Focus On: Americus Reed

Why Consumers Will Continue to Buy Organic

Earlier this week, a team of Stanford researchers released a study in response to numerous patient questions about the relative health benefits of organic food, discovering little evidence that it had more nutritional value than conventional products.

The results would seem to be good news for producers of non-organic food, although the study did find less pesticide contamination in organic produce.

More likely, according to Wharton marketing professor Americus Reed, is that any efforts to incorporate the study results into a marketing strategy will show how hard it is to change consumers’ minds. “If you are the type of person who believes that organic food is better and someone shows you this study, you have to have a reaction,” he notes. “One reaction would be to say, ‘The study is wrong.’ Another reaction would be to say, ‘No, this study is correct and I was wrong.’ You can imagine which option is easier psychologically.”

One ongoing challenge facing organic food producers in convincing consumers to switch is that their products tend to be more expensive and are sometimes harder to find at stores. To minimize backlash from the Stanford study, Reed says organic food marketers can incorporate into their messaging the idea that there are a number of different ways to interpret any scientific study.

He points out that the researchers didn’t find that organic food is bad for you — merely that it isn’t astronomically better than other types of food. “You’re relying on the absence of an observation to prove something,” he says. “That’s not the same thing as observing something to prove something.”

In addition, there are many different reasons why consumers may buy organic food — fewer pesticides, more humane treatment of animals, perceived health benefits or simply because it seems like the “right” thing to do, Reed notes. His wife buys only organic food for their daughter and, after Reed showed her an article about the study, she said it reinforced her decision to do so because the products were found to have fewer pesticides. “When it comes to things parents are putting in their child’s body, they’re not going to be persuaded by this at all,” he says.

If producers of non-organic food intend to use the study as part of a campaign to convince consumers that they are wasting their money, the companies have a long road ahead, Reed notes. “You can show a smoker reams and reams of data that smoking is correlated with lung cancer and they’ll figure out a way to [rationalize] continuing to smoke,” he says. Also, “it’s a very fundamental driver of consumer behavior [to think about] how does my behavior reflect on my self-image. Marketers play into these self-images in how they try to alter behavior, but it’s very, very difficult to move the needle.”

Case in point: Target’s image makeover. “People don’t even remember when [the retailer was] sort of at the bottom of the barrel — I remember being in school and people were teased for shopping at Target,” Reed says. “Now shopping there is a badge of honor. But it took a lot of money and time and investment over the long term to accomplish that.”

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Chick-fil-A and the Boy Scouts: Branding at Risk?

Uproar is growing over controversial stands on gay rights taken recently by leaders of the Boy Scouts of America and the Chick-fil-A restaurant chain. But Wharton experts predict that the outcry ultimately won’t cause a significant amount of damage to either organization’s brand image.

Earlier this month, the Boy Scouts reaffirmed a policy banning openly gay members and gay men or lesbians serving as leaders. Chick-fil-A president Dan T. Cathy spoke in support of the traditional definition of marriage in an interview with a Christian news organization.

In both cases, the organizations were either lauded or castigated depending on where people stood on the issue. Some Eagle Scouts returned their medals in protest in response to the Boy Scouts’ move. Cathy, the son of the chain’s founder, has been praised for his stand by politicians Mike Huckabee and Rick Santorum.

Meanwhile, a recipe for a homemade version of the chain’s signature sandwich has been making the rounds on the Internet amid calls for a boycott, and Muppets creator The Jim Henson Co. decided to end a partnership to distribute the entertainment company’s toys at the chain. (Chick-fil-A says it voluntarily recalled the toys.) The mayors of Boston and Chicago have also expressed disapproval of Cathy’s comments.

Gay rights supporters have planned a national “Same-Sex Kiss Day” at Chick-fil-A locations on August 3, while Huckabee has called for a “Chick-fil-A Appreciation Day” on August 1. “The Chick-fil-A story is picking up momentum, but these things usually fizzle,” Wharton marketing professor Americus Reed says. While social media and the speed at which news travels these days serve to amplify consumer concerns about such issues, Reed says there are three major factors working against critics of Chick-fil-A and the Boy Scouts.

First of all, consumer attention spans tend to be short. “The 24-hour news cycle will put another story top-of-mind, and these kinds of things are quickly forgotten unless the transgression is so reprehensible — think Penn State — that it truly engenders a large consensual ‘moral outrage,’” Reed notes.

In addition, consumers tend to rationalize decisions in order to continue believing what they want to believe or doing what they want to do, he says. And finally, such events are often more a reason for people to reaffirm their values (i.e., the Muppets or Huckabee) than to actually change their minds.

That said, Reed notes that it was “not smart” of Cathy to make such comments. “There is nothing to be gained from making a statement that could be construed as, ‘We don’t want gay people buying our chicken,’” he says. “Cathy should have made it clear that he is expressing his own views. Note that Chick-fil-A and its brand DNA are run with ‘values’ in mind — [for example,] the fact that they choose to forego sales on Sundays, presumably because it is a day of worship.”

He adds that a statement posted on the chain’s Facebook page, which states that Chick-fil-A’s culture is to “treat everyone with honor, dignity and respect — regardless of their belief, race, creed, sexual orientation or gender,” came off as “inconsistent.”

Reed also points out that if either the Boy Scouts or Cathy decided to reverse their stance in the future, it would be “very tricky” to sell that to consumers. “Once you put a statement out there, it’s out there,” he says. “In my opinion, backing off the statement is a mistake. The better approach would be to try to explain what was meant by it.”

Wharton marketing professor Jonah Berger notes that, given all strong opinions about gay marriage and gay rights, “it is unlikely that a policy reversal will have an immediate impact. Customers will want to see consistent behavior over time before they start to change their minds.” He adds that while Chick-Fil-A is a privately owned company, “the Boy Scouts are seen as more of a national organization, so it may be harder for them to stick to a narrow-minded, politically-driven position.”

The smartest approach for businesses, Reed says, “is to simply not weigh in on cultural matters at all unless your brand or company exists in a domain or product category in which that value is essential to the definition of the product category itself. There are too many other pressing business concerns to deal with than risk the reputation of the company on things like this.”

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