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The Value to Consumers of Health Labeling Statements on Breakfast Foods and Cereals

  • Muth, Mary K.
  • Zhen, Chen
  • Taylor, Justin
  • Cates, Sheryl
  • Kosa, Katherine M.
  • Zorn, David
  • Choiniere, Conrad J.
Registered author(s):

    Food manufacturers have an incentive to include nutrient content claims, health claims, or other types of labeling statements on foods if they believe that consumers will be willing to pay more for products with specific attributes. We estimated semi-log hedonic price regressions for five breakfast bar and cereal product categories using Nielsen ScanTrack scanner data for 2004 and found that labeling statements for these foods are often associated with substantial increases in consumer willingness to pay. The largest effects were associated with “carb-conscious” carbohydrate labeling (reflecting the time period of the data), followed by fat and sugar content labeling statements.

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    File URL: http://purl.umn.edu/50333
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    Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 50333.

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    Date of creation: 2009
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    Handle: RePEc:ags:iaae09:50333
    Contact details of provider: Web page: http://www.iaae-agecon.org/
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    1. Nerlove, Marc, 1995. "Hedonic price functions and the measurement of preferences: The case of Swedish wine consumers," European Economic Review, Elsevier, vol. 39(9), pages 1697-1716, December.
    2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    3. Ranney, Christine K. & McNamara, Paul E., 2002. "Do Healthier Diets Cost More?," 2002 Annual meeting, July 28-31, Long Beach, CA 19588, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Mario F. Teisl & Nancy E. Bockstael & Alan Levy, 2001. "Measuring the Welfare Effects of Nutrition Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 133-149.
    5. Huffman, Sonya Kostova & Jensen, Helen H., 2004. "Demand For Enhanced Foods And The Value Of Nutritional Enhancements Of Food: The Case Of Margarines," 2004 Annual meeting, August 1-4, Denver, CO 20205, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Ranney, Christine K. & McNamara, Paul E., 2002. "Do Healthier Diets Cost More?," Working Papers 127305, Cornell University, Department of Applied Economics and Management.
    7. Bodo E. Steiner, 2004. "Australian wines in the British wine market: A hedonic price analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 287-307.
    8. Shi, Hongqi & Price, David W., 1998. "Impacts Of Sociodemographic Variables On The Implicit Values Of Breakfast Cereal Characteristics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), July.
    9. Maguire, Kelly B. & Owens, Nicole N. & Simon, Nathalie B., 2004. "The Price Premium for Organic Babyfood: A Hedonic Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
    10. Kim, Sung-Yong & Nayga, Rodolfo M., Jr. & Capps, Oral, Jr., 2000. "The Effect Of Food Label Use On Nutrient Intakes: An Endogenous Switching Regression Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(01), July.
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