Study Finds Consumers Remain Confused About CBD Oil Types
Even though cannabidiol (CBD) extracted from the hemp plant has been legal since the passage of the 2018 Farm Bill, consumers remain confused about the different types of CBD products and their names, and the difference between CBD oils and hemp oils. This was the conclusion of a study published in The Journal of Consumer Affairs. The study was led by Professor Brandon McFadden at the Dale Bumpers College of Agricultural, Food and Life Sciences and the Arkansas Agricultural Experiment Station, the research arm of the University of Arkansas System Division of Agriculture.
Two Tasks
There were 1,006 study participants who were given two product selection tasks. The first task asked them to choose their product preference between isolate, broad spectrum, full spectrum CBD and hemp oil. Only the product name (type of oil) was provided in the first task, and no additional information was provided.
The second task presented the product attributes for the four product types. The additional information listed the CBD and THC concentrations, whether it contained other cannabinoids, terpenes and flavonoids and the price. For example, broad spectrum was described as containing no THC and hemp oil was described as containing no CBD. However, the study participants were shown a randomized arrangement of the two options to test name and attribute recognition.
Each task identified four price levels for oil products. A sample question was, “Imagine you are at the store to purchase 1000 mg CBD oil for yourself or a loved one. The options you can select from in the store are presented below.” Based on market prices, the four price options were $29.99, $39.99, $49.99 and $59.99. Consumers chose eight products across the two tasks, based on product name or attributes.
Consumers Unable to Match CBD Spectrum with Attributes
The study measured consumer confusion by identifying instances of ‘preference reversal’ between the two tasks. Preference reversal occurred when consumers chose different CBD or hemp oil between the two product selection tasks. For instance, if participants initially chose full spectrum CBD as their preferred product, they would be expected to choose the matching product information in the second task. However, choosing different product information, such as broad spectrum CBD, would indicate a lack of understanding of the attributes of full spectrum CBD.
The survey results showed that consumers remain confused about CBD product names and attributes. One result was that people who had not purchased CBD in the previous year were more likely to select CBD isolate when given detailed product attribute information. Respondents strongly preferred CBD isolate attributes but could not identify the preferred product by name alone.
McFadden was surprised to find the interest in CBD isolate among respondents who had not bought CBD products in the previous year.
“It did seem like there were consumers who were potentially interested in purchasing CBD, but because there was such a learning curve and a lack of knowledge, they wouldn’t participate in the market.”
People who bought CBD the prior year chose hemp oil fewer times after receiving information about various product attributes. Since it was not 100% of respondents, this means some people who buy CBD still do not understand that hemp oil lacks CBD. One of the issues is the plethora of products appearing.
“You’ve now got new products on the market that have never been there before, and so there’s a pretty long learning curve for the average consumer,” said McFadden.
Reducing Confusion about CBD and Hemp Products
The conclusion was that including detailed product attribute information on packaging significantly influences consumer choices and reduces confusion about hemp-based oil. Even people who had purchased CBD in the prior year still have difficulty distinguishing hemp oil and CBD oil. In addition, when the quantities of flavonoids and terpenes are not included in the product attribute description, consumers are less likely to associate them with positive health benefits.
More detailed product attribute information can reduce consumer confusion. The researchers suggest the need for regulations that require detailed product information to reduce confusion and protect consumers from bad actors. CBD.market would add that, in addition to product attribute information, more public information should be made readily available that explains each attribute. This will empower consumers to make informed choices. The study found that even consumers with a strong preference for particular CBD products still had difficulty distinguishing between CBD oil types.
Timothy McGlynn
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