Consumer information on Distributor and Manufacturer Brands of food

Consumer information affirms that distributor brands of food are less expensive than corresponding manufacturer brands¹ and that these brands are equal in quality 2, p. 8]. The price difference between these two types of brands thus represents a real gain to the consumer purchasing distributor brands rather than just a case of paying less for lower quality products. Furthermore, one source has estimated that ten per cent of the grocery bill can be saved through purchasing distributor brands 6]. The credibility of this information is open to question however, as few statements concerning the price and quality of these types of brands have been carefully documented in Canada. In the light of the limited empirical support and the substantial consumer benefit involved, the purpose of this study is to test the reported relation between the price and quality of distributor and manufacturer brands. Establishing a working definition for quality is a key problem encountered in price-quality analysis. Food quality is multidimensional and its various dimensions may be classified into two broad categories: subjective or sensory attributes such as taste, aroma, appearance; and objective attributes located below the threshold of perception such as nutrients and freedom from harmful micro-organisms. Because the sensory attributes are more amenable to measurement by non-food scientists and to variation in hidden attributes being controlled by law, this paper focuses on sensory quality. The quality and preference concepts overlap to some extent, as the subjective attributes of food are common to both quality and preference. To ensure that “sensory quality” is well distinguished from overall quality, “sensory quality” is referred to as “sensory preference”. Having gone some distance towards establishing an operational definition of quality, the principal objectives are: Summary The findings, though tentative and focused on the sensory component of quality, can scarcely be regarded as providing empirical support for the price-quality information referred to earlier. Distributor brands were notably less expensive for three-quarters of the products surveyed. As well, the manufacturer brand was rated significantly higher than at least one distributor brand for four of the ten products subject to sensory evaluation. The results therefore suggest that there is a very general tendency for distributor brands to be priced lower than manufacturer brands and to be of equivalent quality.