Does Shelf-Labeling of Organic Foods Increase Sales? Results from a Natural Experiment
Can a simple point-of-purchase (POP) shelf-label increase sales of organic foods? We use a random-effects, random-coefficients model, including a time adjustment variable, to test data from a natural experiment in a hypermarket in Gävle, Sweden. Our model incorporates both product specific heterogeneity in the effects of labeling and consumer adjustment to the labels over time. The introduction of POP displays was found to lead to an increase in sales of organic coffee and olive oil, but a reduction in sales of organic flour. All targeted products became less price-sensitive. The results reveal that product specific heterogeneity has to be accounted for, and in some cases consumers adjusted to labeling over time.
|Date of creation:||26 May 2010|
|Contact details of provider:|| Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden|
Phone: 08-441 59 00
Fax: 08-441 59 29
Web page: http://www.ratio.se/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reicks, Marla & Splett, Patricia & Fishman, Amy, 1999. "Shelf Labeling Of Organic Foods: Customer Response In Minnesota Grocery Stores," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(2), July.
- Hassan, Daniel & Monier-Dilhan, Sylvette & Nichele, Veronique & Simioni, Michel, 2009. "Organic Food Consumption Patterns in France," 2009 Pre-Conference Workshop, August 16, 2009, Diet and Obesity: Role of Prices and Policies 53342, International Association of Agricultural Economists.
- I. Vermeir & W. Verbeke, 2004. "Sustainable Food Consumption: Exploring The Consumer Attitude – Behaviour Gap," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/268, Ghent University, Faculty of Economics and Business Administration.
- Julie A. Caswell & Eliza M. Mojduszka, 1996.
"Using Informational Labeling to Influence the Market for Quality in Food Products,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
- Caswell, Julie A. & Mojduszka, Eliza M., 1996. "Using Informational Labeling To Influence The Market For Quality In Food Products," Working Papers 25989, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
- Monier Sylvette & Hassan Daniel & Nichèle Véronique & Simioni Michel, 2009. "Organic Food Consumption Patterns," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(2), pages 1-25, December.
- Conner, David S., 2004. "Beyond Organic: Information Provision For Sustainable Agriculture In A Changing Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(01), March.
- Beretti Antoine & Grolleau Gilles & Mzoughi Naoufel, 2009. "How Cognitive Biases Can Affect the Performance of Eco-Labeling Schemes," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(2), pages 1-13, December.
- Bellows Anne C. & Onyango Benjamin & Diamond Adam & Hallman William K, 2008. "Understanding Consumer Interest in Organics: Production Values vs. Purchasing Behavior," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 6(1), pages 1-31, May.
When requesting a correction, please mention this item's handle: RePEc:hhs:ratioi:0152. 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: (Martin Korpi)
If references are entirely missing, you can add them using this form.