Generic vs Oreo The Oreo Challenge America s Favorite

Generic vs. Oreo The Oreo Challenge America’s Favorite Cookie!™? ? ? February 19, 2004 Math 5 Marlon Henry, Christin Lathrop, Jonathan Smolian

Goals n To determine whether superiority in OREO brand name corresponds to superiority in taste. n Compare the taste of OREO cookies to a generic equivalent—Price Chopper Big Stuffed cookies. n Compare subjects’ taste preferences to their “social” preferences. n Is the perceived OREO superiority warranted?

Pre-Test Beliefs n. A greater proportion of people would NOT prefer OREOs. – Did not perceive ANY taste difference. OR – Preferred Price Chopper or had “No Preference” OREO VS. No Difference Generic No Preference

A Generic Success! n 55%: A Non-OREO preference was given. n 45%: OREO preference was given.

Confounding Factors n Initial decision: Taste vs. Experience n Time Constraints Smaller sample size n Cookie presentation order: – Marginal Cookie Utility? n Testing Procedure Variability – Vague Language – Texture/Visual influence BUT…

Not Confounding Enough n Still a strong test. n Our beliefs are right! n Conclusion: We can accept the data.

THE CHALLENGE… VS.

Testing in Novack Procedure: n Administer cookie samples using a double blind method – Cups 1 & 2; water in between, then… Ask Questions….

Our Questions 1 st: Difference in the taste? 2 nd: Preference in taste (if any)? 3 rd: Determine honest “social” preference.

Data Sheet

Conceptualizing our Statistics n Create a statistic for difference in “taste vs. social” preference. Xbefore = Xafter = 0 if OREO 1 if “No Difference, ” Generic, “No Preference” 0 if OREO 1 if Generic or “No Preference” D = Xbefore- Xafter

Conceptualizing our Statistics #2 D= ∑D N D is the average of the differences in taste vs. social preference

Null Hypothesis n On average, people will have consistent taste preferences: D=0 n The probability of D=0 is p=0. 5

Alternate Hypothesis n People are more likely NOT to prefer the taste of OREOs while “socially” preferring OREOs. n D>0 n This was our initial belief.

Statistically Significant n Our results are statistically significant at a level of 0. 05. – This leaves 5% chance of Type 1 Error. – Furthermore, D=0. 225 +/- 0. 15 and falls within our critical region for a significance level of 0. 05 in a right-sided normal distribution curve.

Interpretations n The majority of people do not prefer the taste of OREO cookies! n BUT, for the majority of people, OREO is their “social” preference. n Therefore, peoples’ taste and “social” preferences do NOT match.

Larger Conclusions The taste of OREO cookies is not superior to the taste of the generic Price Chopper Big Stuffed cookies. n People buy OREOs for more than their taste. n Specifically, OREOs financial success is due to extensive marketing and advertising efforts, not because the product tastes any better than generic cookies. n People tend to buy brand name products even if the brand name product is strikingly similar to the generic version…. n

Finally AMERICANS ARE BRAND NAME CONSUMERSand they love AMERICA’S FAVORITE COOKIE!!!™