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What to Choose? The Value of Label Claims to Fresh Produce Consumers

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  • Bond, Craig A.
  • Thilmany, Dawn D.
  • Bond, Jennifer Keeling

Abstract

We examine consumer response to label information using a hypothetical choice experiment on red leaf lettuce attribute bundles. Using survey responses, several mixed logit models with random parameters and varying correlation assumptions are estimated that provide estimated of marginal utilities ( and marginal values) of various attributes related to general health claims, specific nutrition and health claims, certification logos, and certified organic claims (relative to the conventional reference group) for this fresh produce product. We find that consumers distinguish between labeling claims, and that attribute bundling effects are present, suggesting the results from main effects (linear) models may be misleading. Furthermore, the results imply that consumers may value both privately and publicly appropriable benefits of alternative technologies, such as organic production.

Suggested Citation

  • Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2008. "What to Choose? The Value of Label Claims to Fresh Produce Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-26.
  • Handle: RePEc:ags:jlaare:46559
    DOI: 10.22004/ag.econ.46559
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    2. Onken, Kathryn A. & Bernard, John C. & Pesek, John D., Jr., 2011. "Comparing Willingness to Pay for Organic, Natural, Locally Grown, and State Marketing Program Promoted Foods in the Mid-Atlantic Region," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-15, April.
    3. Becca B.R. Jablonski & Allison Bauman & Dawn Thilmany, 2021. "Local Food Market Orientation and Labor Intensity," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 916-934, September.
    4. Asche, Frank & Larsen, Thomas A. & Smith, Martin D. & Sogn-Grundvåg, Geir & Young, James A., 2015. "Pricing of eco-labels with retailer heterogeneity," Food Policy, Elsevier, vol. 53(C), pages 82-93.
    5. Balcombe, Kelvin & Fraser, Iain & Falco, Salvatore Di, 2010. "Traffic lights and food choice: A choice experiment examining the relationship between nutritional food labels and price," Food Policy, Elsevier, vol. 35(3), pages 211-220, June.
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    7. Durham Catherine A. & Roheim Cathy A. & Pardoe Iain, 2012. "Picking Apples: Can Multi-Attribute Ecolabels Compete?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-28, October.
    8. Jesús Barreiro‐Hurle & Azucena Gracia & Tiziana De‐Magistris, 2010. "The Effects of Multiple Health and Nutrition Labels on Consumer Food Choices," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 426-443, June.
    9. Shi, Wei & Halstead, John & Huang, Ju-Chin, 2016. "Consumers’ Willingness to Pay for Locally Grown Produce: Comparison of New Hampshire and Massachusetts Results," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236109, Agricultural and Applied Economics Association.
    10. Rebecca C. A. Tobi & Francesca Harris & Ritu Rana & Kerry A. Brown & Matthew Quaife & Rosemary Green, 2019. "Sustainable Diet Dimensions. Comparing Consumer Preference for Nutrition, Environmental and Social Responsibility Food Labelling: A Systematic Review," Sustainability, MDPI, vol. 11(23), pages 1-22, November.
    11. Shi, Wei & Halstead, John M. & Huang, Ju-Chin, 2017. "Market Experience Matters: Status Quo Effect in the Economic Valuation of Consumer Preferences for Local Produce," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258290, Agricultural and Applied Economics Association.

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