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The Impact of Food Environment on Branded vs. Private Label Produce Choice

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  • Schroeter, Christiane
  • Cai, Xiaowei

Abstract

Over the past two decades, U.S. food retailers are providing more organic private label foods (PLs) which are directly competing with the National Brand (NB) products. From a policy perspective, an increased availability of high-quality PL products might provide consumers with a more affordable way to cover their produce consumption. Using a two-step Heckman selection model, we estimate the impact of purchase information, demographics, and food environment on the purchasing likelihood and expenditure shares of PL organic vs. conventional spinach. Results show that food context, most notably food availability, access, and adult obesity rate, significantly influences organic PL spinach choice.

Suggested Citation

  • Schroeter, Christiane & Cai, Xiaowei, 2012. "The Impact of Food Environment on Branded vs. Private Label Produce Choice," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123197, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaeafe:123197
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    File URL: http://purl.umn.edu/123197
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    References listed on IDEAS

    as
    1. Anders, Sven M. & Ahmad, Waseem, 2011. "Private Label and National Brand Pricing and Promotional Strategies in Health Differentiated Product Categories: Canadian Evidence," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114223, European Association of Agricultural Economists.
    2. Connor, John M & Peterson, Everett B, 1992. "Market-Structure Determinants of National Brand-Private Label Price Differences of Manufactured Food Products," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 157-171, June.
    3. Schroeter, Christiane & House, Lisa & Lorence, Argelia, 2007. "Fruit and Vegetable Consumption among College Students in Arkansas and Florida: Food Culture vs. Health Knowledge," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 10(03).
    4. Jayson L. Lusk & Kathleen Brooks, 2010. "Who Participates in Household Scanning Panels?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 226-240.
    5. Dimitri, Carolyn & Greene, Catherine R., 2002. "Recent Growth Patterns In The U.S. Organic Foods Market," Agricultural Information Bulletins 33715, United States Department of Agriculture, Economic Research Service.
    6. Heckman, James J, 1990. "Varieties of Selection Bias," American Economic Review, American Economic Association, vol. 80(2), pages 313-318, May.
    7. Dettmann, Rachael L. & Dimitri, Carolyn, 2007. "Organic Consumers: A Demographic Portrayal of Organic Vegetable Consumption within the United States," 105th Seminar, March 8-10, 2007, Bologna, Italy 7899, European Association of Agricultural Economists.
    8. Zhuang, Yan & Dimitri, Carolyn & Jaenicke, Edward C., 2009. "Consumer Choice of Private Label or National Brand: The case of organic and non-organic milk," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49207, Agricultural and Applied Economics Association.
    9. Lin, Biing-Hwan & Reed, Jane & Lucier, Gary, 2004. "U.S. Fruit and Vegetable Consumption: Who, What, Where, and How Much," Agricultural Information Bulletins 33699, United States Department of Agriculture, Economic Research Service.
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    More about this item

    Keywords

    Brand Loyalty; Quality; Private label; Food Environment; Food Consumption/Nutrition/Food Safety; I18; D12; R23;

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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