Project explores how much is too much when it comes to consumer information
BY COURTNEY DENARD SPARK PROGRAM
Striking a delicate balance between delivering enough product information to satisfy consumers without overwhelming them is an ongoing challenge facing manufacturers and marketers. Now, a U of G researcher is determining how the amount of information on a product can influence consumers' buying decisions.
Prof. Towhidul Islam, Marketing and Consumer Studies, says a lack of information creates a feeling of uncertainty. But too much information overloads consumers, affecting which products they choose to buy. So, he's asking: What do you put in and what do you leave out?
“There have been projects looking at what type of information should be given to the consumer,” says Islam, “but until now, there has been little research conducted on the impact of the information that isn't out there.”
His three-year project is in its second stage, following a successful pilot study of U of G students that involved fruit juice and pizza. This study showed that products with less information create uncertainty in consumers who are concerned about the value of the products they buy. But with too much product information, they felt flustered.
The pilot study also found that different amounts of information about a product generate different brand equity (the monetary value of a brand name) and price elasticities (a consumer's willingness to pay for products). But once the uncertainty created by missing information is controlled, brand equity and price elasticity differences largely disappear, he says.
Now, Islam will examine what effect the amount of product information presented has on the public. Using web-based surveys posted on marketing research company sites, he will collect data from participants about the products they buy and how they use the presented product label information. He hopes the survey results will benefit policy-makers, manufacturers and consumers by guiding how much information should be displayed on common products found at retail stores.
If the project is successful with the general public, Islam would like to see the research expanded and done on an international scale.
“We want to do a cross-cultural comparison. For example, we can take the project to places like China and India to see what effects culture has on product choice and consumption.”
