IDEAS home Printed from https://ideas.repec.org/a/wly/ajagec/v103y2021i1p275-295.html
   My bibliography  Save this article

Demand for Aflatoxin‐Safe Maize in Kenya: Dynamic Response to Price and Advertising

Author

Listed:
  • Vivian Hoffmann
  • Christine M. Moser
  • Timothy J. Herrman

Abstract

In countries where regulatory enforcement is weak, voluntary third‐party verification of firms' food safety processes can allow concerned consumers to select safer products. However, due in part to their legal ambiguity, and the potential to attract additional regulatory scrutiny, food safety claims are rarely made by firms. As a result, the impact of such claims on consumer demand is not well understood. We examine how labeling maize as tested for aflatoxin, a carcinogen also associated with stunting in children, affects sales. By randomly varying the timing and intensity of a marketing campaign to promote the first maize flour brand in Kenya labeled as tested for aflatoxin, we characterize dynamic consumer response to information about food safety. We find an immediate response in sales to marketing alone, which disappears as soon as marketing ceases. Sales remain elevated in the weeks after a temporary discount is offered, but this effect also fades over time and is not associated with greater awareness of the firm's food safety claims. These results suggest that it is unrealistic to expect for‐profit firms serving mass markets in low‐ and middle‐income countries to invest heavily in marketing based on food safety claims.

Suggested Citation

  • Vivian Hoffmann & Christine M. Moser & Timothy J. Herrman, 2021. "Demand for Aflatoxin‐Safe Maize in Kenya: Dynamic Response to Price and Advertising," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 275-295, January.
    • Handle: RePEc:wly:ajagec:v:103:y:2021:i:1:p:275-295
    DOI: 10.1111/ajae.12093
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ajae.12093
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ajae.12093?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hoffmann, Vivian & Gatobu, Ken Mwithirwa, 2014. "Growing their own: Unobservable quality and the value of self-provisioning," Journal of Development Economics, Elsevier, vol. 106(C), pages 168-178.
    2. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    3. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    4. Abhijit V. Banerjee & Sendhil Mullainathan, 2008. "Limited Attention and Income Distribution," American Economic Review, American Economic Association, vol. 98(2), pages 489-493, May.
    5. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    6. Zago, Angelo M. & Pick, Daniel H., 2004. "Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(1), pages 1-16, April.
    7. Kremer, Michael & Glennerster, Rachel, 2011. "Improving Health in Developing Countries," Handbook of Health Economics, in: Mark V. Pauly & Thomas G. Mcguire & Pedro P. Barros (ed.), Handbook of Health Economics, volume 2, chapter 0, pages 201-315, Elsevier.
    8. Hoffmann, Vivian & Jones, Kelly M., 2018. "Improving food safety on the farm: Experimental evidence from Kenya on agricultural incentives and subsidies as public health investments," IFPRI discussion papers 1746, International Food Policy Research Institute (IFPRI).
    9. Kiesel, Kristin & Villas-Boas, Sofia B., 2013. "Can information costs affect consumer choice? Nutritional labels in a supermarket experiment," International Journal of Industrial Organization, Elsevier, vol. 31(2), pages 153-163.
    10. Pascaline Dupas, 2011. "Health Behavior in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 425-449, September.
    11. Ekin Birol & Bhushana Karandikar & Devesh Roy & Maximo Torero, 2015. "Information, Certification and Demand for Food Safety: Evidence from an In-store Experiment in Mumbai," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(2), pages 470-491, June.
    12. Rodgers, A.B. & Kessler, L.G. & Portnoy, B. & Potosky, A.L. & Patterson, B. & Tenney, J. & Thompson, F.E. & Krebs-Smith, S.M. & Breen, N. & Mathews, O. & Kahle, L.L., 1994. "'Eat for Health': A supermarket intervention for nutrition and cancer risk reduction," American Journal of Public Health, American Public Health Association, vol. 84(1), pages 72-76.
    13. Vivian Hoffmann & Christine Moser, 2017. "You get what you pay for: the link between price and food safety in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 48(4), pages 449-458, July.
    14. Hoffmann, Vivian & Moser, Christine & Saak, Alexander, 2019. "Food safety in low and middle-income countries: The evidence through an economic lens," World Development, Elsevier, vol. 123(C), pages 1-1.
    15. Spears, Dean, 2014. "Decision costs and price sensitivity: Field experimental evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 169-184.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sarah Wairimu Kariuki & Vivian Hoffmann, 2022. "Can information drive demand for safer food? Impact of brand‐specific recommendations and test results on product choice," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 454-467, May.
    2. Oluwagbenga Akinwehinmi & Kolawole Ogundari & Taye Timothy Amos, 2022. "Consumers’ food control risk perception and preference for food safety certification in emerging food markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 690-708, September.
    3. Kelvin Mashisia Shikuku & Erwin Bulte & Carl Johan Lagerkvist & Nhuong Tran, 2023. "Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria," Experimental Economics, Springer;Economic Science Association, vol. 26(5), pages 1060-1084, November.
    4. Chowdhury, Reajul & Crost, Benjamin & Hoffmann, Vivian, 2022. "Marketing fortified rice: Effects of aspirational messaging and association with free distribution," Food Policy, Elsevier, vol. 112(C).
    5. Rutsaert, Pieter & Donovan, Jason & Kimenju, Simon, 2021. "Demand-side challenges to increase sales of new maize hybrids in Kenya," Technology in Society, Elsevier, vol. 66(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hoffmann, Vivian E. & Moser, Christine M. & Herrman, Timothy, 2017. "Demand for aflatoxin-safe maize in Kenya: Dynamic response to price and advertising," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259133, Agricultural and Applied Economics Association.
    2. Magnan, Nicholas & Hoffmann, Vivian & Opoku, Nelson & Gajate Garrido, Gissele & Kanyam, Daniel Akwasi, 2021. "Information, technology, and market rewards: Incentivizing aflatoxin control in Ghana," Journal of Development Economics, Elsevier, vol. 151(C).
    3. Grolleau, Gilles & Caswell, Julie A., 2006. "Interaction Between Food Attributes in Markets: The Case of Environmental Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-14, December.
    4. Pecchioli, Bruno & Moroz, David, 2023. "Do geographical appellations provide useful quality signals? The case of Scotch single malt whiskies," Economic Modelling, Elsevier, vol. 124(C).
    5. Breeda Comyns & Frank Figge & Tobias Hahn & Ralf Barkemeyer, 2013. "Sustainability reporting: The role of “Search”, “Experience” and “Credence” information," Accounting Forum, Taylor & Francis Journals, vol. 37(3), pages 231-243, September.
    6. Jean‐Sauveur Ay, 2021. "The Informational Content of Geographical Indications," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 523-542, March.
    7. Stefanella Stranieri & Lucia Baldi & Alessandro Banterle, 2010. "Do Nutrition Claims Matter to Consumers? An Empirical Analysis Considering European Requirements," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 15-33, February.
    8. Abate, Gashaw T. & Bernard, Tanguy & de Janvry, Alain & Sadoulet, Elisabeth & Trachtman, Carly, 2021. "Introducing quality certification in staple food markets in Sub-Saharan Africa: Four conditions for successful implementation," Food Policy, Elsevier, vol. 105(C).
    9. Hoffmann, Vivian & Jones, Kelly M., 2018. "Improving food safety on the farm: Experimental evidence from Kenya on agricultural incentives and subsidies as public health investments," IFPRI discussion papers 1746, International Food Policy Research Institute (IFPRI).
    10. Noelke, Corinna M. & Caswell, Julie A., 2000. "A Model Of The Implementation Of Quality Management Systems For Credence Attributes," 2000 Annual meeting, July 30-August 2, Tampa, FL 21874, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Sanou, Awa & Liverpool-Tasie, Lenis Saweda O. & Caputo, Vincenzina & Kerr, John, 2021. "Introducing an aflatoxin-safe labeling program in complex food supply chains: Evidence from a choice experiment in Nigeria," Food Policy, Elsevier, vol. 102(C).
    12. Jena, Pradyot R. & Grote, Ulrike, 2012. "Impact Evaluation of Traditional Basmati Rice Cultivation in Uttarakhand State of Northern India: What Implications Does It Hold for Geographical Indications?," World Development, Elsevier, vol. 40(9), pages 1895-1907.
    13. Ngokkuen, Chuthaporn & Grote, Ulrike, 2012. "Geographical Indication for Jasmine Rice: Applying a Logit Model to Predict Adoption Behavior of Thai Farm Households," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(2), pages 1-29, May.
    14. Renard, Yohan, 2022. "From fees to free: User fee removal, maternal health care utilization and child health in Zambia," World Development, Elsevier, vol. 156(C).
    15. 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.
    16. Siny Joseph & Nathalie Lavoie & Julie A. Caswell, 2009. "Partial Implementation of COOL: Economic Effects in the U.S. Seafood Industry," Working Papers 2009-7, University of Massachusetts Amherst, Department of Resource Economics.
    17. Daniela Benavente, 2010. "The Economics of Geographical Indications: GIs Modelled As Club Assets," IHEID Working Papers 10-2010, Economics Section, The Graduate Institute of International Studies.
    18. Hoffmann, Vivian & Moser, Christine & Saak, Alexander, 2019. "Food safety in low and middle-income countries: The evidence through an economic lens," World Development, Elsevier, vol. 123(C), pages 1-1.
    19. Daniela Benavente, 2010. "Geographical Indications: The Economics of Claw-Back," IHEID Working Papers 11-2010, Economics Section, The Graduate Institute of International Studies.
    20. repec:gbl:wpaper:2013-01 is not listed on IDEAS
    21. J. K. Pappalardo, 2022. "Economics of Consumer Protection: Contributions and Challenges in Estimating Consumer Injury and Evaluating Consumer Protection Policy," Journal of Consumer Policy, Springer, vol. 45(2), pages 201-238, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:ajagec:v:103:y:2021:i:1:p:275-295. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1467-8276 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.