Cut Costs Without Sacrificing Quality: Tap into Consumer Emotions

I came across an article today that used the term “Greedflation” in the headline, accusing the food industry of "greedily" raising prices even as overall inflation rates decline.

While the article did acknowledge that there could be a lag effect with increased material costs impacting retail prices, it didn't hold back on criticizing food manufacturers for their "greedy" behavior. It also failed to mention the periods over the past few decades when food inflation was lower than general inflation.

Regardless of the validity of this argument, the pressure on food and beverage brands to cut costs while maintaining quality and consumer satisfaction is mounting. Most of the obvious cost-saving measures have already been implemented long ago, making the search for new savings increasingly challenging.

Are you looking in the right place?

While advancements in technology and ingredients might offer some cost savings, these improvements are often slow to materialize, difficult to achieve, and available to competitors as well.

A different approach might yield more productive cost-cutting opportunities.

When you ask consumers why they like your product, they typically mention its flavor first, followed by its texture. However, what they really appreciate is how the product makes them feel. The sensory attributes of your product—appearance, aroma, taste, texture—serve as cues that trigger an emotional response in the consumer. It is this emotional response that determines their preference.

Psychological tracking of consumers' emotional responses and linking these to their sensory experiences can be very insightful.

By adopting this approach, you can pinpoint the specific features within the flavor, texture, aroma, appearance, etc., and understand how they interact to elicit positive or negative responses from consumers.

Many clients initially believe that flavor is the most crucial factor in consumer preference. In reality, it’s the interplay between subtle aspects of flavor and elements like appearance, aroma, and texture that drives liking.

Once you grasp this, you’ll realize there are certain aspects of your product that you can modify without affecting consumer preference. Minor changes in the delivery of flavor, texture, or other characteristics may be noticeable to a sensory panel but irrelevant to consumers' emotional responses and preferences.

These small adjustments can lead to significant cost savings. An expensive ingredient or process that was previously deemed essential can often be reduced or eliminated without diminishing consumer satisfaction.

When you think flavor is the key to consumer liking, cutting costs on ingredients or processes seems nearly impossible. However, by understanding precisely which elements of your flavor delivery drive consumer preference, additional cost-saving opportunities often emerge.

?

If you liked this article, you can read more here

?

Chris Lukehurst is a Consumer Psychologist and a Director at The Marketing Clinic:

Providing Clarity on the Psychological relationships between consumers and brands

?

?