Market Response to and Consumer Attitudes Toward Unit Pricing of Eggs ,

Abstract

Unit pricing did not increase egg sales in a 36 week controlled experiment involving 13 test and 15 control stores in Topeka, Kansas during 1977. Test stores priced eggs both by the dozen and by the pound while control stores priced eggs only by the dozen during a 25-week test period. Price per dozen was converted to price per pound based on minimum weight per dozen for each egg size.Average weekly egg sales per store were shown as two ratios: 1) dozen eggs per $1,000 of store sales, and 2) dozen eggs per 100 customers. Trends and percentage changes in these sales ratios for test and control stores from an 11 week pretest period through a 25 week test period measured the effect of unit pricing on egg sales.Contrary to expectations, dozen eggs sold per $1,000 of store sales were 2.7% lower in test stores and 2.8% lower in control stores in the test period than in the pretest period. Dozen eggs sold per 100 customers declined 3.2% in test stores in the test period compared with the pretest period but increased .8% in control stores. These experimental results occurred when sizes of eggs offered for sale, average weekly retail egg prices, and frequency of “sales” on eggs were highly comparable for test and control stores.Consumer attitudes were obtained by in-store personal interviews with 1,040 egg purchasers. Major concerns were “the price of eggs” (mentioned by 76%), “shell cleanliness and soundness” (60%), and “sizes of eggs available” (52%). When asked which was the most important single factor, they indicated “price” (48%). However, only 10% compared the “unit price” (or price per pound) of eggs with unit prices of various red meats, fish, cheese, and cereals. Those who made such comparisons found eggs to be “relatively low priced”. Some (34%) compared prices of different egg sizes but only 14% said they purchased the least expensive egg size. Most consumers (93%) indicated that unit pricing had “little or no effect” on increasing their egg purchases. Some (32%) said “unit price” information on egg price labels was useful or helpful, a majority (57%) said it was not useful, while 11% were undecided. In response to price specials on eggs, 41% purchased “more than the usual number” (of dozen eggs); most (59%) purchased “the usual number”. When asked, “Why do you use eggs?” only 11% mentioned the “good value” or relatively low unit price of eggs.