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Product Transparency Means Going Beyond the Label

Posted by Kira Karapetian on September 21, 2016

Welcome to Part 3 of our Transparency ROI blog series, where we’re breaking down our TROI  study piece-by-piece.

So far in the series, we’ve learned how transparency leads to increased brand loyalty and perceived brand worth and how millennial moms are leading the charge for product transparency.

Today, we’ll take a look at what transparency actually means to consumers.

Learning 3: Product Transparency Means Going Beyond the Label

It’s clear that consumers value transparency and are loyal to the brands that provide it, but the exact definition of transparency has not been widely understood. The survey finds that consumers define a transparent brand as one that provides all information about a food or personal care product to allow shoppers to determine for themselves if the product is a fit.

Is Your Brand Transparent?

There are a variety of factors that consumers use to determine whether a brand is transparent. For food brands they consider whether a brand provides a complete list of ingredients in its products, in-depth nutritional information about the ingredients and certifications such as USDA Organic or Low Sodium. But the list doesn’t stop there; consumers want to know how these products are produced, how they’re sourced and even how they’re handled.

Which of the following factors do you use to determine whether a food manufacturer is being transparent about its products?

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Do Your Customers Trust You?

Consumers also say they want more information than brands are required to include on the physical product label. More than half say additional information on how food is produced, handled or sourced would make them trust a brand more, and this information ranked more than twice as high as brand packaging claims such as “low fat” or “low sugar.”

What causes you to trust a manufacturer or product more?

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When it comes to food products specifically, consumers say they want access to detailed product information in order to determine for themselves what food is healthy for them. More than half (52%) say they use their own personal definition to determine which foods are healthy, 40% look to third-party guidelines (doctor or nutrition books) and only about a third (36%) use brand packaging claims such as “healthy” or “nutritious.” (tweet this!)

How do you determine whether a food product is “healthy”?

troi_graph_3_.png

For personal care products 50% of consumers use their own personal definition and ingredients analysis to determine which products are right for them and 37% use third-party guidelines, such as dermatologist-tested.

In short, transparency is more than just a list of required ingredients on a label. Consumers want to know everything, from sourcing information to how ingredients within the product were handled, in order to determine what products fit their ethics, beliefs and lifestyle.

Stay tuned for our next post in our Transparency ROI series to see how brands can satisfy consumer demand for transparency!

 

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Topics: Trends & Research

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