Retailers and the American Alcohol Point-of-Purchase Environment: 2000-2001 Y Terry-McElrath*, E Harwood** J Myllyluoma† D Erickson**, L Fabian**, S Slater‡, F Chaloupka‡ 13th Alcohol Policy Conference Boston, MA; March 14, 2003 * Institute for Social Research, University of Michigan ** Alcohol Epidemiology Program, University of Minnesota † Battelle Centers for Public Health Research and Evaluation ‡ Health Research and Policy Centers, University of Illinois at Chicago ImpacTeen is…. …Multi-site research collaborative …Alcohol, tobacco, and illicit drugs …Prevention research …State, community, and school level responses to youth substance use The Alcohol POP Environment: What is it? • Point-of-purchase: retail, “off-site” environment • Marketing and advertising efforts: • Products and product placement • Pricing • Advertising, including counter advertising • Functional objects • Promotions The Alcohol POP Environment: Why Worry? The research community’s concerns regarding underage drinking and risky alcohol use: • U.S. monthly consumption of alcohol is: • 20% underage drinkers (aged 12-20)1 • 30% adult heavy drinkers (>5 drinks/sitting)1 The Alcohol POP Environment: Why Worry? Underage drinking and risky alcohol use: • Price and ease of access to alcoholic beverages have been associated with injury2 and violence such as rape, robbery, and assault.3 • Retail price advertising is related to domestic violence toward children4 and the probability of drinking and driving among all drinkers.5 • Product placement is related to sales volume.6 • Youth see more alcohol advertising in magazines than adults7. Little is known about comparative exposure to advertising in the retail environment. The Beverage Industry’s Interest in POP Marketing and Advertising: • 70% of consumers’ final buying decisions are made once inside the store. 8 • In-store ad materials increase overall beverage sales in supermarkets by 2%-65%. Increases for beer may be up to 17%. Layering more than one advertising method pushes sales increases even higher. 8 • POP marketing is essential to reinforce TV, print, and radio advertising. 8 The Beverage Industry’s Interest in POP Marketing and Advertising, cont.: • 74% of all beer sales are in retail establishments, led by convenience stores and gas stations.9 • Young adults (aged 21-27) are most likely to purchase beer in package and convenience stores. 9 • 75% of teens shop at convenience or convenience/gas stores weekly.10 Variation in the POP Environment • State regulations on sales outlets and advertising • Local ordinances on percentage of retailer window advertising • Store-type variance Measuring Community Alcohol POP Activity • What to look for? • How to reliably measure POP issues? • Are there national comparisons? Selection of Alcohol Retailers • Random or Systematic Sample: • State or local liquor licensing lists • Commercial business lists (InfoUSA, Dunn& Bradstreet) based on SIC codes • Convenience or Target Sample: • Select stores in certain neighborhoods, near schools, or known to sell to minors • Random/Systematic sample for research and national comparisons. Convenience/target sample OK for local activist/media efforts. In-Store Observation Protocol • Follow a standardized protocol • Comprehensive training includes field practice and certification • Observations conducted by adults • Observations conducted unobtrusively • Notes taken inside the store, data recorded outside of store • Data recorded on standardized form Quality Control Issues • How to measure quality of observational data collection? • Inter-rate reliability as a measure of quality control • We found a 92.5% overall item agreement using repeated measures by multiple observers in 16 venues within short time of each other. Why Placement of Beer or Other Relevant Products is Important • Ease of access (self service vs. clerk-assisted) • Readiness to be consumed (cooled vs. room temperature) • Affordability (availability of singles) • Advertising (visual impact of product displays) Types of Placement • Refrigerator/Cooler • Shelves • Floor Display • Singles in Bucket • Behind the Counter • Locked or Closed Cabinet • Other Placement – In Cooler Placement – On the Shelf Placement – Floor Displays Placement – Floor Display Placement – Singles in Bucket Placement – Behind counter Price and Promotion • Price and promotions indicate marketing activity to promote certain products • Collect price data for very specific brand and quantity • Bottles vs. Cans • Larger quantities more prevalent • Constantly changing in marketplace • Without sales tax Types of Promotions • Special volume discounts (twofers): • Buy a case, get a 6-pack free • Three 12-packs for the price of two • Special price offers (special words): • Sale price, special offer, special discount, promotional offer • NOT everyday low price, discount price • Coupons, freebies or points for merchandize • Other (sweepstakes, discounts on tickets, etc.) What are Functional Objects? • Indicates industry presence in the store • Bears an alcohol brand, product name or logo; AND • Has a function other than to display or advertise the product AND • Is not for sale to customers. Observing Functional Objects • Count items with alcohol brand logos • Items belonging together are counted only once • Several price boards displayed as if they were one board • Grocery handbaskets Functional Objects – Ashtrays and Doormats Functional Objects – Trays, Clocks, and Bulletin Boards Functional Objects – Mirrors and Thermometers Functional Object – Price Board Advertising of Alcohol Products – Interior • Are ads only where product is displayed or sold or elsewhere in the store? • Relevant in stores that sell other products in addition to liquor • Are any ads at child’s eye level (less than 3.5 ft from the floor)? Interior Advertising – Not Just Where Product is Sold Beer Ad at Child’s Eye Level Advertising of Alcohol Products – Exterior • We collect data 2 ways: • Count ads by size on store window, door, walls • Less than 1 ft in any dimension; 1-3 ft, or larger than 3 ft • Overall impression of advertising (subjective but provides a measure of the visual impact) • No ads • Discreet • Moderate • In your face Exterior Advertising – Moderate Exterior Advertising – Moderate Store Exterior Advertising – Moderate Exterior Advertising – In Your Face Exterior Advertising – In Your Face Counter-Advertising • Signage to warn about age of sale restrictions • Signage to warn about health effects of alcohol consumption • Signage to warn about driving while intoxicated Store Characteristics • Observed Store Type • Standard criteria based on milk and raw meat • May differ from SIC code • How many cash registers • Proxy for Store Size • Drive-Through/Kiosk Only The US Alcohol POP Environment: 2000-2001 • Since alcohol purchasing patterns vary by store type, does the alcohol-related POP environment also vary by store type? • Data collected in 2000 and 2001 • Focus: alcohol advertising and functional objects, and beer placement • Does beer price and promotion vary by characteristics of communities, neighborhoods, and stores? • Data collected in 2000 • Focus: beer price and promotions. Methods • Communities surrounding schools participating in nationally representative surveys of 8th, 10th, and 12th grade students • Target of 30 retailers per community (either tobacco or alcohol, randomly selected by SIC codes) • Two-person field staff observation teams • Data weighted to account for community clustering and store selection probabilities Measures: Advertising, Placement, and Functional Objects Years: 2000-2001. N=3,961 retailers in 329 communities. • Any alcohol POP marketing: exterior, interior, or property advertising; alcohol-branded functional objects • High-intensity advertising • Low-height advertising • Alcohol control or counter-alcohol signage • Presence of alcohol-branded functional objects • Beer placement Community Alcohol Retailers (N=3,961) Convenience/gas 35 % of Retailers Observed 30 Liquor stores 25 Convenience stores 20 Mom/pop groceries 15 10 Supermarkets 5 Drug stores/ pharmacies 0 Store Type Other* *Includes gas stations, general merchandise, tobacco stores, and other Overall Alcohol POP Marketing • 94% of all stores had some form of POP marketing (advertising or functional objects) Advertising: Exterior and Interior • 92% had interior alcohol ads • 37% were categorized as “high-intensity” • 39% had exterior alcohol ads • 27% were categorized as “high-intensity” • 48% had alcohol control or counter-alcohol signage High-Intensity Advertising Supermkts Convn Convn/gas Grocery Drug Liquor 80 80 70 70 % of Retailers Observed 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Exterior Advertising Interior Advertising All store types significantly higher All store types except drug stores than supermarket referent significantly higher than (p<.001) supermarket referent (p<.001) Low-Height Interior Advertising • 44% of all stores with interior alcohol advertising had some ads at a height of 3½ feet or less (child’s eye height) Functional Objects • 51% of all stores provided at least one alcohol-branded functional object. Low-Height Ads and Functional Objects Supermkts Convn Convn/gas Grocery Drug Liquor 80 80 70 70 % of Retailers Observed 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Low-Height Ads Functional Objects Convenience/gas and liquor stores Convenience, grocery and liquor significantly higher than stores significantly higher than supermarket referent (p<.001) supermarket referent (p<.05). Drug stores significantly lower (p<.05). Beer Placement • Behind counter or 1% locked/closed cabinet • Coolers 96% • Floor displays 44% • Shelves 23% • Singles in ice buckets 16% Beer Placement Supermkts Convn Convn/gas Grocery Drug Liquor 80 50 70 % of Retailers Observed 40 60 50 30 40 30 20 20 10 10 0 0 Singles in Ice Bucket On Shelf Convenience, convenience/gas and All store types but drug stores grocery stores significantly higher significantly lower than supermarket than supermarket referent (p<.01) referent (p<.05). Variations in Beer Price and Promotions in Retail Stores: 2000 160 communities across the U.S. 2,024 Retail Stores Conceptual Model Community Characteristics Beer Pricing Neighborhood Characteristics Beer Promotions Store Characteristics Outcome Variables Price ($$) --6-pack of Budweiser or Miller (Mean=$4.71) Promotions (Some “1” or None “0”) (25% of stores have “some” promotions) --discount offers --special prices --freebies --coupons Independent Variables Community Characteristics (School Catchment Area) U.S. Region --Northeast (12%) --South (44%) --Midwest (17%) --West (27%) Urbanicity/population density --Urban (70%) --Suburban (6%) --Town (11%) --Rural (13%) Independent Variables, cont. Neighborhood Characteristics (Census block) Median household income ($$) -- Mean=$39,280 Racial diversity (% white) -- Mean=78% Youth population (% of whole) -- 12-17 year olds (Mean=8%) -- 18-20 year olds (Mean=9%) Store Characteristics (Observed) Store type --Gas station convenience (38%) --Liquor store (18%) --Convenience store (14%) --Grocery (11%) --Supermarket (9%) --Drug store/pharmacy (6%) Store size - # of cash registers --1 = small (60%) --2 = medium (19%) --3 + = large (21%) Statistical Methods Cross-sectional hierarchical regression models -- nesting of stores in communities -- community as random effect -- region, urbanicity, store type and size as fixed effects -- beer brand as control variable -- continuous (price) and dichotomous (promotion) outcomes Summary of Findings Beer price varies significantly by: Community characteristics -- Lowest prices in West & Suburbs -- Highest prices in South & Urban Neighborhood characteristics -- Lowest prices in low/moderate income & less racially diverse neighborhoods Store characteristics -- Lowest prices in drug stores & large stores -- Highest prices in gas convenience & small stores Summary of Findings, cont… Beer promotion varies significantly by: Community characteristics -- Least likely in Midwest & Urban -- Most likely in Northeast & Towns Store characteristics -- Least likely in convenience & small stores -- Most likely in drug & large stores Store-Type Variation in Alcohol POP Environment: Analyses Conclusions • General alcohol marketing • Heavy in retail establishments frequented by youth such as convenience stores • Beer access • Attractive pricing in high volume stores typical of suburbs and small towns References 1. Foster S et al. (2003). Alcohol consumption and expenditures for underage drinking and adult excessive drinking. JAMA 289(8):989-995. 2. Ohsfeldt R & Morrisey M. (1997). Beer taxes, workers’ compensation, and industrial injury. The Review of Economics and Statistics 79(1):155-160. 3. Cook P & Moore M. (1993). Violence reduction through restrictions on alcohol availability. Alcohol Health and Research World 17:151-156. 4. Markowitz S & Grossman M. (1998). Alcohol regulation and domestic violence towards children. Contemporary Economic Policy 16:309-320. 5. Stout E et al. (2000). Reducing harmful alcohol-related behaviors: Effective regulatory methods. Journal of Studies on Alcohol 61:402-412. 6. Skog O-J. (2000). An experimental study of a change from over-the- counter to self-service sales of alcoholic beverages in monopoly outlets. Journal of Studies on Alcohol 61:95-100. 7. Center on Alcohol Marketing and Youth (2002). Overexposed: Youth a target of alcohol advertising in magazines. Washington DC: Center on Alcohol Marketing and Youth. www.camy.org/research. References, cont. 8. Beverage Industry. (2001). POP proves its worth. Beverage Industry 92:44-47. 9. Miller Brewing Company. (1997). Beer is volume with profit. Milwaukee, WI: Miller Brewing Company. 10. Point of Purchase Advertising Institute. (1992). The point-of-purchase advertising industry fact book. Englewood, NJ: The Point of Purchase Advertising Institute.
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