiarity. The data of every participant that scored lower than neutral on this variable was not used for the analysis. This reduced the number of respondents (N = 124), but it was necessary to make sure that the data was useful. A participant that is not familiar with a brand does not have a clear image of the brand what makes it hard to rate the brand on health image and organic and fair trade brand image. 40.3% of the participants were male and the other 59.7% was female. The mean age of the participants was 32.6 with a minimum age of nineteen and a maximum age of 74.

6.2. Qualitative and quantitative pre-test

Two pre-tests were conducted to determine which brands and products to use as stimuli in the experiment. In the experiment, the fair trade brand image and organic brand image were manipulated so four brands were needed to present to the participants. The first brand had to have a high organic and high fair trade brand image. The second brand needed to have a high organic brand image and a low fair trade brand image. Brand number three was supposed to be a brand with a high fair trade and low organic brand image and the fourth brand hat to have a low organic and low fair trade brand image (see Table 1). Another manipulation in the experiment was the manipulation of the calorie image of the product. Three different products were needed for the experiment to test the influence of the calorie image. One product had to be low in calories, one product was the neutral product, and the third product had to be high in calories (see Table 1).

Another requirement is that these brands and products fit within the same product category. The results of the experiment could be influenced by a misfit of the brands and products. For

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example, combining the dairy brand Campina with a product from the cookie category could change the results. However, the current study is not interested in this kind of fit. In order to choose products and brands that fit the requirements, two pre-tests were conducted.

Table 1. Requirements for stimuli in the experiment. Fair trade brand

image

Organic brand image

Calorie image product

Brand 1 High High Product 1 Low

Brand 2 Low High Product 2 Neutral

Brand 3 High Low Product 3 High

Brand 4 Low Low

6.2.1. Qualitative pre-test

The first pre-test, a qualitative pre-test in the form of interviews, tested the suitability of three different product categories: dairy products category, cookies category, and the fruit drinks category. Different products and brands of these categories were presented to the participant (N = 8). The participant was asked to sort the products per category from healthy to unhealthy. The participant was also asked to come up with extra products and brands which met the requirements. The brands and products were discussed and the participant had to explain why he or she though a brand/product was healthy or unhealthy. The results of this pre-test were used to find out which product categories would be suitable for the experiment and with which brands the participants were familiar. The results showed that it was difficult for the participants to rate the products and brands on healthiness in the fruit drink category. The participants rated the products and brand very differently compared to each other and could not always substantiate their choices. This resulted in the decision not to use the products and brands from the fruit drink category for the experiment.

It was interesting that some participants argued that a certain product or brand was healthy because this product/brand was organic. Some participants mentioned brands with a high fair trade brand image when they were asked to name a brand that is known for the organic brand

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image. This shows that it could be hard for consumers to see the difference between organic and fair trade.

6.2.2. Quantitative pre-test

The second pre-test, a quantitative pre-test in the form of a survey, was used to test the two remaining categories and associated products and brands. The participant (N = 22) was asked to rate fourteen different brands and twelve different products on familiarity, calorie image, health image, organic image, and fair trade image. The questionnaire of this pre-test is presented in Appendix B.

Only the brands and products that scored neutral or high on familiarity were used during the analysis of the pre-test. Figure 5 shows the mean scores of these brands on organic brand image and fair trade brand image. These results were used to decide which products and brands best met the requirements (see Table 1). Fair Trade Original best met the requirements for the first brand. This brand scored high on fair trade brand image and organic brand image and was a better choice than the brand Max Havelaar, because Max Havelaar is better known as a fair trade label than as a brand. The brand Tony’s Chocolonely also scored high on fair trade brand image, but lower on organic brand image compared to the brand Fair Trade Original. In reality, Tony’s Chocolonely is not an organic brand and was the best choice for the high fair trade low organic brand image condition compared to the other brands. Zonnatura turned out to be the best brand for the high organic low fair trade brand condition. In the qualitative pre-test, this brand was often mentioned as an organic brand and the results of the quantitative pre-test show that this brand scored high on organic brand image and lower on fair trade brand image than the brands Fair Trade Original and Tony’s Chocolonely.

The results of this pre-test already showed that organic brands also score high on fair trade image and fair trade brands often score high on organic brand image. This makes choosing the

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