Functional ingredients and food choice: Results from a dual-mode study employing means-end-chain analysis and a choice experiment

In this paper we present the results of a choice experiment (CE) conducted to examine how the inclusion of a functional ingredient (to increase the quantity and effectiveness of fibre) affects consumer attitudes towards bread. An novel feature of the design of our CE was that it was informed by a means-end-chain (MEC) to reveal key attributes to be included in the CE. In addition, we included the Dutch eating behaviour questionnaire (DEBQ) to collect information on all participants underlying eating behaviours. We find that bread type is a major factor in determining choice, and that the inclusion of a functional ingredient yielded relatively small measures of value. We also find that there are differences in willingness-to-pay (WTP) between respondent segments and that segment membership is explained by the DEBQ information. Finally, we find that respondents have a stronger preference for a simple health statement compared to, or in addition to, the implied benefits that result from consuming a functional food product. These findings are important in informing both pricing and promotional messages for a functional bread product.     

Demand for ecolabeled seafood in the Japanese market: A conjoint analysis of the impact of information and interaction with other labels

The use of seafood ecolabels is expanding in the world marketplace, but so are labels indicating other product attributes, such as country of origin and wild vs. farmed. The interactive effects of these labels and attributes in evaluating consumers’ preferences for ecolabeled seafood are relatively unexplored. In this paper we investigate (1) the direct and interactive effects of seafood ecolabels with other common fish labels, and (2) how consumers’ perceptions about the state of marine stocks and the valuation of ecolabels may be affected by different information. We find moderate interactive effects between ecolabels and country of origin labels, whereas the valuation for seafood ecolabels is fairly high. In terms of information, we find that consumers’ perceptions about fish stock levels changed (negatively) after receiving information on declining stock levels, and more sensationalized information led to increased change. However, valuation for a seafood ecolabel increases only when the information was perceived positively (credible/interesting); whereas exaggerated information (which was also perceived less credible) had insignificant effects on WTP.     

A consumer segmentation of nutrition information use and its relation to food consumption behaviour

Consumers need information such as nutrition tables to assess the nutritional value of a food product. Although a broad range of studies has examined consumers’ attention, perception and use of nutrition tables, relatively little is known about what types of consumers use what kind of nutrition information. Therefore, using data from the Swiss Food Panel, we conducted a cluster analysis of nutrition information usage and health and nutrition interest to determine whether consumers could be segmented into specific groups. We identified four segments, which we labelled Official Information Users, Internet Users, Moderate Users and Uninterested. We then determined the segments’ demographics, food frequencies and perception of food. Based on our findings, we provide suggestions for targeted interventions that stimulate healthy food choices among these four segments. Our findings imply that nutrition education or the improvement of nutrition labels is unlikely tostimulate nutrition information usage among all consumer types; some consumers may rather benefit more from environmental cues that prime healthy food choices.     

Quality perceptions under evolving information conditions: Implications for diet,health and consumer satisfaction

Consumers’ perception of, and satisfaction with, fruit quality is an important issue for both public policy and commercial reasons. However, because of information problems, consumers cannot easily choose fruits of a quality most likely to satisfy their preferences and health needs. The research reported here employed an experimental auction method to test perceptions of fruit quality by evaluating the willingness to pay (WTP) of consumers for five different varieties of soft citrus under three different information conditions: visual inspection of the fruit before peeling; visual inspection after peeling; and after consumption. Significant differences were found in valuations of the different varieties as consumers gained information. Conclusions are drawn about the value of the methodology and the results themselves, and implications are inferred for policy and for growers and traders. It is argued that product information should be oriented not just towards nutritional education but also towards increasing the pleasure of healthy eating.     

Consumer valuation of health attributes for soy-based food: A choice modeling approach

Given that soy foods possess health-promoting attributes that offer the promise of reducing heart-related chronic diseases, this article employs choice experiments to estimate marginal willingness to pay (WTP) for soy attributes including taste, contents of soy protein, and health claim. Random parameter logit (RPL) models were estimated in consideration of potential heterogeneity across individuals in their preferences for soy food. Standard deviation parameters in the RPL models are highly significant, indicating that individuals have widely varying preferences for soy-based food products. Results suggest that, while taste is the dominating attribute that drives consumers’ WTP for soy food products, consumers do respond to the information provided in the health claim. Yet, consumers do not seem to be recognizing soy protein as the link to health benefits of soy foods.     

Are consumers at the base of the pyramid willing to pay for nutritious foods?

Base of the Pyramid (BoP) consumers living in the urban informal settlements of developing countries spend over 60% of their income on food, yet malnutrition and micronutrient deficiency remain widespread among these populations, pointing to the inadequacy of the foods they consume in terms of quality and quantity. In this paper we examine BoP consumers’ willingness to pay (WTP) for nutritious multi-composite porridge flour (improved flour) in the informal settlements of East Africa. The analysis is based on experimental data collected from 600 households in the informal settlements of Kampala, Uganda and Nairobi, Kenya (300 in each country) in 2016. We use Tobit regression models to analyse determinants of WTP for the improved porridge flour. Results show that both Kenyan and Ugandan BoP consumers are willing to pay a premium for the improved porridge flour. In addition, providing nutrition information about the flour, characteristics of household head, economic status of the household, and presence of young children between six and 59 months in the household, influence WTP for the safe and nutritious porridge flour. The paper concludes by providing recommendations for enhancing nutrition among poor consumers in the informal settlements of developing countries.     

Traffic lights and food choice: A choice experiment examining the relationship between nutritional food labels and price

In this paper we investigate how consumers respond to the UK nutritional food label Traffic Light System (TLS). Employing a choice experiment (CE) we find that consumers appear to behave in a manner consistent with our expectations regarding the impact of the TLS. We identify a strong preference on the part of respondents to avoid a basket of goods containing a mix of foods with any “Red” lights. In addition, we find that consumers have a hierarchy of importance in terms of perception of the various nutrients examined and there are clear behavioural differences associated with particular socio-economic characteristics confirming early research on the use of nutrition labels. Overall our results indicate significant heterogeneity in the attitudes and responses of consumers to the TLS nutritional food labels within and across socio-economic strata.     

Green market expansion by reducing information asymmetries: Evidence for labeled organic food products

We investigate how the provision of objective information about the environmental and health impact of organic labels by policy makers can influence the willingness-to-pay of consumers for labeled organic apples in Flanders (Belgium). Using a stated choice experiment, we initially find that Flemish consumers are willing to pay a positive price premium of some 33 eurocent per kilogram for labeled organic apples. After the provision of information on the actual environmental and health effects of organic apple production, this price premium becomes even more pronounced and increases to 57 eurocent per kilogram. Using a conditional logit model with covariates and a mixed logit model, we find evidence of preference heterogeneity. Also, the effect of information provision is more pronounced for certain groups of consumers such as non-vegetarians, infrequent buyers of organic products and members of a nature protection organization. As such, this paper illustrates that there is a role for policy makers and CSR producers in providing more accurate and reliable information about socially responsible production processes. Moreover, it is important to take the observed preference heterogeneity into account and tailor policies to specific consumer groups.     

Health information and substitution between fish: Lessons from laboratory and field experiments

This paper compares results from a lab experiment and a field experiment conducted in France to evaluate the impact of health information on fish consumption. In both experiments, health information concerns a benefit (omega 3) and a risk (methylmercury). While the lab experiment focuses on two species, namely canned tuna and canned sardines, the field experiment offers a complete measure of the information impact on the choice of various species by consumers. Results from both experiments showed a significant preference change against canned tuna. In the lab experiment, the preference change was reflected by a decrease in WTP, while in the field experiment the preference change was reflected by a decrease in consumption. In the field experiment, among all fish consumed, only the decrease in consumption of canned tuna was statistically significant. A model calibrated to represent the demand for canned tuna allows for a comparison between the two experiments. It shows that the lab experiment suggests a smaller decrease in canned tuna demand compared to the field experiment.     

Value of parsimonious nutritional information in a framed field experiment

This study investigates consumers’ beliefs about the tastiness and healthiness of 173 food items in a framed field experiment designed to mirror a grocery shopping environment. Using data collected from 129 food shoppers in Grenoble, France, demand models are estimated to determine how product choice is affected by price, taste, and perceived healthiness, and how choices change with the provision of objective health information. Unlike previous studies focusing on relatively complex nutrition labels, we elicit and convey health information using simple nutritional indices meant to lower search and cognitive processing costs. The results indicate that consumers are willing to pay for tastier foods and for healthier foods, particularly if the consumers have objective information (as opposed to perceived, subjective information) on nutrient content. The estimates suggest that the value of the type of nutritional information provided in the experiment is €0.98 per day. The figure refers to the daily welfare benefits that arise from being able to make a set of choices that better reflect people’s preferences by receiving the nutrient index information on all 173 food items versus not having such information.     

Health information and consumer learning in the bottled water market

This paper examines the impact of health information in different media outlets on bottled water consumption through consumer learning. We develop a random coefficient discrete choice model with Bayesian learning process to capture consumers’ learning of health information and changes in their beverage choices over time. Consumers are assumed to have initial prior beliefs about the health effect of different beverages and to update their beliefs using health information received from different media types. Empirical results show that consumers’ perceived quality of bottled water kept increasing during our sample period, and this learning process accounted for 24.44% of the industry’s revenue, which is about 4.8 billion dollars per year. Comparing the effectiveness of different media outlets, we find that the sales impact of traditional media (TV and radio) is greater than online sources. Our findings highlight the contribution of health information to the bottled water industry and provide policy makers with a new direction to reduce high-calorie food consumption and improve public health.     

Consumers’ valuation for food traceability in China: Does trust matter?

Food safety is a very important topic in China. We investigate Chinese consumers’ preferences and willingness to pay (WTP) for food traceability using a choice experiment. Given that consumers’ trust in the food system may affect their preferences and WTP, we also assess the interaction between consumers’ trust in government’s supervision of food safety and food labels and consumers’ preferences for traceable food products. Using data collected from a choice experiment on Fuji apples in a face-to-face survey in six Chinese cities, the results show that (i) consumers are willing to pay for traceable food but their valuations can differ upon the degree of their trust in government’s supervision of food safety and food labels; (ii) consumers are willing to pay for traceability with strong evidence of preference heterogeneity; (iii) government is not the most trusted safety inspection and certificate authority as found in prior studies using animal food products in China.     

Information,branding, certification,and consumer willingness to pay for high-iron pearl millet: Evidence from experimental auctions in Maharashtra,India

In this paper we use hedonic testing methods adopted from food science literature and the Becker-DeGroot-Marschak mechanism adopted from economic valuation literature to estimate consumer demand for biofortified high-iron pearl millet (HIPM) in Maharashtra, India. Unlike biofortification with provitamin A, biofortification with minerals, such as iron and zinc, does not change the color or the appearance of the biofortified crop. Therefore, we test the impact of both nutrition information, and branding and certification, as well as the nature of the brand and of the certifying authority (state level versus international), on consumer demand for HIPM. We find that even in the absence of nutrition information, consumers assign a small but significant premium to the HIPM variety relative to the local variety. This is consistent with consumers’ more favorable rating of the sensory characteristics of the high-iron variety. Nutrition information on the health benefits of HIPM increases this premium substantially, and regression analysis reveals that consumers prefer international branding and international certification authority to their state-level counterparts.     

What is driving increases in dietary quality in the United States?

Over 1994–2010, adult dietary quality in the United States increased by 10 percent. We find a shift in consumption between at-home and away-from-home food played a relatively minor role as compared to changes in demographics and educational attainment. The two largest contributors we identify include an increased usage of nutritional information and a shift away from relying heavily on price, taste, storability and ease of preparation when shopping for food. Our findings suggest nutrition policy discussions could focus on further shifting attitudes/preferences towards healthier diets while allowing consumers to better extract nutrition information when making food choices.     

Consumer preferences before and after a food safety scare: An experimental analysis of the 2010 egg recall

In August 2010, more than half a billion eggs were recalled in the U.S. because of a Salmonella outbreak. This study examines the effect of the recall with a unique pair of auction experiments investigating willingness to pay (WTP) for conventional and organic eggs, one conducted shortly before and one right after the recall with the same participants. In addition to the before and after bids, participants bid again after a negative information or balanced information treatment about the event. Accompanying surveys showed consumers had a high level of awareness of the recall but less knowledge of specific details, and viewed information on egg farm conditions as very important in their WTP. While there were no significant before and after differences, WTP for organic eggs significantly increased in the negative information treatment, and balanced information had a positive effect on consumer WTP for conventional eggs.     

Mobile-only consumers arise from heterogeneous valuation of fixed services

Mobile-only users are usually perceived as a consequence of fixed-mobile substitution. This study uses a unique dataset based on a survey in France, combined with interviewee's telecommunications billing data, to reveal heterogeneous consumer preferences for fixed services. With the same mixed logit model we estimate the willingness to pay (WTP) for fixed communications services and fixed-mobile relationship. Results show a very large heterogeneity of WTP for fixed services among consumers. In addition, we show that fixed and mobile data are complement for all consumers. Mobile-only consumers have a much lower but non-zero WTP, and higher price sensitivity compared to fixed-mobile consumers. Consequently, an increase in the fixed offer price would reduce the demand for fixed service. Heterogeneous preferences for fixed services constitute an alternative explanation for the existence of mobile-only users, despite the complementary nature of fixed and mobile broadband. Counter-factual simulations show that the share of mobile-only could also be driven by the way to subsidize mobile handset. For instance, making the handset subsidy only available to fixed-mobile quadruple play subscribers could reduce the share of mobile-only by half.     

Willingness to pay for over-the-top services in China and Korea

The increasing penetration of broadband and multiscreen availability has encouraged the development of premium video consumption through over-the-top (OTT) services. Netflix, the leading global OTT provider, is aggressively expanding its international operations and has ambitiously entered the Asian market. To prepare for the shift that the streaming service giant will bring, a proper understanding of consumer acceptance and intent to pay for OTT services is crucial. Therefore, this empirical study uses conjoint analysis to investigate the key attributes and to examine consumers’ marginal willingness to pay (WTP) for OTT services. We identified recommendation systems, resolution, and viewing options as important product attributes of OTT services that influence the WTP of Chinese and Korean consumers. The most important attribute for Chinese consumers of OTT services was resolution, followed by the recommendation system and viewing options. For Korean consumers, the recommendation system was ranked as the most valuable attribute, followed by viewing options and resolution. The overall WTP of Chinese consumers was 22.6 yuan (3.4 USD) per month, while Korean consumers’ intent to pay amounted to a total of 3530 won (3.1 USD) for OTT services.     

Are consumers concerned about palm oil? Evidence from a lab experiment

A lab experiment evaluates the consumers’ willingness to pay (WTP) for food products made with and without palm oil. Palm oil production induces environmental damages, and its consumption presents a health risk. However, the production of alternative oils raises land use issues. In the experiment, successive messages emphasizing the characteristics of palm oil and palm oil-free products are delivered to participants. Information has a significant influence on WTP when it underlines the negative impact of the related product. This effect is stronger for the palm oil product than for the palm oil-free product. The experiment also compares the welfare effects of two regulatory instruments, namely a consumer information campaign versus a per-unit tax. Because of the respective attributes of both palm oil and palm oil-free products, the information campaign improves welfare with a much larger impact than the tax.     

Front-label health claims: when less is more

Growing global attention has been directed toward labeling the ingredients, processing methods, and health claims of food. Accompanying this attention is an interest in how consumers process or understand the information on such labels. This article examines how the length of a front-label claim influences the nutritional beliefs and evaluation of a product when used in combination with complete back-label information. The results indicate that the presence of a shorter health claim on the front of the package (in combination with a more complete claim on the back) leads a person to generate more attribute-specific thoughts about the product and fewer general evaluative thoughts compared to longer health claims. These shorter health claims also led to more favorable beliefs about the product and to a more positive image of the product. This article concludes with a discussion of the implications of the findings for policy makers, consumers and researchers.     

Willingness-to-pay for natural,organic, and conventional foods: The effects of information and meaningful labels

Vague food labels and distorted product claims have persisted in the “natural” food industry, while organic claims can be certified by the U.S. Department of Agriculture (USDA). Using experimental methods and a sample of randomly selected subjects, we test food label and information treatment effects on subjects' willingness-to-pay (WTP) for organic, “natural,” and conventional foods. Random nth-price auctions are used to elicit WTP after subjects received one of five randomly assigned information treatments. We find large information effects, including asymmetric cross-market effects for natural and organic foods. Perhaps surprising is that organic premiums increase in response to subjects seeing the “natural” foods industry's perspective on its products. Demographics effects are also important. The results have practical implications for natural and organic food marketing and valuing products where there are vague claims about their attributes.