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Labeling Context and Reference Point Effects in Models of Food Attribute Demand

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  • Wuyang Hu
  • Wiktor L. Adamowicz
  • Michele M. Veeman

Abstract

There is considerable interest in the effect of labels on food product demand. Labeling statements may convey new information about attributes and place consumers in different choice contexts; consumers' assessment of information in labels may be affected by reference points. We examine labeling context relating to genetically modified (GM) food as a factor in the stochastic component of a random utility model and assess reference points over a set of observable characteristics of consumers. We find that labeling context effects are present, although relatively small, while reference dependence is a very important factor that varies over observable characteristics of the sampled consumers. Copyright 2006, Oxford University Press.

Suggested Citation

  • Wuyang Hu & Wiktor L. Adamowicz & Michele M. Veeman, 2006. "Labeling Context and Reference Point Effects in Models of Food Attribute Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1034-1049.
    • Handle: RePEc:oup:ajagec:v:88:y:2006:i:4:p:1034-1049
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2006.00914.x
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