PRICES AISTD QUALITY OF CEEAMERY BUTTEE. 15 



EFFECT OF PACKAGING UNDER ESTABLISHED BRANDS. 



As a result of the studies in the retail markets of larger cities in 

 his country, it was found that most retailers, as well as consumers 

 generally, do not buy butter on the basis of grades ^ as determined by 

 )fRcial inspectors or expert judges of butter. Being usually unskilled 

 udges of quality, they are guided largely by their experience with 

 various stencil numbers or advertised brands or trade-marks. As a 

 •esult of this practice, many creamery men whose butter is not sold 

 mder a distinctive trade-mark have come to believe that consumers 

 )ay for the brand and not the quality of goods. In Table 4 the 

 iverage quality scores and retail prices of the different lots of bulk 

 nd trade-marked butter found in retail stores are compared. 



ABLE 4.- 



-Comparison of quality {average score) and average retail price of 

 branded and unbranded butter. 



[Retail prices expressed in margins between prices paid and local quotations for Extras.] 





Branded lots. 



Unbranded lots. 



Market. 



Number 

 of lots. 



Average 

 score. 



Price 

 margin. 



Number 

 of lots. 



Average 

 score. 



Price 

 margin. 





60 



80 



161 



230 



91.2 

 90.8 

 89.6 

 89.3 



Cerits. 

 11.1 

 11.6 

 6.1 

 5.18 



122 

 21 

 68 

 37 



89.8 

 90.7 

 88.7 

 89.7 



Cents. 

 8.83 





9.02 



hicago ." 



4.7 



t. Paul and Minneapolis 



5.06 







It will be noted in this table that no definite relation appears to 

 xist between quality and retail prices. Except for New York and 

 *hiladelphia, where many consumers are exceptionally discriminative 

 r appreciative of good quality, there seems to be a tendency for con- 

 umers to pay more for trade-marked goods put in print packages 

 lian for unbranded " bulk " goods, regardless of any fine differences 

 n quality. The average prices given in the table for " print " or 

 rade-marked butter for New York and Philadelphia include a lim- 

 ted number of " special brands '' made from either whole milk or 

 ream of an exceptionally high quality. Such " special brands " are 

 .ot marketed by the usual system of distribution employed by the 

 lajority of country creameries, but generall}^ are sold " direct from 

 actory to retailer " or through the manufacturer's own retail stores 

 r delivery wagons. The prices obtained for butter sold under these 

 rands, as shown by Table 3, ranged from 8 to 12 cents higher than 

 [lose of Extras marketed through the usual system of distribution 

 r local creamery butter. 



1 For a description of commercial practices in grading butter, see U. S. Department of 

 griculture Bulletin 456, " Marketing Creamery Butter," by Potts, R. C, and Meyer, 



[. F. 



