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What to Choose? The Value of Label Claims to Fresh Produce Consumers

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Author Info

  • Bond, Craig A.
  • Thilmany, Dawn D.
  • Bond, Jennifer Keeling

Abstract

We examine consumer response to label information using a hypothetical choice experiment on red leaf lettuce attribute bundles. Using survey responses, several mixed logit models with random parameters and varying correlation assumptions are estimated that provide estimated of marginal utilities ( and marginal values) of various attributes related to general health claims, specific nutrition and health claims, certification logos, and certified organic claims (relative to the conventional reference group) for this fresh produce product. We find that consumers distinguish between labeling claims, and that attribute bundling effects are present, suggesting the results from main effects (linear) models may be misleading. Furthermore, the results imply that consumers may value both privately and publicly appropriable benefits of alternative technologies, such as organic production.

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File URL: http://purl.umn.edu/46559
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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 33 (2008)
Issue (Month): 3 (December)
Pages:

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Handle: RePEc:ags:jlaare:46559

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Web page: http://waeaonline.org/
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Related research

Keywords: Choice experiment; Conditional distribution; Preference heterogeneity; Produce labels; Random parameters; Food Consumption/Nutrition/Food Safety;

References

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Citations

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Cited by:
  1. Kelvin Balcombe & Iain Fraser & Salvatore Di Falco, 2009. "Traffic Lights and Food Choice: A Choice Experiment Examining the Relationship Between Nutritional Food Labels and Price," Studies in Economics 0915, Department of Economics, University of Kent.
  2. Onken, Kathryn A. & Bernard, John C. & Pesek, John D., Jr., 2011. "Comparing Willingness to Pay for Organic, Natural, Locally Grown, and State Marketing Program Promoted Foods in the Mid-Atlantic Region," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), April.

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