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Endogenous Consumer Preferences And Knowledge About Nutrition

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  • Mojduszka, Eliza M.
  • Everett, Rachel M.
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    Abstract

    What are the important determinants of consumer demand and how have they been changing over the last decade? Understanding these factors is crucial for evaluating the benefits and costs of government regulations, such as labeling, intended to influence consumer food choice and, ultimately, public health; for assessing the competitiveness of U.S. agricultral producers and food processors as they choose product designs and marketing strategies; and for assessing the impact of changing consumer demand for food on the agricultural and food sectors of the U.S. economy. The objectives of this paper are to make a significant contribution to demand analysis by basing this understanding on the use of uniquely comprehensive data sets and theoretical/modeling techniques that evaluate demand on the brand level; and to build a comprehensive understanding of the relative importance of different determinants of consumer food choices in the decade from 1993-2002. The overall goal is to analyze what is driving consumer choices and the implications of these drivers for food and nutrition policy in the United States. A particular focus is the relative importance of advertising, other company marketing strategies, nutritional quality, privately and publicly provided nutritional information, and consumer dietary concerns and knowledge in determining consumer demand for food products.

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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 22074.

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    Date of creation: 2003
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    Handle: RePEc:ags:aaea03:22074

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    Related research

    Keywords: Agribusiness; Consumer/Household Economics; Demand and Price Analysis;

    References

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    1. Steven Berry & James Levinsohn & Ariel Pakes, 1998. "Differentiated Products Demand Systems from a Combination of Micro and Macro Data: The New Car Market," NBER Working Papers 6481, National Bureau of Economic Research, Inc.
    2. Hausman, J.A., 1994. "Valuation of New Goods Under Perfect and Imperfect Competition," Working papers 94-21, Massachusetts Institute of Technology (MIT), Department of Economics.
    3. Ariel Pakes, 1986. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," NBER Working Papers 1340, National Bureau of Economic Research, Inc.
    4. Simon P. Anderson & Andre de Palma & Jacques-Francois Thisse, 1987. "Demand for Differentiated Products," Discussion Papers 726, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    5. Perloff, Jeffrey M & Salop, Steven C, 1985. "Equilibrium with Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 52(1), pages 107-20, January.
    6. Lin, Biing-Hwan & Frazao, Elizabeth & Guthrie, Joanne F., 1999. "Away-From-Home Foods Increasingly Important to Quality of American Diet," Agricultural Information Bulletins 33733, United States Department of Agriculture, Economic Research Service.
    7. Capps, Oral, Jr. & Schmitz, John D., 1991. "A Recognition Of Health And Nutrition Factors In Food Demand Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), July.
    8. Harris, James Michael, 1997. "The Impact Of Food Product Characteristics On Consumer Purchasing Behavior: The Case Of Frankfurters," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(1), February.
    9. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
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    Cited by:
    1. Turvey, Calum G. & Mojduszka, Eliza M., 2005. "The Precautionary Principle and the law of unintended consequences," Food Policy, Elsevier, vol. 30(2), pages 145-161, April.
    2. Golub, Alla A. & Binkley, James K., 2005. "Determinants of household choice of breakfast cereals: healthy or unhealthy?," 2005 Annual meeting, July 24-27, Providence, RI 19181, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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