The Value of Front-of-Package and Point-of-Purchase Summaries in the Cold Cereal Industry

Abstract

ABSTRACT This study explores the relationship between perceived quality as indicated by the front of package (FOP) and point of purchase (POP) summaries, objective quality, price, and value among 270 cold cereals. Findings reveal organic and whole-grain summaries are associated with higher objective quality; however, organic cereals offer lower value as these cereals are overpriced. Wholegrain-certified cereals are priced more affordably and offer better value. Cereals marked as “heart-healthy” at the point of purchase have better objective quality and lower price and better value. Cereals with POP and FOP gluten-free claims are associated with lower value; low objective quality and a higher price. Cereals with the gluten-free certification were found to offer the lowest value among all summary categroies. Kids’ cereals were of lower objective quality, the same price, and lower value, compared to other targets. Implications for consumer, cereal manufacturers and public policy are discussed.