IDEAS home Printed from https://ideas.repec.org/a/pal/easeco/v46y2020i4d10.1057_s41302-020-00175-3.html
   My bibliography  Save this article

Consumer Perception of Food Expiration Labels: “Sell By” Versus “Expires On”

Author

Listed:
  • Onur Sapci

    () (University of Toledo)

  • Ayse Sapci

    () (Utah State University)

Abstract

We design and conduct an experimental auction to investigate the effects of expiration labeling on consumers’ willingness to pay for food items. The experimental auction examines whether there is a valuation difference between “sell by” and “expires on” food labeling. We find that “sell by” date is perceived as an expiry date and consumers are willing to pay a premium for more clear information. In particular, “expires on” information about food expiry date has a 27% willingness to pay premium over “sell by” type labeling, showing that consumers prefer to avoid uncertainty in expiration information.

Suggested Citation

  • Onur Sapci & Ayse Sapci, 2020. "Consumer Perception of Food Expiration Labels: “Sell By” Versus “Expires On”," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(4), pages 673-689, October.
  • Handle: RePEc:pal:easeco:v:46:y:2020:i:4:d:10.1057_s41302-020-00175-3
    DOI: 10.1057/s41302-020-00175-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41302-020-00175-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shogren, Jason F. & Margolis, Michael & Koo, Cannon & List, John A., 2001. "A random nth-price auction," Journal of Economic Behavior & Organization, Elsevier, vol. 46(4), pages 409-421, December.
    2. Loomis, John & Ekstrand, Earl, 1998. "Alternative approaches for incorporating respondent uncertainty when estimating willingness to pay: the case of the Mexican spotted owl," Ecological Economics, Elsevier, vol. 27(1), pages 29-41, October.
    3. Batte, Marvin T. & Hooker, Neal H. & Haab, Timothy C. & Beaverson, Jeremy, 2007. "Putting their money where their mouths are: Consumer willingness to pay for multi-ingredient, processed organic food products," Food Policy, Elsevier, vol. 32(2), pages 145-159, April.
    4. Rihn, Alicia & Wei, Xuan & Khachatryan, Hayk, 2019. "Text vs. logo: Does eco-label format influence consumers’ visual attention and willingness-to-pay for fruit plants? An experimental auction approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 82(C).
    5. Onur Sapci & Aaron Wood & Jason Shogren & Jolene Green, 2016. "Can verifiable information cut through the noise about climate protection? An experimental auction test," Climatic Change, Springer, vol. 134(1), pages 87-99, January.
    6. Wei, Xuan & Khachatryan, Hayk & Rihn, Alicia, 2020. "Consumer Preferences for Labels Disclosing the Use of Neonicotinoid Pesticides: Evidence from Experimental Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 45(3), September.
    7. Jason F. Shogren & John A. Fox & Dermot J. Hayes & Jutta Roosen, 1999. "Observed Choices for Food Safety in Retail, Survey, and Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1192-1199.
    8. James Berry & Greg Fischer & Raymond Guiteras, 2020. "Eliciting and Utilizing Willingness to Pay: Evidence from Field Trials in Northern Ghana," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1436-1473.
    9. van Ravenswaay, Eileen O. & Blend, Jeffrey R., 1999. "Consumer Demand For Ecolabeled Apples: Results From Econometric Estimation," Staff Paper Series 11673, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Fan, Xiaoli & Gómez, Miguel I. & Coles, Phillip S., 2019. "Willingness to Pay, Quality Perception, and Local Foods: The Case of Broccoli," Agricultural and Resource Economics Review, Cambridge University Press, vol. 48(3), pages 414-432, December.
    11. Martin Achtnicht, 2012. "German car buyers’ willingness to pay to reduce CO 2 emissions," Climatic Change, Springer, vol. 113(3), pages 679-697, August.
    12. McFadden, Jonathan R. & Huffman, Wallace E., 2017. "Consumer valuation of information about food safety achieved using biotechnology: Evidence from new potato products," Food Policy, Elsevier, vol. 69(C), pages 82-96.
    13. Matthew Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2007. "Effects And Value Of Verifiable Information In A Controversial Market: Evidence From Lab Auctions Of Genetically Modified Food," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 409-432, July.
    14. Frode Alfnes, 2009. "Valuing product attributes in Vickrey auctions when market substitutes are available," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(2), pages 133-149, June.
    15. Botzen, W.J.W. & van den Bergh, J.C.J.M., 2012. "Risk attitudes to low-probability climate change risks: WTP for flood insurance," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 151-166.
    16. Aguilar, Francisco X. & Vlosky, Richard P., 2007. "Consumer willingness to pay price premiums for environmentally certified wood products in the U.S," Forest Policy and Economics, Elsevier, vol. 9(8), pages 1100-1112, May.
    17. Wesley Nimon & John Beghin, 1999. "Are Eco-Labels Valuable? Evidence From the Apparel Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 801-811.
    18. Kotchen, Matthew J. & Boyle, Kevin J. & Leiserowitz, Anthony A., 2013. "Willingness-to-pay and policy-instrument choice for climate-change policy in the United States," Energy Policy, Elsevier, vol. 55(C), pages 617-625.
    19. Wallace E. Huffman & Matthew Rousu & Jason F. Shogren & Abebayehu Tegene, 2004. "Who Do Consumers Trust for Information: The Case of Genetically Modified Foods?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1222-1229.
    20. Johnston, Robert J. & Roheim, Cathy A. & Donath, Holger & Asche, Frank, 2001. "Measuring Consumer Preferences For Ecolabeled Seafood: An International Comparison," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-20, July.
    21. Fortin, Corey & Goodwin, Harold L., Jr. & Thomsen, Michael R., 2009. "Consumer Attitudes toward Freshness Indicators on Perishable Food Products," Journal of Food Distribution Research, Food Distribution Research Society, vol. 40(3), pages 1-15, November.
    22. Johannes Diederich & Timo Goeschl, 2014. "Willingness to Pay for Voluntary Climate Action and Its Determinants: Field-Experimental Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(3), pages 405-429, March.
    23. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
    24. Richard C. Bishop & Kevin J. Boyle, 2019. "Reliability and Validity in Nonmarket Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(2), pages 559-582, February.
    25. Elizabeth Hoffman & Dale J. Menkhaus & Dipankar Chakravarti & Ray A. Field & Glen D. Whipple, 1993. "Using Laboratory Experimental Auctions in Marketing Research: A Case Study of New Packaging for Fresh Beef," Marketing Science, INFORMS, vol. 12(3), pages 318-338.
    26. Chian Jones Ritten & Linda Thunström & Mariah Ehmke & Jenny Beiermann & Donald McLeod, 2019. "International honey laundering and consumer willingness to pay a premium for local honey: an experimental study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), pages 726-741, October.
    27. Wang, Ruitong & Liaukonyte, Jura & Kaiser, Harry M., 2018. "Does Advertising Content Matter? Impacts of Healthy Eating and Anti-Obesity Advertising on Willingness to Pay by Consumer Body Mass Index," Agricultural and Resource Economics Review, Cambridge University Press, vol. 47(1), pages 1-31, April.
    28. Subroy, Vandana & Gunawardena, Asha & Polyakov, Maksym & Pandit, Ram & Pannell, David J., 2019. "The worth of wildlife: A meta-analysis of global non-market values of threatened species," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Food labeling; Expiration dates; Experimental auction; Uncertainty;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:easeco:v:46:y:2020:i:4:d:10.1057_s41302-020-00175-3. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.palgrave-journals.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.