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Determinants of food demand and the experienced taste effect of healthy labels – An experiment on potato chips and bread

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  • Thunström, Linda
  • Nordström, Jonas

Abstract

This paper examines the importance of taste and health in food demand, as well as the effect on consumers’ experienced taste of the non-intrinsic value of healthy labels. Our analysis is based on taste experiments and Vickrey second price auctions on potato chips and bread. Our findings imply a large positive effect on demand, as measured by willingness to pay, for potato chips from higher taste scores. The estimated effect from taste on bread demand is smaller, but may be sizeable for subgroups of consumers. Our evidence suggests that demand for chips and bread may be positively affected by the healthy label, but the effect is not statistically significant when one control for taste. Finally, we find that consumers’ experienced taste of a food is unaffected by the food carrying a healthy label.

Suggested Citation

  • Thunström, Linda & Nordström, Jonas, 2015. "Determinants of food demand and the experienced taste effect of healthy labels – An experiment on potato chips and bread," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 56(C), pages 13-20.
    • Handle: RePEc:eee:soceco:v:56:y:2015:i:c:p:13-20
    DOI: 10.1016/j.socec.2015.02.004
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    1. Shogren, Jason F. & Cho, Sungwon & Koo, Cannon & List, John & Park, Changwon & Polo, Pablo & Wilhelmi, Robert, 2001. "Auction mechanisms and the measurement of WTP and WTA," Resource and Energy Economics, Elsevier, vol. 23(2), pages 97-109, April.
    2. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    3. Levin, Irwin P & Gaeth, Gary J, 1988. "How Consumers Are Affected by the Framing of Attribute Information before and after Consuming the Product," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(3), pages 374-378, December.
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    Cited by:

    1. Mohammed H. Alemu & Søren Bøye Olsen & Suzanne E. Vedel & John Kinyuru & Kennedy O. Pambo, 2016. "Integrating sensory evaluations in incentivized discrete choice experiments to assess consumer demand for cricket flour buns in Kenya," IFRO Working Paper 2016/02, University of Copenhagen, Department of Food and Resource Economics.
    2. Chloe S McCallum & Simone Cerroni & Daniel Derbyshire & W George Hutchinson & Rodolfo M Nayga, 2022. "Consumers’ responses to food fraud risks: an economic experiment [Food fraud and consumers’ choices in the wake of the horsemeat scandal]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(4), pages 942-969.
    3. Claudia Symmank, 2019. "Extrinsic and intrinsic food product attributes in consumer and sensory research: literature review and quantification of the findings," Management Review Quarterly, Springer, vol. 69(1), pages 39-74, February.

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