In this paper we investigate how consumers respond to the UK food label Traffic Light System (TLS). Employing a Choice Experiment (CE) we find that consumers appear to behave in a manner consistent with our expectations regarding the impact of the TLS nutrition label. In particular, we identify a strong preference on the part of respondents to avoid a basket of goods containing a mix of foods with any "Red" lights. We have also found that consumers have a hierarchy of importance in terms of perception of the various nutrients examined and clear behavioural differences associated with particular socio-economic characteristics confirming early research on the use of nutrition labels. Overall our results indicate significant heterogeneity in the attitudes and responses of consumers to food labels within and across socioeconomic strata in terms of the magnitude of WTP.
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Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number
0915.
Length: Date of creation: Oct 2009 Date of revision: Handle: RePEc:ukc:ukcedp:0915
Contact details of provider: Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP Phone: +44 (0)1227 764000 Fax: +44 (0)1227 827850 Web page: http://www.ukc.ac.uk/economics/
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Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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