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Who Do Consumers Trust for Information? The Case of Genetically Modified Foods

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  • Huffman, Wallace
  • Rousu, Matthew
  • Shogren, Jason F.
  • Tegene, Abebayehu

Abstract

To be effective, groups that disseminate information need the trust of consumers. When multiple groups provide conflicting information on a new product or process like GM-foods, consumers place different levels of trust in the various sources. We present a model of the contributions of personal and social capital of a consumer, and test a multinominal logit model of relative trust in five different sources of information on genetic modification using a unique data set. Among our findings is that an increase in consumer's education lowers the probability of trusting information from government, private industry/organizations, consumer and environmental groups, or other sources relative to information from an independent, third-party source, and conservative religious affiliation reduces the odds of a consumer trusting private industry/organization and increases the odds of trusting nobody relative to an independent, third-party source.

Suggested Citation

  • Huffman, Wallace & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2002. "Who Do Consumers Trust for Information? The Case of Genetically Modified Foods," Staff General Research Papers Archive 10061, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:10061
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    References listed on IDEAS

    as
    1. Rousu, Matthew & Huffman, Wallace & Shogren, Jason F. & Tegene, Abebayehu, 2002. "The Value of Verifiable Information in a Controversial Market: Evidence from Lab Auctions of Genetically Modified Food," Staff General Research Papers Archive 10009, Iowa State University, Department of Economics.
    2. Jerry A. Hausman, 1996. "Valuation of New Goods under Perfect and Imperfect Competition," NBER Chapters,in: The Economics of New Goods, pages 207-248 National Bureau of Economic Research, Inc.
    3. Timothy F. Bresnahan & Robert J. Gordon, 1996. "The Economics of New Goods," NBER Books, National Bureau of Economic Research, Inc, number bres96-1.
    4. Huffman, Wallace E. & Shogren, Jason F. & Rousu, Matthew & Tegene, Abe, 2001. "The Value of Consumers of Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions," ISU General Staff Papers 200112010800001346, Iowa State University, Department of Economics.
    5. Huffman, Wallace E. & Tegene, Abebayehu, 2002. "Public Acceptance of and Benefits from Agricultural Biotechnology: A Key Role for Verifiable Information," Staff General Research Papers Archive 10430, Iowa State University, Department of Economics.
    6. Kinsey, Jean D. & Wolfson, Paul J. & Katsaras, Nikolaos & Senauer, Benjamin, 2001. "Data Mining: A Segmentation Analysis Of U.S. Grocery Shoppers," Working Papers 14335, University of Minnesota, The Food Industry Center.
    7. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    8. Wallace E. Huffman, 1977. "Allocative Efficiency: The Role of Human Capital," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 59-79.
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    Citations

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    Cited by:

    1. Liu, Pengcheng, 2009. "Consumers’ WTA for GM rice cookie: an experiment study in China," 2009 Conference, August 16-22, 2009, Beijing, China 51771, International Association of Agricultural Economists.
    2. Veeman, Michele M. & Adamowicz, Wiktor L. & Hu, Wuyang, 2005. "Risk Perceptions, Social Interactions and the Influence of Information on Social Attitudes to Agricultural Biotechnology," Project Report Series 24052, University of Alberta, Department of Resource Economics and Environmental Sociology.
    3. Joan Costa-Font & Elias Mossialos, 2005. "Is dread of Genetically Modified food associated with the consumers' demand for information?," Applied Economics Letters, Taylor & Francis Journals, vol. 12(14), pages 859-863.
    4. Damien Rousselière & Samira Rousselière, 2010. "On the impact of trust on consumer willingness to purchase GM food:Evidence from a European survey," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(1), pages 5-26.
    5. Li, Tongzhe & Bernard, John C. & Johnston, Zachary A. & Messer, Kent D. & Kaiser, Harry M., 2017. "Consumer preferences before and after a food safety scare: An experimental analysis of the 2010 egg recall," Food Policy, Elsevier, vol. 66(C), pages 25-34.
    6. Lang, John T., 2013. "Elements of public trust in the American food system: Experts, organizations, and genetically modified food," Food Policy, Elsevier, vol. 41(C), pages 145-154.
    7. O. Morgan & John Whitehead & William Huth & Greg Martin & Richard Sjolander, 2013. "A Split-Sample Revealed and Stated Preference Demand Model to Examine Homogenous Subgroup Consumer Behavior Responses to Information and Food Safety Technology Treatments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(4), pages 593-611, April.
    8. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 811-846.
      • Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
    9. Zhao, Li & Gu, Haiying & Yue, Chengyan & Ahlstrom, David, 2013. "Consumer welfare and GM food labeling: A simulation using an adjusted Kumaraswamy distribution," Food Policy, Elsevier, vol. 42(C), pages 58-70.
    10. O. Ashton Morgan & Gregory S. Martin & William L. Huth, 2009. "Oyster Demand Adjustments to Counter-Information and Source Treatments in Response to Vibrio vulnificus," Working Papers 09-08, Department of Economics, Appalachian State University.
    11. Jura Liaukonyte & Nadia A. Streletskaya & Harry M. Kaiser, 2015. "The Long-Term Impact of Positive and Negative Information on Food Demand," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 539-562, December.
    12. Huffman, Wallace E. & Shogren, Jason F. & Rousu, Matthew C. & Tegene, Abebayehu, 2003. "Consumer Willingness to Pay for Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 3), pages 1-22, December.
    13. Zalewski, Romuald I. & Skawinska, Eulalia, 2006. "Food Safety. Commodity Science Point of View," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25734, International Association of Agricultural Economists.
    14. repec:eee:jfpoli:v:74:y:2018:i:c:p:1-8 is not listed on IDEAS
    15. Hu, R. & Deng, H., 2018. "A Crisis of Consumers’ Trust in Scientists and Influence on Consumer Attitude," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276047, International Association of Agricultural Economists.
    16. Novoselova, Tatiana A. & van der Lans, Ivo A.C.M. & Meuwissen, Miranda P.M. & Huirne, Ruud B.M., 2005. "Consumer Acceptance of GM Applications in the Pork Production Chain: A Choice Modelling Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24527, European Association of Agricultural Economists.
    17. Mingyang Zhang & Chao Chen & Wuyang Hu & Lijun Chen & Jintao Zhan, 2016. "Influence of Source Credibility on Consumer Acceptance of Genetically Modified Foods in China," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-16, September.
    18. Yuan, Xiaotong & Zhang, Yu Yvette & Palma, Marco A. & Ribera, Luis A., 2018. "Understanding Consumer response to GMO Information," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266720, Southern Agricultural Economics Association.
    19. John Cranfield & B. James Deaton & Shreenivas Shellikeri, 2009. "Evaluating Consumer Preferences for Organic Food Production Standards," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 99-117, March.
    20. Costa-Font, Montserrat & Gil, José M. & Traill, W. Bruce, 2008. "Consumer acceptance, valuation of and attitudes towards genetically modified food: Review and implications for food policy," Food Policy, Elsevier, vol. 33(2), pages 99-111, April.
    21. Melkonyan, Tigran A., 2011. "The Effect of Communicating Ambiguous Risk Information on Choice," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 2), pages 1-21, August.

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