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Economic and health effects of fruit and vegetable advertising: Evidence from lab experiments

Author

Listed:
  • Liaukonyte, Jura
  • Rickard, Bradley J.
  • Kaiser, Harry M.
  • Okrent, Abigail M.
  • Richards, Timothy J.

Abstract

This study investigates consumer response to various types of advertising for fruits and vegetables—a food category which health officials uniformly agree is significantly under-consumed in the United States. Using an adult, non-student subject pool of 271 participants in an economic experiment, consumers’ response to different types of fruit and vegetable advertising is measured empirically. This study finds that broad-based advertising, which is generic advertising for the entire fruit and vegetable category, increases consumer willingness to pay by an average of 24.6%. The simulation model shows that broad-based advertising for fruits and vegetables, either alone or as a hybrid with individual commodity-specific campaigns (e.g., apple advertising), would reduce average caloric intake per person by approximately 1800kcal per year. The results of this study may contribute to new public policy initiatives that aim to reduce diet-related illnesses and obesity, which have become increasingly prevalent in the United States.

Suggested Citation

  • Liaukonyte, Jura & Rickard, Bradley J. & Kaiser, Harry M. & Okrent, Abigail M. & Richards, Timothy J., 2012. "Economic and health effects of fruit and vegetable advertising: Evidence from lab experiments," Food Policy, Elsevier, vol. 37(5), pages 543-553.
  • Handle: RePEc:eee:jfpoli:v:37:y:2012:i:5:p:543-553
    DOI: 10.1016/j.foodpol.2012.05.006
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    References listed on IDEAS

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    1. repec:aph:ajpbhl:1990:80:6:738-740_8 is not listed on IDEAS
    2. David M. Cutler & Edward L. Glaeser & Jesse M. Shapiro, 2003. "Why Have Americans Become More Obese?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 93-118, Summer.
    3. Bradley J. Rickard & Jura Liaukonyte & Harry M. Kaiser & Timothy J. Richards, 2011. "Consumer Response to Commodity-Specific and Broad-Based Promotion Programs for Fruits and Vegetables," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(5), pages 1312-1327.
    4. Okrent, Abigail M. & Alston, Julian M., 2010. "The Demand for Food in the United States: A Review of the Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61674, Agricultural and Applied Economics Association.
    5. Carpio, Carlos E. & Isengildina-Massa, Olga, 2010. "To Fund or Not to Fund: Assessment of the Potential Impact of a Regional Promotion Campaign," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(2), August.
    6. Friedman,Daniel & Sunder,Shyam, 1994. "Experimental Methods," Cambridge Books, Cambridge University Press, number 9780521456821, April.
    7. Harry M. Kaiser & Donald J. Liu & Ted Consignado, 2003. "An economic analysis of California raisin export promotion," Agribusiness, John Wiley & Sons, Ltd., vol. 19(2), pages 189-201.
    8. Capacci, Sara & Mazzocchi, Mario, 2011. "Five-a-day, a price to pay: An evaluation of the UK program impact accounting for market forces," Journal of Health Economics, Elsevier, vol. 30(1), pages 87-98, January.
    9. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908.
    10. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
    11. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation of Food Demand Nutrient Elasticities from household Survey Data," Technical Bulletins 184370, United States Department of Agriculture, Economic Research Service.
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    Citations

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    Cited by:

    1. Jaqueline Garcia-Yi, 2014. "Market-Based Instruments for the Conservation of Underutilized Crops: In-Store Experimental Auction of Native Chili Products in Bolivia," Sustainability, MDPI, Open Access Journal, vol. 6(11), pages 1-19, November.
    2. Rusmevichientong, Pimbucha & Streletskaya, Nadia A. & Amatyakul, Wansopin & Kaiser, Harry M., 2014. "The impact of food advertisements on changing eating behaviors: An experimental study," Food Policy, Elsevier, vol. 44(C), pages 59-67.
    3. Marette, Stéphan & Martin, Christophe & Bouillot, Fabienne, 2017. "Two experiments in one: How accounting for context matters for welfare estimates," Food Policy, Elsevier, vol. 66(C), pages 12-24.

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