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Do Consumers Really Care about Genetically Modified (GM) Food Label? What Do We Know? What Else Should We Know?

Listed author(s):
  • Chen, Xi
  • Zhou, Bin
  • Zhong, Funing
Registered author(s):

This paper employs household survey data to examine whether GM food labeling has an impact on consumers’ vegetable oil purchasing decision. Direct variables indicating consumers’ response to label regulation are employed to test labeling effect. We find that supermarket customers who concern GM label or GM material have respectively 4.1-7.5 percent and 9.8-12.3 percent lower probability of buying GM oil. Meanwhile, their probability of switching from GM oil to non-GM oil after labeling enforcement is higher by 10.5 percent and 12.7 percent respectively. The empirical results support our previous finding that in the short run the market share of GM oil decreased significantly by a small amount as a result of label enforcement. To capture a comprehensive picture of GM food labeling and the market trend in the long run, major concerns and needs for the future are discussed, including understanding the discrepancy between stated preferences and revealed preferences, influencing factors for aggregate market share incorporating other market channels, real decision body for food consumption, and other major marketing strategies.

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Article provided by Economics and Econometrics Society in its journal Journal of Economics and Econometrics.

Volume (Year): 53 (2010)
Issue (Month): 2 ()
Pages: 32-56

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Handle: RePEc:eei:journl:v:53:y:2010:i:2:p:32-56
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