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Are multiple labels on food products beneficial or simply ignored?

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  • Tatiana Drugova
  • Kynda R. Curtis
  • Sherzod B. Akhundjanov

Abstract

This study examines consumer preferences and willingness to pay (WTP) for organic wheat products exhibiting single labels, as well as multiple labels, including organic. The additional labels considered are related to the organic label (non‐genetically modified organism [non‐GMO]) or perceived as health‐promoting (gluten‐free, low‐carb, sugar‐free). Study data were collected using a consumer survey conducted online in 2017 across 16 U.S. western states and analyzed using random parameter logit models. Findings show that organic‐labeled wheat products with additional claims were valued equally or less than the organic only version. Overall, consumer higher objective and subjective knowledge of organic standards, as well as preferences for gluten‐free products, increased their WTP for organic wheat products. Consumers unfamiliar with organic standards valued the non‐GMO label over the organic label. Additionally, consumer WTP for health‐related claims on hedonistic products was low or even negative. Hence, multiple labels on organic products generally provide no additional consumer benefit and are likely ignored. Study findings suggest that using the claim that most distinguishes the product, or is most salient, may improve product pricing. Also, non‐GMO certification rather than organic certification should be considered for some markets. Finally, consumers with preferences for gluten‐free products represent a potential market for organic wheat products. Cette étude examine les préférences des consommateurs et leur volonté de payer (CAP) pour les produits de blé biologique présentant des étiquettes uniques, ainsi que plusieurs étiquettes, y compris biologiques. Les labels supplémentaires envisagés sont liés au label biologique (sans OGM) ou perçus comme favorisant la santé (sans gluten, faible en glucides, sans sucre). Les données de l'étude ont été collectées à l'aide d'une enquête auprès des consommateurs menée en ligne en 2017 dans 16 États occidentaux des États‐Unis et analysées à l'aide de modèles logit à paramètres aléatoires. Les résultats montrent que les produits de blé étiquetés biologiques avec des allégations supplémentaires ont une valeur égale ou inférieure à la version biologique uniquement. Dans l'ensemble, la connaissance plus objective et subjective des consommateurs des normes biologiques, ainsi que les préférences pour les produits sans gluten, ont accru leur CAP pour les produits à base de blé biologique. Les consommateurs qui ne connaissaient pas les normes biologiques accordaient plus d'importance au label sans OGM qu'au label biologique. De plus, le CAP des consommateurs pour les allégations relatives à la santé sur les produits hédonistes était faible, voire négatif. Par conséquent, les étiquettes multiples sur les produits biologiques n'offrent généralement aucun avantage supplémentaire pour le consommateur et sont probablement ignorées. Les résultats de l'étude suggèrent que l'utilisation de l'allégation qui distingue le plus le produit, ou qui est la plus saillante, peut améliorer le prix du produit. En outre, la certification sans OGM plutôt que la certification biologique devrait être envisagée pour certains marchés. Enfin, les consommateurs préférant les produits sans gluten représentent un marché potentiel pour les produits à base de blé biologique.

Suggested Citation

  • Tatiana Drugova & Kynda R. Curtis & Sherzod B. Akhundjanov, 2020. "Are multiple labels on food products beneficial or simply ignored?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(4), pages 411-427, December.
  • Handle: RePEc:bla:canjag:v:68:y:2020:i:4:p:411-427
    DOI: 10.1111/cjag.12259
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    References listed on IDEAS

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    Cited by:

    1. Longzhong Shi & Xuan Chen & Bo Chen, 2023. "Covid‐19‐tested food labels," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(2), pages 203-230, June.
    2. Allison Loconto & Francisco Garrido-Garza, 2021. "Formal and informal European quality assurance initiatives offering a connection between local gastronomy and small-scale farmers," Working Papers hal-03173144, HAL.
    3. Cindy Grappe & Cindy Lombart & Didier Louis & Fabien Durif, 2022. "Clean labeling: Is it about the presence of benefits or the absence of detriments? Consumer response to personal care claims," Post-Print hal-04293232, HAL.
    4. Grappe, Cindy G. & Lombart, Cindy & Louis, Didier & Durif, Fabien, 2022. "Clean labeling: Is it about the presence of benefits or the absence of detriments? Consumer response to personal care claims," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    5. Alexander J. Stein & Marcelo Lima, 2022. "Sustainable food labelling: considerations for policy-makers," Review of Agricultural, Food and Environmental Studies, Springer, vol. 103(2), pages 143-160, June.
    6. Shi, Longzhong & Chen, Xuan & Chen, Bo & Qiu, Jingran & Li, Li, 2021. "Assessing Consumers’ Willingness to Pay for Covid-19-tested Food Labels," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329403, Asian Society of Agricultural Economists (ASAE).

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