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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

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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.

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Health endorsement is a third party endorsement

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of particular products.

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Uh, for example, you can say that some,

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a product is heart healthy

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or you know, more recently an an, an endorsement might be

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that this product is green or sustainable, whatever.

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Those are the types of

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endorsements that we're talking about.

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We had a client that approached us

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and said that, you know, it's really expensive,

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these third party endorsements,

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and we are just not sure whether

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it actually makes a difference.

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Um, can you please do some research on whether

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we should be investing in this?

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Does it actually have an impact on our brand?

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When we did this study, prior literature really focused on

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the impact of brand endorsements

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where they themselves have said something.

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So when we looked at in the FMCG market, a lot

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of the research was on if brands claimed

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that they were healthy or something particular,

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what was the impact of that on the brand?

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And then alternatively, if it was a third party endorsement,

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that third party endorsement literature focused very much

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on, people endorsing it.

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So celebrities or personalities endorsing the brand.

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So our gap was really, third party kind of health

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or author of endorsements.

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I'm sure. I don't know if the NHS has particular

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specific endorsements, but it would be, for example,

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in this case it was the heart healthy association

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that was, fighting cardiovascular health.

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So they said that this is a heart healthy, food to eat,

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but other alternatives could potentially be

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diabetes association to say that this is low in sugar.

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Um, in New Zealand at the moment,

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we have a five star rating on how healthy a food is

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and anything, you know, over two

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and a half is considered a healthy food.

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So that, that, those are good examples

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of third party health endorsements.

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We did, kind

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of a field experiment with more intercepts.

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So we took a lot of care to really

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minimize bias and to make the setting as normal

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as possible to see what the impact of this is.

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So what we did was we, firstly, the differentiated

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between those, it's essentially four groups, right,

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of 40 people per group.

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But those groups were split into two dimensions.

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Firstly, the group that was exposed

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to the health endorsement

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and the other one wasn't the control group,

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but then also we split it into product type.

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So convenience goods versus shopping goods.

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We also made sure that we did the, the,

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the intercepts at different times over a two week period

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to make sure that we got shoppers at different times.

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And after we con we collected all the data,

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we compared the groups in terms of shopping frequency

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and, age

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and health consciousness, just to make sure that those,

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those four groups are equivalent on all those

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Dimensions.

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So we find that overall,

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if we looked across both product categories, the only impact

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that health endorsements had was on brand trust.

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So brand trust is whether the product is actually going

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to do what it set out to do.

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Um, so it it, it's meeting expectations.

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It did not have an impact on brand loyalty

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and it did not have an impact on brand equity.

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And I think the literature,

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or I think these health endorsements often sell their

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product based on it adding to the original products brand.

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So they were like, we are gonna add to the brand equity

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and to the value of this brand.

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So it's like this add-on effect.

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And we found that that in fact wasn't the case in the

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overall sample, only an effect on brand trust.

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But as soon as we split it into two product categories,

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shopping goods and convenience goods on all three brand,

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dimensions for convenience goods,

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it had a significant effect,

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but on nothing for shopping goods.

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And actually what we see is most

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of these health endorsements are on shopping goods.

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And if you think about it, shopping goods are the types of,

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FMCG products.

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We, we really take our time as consumers

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to look at the quality of the product.

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We compare prices.

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So it's, it's a steep competition within those goods

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and that's where we typically find our health endorsements.

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But when those health endorsements were on convenience

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goods, it really made a big impact there.

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There's more replication studies

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to happen across different product types

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before we can make a broad statement like

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it's just not working.

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But I do think potentially thinking of the upside

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of the study is that the typical categories

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that we don't see health endorsements in

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and the convenience goods, there's a real market gap there

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for consumers to,

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or for brands to bring in those health endorsements

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and to make those products healthy

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and to use these endorsements.

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But at the same time, within the shopping good category,

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maybe the market is,

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it's become a hygiene factor for consumers.

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So it's just not a competitive advantage anymore.

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So I wouldn't even say that this means that

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for shopping goods, you can take these

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health endorsements away.

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It's just become in some product categories

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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 -

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