Pepsi Challenge
Encyclopedia
The Pepsi Challenge has been an ongoing marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...

 promotion run by PepsiCo
PepsiCo
PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company...

 since 1975. It is also the name of a cross country ski race at Giant's Ridge Ski Area in Biwabik, Minnesota
Biwabik, Minnesota
Biwabik is a city in Saint Louis County, Minnesota, United States. The population was 969 at the 2010 census.Minnesota State Highway 135 and Vermilion Trail are two of the main routes in the city....

, an event sponsored by Pepsi.

Method

The challenge takes the form of a taste test. At malls, shopping centers and other public locations, a Pepsi representative sets up a table with two blank cups: one containing Pepsi
Pepsi
Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo...

 and one with Coca-Cola
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...

. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so the taster can see whether they preferred Coke or Pepsi. The results of the test leaned toward a consensus that Pepsi was preferred by more Americans.

In 1981, Pepsi ran a "Pepsi Challenge Payoff" contest which would hand out a large prize to anyone who could gather Pepsi bottle cap
Bottle cap
Bottle caps are a type of closure used to seal the openings of bottles of many types. They can be small circular pieces of metal, usually steel, with plastic backings, and for plastic bottles a plastic cap is used instead. A bottle cap is typically colorfully decorated with the logo of the brand...

s that spelled out the word "challenge". Each bottle cap had a single letter beneath it. The letter "A" was the rarest, making it challenging to win the prize.

In 2001, ex-MTV
MTV
MTV, formerly an initialism of Music Television, is an American network based in New York City that launched on August 1, 1981. The original purpose of the channel was to play music videos guided by on-air hosts known as VJs....

 VJ Ananda Lewis
Ananda Lewis
Ananda Lewis is an American television personality, social activist, and model. She appeared on Maxim and AskMen.com's Hottest Celebrity Lists in 2001...

 hosted that year's challenge.

Criticisms

In his book, Blink
Blink (book)
Blink: The Power of Thinking Without Thinking is a 2005 book by Malcolm Gladwell. It presents in popular science format research from psychology and behavioral economics on the adaptive unconscious; mental processes that work rapidly and automatically from relatively little information...

, author Malcolm Gladwell
Malcolm Gladwell
Malcolm Gladwell, CM is a Canadian journalist, bestselling author, and speaker. He is currently based in New York City and has been a staff writer for The New Yorker since 1996...

 ascribes the success of Pepsi over Coca-Cola in these tests to being a result of the nature of "sip tests", which would fail to account for the cloying effect of excessive sweetness and glutamate, and a complementary (but counter-intuitive) long-term preference for an item – disregarding situations such as the Pepsi Challenge, in which it would consistently lose in blind sip-test comparisons. That is, a blind-sip test may believe that a less-sweet drink tastes better in the long run.

Popular sources criticize the so-called Pepsi challenge for the methods used. When cola taste samples include labels of Coke or Pepsi the preference for Pepsi is reversed. Much of the difference in preference of Pepsi or Coca-Cola is accounted for by labels and not taste. When the preference in blind tests is compared to tests where cups are labeled with arbitrary labels (e.g., S or L) or brand names, the ratings of preference change (Woolfolk, Castellan, & Brooks, 1983). Scientific findings do support a perceptible difference between Coca-Cola and Pepsi, but not between Pepsi and RC Cola (Pronko & Herman, 1950).

The band Negativland
Negativland
Negativland is an experimental music and sound collage band which originated in the San Francisco Bay Area in the late 1970s. They took their name from a Neu! song, while their record label is named after another Neu! song...

 lampooned Pepsi and the Pepsi challenge on their 1997 album Dispepsi
Dispepsi
Dispepsi is an album by the band Negativland. It was released on July 29, 1997 by Seeland Records, Negativland's record label. It is structured to be a statement against the major soft drink companies and contains many samples of advertisements therefrom....

. Several Pepsi commercials were sampled from the era of the Pepsi Challenge featuring Bill Cosby
Bill Cosby
William Henry "Bill" Cosby, Jr. is an American comedian, actor, author, television producer, educator, musician and activist. A veteran stand-up performer, he got his start at various clubs, then landed a starring role in the 1960s action show, I Spy. He later starred in his own series, the...

 and Michael J Fox.
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