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Scales or Stars? Consumer Preferences for Food Quality Signals

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  • Shang, Wenjing
  • Hooker, Neal H.

Abstract

Food quality has become an increasing concern in the public health arena over recent years. Food manufactures and processors hygiene performance plays a crucial part in producing safer food products. While there are inspections assessing plants'’ hygiene performance, there is little direct communication of performance measures to consumers. This paper uses survey data to determine consumer preferences among a set of four alternative food labels which report such plant level performance scores. How much information, as well as the format they most prefer, is compared using a range of econometric models. Results show that consumers prefer number scheme, larger volume of quality information and are generally consistent with their preference. These findings are mostly continuous across different types of consumers.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21237.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21237

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Keywords: Consumer/Household Economics;

References

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  1. Chernev, Alexander, 2003. " When More Is Less and Less Is More: The Role of Ideal Point Availability and Assortment in Consumer Choice," Journal of Consumer Research, University of Chicago Press, vol. 30(2), pages 170-83, September.
  2. Ahluwalia, Rohini, 2000. " Examination of Psychological Processes Underlying Resistance to Persuasion," Journal of Consumer Research, University of Chicago Press, vol. 27(2), pages 217-32, September.
  3. Julie A. Caswell & Jaana K. Kleinschmit v. L., 1997. "Using Benefit-Cost Criteria for Settling Federalism Disputes: An Application to Food Safety Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 24-38.
  4. Painton, Scott & Gentry, James W, 1985. " Another Look at the Impact of Information Presentation Format," Journal of Consumer Research, University of Chicago Press, vol. 12(2), pages 240-44, September.
  5. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
  6. Diehl, Kristin & Kornish, Laura J & Lynch, John G, Jr, 2003. " Smart Agents: When Lower Search Costs for Quality Information Increase Price Sensitivity," Journal of Consumer Research, University of Chicago Press, vol. 30(1), pages 56-71, June.
  7. Hooker, Neal H. & Teratanavat, Ratapol P. & Salin, Victoria, 2005. "Crisis management effectiveness indicators for US meat and poultry recalls," Food Policy, Elsevier, vol. 30(1), pages 63-80, February.
  8. Alba, Joseph W & Hutchinson, J Wesley, 2000. " Knowledge Calibration: What Consumers Know and What They Think They Know," Journal of Consumer Research, University of Chicago Press, vol. 27(2), pages 123-56, September.
  9. Ariely, Dan, 2000. " Controlling the Information Flow: Effects on Consumers' Decision Making and Preferences," Journal of Consumer Research, University of Chicago Press, vol. 27(2), pages 233-48, September.
  10. Scammon, Debra L, 1977. " "Information Load" and Consumers," Journal of Consumer Research, University of Chicago Press, vol. 4(3), pages 148-55, December.
  11. Tsiros, Michael & Mittal, Vikas, 2000. " Regret: A Model of Its Antecedents and Consequences in Consumer Decision Making," Journal of Consumer Research, University of Chicago Press, vol. 26(4), pages 401-17, March.
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