Popular in Professional

Leading Figures

Induction of Social Contagion

Yale University Nicholas A. Christakis

Business

The Allegory of the Favela: The Multifaceted Effects of Socioeconomic Mobility

University of Pennsylvania Leandro S. Pongeluppe

Architecture

Connecting Cities and Nature

University of Virginia Timothy Beatley

Human Rights Law

Human Rights and Corruption: Problems and Potential of Individualising a Systemic Problem

Max Planck Institute Anne Peters

Finance

Chinese Exchange Rate Policy: Lessons for Global Investors

University of California San Diego Michael Melvin

Law

A statistical approach to law school citation rankings

University of Virginia Joshua Fischman

Education

Conveniently healthy

View more insights in Professional - Business - Management

View more figures from University of Canterbury

View the page of Elsamari Botha

Read the Study

Next in Business

Do Investors Value Workforce Gender Diversity?

David P. Daniels | National University of Singapore

Design of Patient Visit Itineraries in Tandem Systems

Nan Liu | Boston College

Elsamari Botha discusses that while millions of dollars is spent yearly on health endorsements, the correct product category fit matters.

Image courtesy of interviewee. March 21, 2024

Log-in or Sign-up to Faculti
Currently viewing this subject insight as a guest. You have insight(s) remaining for this month. Login to view 8000+ figures on the platform.

Generating Workspace...

Export as PDF

This video video discusses the concept of health endorsements, which are third-party endorsements of products claiming health benefits. These endorsements can claim that a product is healthy for the heart or sustainable. A client questioned the effectiveness and cost of such endorsements, prompting a study to understand their impact on brand trust, loyalty, and equity.

Prior research primarily focused on brands' self-claims and celebrity endorsements. However, this study aimed to fill the gap regarding health endorsements by organizations like health associations. The research involved a field experiment with groups of people exposed to health endorsements and a control group, and it considered product type differences (convenience vs. shopping goods).

The findings revealed that health endorsements improved brand trust but did not affect brand loyalty or equity overall. However, for convenience goods, health endorsements had a significant impact, unlike shopping goods, where it appeared that these endorsements had become a standard expectation rather than offering a competitive advantage. The study suggests opportunities for brands to leverage health endorsements in convenience goods while acknowledging changing consumer perceptions in the shopping goods category. Overall, the landscape of health endorsements in marketing is complex, requiring further research across different product types.

Language:

Export as PDF

X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:90000

1
00:00:00.065 --> 00:00:03.365
Health endorsement is a third party endorsement

2
00:00:03.785 --> 00:00:05.365
of particular products.

3
00:00:05.585 --> 00:00:07.765
Uh, for example, you can say that some,

4
00:00:07.885 --> 00:00:09.165
a product is heart healthy

5
00:00:10.265 --> 00:00:13.445
or you know, more recently an an, an endorsement might be

6
00:00:13.445 --> 00:00:16.685
that this product is green or sustainable, whatever.

7
00:00:16.685 --> 00:00:17.605
Those are the types of

8
00:00:17.605 --> 00:00:18.805
endorsements that we're talking about.

9
00:00:19.265 --> 00:00:21.045
We had a client that approached us

10
00:00:21.065 --> 00:00:22.965
and said that, you know, it's really expensive,

11
00:00:23.015 --> 00:00:24.685
these third party endorsements,

12
00:00:24.745 --> 00:00:26.725
and we are just not sure whether

13
00:00:26.905 --> 00:00:28.085
it actually makes a difference.

14
00:00:28.425 --> 00:00:30.725
Um, can you please do some research on whether

15
00:00:30.785 --> 00:00:32.005
we should be investing in this?

16
00:00:32.005 --> 00:00:33.565
Does it actually have an impact on our brand?

17
00:00:33.715 --> 00:00:37.165
When we did this study, prior literature really focused on

18
00:00:37.265 --> 00:00:39.725
the impact of brand endorsements

19
00:00:39.725 --> 00:00:41.885
where they themselves have said something.

20
00:00:42.065 --> 00:00:45.685
So when we looked at in the FMCG market, a lot

21
00:00:45.685 --> 00:00:48.365
of the research was on if brands claimed

22
00:00:48.365 --> 00:00:50.605
that they were healthy or something particular,

23
00:00:50.635 --> 00:00:52.205
what was the impact of that on the brand?

24
00:00:52.985 --> 00:00:56.565
And then alternatively, if it was a third party endorsement,

25
00:00:56.795 --> 00:01:00.005
that third party endorsement literature focused very much

26
00:01:00.145 --> 00:01:01.965
on, people endorsing it.

27
00:01:01.965 --> 00:01:05.165
So celebrities or personalities endorsing the brand.

28
00:01:05.165 --> 00:01:08.565
So our gap was really, third party kind of health

29
00:01:08.665 --> 00:01:10.605
or author of endorsements.

30
00:01:10.905 --> 00:01:13.565
I'm sure. I don't know if the NHS has particular

31
00:01:14.605 --> 00:01:16.445
specific endorsements, but it would be, for example,

32
00:01:16.505 --> 00:01:20.765
in this case it was the heart healthy association

33
00:01:21.035 --> 00:01:23.645
that was, fighting cardiovascular health.

34
00:01:23.705 --> 00:01:27.005
So they said that this is a heart healthy, food to eat,

35
00:01:27.305 --> 00:01:30.085
but other alternatives could potentially be

36
00:01:30.645 --> 00:01:33.565
diabetes association to say that this is low in sugar.

37
00:01:34.025 --> 00:01:35.445
Um, in New Zealand at the moment,

38
00:01:35.785 --> 00:01:40.085
we have a five star rating on how healthy a food is

39
00:01:40.185 --> 00:01:42.205
and anything, you know, over two

40
00:01:42.225 --> 00:01:44.965
and a half is considered a healthy food.

41
00:01:44.965 --> 00:01:46.525
So that, that, those are good examples

42
00:01:46.525 --> 00:01:47.845
of third party health endorsements.

43
00:01:48.065 --> 00:01:52.045
We did, kind

44
00:01:52.045 --> 00:01:54.725
of a field experiment with more intercepts.

45
00:01:54.725 --> 00:01:58.805
So we took a lot of care to really

46
00:01:59.685 --> 00:02:04.565
minimize bias and to make the setting as normal

47
00:02:04.825 --> 00:02:07.205
as possible to see what the impact of this is.

48
00:02:07.545 --> 00:02:12.165
So what we did was we, firstly, the differentiated

49
00:02:12.195 --> 00:02:16.045
between those, it's essentially four groups, right,

50
00:02:16.225 --> 00:02:17.645
of 40 people per group.

51
00:02:17.645 --> 00:02:21.205
But those groups were split into two dimensions.

52
00:02:21.475 --> 00:02:23.325
Firstly, the group that was exposed

53
00:02:23.385 --> 00:02:24.685
to the health endorsement

54
00:02:24.685 --> 00:02:26.525
and the other one wasn't the control group,

55
00:02:26.545 --> 00:02:28.885
but then also we split it into product type.

56
00:02:29.185 --> 00:02:32.725
So convenience goods versus shopping goods.

57
00:02:32.945 --> 00:02:36.005
We also made sure that we did the, the,

58
00:02:36.345 --> 00:02:40.205
the intercepts at different times over a two week period

59
00:02:40.345 --> 00:02:42.965
to make sure that we got shoppers at different times.

60
00:02:43.585 --> 00:02:46.685
And after we con we collected all the data,

61
00:02:46.985 --> 00:02:49.805
we compared the groups in terms of shopping frequency

62
00:02:50.425 --> 00:02:51.965
and, age

63
00:02:52.225 --> 00:02:55.325
and health consciousness, just to make sure that those,

64
00:02:55.415 --> 00:02:58.765
those four groups are equivalent on all those

65
00:02:58.845 --> 00:02:59.845
Dimensions.

66
00:03:00.185 --> 00:03:02.045
So we find that overall,

67
00:03:02.185 --> 00:03:06.685
if we looked across both product categories, the only impact

68
00:03:07.075 --> 00:03:11.405
that health endorsements had was on brand trust.

69
00:03:11.905 --> 00:03:15.925
So brand trust is whether the product is actually going

70
00:03:15.925 --> 00:03:18.645
to do what it set out to do.

71
00:03:19.185 --> 00:03:21.805
Um, so it it, it's meeting expectations.

72
00:03:21.905 --> 00:03:24.405
It did not have an impact on brand loyalty

73
00:03:24.665 --> 00:03:26.765
and it did not have an impact on brand equity.

74
00:03:26.905 --> 00:03:28.965
And I think the literature,

75
00:03:29.025 --> 00:03:32.085
or I think these health endorsements often sell their

76
00:03:32.235 --> 00:03:37.125
product based on it adding to the original products brand.

77
00:03:37.125 --> 00:03:38.965
So they were like, we are gonna add to the brand equity

78
00:03:38.985 --> 00:03:40.285
and to the value of this brand.

79
00:03:40.425 --> 00:03:42.325
So it's like this add-on effect.

80
00:03:42.325 --> 00:03:44.605
And we found that that in fact wasn't the case in the

81
00:03:44.605 --> 00:03:47.285
overall sample, only an effect on brand trust.

82
00:03:47.705 --> 00:03:50.325
But as soon as we split it into two product categories,

83
00:03:51.045 --> 00:03:55.965
shopping goods and convenience goods on all three brand,

84
00:03:56.295 --> 00:03:58.285
dimensions for convenience goods,

85
00:03:58.345 --> 00:03:59.805
it had a significant effect,

86
00:03:59.865 --> 00:04:01.805
but on nothing for shopping goods.

87
00:04:01.865 --> 00:04:03.885
And actually what we see is most

88
00:04:03.885 --> 00:04:06.525
of these health endorsements are on shopping goods.

89
00:04:06.525 --> 00:04:09.285
And if you think about it, shopping goods are the types of,

90
00:04:09.285 --> 00:04:10.525
FMCG products.

91
00:04:10.525 --> 00:04:12.525
We, we really take our time as consumers

92
00:04:12.525 --> 00:04:14.325
to look at the quality of the product.

93
00:04:14.545 --> 00:04:15.645
We compare prices.

94
00:04:16.385 --> 00:04:19.405
So it's, it's a steep competition within those goods

95
00:04:19.705 --> 00:04:22.085
and that's where we typically find our health endorsements.

96
00:04:22.105 --> 00:04:24.525
But when those health endorsements were on convenience

97
00:04:24.535 --> 00:04:26.685
goods, it really made a big impact there.

98
00:04:26.685 --> 00:04:28.525
There's more replication studies

99
00:04:28.705 --> 00:04:30.445
to happen across different product types

100
00:04:30.445 --> 00:04:33.165
before we can make a broad statement like

101
00:04:33.235 --> 00:04:34.245
it's just not working.

102
00:04:34.385 --> 00:04:37.125
But I do think potentially thinking of the upside

103
00:04:37.305 --> 00:04:40.965
of the study is that the typical categories

104
00:04:41.315 --> 00:04:43.925
that we don't see health endorsements in

105
00:04:43.925 --> 00:04:47.245
and the convenience goods, there's a real market gap there

106
00:04:47.425 --> 00:04:49.285
for consumers to,

107
00:04:49.545 --> 00:04:52.645
or for brands to bring in those health endorsements

108
00:04:52.645 --> 00:04:53.805
and to make those products healthy

109
00:04:53.825 --> 00:04:55.085
and to use these endorsements.

110
00:04:55.425 --> 00:04:58.525
But at the same time, within the shopping good category,

111
00:04:58.775 --> 00:05:00.045
maybe the market is,

112
00:05:00.155 --> 00:05:02.565
it's become a hygiene factor for consumers.

113
00:05:02.865 --> 00:05:05.765
So it's just not a competitive advantage anymore.

114
00:05:05.825 --> 00:05:08.045
So I wouldn't even say that this means that

115
00:05:08.385 --> 00:05:09.765
for shopping goods, you can take these

116
00:05:09.765 --> 00:05:10.805
health endorsements away.

117
00:05:11.235 --> 00:05:13.845
It's just become in some product categories

118
00:05:13.845 --> 00:05:15.445
and expectations of consumers.

Impact of Health Endorsements on Brands

00:00:00 - Health endorsement is a third party endorsement of particular products. for example, you can say that some, a product is heart healthy or you know, more recently an an, an endorsement might be that this product is green or sustainable, whatever. Those are the types of endorsements that we're talking about. We had a client that approached us and said that, you know, it's really expensive, these third party endorsements, and we are just not sure whether it actually makes a difference. can you please do some research on whether
00:00:32 - Does it actually have an impact on our brand? When we did this study, prior literature really focused on the impact of brand endorsements where they themselves have said something. So when we looked at in the FMCG market, a lot of the research was on if brands claimed that they were healthy or something particular, what was the impact of that on the brand? And then alternatively, if it was a third party endorsement, that third party endorsement literature focused very much on, people endorsing it.
00:01:05 - So our gap was really, third party kind of health or author of endorsements. I'm sure. I don't know if the NHS has particular specific endorsements, but it would be, for example, in this case it was the heart healthy association that was, fighting cardiovascular health. So they said that this is a heart healthy, food to eat, but other alternatives could potentially be diabetes association to say that this is low in sugar.
00:01:35 - we have a five star rating on how healthy a food is and anything, you know, over two and a half is considered a healthy food. So that, that, those are good examples of third party health endorsements. We did, kind of a field experiment with more intercepts. So we took a lot of care to really minimize bias and to make the setting as normal
00:02:07 - So what we did was we, firstly, the differentiated between those, it's essentially four groups, right, of 40 people per group. But those groups were split into two dimensions. Firstly, the group that was exposed to the health endorsement and the other one wasn't the control group, but then also we split it into product type. So convenience goods versus shopping goods. We also made sure that we did the, the,
00:02:40 - to make sure that we got shoppers at different times. And after we con we collected all the data, we compared the groups in terms of shopping frequency and, age and health consciousness, just to make sure that those, those four groups are equivalent on all those Dimensions. So we find that overall, if we looked across both product categories, the only impact

Impact of Health Endorsements on Brand Trust

00:03:11 - So brand trust is whether the product is actually going to do what it set out to do. so it it, it's meeting expectations. It did not have an impact on brand loyalty and it did not have an impact on brand equity. And I think the literature, or I think these health endorsements often sell their product based on it adding to the original products brand.
00:03:38 - and to the value of this brand. So it's like this add-on effect. And we found that that in fact wasn't the case in the overall sample, only an effect on brand trust. But as soon as we split it into two product categories, shopping goods and convenience goods on all three brand, dimensions for convenience goods, it had a significant effect, but on nothing for shopping goods. And actually what we see is most of these health endorsements are on shopping goods. And if you think about it, shopping goods are the types of,
00:04:10 - We, we really take our time as consumers to look at the quality of the product. We compare prices. So it's, it's a steep competition within those goods and that's where we typically find our health endorsements. But when those health endorsements were on convenience goods, it really made a big impact there. There's more replication studies to happen across different product types before we can make a broad statement like it's just not working. But I do think potentially thinking of the upside of the study is that the typical categories
00:04:43 - and the convenience goods, there's a real market gap there for consumers to, or for brands to bring in those health endorsements and to make those products healthy and to use these endorsements. But at the same time, within the shopping good category, maybe the market is, it's become a hygiene factor for consumers. So it's just not a competitive advantage anymore. So I wouldn't even say that this means that for shopping goods, you can take these health endorsements away. It's just become in some product categories
00:05:13 -

Faculti AI can make mistakes

Research

Policy

Analysis