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Consumer Purchasing Behavior in Response to Media Coverage of Avian Influenza

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  • Beach, Robert H.
  • Zhen, Chen

Abstract

Consumer concerns regarding food safety can have substantial impacts on their consumption patterns. Thus, understanding consumer response to food safety information is important for quantifying consumer response to food safety events, predicting market impacts, and developing appropriate risk communication strategies. Flexible demand systems have gained much popularity in analyzing effects of food safety outbreaks on consumer demand because of their ability to capture interactions between the demand for substitutable and complementary goods. Using Italian scanner data on meat sales, we show the economic importance of accounting for the impact of avian flu outbreaks on group expenditures for meats in a dynamic Almost Ideal Demand System (AIDS) specification with intertemporally optimizing consumers. Failure to account for this form of expenditure endogeneity results in a substantial understatement of the food safety effect.

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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 51742.

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Date of creation: Jun 2009
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Handle: RePEc:ags:iaae09:51742

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Keywords: Avian influenza; food safety; Italy; meat demand; media index; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Marketing; Q11; Q18;

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  7. Beach, Robert H. & Kuchler, Fred & Leibtag, Ephraim S. & Zhen, Chen, 2008. "The Effects of Avian Influenza News on Consumer Purchasing Behavior: A Case Study of Italian Consumers' Retail Purchases," Economic Research Report 56477, United States Department of Agriculture, Economic Research Service.
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Cited by:
  1. Mu, Jianhong H. & McCarl, Bruce A., 2010. "Does Negative Information Always Hurt Meat Demand? An Examination of Avian Influenza Information Impacts on U.S," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116450, European Association of Agricultural Economists & Agricultural and Applied Economics Association.
  2. Mu, Jianhong E. & McCarl, Bruce A. & Bessler, David A., 2013. "Impacts of BSE and Avian Influenza on U.S. Meat Demand," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150392, Agricultural and Applied Economics Association.
  3. Mu, Jianhong H. & McCarl, Bruce A., 2010. "Avian Influenza outbreaks and poultry production mitigation strategies in the U.S," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116452, European Association of Agricultural Economists & Agricultural and Applied Economics Association.

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