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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.

Suggested Citation

  • Beach, Robert H. & Zhen, Chen, 2009. "Consumer Purchasing Behavior in Response to Media Coverage of Avian Influenza," 2009 Conference, August 16-22, 2009, Beijing, China 51742, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51742
    DOI: 10.22004/ag.econ.51742
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    Cited by:

    1. 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.
    2. Lijia Mo, 2013. "Impact of food safety information on US poultry demand," Applied Economics, Taylor & Francis Journals, vol. 45(9), pages 1121-1131, March.
    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.
    4. Siettou, Christina, 2016. "Avian Influenza: outbreaks and the impact on UK consumer demand for poultry," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236328, Agricultural Economics Society.
    5. Rommel, J. & Neuenfeldt, S. & Odening, M., 2010. "Markteffekte medienwirksamer Lebensmittelskandale – eine Ergebnisstudie," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 45, March.
    6. 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.

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    More about this item

    Keywords

    Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Marketing;
    All these keywords.

    JEL classification:

    • 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; Animal Welfare Policy

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