Consumer Purchasing Behavior in Response to Media Coverage of Avian Influenza
AbstractConsumer 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 InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51742.
Date of creation: Jun 2009
Date of revision:
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;
Other versions of this item:
- Beach, Robert H. & Zhen, Chen, 2008. "Consumer Purchasing Behavior in Response to Media Coverage of Avian Influenza," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6750, Southern Agricultural Economics Association.
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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