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Would consumers value food-away-from-home products with nutritional labels?

Author

Listed:
  • Andreas C. Drichoutis

    (Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Athens, Greece)

  • Panagiotis Lazaridis

    (Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Athens, Greece)

  • Rodolfo M. Nayga

    (Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR)

Abstract

The authors examine consumers' valuation for food-away-from-home products with and without nutritional labels using experimental auctions. They presented subjects with three different nutritional information schemes: a European Union type label, a United States type label, and a traffic-light colored information label. Furthermore, they examined the role of reference prices (i.e., the real market prices of the products) within the context of experimental auctions. Using well-known products, our results indicate that subjects bid more for the products with nutritional labels. However, among products with nutritional information, subjects' willingness to pay values differ depending on the type of nutritional label on the product. In addition, the authors find evidence that inclusion of reference prices leads to higher bids. [JEL classifications: D12, C23]. © 2009 Wiley Periodicals, Inc.

Suggested Citation

  • Andreas C. Drichoutis & Panagiotis Lazaridis & Rodolfo M. Nayga, 2009. "Would consumers value food-away-from-home products with nutritional labels?," Agribusiness, John Wiley & Sons, Ltd., vol. 25(4), pages 550-575.
  • Handle: RePEc:wly:agribz:v:25:y:2009:i:4:p:550-575 DOI: 10.1002/agr.20224
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    References listed on IDEAS

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    1. repec:gam:jsusta:v:9:y:2017:i:8:p:1340-:d:106466 is not listed on IDEAS
    2. Hoefkens, Christine & Veettil, Prakashan Chellattan & Van Huylenbroeck, Guido & Van Camp, John & Verbeke, Wim, 2012. "What nutrition label to use in a catering environment? A discrete choice experiment," Food Policy, Elsevier, vol. 37(6), pages 741-750.
    3. Hellyer, Nicole Elizabeth & Fraser, Iain & Haddock-Fraser, Janet, 2012. "Food choice, health information and functional ingredients: An experimental auction employing bread," Food Policy, Elsevier, vol. 37(3), pages 232-245.
    4. Goddard, Ellen W. & Drescher, Larissa S. & Fernando, Jeewani, 2012. "The potential impact of the Health Check™ on diet quality of food away from home purchases," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123523, Agricultural and Applied Economics Association.
    5. Todd M. Schmit & Bradley J. Rickard & John Taber, 2013. "Consumer Valuation of Environmentally Friendly Production Practices in Wines, considering Asymmetric Information and Sensory Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 483-504, June.
    6. Rickard, Bradley J. & Schmit, Todd M. & Gomez, Miguel I. & Lu, Hao, 2011. "Does the Name Matter? Developing Brands for Patented Fruit Varieties," Working Papers 126603, Cornell University, Department of Applied Economics and Management.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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