The label can give (imaginary) wings: The Placebo Effect of Energy Drinks

This study addresses the influence of energy drinks on concentration, examining in particular the impact of their stimulating ingredients (physiological effect) and product label (label/placebo effect) on objectively measured and perceived concentration.

A 3 x 3 (beverage x product label) – cross-factorial between-subjects design was applied. 364 students sampled a beverage, evaluated their perceived concentration at different points in time and completed a standardized concentration test after a latency of 30 minutes. While the beverage itself had neither an effect on perceived concentration nor on the concentration test results, perceived concentration was influenced by the product label.

The relation between the product label and perceived concentration was partly mediated by expectations, which in turn were conditionally moderated by the global belief in the efficacy of energy drinks.

Chapter ‘Empirical Evidence’:

There is a wide range of empirical evidence revealing the influence of external cues on product evaluation, thereby proving the existence of the labeling effect. In one of the most popular studies on the influence of a label on taste-related judgments Allison & Uhl (1964) asked beer drinkers to rate different kinds of beer. In a blind test ratings did not vary amongst the different beers, but when the beers were labeled subjects gave the one they usually prefer higher ratings, these being higher than in the blind test.

Subjects could not identify their preferred label on the basis of objective product attributes in a blind test. This finding is supported by another study, where subjects split equally in their preference for either Coke or Pepsi in a blind test. However, if the label was added, Coke was preferred. There are many studies about the labeling effect, all showing the same results: Subjects evaluated products according to their label.

Beside extrinsic cues packaging is another important cue for product evaluation. Barth (2006) figured out that packaging played a more important role than the wine itself as product evaluations were higher for the bottle than for the carton irrespective of the objective quality of the wine. Not only the type of packaging but also its graphical component can influence beliefs attributed to the product and even purchase intention. While Bone & France (2001) found the verbal components of packaging in comparison to the graphics more salient, verbal components can also influence purchase behaviour.

Cable News Network (2007) reported a recent study conducted by a professor of Stanford University, where children preferred food wrapped in McDonald`s packaging to food in neutral wrappers. As the company´s advertising seemed to be one of the factors explaining this result, another study supports the sole influence of advertising on product evaluation. If information for product evaluation is ambiguous, subjects used advertising to make their decision. When advertising provided confirming and no or little disconfirming information, subjects subsequently rated the product higher.

The influence of another type of external cue, namely the country-of-origin, is the content of a study by Chiou (2003). Subjects rated digital cameras from Japan better in pretrial expectations as well as in post-trial evaluation than those from Taiwan. This country-of-origin effect also applied to clothes, which were better rated if labeled Italian than those from Taiwan.