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

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

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.

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

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…

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

THE CHALLENGE… VS.

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

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

Data Sheet

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

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

Null Hypothesis On average, people will have consistent taste preferences: D=0 The probability of D=0 is p=0.5

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

Statistically Significant 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 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.

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….

Finally AMERICANS ARE BRAND NAME CONSUMERS- and they love AMERICA’S FAVORITE COOKIE!!!™