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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

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

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kenneth Train, 2000. "Halton Sequences for Mixed Logit," Department of Economics, Working Paper Series 1035, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
    Other versions:
  2. Steven Stern, 1997. "Simulation-Based Estimation," Journal of Economic Literature, American Economic Association, vol. 35(4), pages 2006-2039, December. [Downloadable!] (restricted)
  3. Dawn Thilmany & Craig A. Bond & Jennifer K. Bond, 2008. "Going Local: Exploring Consumer Behavior and Motivations for Direct Food Purchases," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 90(5), pages 1303-1309, December. [Downloadable!] (restricted)
  4. Jayson L. Lusk & F. Bailey Norwood, 2005. "Effect of Experimental Design on Choice-Based Conjoint Valuation Estimates," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 87(3), pages 771-785, 08. [Downloadable!] (restricted)
  5. Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003. "Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(1), pages 16-29, 02. [Downloadable!] (restricted)
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  6. J.L. Lusk & T.C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," Artefactual Field Experiments 0067, The Field Experiments Website. [Downloadable!]
  7. William Kaye-Blake & Kathryn Bicknell & Caroline Saunders, 2005. "Process versus product: which determines consumer demand for genetically modified apples? *," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society and Blackwell Publishing Asia Pty Ltd., vol. 49(4), pages 413-427, December. [Downloadable!] (restricted)
  8. Gruere, Guillaume P., 2006. "A preliminary comparison of the retail level effects of genetically modified food labelling policies in Canada and France," Food Policy, Elsevier, vol. 31(2), pages 148-161, April. [Downloadable!] (restricted)
  9. Frode Alfnes & Atle G. Guttormsen & Gro Steine & Kari Kolstad, 2006. "Consumers' Willingness to Pay for the Color of Salmon: A Choice Experiment with Real Economic Incentives," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(4), pages 1050-1061, November. [Downloadable!] (restricted)
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  10. Chris Arnot & Peter C. Boxall & Sean B. Cash, 2006. "Do Ethical Consumers Care About Price? A Revealed Preference Analysis of Fair Trade Coffee Purchases," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 555-565, December. [Downloadable!] (restricted)
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