Does nutrition information on food products lead to healthier food choices?

This paper examines the link between nutrition label use and consumers’ healthier food choices. Label use is considered for the two main types of labels currently found on food products; nutrition facts panels and nutrition/health claims. This link is tested using a three-equation multivariate probit model. Data were obtained from an ad hoc survey conducted in two medium-sized Spanish cities. The results indicate that the use of nutrition information by consumers, whether this involves the fact panel or the claim labels, does influence consumer choice of healthier food products to the same extent, although different types of consumers use the various types of labels considered.     

Functional food,uncertainty and consumers’ choices: A lab experiment with enriched yoghurts for lowering cholesterol

A lab experiment was conducted in France to evaluate the impact of health information on consumers’ choices for functional food. Successive messages revealing benefits and uncertainties of consuming yoghurts with added plant sterols for reducing cholesterol were delivered. Results show a significant and positive influence of the message linked to the cholesterol reduction on willingness to pay, even for participants without cholesterol. However participants expressed little interest in information about potential risks and scientific uncertainties, since their impacts on willingness to pay are not always statistically significant. An econometric estimation shows a significant link between the change in willingness to pay and the perception by participants regarding the scientific validity linked to the sterols.     

Eye tracking and nutrition label use: A review of the literature and recommendations for label enhancement

Nutrition labels on food packages are among the most prominent and far-reaching policy measures related to diet and have the capacity to promote healthy eating. Unfortunately, certain nutrition label characteristics may impede consumer detection and comprehension of labels. Research using precise cameras monitoring consumer visual attention (i.e., eye tracking) has begun to identify ways in which label design could be modified to improve consumers’ ability to locate and effectively utilize nutrition information. The present paper reviews all published studies of nutrition label use that have utilized eye tracking methodology, identifies directions for further research in this growing field, and makes research-based recommendations for ways in which labels could be modified to improve consumers’ ability to use nutrition labels to select healthful foods.     

The demand for organic foods in the South of Italy: A discrete choice model

This paper analyses organic food consumer’s demand that can help advising on implementing organic food policies at European level or, for a particular European country. In particular, it investigates the main factors explaining organic food demand in the South of Italy. Following the Lancaster consumer’s demand theory we assume that consumer’s utility depends on product characteristics instead of the product itself. Thus, consumers will choose the product (organic versus conventional) that possesses the combination of attributes that maximises its utility. Consumer’s choice for organic foods is analysed within the random utility discrete choice model and a bivariate probit model has been specified. The data were collected through a questionnaire conducted in the Italian region of Campania (Naples) in 2003. Findings indicate that economic factors are still factors limiting the growth of organic demand in Europe. Moreover, the consumers’ perceived benefits of organic food (environmental and health) are factors promoting organic food demand. In addition, greater information on organic food products is crucial to expand its demand in the South of Italy because this information will increase the consumer’s organic knowledge. Then, higher organic knowledge will increase the probability to buy organic foods and, to a larger extent, the level of consumption among existing consumers.     

Modeling heterogeneity in consumer preferences for select food safety attributes in China

Food safety issues often arise from asymmetric information between consumers and suppliers with regards to product-specific attributes. Severe food safety scandals were observed recently in China. These events not only caused direct economic and life losses, but also created distrust in the Chinese food system domestically, as well as internationally. While much attention has focused on the problems plaguing the Chinese government’s food inspection system, little research has been dedicated to analyzing Chinese consumers’ concerns surrounding food safety. In this paper, we measure consumer preferences for select food safety attributes in pork and take food safety risk perceptions into account. Several choice experiment models, including latent class and random parameters logit, are constructed to capture heterogeneity in consumer preferences. Our results suggest that Chinese consumers have the highest willingness-to-pay for a government certification program, followed by third-party certification, a traceability system, and a product-specific information label. The results of this study call for the direct involvement of the Chinese government in the food safety system. A stricter monitoring system will not only improve consumer well-being in the short-run, but also restore consumers’ trust leading to a social welfare increase in the long run.     

How do consumers in developed countries value the environment and workers’ social rights in developing countries?

This paper uses a lab experiment to investigate developed countries’ consumer valuations of characteristics linked to the environment and workers’ social rights in developing countries. It focuses on seafood products and distinguishes between regular, environmentally friendly and fair trade varieties. Consumer valuations are elicited with a multiple price list. Results show that environmental and social labels have similar effects on participant willingness-to-pay when they are first presented. Using welfare variation coming from the labels, we also show that the absence of negative information linked to the regular variety may lead to an underestimation of the value of information associated with the label.     

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.     

Modeling the factors affecting rural consumers’ purchase of organic and free-range produce: A case study of consumers’ from the Island of Arran in Scotland,UK

This paper investigates the roles of personal, product related and economic factors in predicting rural consumers’ attitudes and purchase intentions towards organic and free-range produce. A conceptual model is derived and tested via structural equation modeling on a sample of 222 rural consumers. The results show that attitude is explained by consumers’ food safety concern, ethical lifestyle and price perceptions. Attitude partially mediates the effects of ethical lifestyle and price on intention to purchase organic produce as well as the effect of ethical lifestyle on intention to purchase free-range produce. Attitude assumes a more central role in fully mediating the effect of food safety concern on intention to purchase organic produce, as well as the effect of price on intention to purchase free-range produce. Overall the conceptual model of consumer decision making performs well in both organic and free-range contexts yielding similar results.     

Do consumers perceive benefits from the implementation of a EU mandatory nutritional labelling program?

This paper examines consumers’ knowledge about nutritional labels (i.e., nutritional panel), use of nutritional labels, and perceived benefits from a mandatory nutritional labeling program. Using data from a pilot study conducted in a Spanish city and a three-equation multivariate probit model, our results suggest that individuals who suffer some health problems related to food intake are more knowledgeable about nutritional labels. Further, those who are more knowledgeable about nutritional labels are more likely to use nutritional labels, and nutritional label users are more likely to consider mandatory nutritional labeling as beneficial. Perceived usefulness of the information provided by nutritional labels as well as the amount of presented information affect consumer perceptions about whether or not mandatory nutritional labeling would be beneficial.     

Impact of health-related claims on the perception of other product attributes

New EU legislation (EU Regulation 1924/2006) will allow a number of nutrition and health claims in food products. The objective of this research was to study how health claims affect consumers’ perception of other product attributes. A survey with a total of 4612 respondents from the Nordic countries explored consumers’ perceptions of attractiveness, healthiness, naturalness, tastiness and ability to reduce risk of disease by comparing ratings of products with and without health claims. Used claims varied in their benefit, active ingredient, claim structure and framing. The results showed that health claims had a moderate but mostly negative impact on the perception of other product attributes; the most significant impact was decrease in perceived naturalness. Consumers could also interpret the benefits in claims as intended. The wording of the claim had only small impact on the perception of the products, whereas earlier market presence of the ingredient had a large impact: differences among the Nordic countries reflected the previous exposure to health claims. The findings from this study suggest that consumers do not imply other health benefits from health claims and the health claim per se is not likely to cause any unrealistic positive inferences in perceived product quality.     

What nutrition label to use in a catering environment? A discrete choice experiment

Worksite and university canteens are increasingly used for daily main meal consumption. Following the use of front-of-pack nutrition labels on pre-packed foods, the provision of easily accessible nutrition information on foods prepared and consumed out of home is a highly topical policy issue with the potential to help consumers making better informed and more healthy food choices when eating out. Information that is presented in a format preferred by the target group is more likely to be used. A sample of 1725 university canteen users participated in a web-based choice experiment designed to identify and understand individual preferences for alternative nutrition labels on canteen meals. Participants valued the presence of nutrition labels on canteen meals and showed a preference for more detailed formats. Ability and motivation to process information as well as socio-demographics explained differences in label preferences. Observed decreasing marginal utility from combinations of two simple label formats as well as from combinations of two detailed formats, signalled information insufficiency versus information overload, respectively. In order to satisfy most canteen users’ information needs, a nutrition label that contains basic Guideline Daily Amount (GDA)-type of numerical information in combination with familiar visual aids like stars and colour codes is proposed to be used in university canteens.     

Preferences of Scotch malt whisky consumers for changes in pesticide use and origin of barley

In a case study related to Scotch malt whisky production, this study analyses consumers’ perceptions and preferences regarding two aspects that have emerged in the debate on sustainable production and consumption, and on environmentally responsible food choice, namely (i) the use of pesticides in agriculture, and (ii) the provenance of food ingredients. We carried out a choice experiment to investigate preferences and estimate Willingness to Pay of Scotch malt whisky consumers for pesticide use restrictions and the potential impact on the production of one of its essential ingredients, barley. Using latent class models, we find that about half of the respondents are non-demanders with respect to both attributes, and only a third of the sample population are willing to pay for further pesticide restrictions. Demand for more environmentally responsible production of Scotch malt whisky is therefore limited, indicating that in the case of Scotch malt whisky, consumers are not likely to be key to driving sustainable production. With respect to barley provenance, being able to claim a 100% Scottish product could be a plausible commercial option for some producers to pursue in a competitive market. Methodologically, the scale-adjusted latent class model proved to be successful in uncovering preference heterogeneity and its sources, in including non-demanders in the analysis and in accounting for differences in scale amongst respondents.     

Measuring the consumer benefits of improving farm animal welfare to inform welfare labelling

Policy makers in the European Union are envisioning the introduction of a community farm animal welfare label which would allow consumers to align their consumption habits with their farm animal welfare preferences. For welfare labelling to be viable the market for livestock products produced to higher welfare standards has to be sufficiently segmented with consumers having sufficiently distinct and behaviourally consistent preferences. The present study investigates consumers’ preferences for meat produced to different welfare standards using a hypothetical welfare score. Data is obtained from a contingent valuation study carried out in Britain. The ordered probit model was estimated using Bayesian inference to obtain mean willingness to pay. We find decreasing marginal WTP as animal welfare levels increase and that people’s preferences for different levels of farm animal welfare are sufficiently differentiated making the introduction of a labelling scheme in the form of a certified rating system appear feasible.     

Fish: Friend or foe? Food policy and subpopulation warnings for consumers

Fish is a healthy food that provides valuable nutrients for heart health and cognitive development. However, for some subpopulations, consuming fish containing higher levels of methylmercury may pose a health risk. This research seeks to identify the impact of including a seafood warning disclosure in the advertisement of a can of tuna fish on consumers’ purchasing behaviors. An experimental survey is employed to examine the resulting impact for two segments of the population – those considered at risk for methylmercury overexposure and all others. Findings indicate the use of warning disclosures increases respondents’ negative product perceptions without significantly altering positive product perceptions. Attention to the warning is short-lived and does not significantly impact perceived healthful levels of consumption. Modeling purchase behavior using a random utility choice framework indicates that the inclusion of a warning in an advertisement of a can of tuna fish has no adverse affect on purchase behaviors for the population not at-risk and may, in certain cases, serve to decrease tuna purchase likelihood for “at-risk” respondents. Communicating advisory statements on healthy products, such as fish, creates a public health challenge; message pre-testing is imperative.     

MVNO services: Policy implications for promoting MVNO diffusion

This study seeks to validate a comprehensive model of consumer acceptance in the context of MVNOs. While the MVNO business model has gained much popularity over the past few years, it shows a sign of drastic decrease. This study uses the unified theory of acceptance and the use of technology (UTAUT) model with constructs from the innovation diffusion theory (IDT) such as compatibility, relative advantage and social influence. Structural equation modeling is used to construct a predictive model of attitudes toward the MVNO services. While the model confirms the classical role of technology adoption factors (i.e., perceived usefulness and ease of use are key antecedents to consumers’ intention), the results also show that users’ intention and usage are influenced by IDT factors. The model brings together extant research on MVNO and provides an important cluster of antecedents to eventual technology acceptance via constructs of behavioral intention to use and to the actual MVNO usage. Policy implications of MVNO are discussed in terms of consumer adoption and market diffusion.     

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.     

Consumers’ response to the EU Quality policy allowing for heterogeneous preferences

Using dry-cured ham as an anchor product, consumers’ preferences for EU Quality Certification schemes, region of origin and price have been investigated with conjoint analysis. In order to achieve this aim, a mixed rank-ordered logit which allows for the investigation of heterogeneous preferences and their sources has been estimated. In particular, we have analysed to what extent consumers’ socio-demographic traits affect their price-sensitiveness and whether consumers’ sensory (hedonic) valuations and attitudes towards ham with a Protected Designation of Origin (PDO) affect the preferences for specific attributes. Results show that consumers with a low-medium age and income are more price sensitive. Consumers more inclined sensorially towards the regional specialty (with or without PDO) are more likely to purchase this product, and consumers with a more favourable attitude towards PDO ham are also more prone to purchase cured ham with quality certification. Findings also suggest that although the PDO scheme attracts a segment of consumers, the origin by itself is still a more powerful signal of quality, and more specifically the region of origin.     

Pesticide residues and trade,the apple of discord?

In this paper we study the impact of the regulations on Maximum Residue Levels (MRLs) of pesticides on the trade of apples and pears and related processed products with the aim of understanding how their similarity (or dissimilarity) affect trade. Most studies investigate the impact of sanitary regulations introducing directly in the analysis the MRL put in force in the importing country. They introduce in the analysis the level of the regulation in the importing country without taking into account the rule in force in the exporting country. Rather than focusing on a particular pesticide we take into account the entire list of substances set out by the various regulations. We then build a similarity index and introduce it into a gravity equation to assess the impact of the differences in MRL of pesticides on trade. Results suggest that the differences between regulations matter and may, in some case, hinder trade.     

Mother’s nutritional label use and children’s body weight

In spite of a growing body of literature studying the determinants of children’s obesity, relatively little is known about the association between parental nutritional label use and children’s body weight. To bridge this gap, this study examines the effect of mother’s nutritional label use on children’s body mass index and overweight. Using data from the 2001 National Health Interview Survey in Taiwan, a two-stage econometric model is proposed and estimated with a semiparametric method. Results indicate that mother’s nutritional label use leads to lower probability of children becoming overweight or obese, and a non-linear relationship between mother’s nutritional label use and children’s BMI is evident. For mothers who seldom use nutritional labels, label use does not lead to a reduction in children’s BMI. In contrast, for mothers who are frequent nutritional label users, label use contributes negatively to children’s BMI. However, the magnitudes of these effects are relatively small, suggesting that additional instruments or policies are needed if further reduction in children’s body mass index is desired.     

A preliminary comparison of the retail level effects of genetically modified food labelling policies in Canada and France

Most developed countries have adopted labelling policies for genetically modified (GM) food. In April 2004, Canada implemented a voluntary labelling policy for GM and non-GM food, while France adopted the European Union’s new extended mandatory labelling of GM food. I present the result of a qualitative survey of GM and non-GM food labels in supermarkets in Canada and France, five months after the introduction of the new policies. I find that there are almost no GM labelled products in France and non-GM labelled products in Canada. Each policy tends to crowd out the targeted label attribute. However, Canadian consumers can choose between GM and non-GM organic products, whereas there are only non-GM products in French supermarkets. Recent political developments in Quebec suggest that the labelling landscape may change in Canada, either with an increase in the number of non-GM products at the retail level or a transition towards a mandatory labelling policy like in France.