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Do health claims add value? The role of functionality, effectiveness and brand

Author

Listed:
  • Francesco Bimbo
  • Alessandro Bonanno
  • Rosaria Viscecchia

Abstract

European functional food manufacturers experience high costs of production, marketing and compliance with Regulation EC No. 1924/2006, requiring high premiums to recover these costs. We review the literature on consumers' acceptance of health-enhancing food products and identify three factors potentially affecting health claims' premiums: health claims' type, efficacy and brands. We estimate the contribution of these factors on health claims' implicit prices using a database of Italian yogurt sales and a hedonic price model. We find premiums differing by claim type; that ‘risk diseases reduction’ claims outperforming ‘general function’ claims and that the support of familiar brands affects health claims' premiums.

Suggested Citation

  • Francesco Bimbo & Alessandro Bonanno & Rosaria Viscecchia, 2016. "Do health claims add value? The role of functionality, effectiveness and brand," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(5), pages 761-780.
    • Handle: RePEc:oup:erevae:v:43:y:2016:i:5:p:761-780.
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    File URL: http://hdl.handle.net/10.1093/erae/jbw002
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    Citations

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    Cited by:

    1. Bosbach, Moritz & Maietta, Ornella Wanda, 2019. "The Implicit Price for Fair Trade Coffee: Does Social Capital Matter?," Ecological Economics, Elsevier, vol. 158(C), pages 34-41.
    2. Alessandro Bonanno & Francesco Bimbo & Marco Costanigro & Alfons Oude Lansink & Rosaria Viscecchia, 2019. "Credence attributes and the quest for a higher price – a hedonic stochastic frontier approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(2), pages 163-192.
    3. Bonanno, Alessandro & Bimbo, Francesco & Costanigro, Marco & VIscecchia, Rosaria, 2018. "Do Geographic Indication Labels Pay off? Estimating GI’s implicit Price Dispersion in the Italian EVOO Market," 2018 Annual Meeting, August 5-7, Washington, D.C. 274203, Agricultural and Applied Economics Association.
    4. Kofi Britwum & Amalia Yiannaka, 2019. "Labeling food safety attributes: to inform or not to inform?," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-21, December.
    5. Chen, Bo & Zhang, Xiaoheng & Zhou, Qingjie, 2021. "Product differentiation and brand building: a hedonic analysis of yogurt price in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    6. Akrout Houcine & Kaswengi Joseph, 2019. "Choosing Organic and Healthy Food in Times of Economic Uncertainty: Evidence from Panel Data Analysis in France," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(1), pages 1-13, May.

    More about this item

    Keywords

    functional food; health claims; hedonic price model;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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