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The Value to Consumers of Health Labeling Statements on Breakfast Foods and Cereals

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Author Info

  • Muth, Mary K.
  • Zhen, Chen
  • Taylor, Justin
  • Cates, Sheryl
  • Kosa, Katherine M.
  • Zorn, David
  • Choiniere, Conrad J.
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    Abstract

    Food manufacturers have an incentive to include nutrient content claims, health claims, or other types of labeling statements on foods if they believe that consumers will be willing to pay more for products with specific attributes. We estimated semi-log hedonic price regressions for five breakfast bar and cereal product categories using Nielsen ScanTrack scanner data for 2004 and found that labeling statements for these foods are often associated with substantial increases in consumer willingness to pay. The largest effects were associated with “carb-conscious” carbohydrate labeling (reflecting the time period of the data), followed by fat and sugar content labeling statements.

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    File URL: http://purl.umn.edu/50333
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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 50333.

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    Date of creation: 2009
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    Handle: RePEc:ags:iaae09:50333

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    Web page: http://www.iaae-agecon.org/
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    Related research

    Keywords: labeling statements; nutrient content claims; health claims; scanner data; willingness to pay; hedonic; Agricultural and Food Policy; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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    1. Maguire, Kelly B. & Owens, Nicole N. & Simon, Nathalie B., 2004. "The Price Premium for Organic Babyfood: A Hedonic Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
    2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    3. Bodo E. Steiner, 2004. "Australian wines in the British wine market: A hedonic price analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 287-307.
    4. Ranney, Christine K. & McNamara, Paul E., 2002. "Do Healthier Diets Cost More?," Working Papers 127305, Cornell University, Department of Applied Economics and Management.
    5. Mario F. Teisl & Nancy E. Bockstael & Alan Levy, 2001. "Measuring the Welfare Effects of Nutrition Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 133-149.
    6. Ranney, Christine K. & McNamara, Paul E., 2002. "Do Healthier Diets Cost More?," 2002 Annual meeting, July 28-31, Long Beach, CA 19588, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Shi, Hongqi & Price, David W., 1998. "Impacts Of Sociodemographic Variables On The Implicit Values Of Breakfast Cereal Characteristics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), July.
    8. Huffman, Sonya Kostova & Jensen, Helen H., 2004. "Demand For Enhanced Foods And The Value Of Nutritional Enhancements Of Food: The Case Of Margarines," 2004 Annual meeting, August 1-4, Denver, CO 20205, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Kim, Sung-Yong & Nayga, Rodolfo M., Jr. & Capps, Oral, Jr., 2000. "The Effect Of Food Label Use On Nutrient Intakes: An Endogenous Switching Regression Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(01), July.
    10. Nerlove, Marc, 1995. "Hedonic price functions and the measurement of preferences: The case of Swedish wine consumers," European Economic Review, Elsevier, vol. 39(9), pages 1697-1716, December.
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