IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Information, Advertising and Health Choices: A Study of the Cereal Market

Listed author(s):
  • Pauline M. Ippolito
  • Alan D. Mathios

This article examines the effects of information on consumer and producer behavior by focusing on the ready-to-eat cereal market during a period in which information developed about the health benefits of fiber cereal consumption. Although cereal producers were initially prohibited from advertising these health benefits, the regulatory ban against producer advertising was lifted during the period we study. Our results indicate that consumers changed their behavior once informed of the health benefits and that advertising was an important source of information once the ban was lifted. Producer health claims about fiber also led to significant product innovation and did not cause adverse effects in other health dimensions of cereal consumption. Government and general information sources had limited impact on fiber cereal choices in the years prior to the advertising. Analysis of individual food consumption data indicates that theories of information acquisition are important in explaining who responds most quickly to new information; household and individual characteristics that reflect costs of acquiring information, ability to process information, and valuation of health are all important determinants of fiber cereal choices. Moreover, the evidence suggests that advertising reduced the differences across consumers by lowering the costs of acquiring information for broad segments of the population. In contrast, the information processing advantages due to education were not reduced by advertising.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://links.jstor.org/sici?sici=0741-6261%28199023%2921%3A3%3C459%3AIAAHCA%3E2.0.CO%3B2-L&origin=repec
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 21 (1990)
Issue (Month): 3 (Autumn)
Pages: 459-480

as
in new window

Handle: RePEc:rje:randje:v:21:y:1990:i:autumn:p:459-480
Contact details of provider: Web page: http://www.rje.org

Order Information: Web: https://editorialexpress.com/cgi-bin/rje_online.cgi

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:21:y:1990:i:autumn:p:459-480. 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: ()

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.