Generic vs. Oreo The Oreo Challenge America

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Generic vs. OreoThe Oreo ChallengeAmericas
Favorite Cookie!???

• February 19, 2004
• Math 5
• Marlon Henry, Christin Lathrop, Jonathan Smolian

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Goals

• To determine whether superiority in OREO brand
  name corresponds to superiority in taste.
• Compare the taste of OREO cookies to a generic
  equivalentPrice Chopper Big Stuffed cookies.
• Compare subjects taste preferences to their
  social preferences.
• Is the perceived OREO superiority warranted?

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Pre-Test Beliefs

• A greater proportion of people would NOT prefer
  OREOs.
• Did not perceive ANY taste difference.
• OR
• Preferred Price Chopper or had No Preference

No Difference Generic No Preference
OREO
OREO
VS.
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A Generic Success!

• 55 A Non-OREO preference was given.
• 45 OREO preference was given.

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Confounding Factors

• Initial decision Taste vs. Experience
• Time Constraints Smaller sample size
• Cookie presentation order
• Marginal Cookie Utility?
• Testing Procedure Variability
• Vague Language
• Texture/Visual influence

BUT
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Not Confounding Enough

• Still a strong test.
• Our beliefs are right!
• Conclusion We can accept the data.

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THE CHALLENGE
VS.
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Testing in Novack

• Procedure
• Administer cookie samples using a double blind
  method
• Cups 1 2 water in between,
• then
• Ask Questions.

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Our Questions

• 1st Difference in the taste?
• 2nd Preference in taste (if any)?
• 3rd Determine honest social preference.

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Data Sheet
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Conceptualizing our Statistics

• Create a statistic for difference in taste vs.
  social preference.
• Xbefore

0 if OREO
1 if No Difference, Generic, No Preference
0 if OREO

• Xafter

1 if Generic or No Preference
D Xbefore- Xafter
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Conceptualizing our Statistics 2
? D
D
N
D is the average of the differences in taste vs.
social preference
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Null Hypothesis

• On average, people will have consistent taste
  preferences D0
• The probability of D0 is p0.5

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Alternate Hypothesis

• People are more likely NOT to prefer the taste of
  OREOs while socially preferring OREOs.
• Dgt0
• This was our initial belief.

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Statistically Significant

• Our results are statistically significant at a
  level of 0.05.
• This leaves 5 chance of Type 1 Error.
• Furthermore, D0.225 /- 0.15 and falls within
  our critical region for a significance level of
  0.05 in a right-sided normal distribution curve.

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Interpretations

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

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Larger Conclusions

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

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Finally

• AMERICANS ARE BRAND NAME CONSUMERS-
• and they love
• AMERICAS FAVORITE COOKIE!!!