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.     

Two experiments in one: How accounting for context matters for welfare estimates

By combining two different types of experiments in one experimental session, this paper aims at understanding how different contexts may influence participants’ choices. This paper focuses on one hybrid experimental session that mixed one voluntary contributions mechanism (VCM), influencing the indemnity received by participants, and one mechanism eliciting willingness to pay (WTP) for milk bottles with public and private attributes. The VCM shows relatively high levels of contributions that are mainly influenced by the positive expectations of participants about the average group contribution, rather than by the variations in the design of this mechanism and the period of experiments. The WTP for milk bottles are particularly sensitive to the order of mechanisms and to the period of experiments. Conversely, the WTP differences between milk bottles for a given round of information are invariant across the order of mechanisms and the period of experiments. For each bottle, the variations of WTP coming from the messages about private and public attributes are also stable over the order of mechanisms and the period of experiments. This confers validity to experiments for measuring WTP for public and private attributes related to food. In other words, these variations of WTP contribute to welfare estimates and are useful to evaluate market regulations focusing on public and/or private attributes.     

Generic Advertising of Intermediate Goods: Theory and Evidence on Free Riding

We develop a model of generic advertising in the context of vertically dependent markets wherein producers of an intermediate good financially support, through voluntary contributions, a generic advertising campaign aimed at consumers of a final product. The Nash equilibrium is characterized by free riding on the part of upstream firms because of the nature of generic advertising, leading to its underprovision with respect to joint, industry-wide profit maximization. We test the model in the U.S. fluid milk industry focusing on the effects of generic advertising on the intermediate demand for milk, since dairy farmers support the generic advertising. Taking this approach, we find that generic advertising had a positive influence on farm-level demand for milk, but did not achieve joint profit maximization.     

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.     

The cosmopolitan engineering student: an analysis of a recruitment campaign for KTH Royal Institute of Technology in Stockholm

This paper presents a study that seeks to examine the messages conveyed in one of the initiatives that have been initialized in order to make young people interested in pursuing engineering studies at technological universities. The study is a case study of the web-based advertising (recruitment) campaign KTH from the Inside designed for KTH Royal Institute of Technology. The analysis draws on a theoretical framework from governmentality studies. The analysis of the campaign conclude that the ideal engineering constructed in the campaign is one of an individual who meets the requirements asked of a lifelong learner with cosmopolitan aspirations. This is an ideal that builds on a notion of progress associated with social progress and sustainability. This is a break with historical and cultural patterns, which symbolically have linked technology to capitalist profitability and masculinity. Though a break with gender patterns is suggested the ideal subject constructed in the campaign is almost exclusively based on the students on Masters’ level. This excludes students at Bachelor programmes. This I argue is problematic as it narrows the recruitment of students to technological universities to a small group of students.     

Tweeting and Retweeting for Fight for $15: Unions as Dinosaur Opinion Leaders?

Advocacy campaigns are central to unions’ efforts to impact labour rights beyond unionized workplaces. Social media and on-the-ground campaign dynamics are intimately related. Thus, if unions can become leaders on social media, they could have more impact on campaign framing and mobilizing. Drawing on primary data and applying a sequential mixed method, we analyse unions’ ability to emerge as opinion leaders in Twitter dialogues on the Fight for $15 (FF$15) campaign. We track FF$15-related activities of Twitter profiles over seven months and compare union actions to those of others along three dimensions: level of activity, prevalence of tweeting versus retweeting and endorsement within FF$15 community and in the Twitter universe. Regression results show unions prefer advancing their own ideas over supporting those of others, and their messages are more endorsed than others’ messages in the Twitter universe. In-depth interviews and a focus group reveal that while their actions are slow and conservative, unions can count on internal support and institutional reputation to gain leadership. The article concludes by noting the implications of the findings for unions’ strategies to become opinion leaders on social media.     

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.     

Conceptual problems in nutrition education in Western Nigeria

A pilot survey of the factors affecting infant feeding practices in rural Western Nigeria highlights intercultural perceptual problems. Results show widespread use of imported, high cost carbohydrate foods and great resistance to the early introduction of local health protective items. It is commonly thought that "too much food" is bad for a child. Staff responsible for health education are held in a degree of disrepute not conducive to the acceptance of their educational efforts in the community. Recommendations include control of advertising; reviewed staff orientation and training; and an intensive campaign to reestablish breast feeding as the cultural norm. No data is presented on feeding of fluids (breast milk, additional milk, boiled water and glucose in water) and nonfluids (imported carbohydrate, local carbohydrate, local protein and fruits and vegetables) based on the mother's estimate of the age of a baby shown in a photograph. Approximate market prices of imported commodities commonly used for infant feeding in the study area are also included.     

The Impact of Communication Strategy on Launching New Products: The Moderating Role of Product Innovativeness

Academic literature is filled with debate on whether product innovativeness positively impacts new product performance (NPP) because of increasing competitive advantage or negatively impacts performance due to consumers' fears of novel technology and resultant resistance to adopt. This study investigates this issue by modeling product innovativeness as a moderator that influences the relationship between communication strategy and new product performance. The authors emphasize that the impact of innovativeness to producers is different from that to consumers and that the differences have strategic impact when commercializing highly innovative products. Product innovativeness is conceptualized as multidimensional, and each dimension is tested separately. Four dimensions of innovativeness are explored—product newness to the firm, market newness to the firm, product superiority to the customer, and adoption difficulty for the customer.
In this study, communication strategy is comprised of preannouncement strategy and advertising strategy. First, the relationship between whether or not a preannouncement is offered and NPP is explored. Then three types of preannouncement messages (customer education, anticipation creation, and market preemption) are investigated. Advertising strategy is characterized by whether the advertisement campaign at the time of launch was based primarily on emotional or functional appeals.
Using empirical results from 284 surveys of product managers, the authors find that the relationship between communication strategy and NPP is moderated by innovativeness, and that the relationships differ not only by degree but also by type of innovativeness. Implications for research and practice are discussed.     

Overt searchers' responses to advertising

The purpose of this study was to compare two groups of prospective buyers of an industrial product on awareness and recall of a particular advertising campaign. The two groups were: (a) overt searchers - operationally defined as those who had made inquiries about the product, and (b) random prospects - randomly selected from local industrial directories. According to the Howard and Sheth model, it is expected that overt searchers would exhibit greater awareness and knowledge of the advertising campaign than would the random prospects. The results indicated, however, that overt searchers scored higher than random prospects only on awareness. Indeed, they seemed to have poorer recall of the content of the advertisements. The authors provide an explanation for this unexpected result.     

Pretesting the effectiveness of industrial advertising

This article addresses the pretesting of industrial advertising messages diffused through (mass) communications media such as professional and trade journals. It is based on case-study experience and presents a normative framework for pretesting industrial advertising.     

Advertising to businesses: Does creativity matter?

Business-to-business advertising research has long been grounded in rationality with a focus on factual, functional, benefit-laden messages. However, in consumer advertising, psychological differentiators, such creativity, are frequently used to increase advertising effectiveness. With growing evidence that consumer marketing concepts apply to business buyers, this research investigates the effect advertising creativity has on the organizational buying process. Using an online survey, we present actual advertisements to managers in the B2B environment. Our results provide strong evidence that message creativity influences business managers' response toward advertising for site selection. Creative ads generated stronger shifts in attitudes toward the ad, attitudes toward the brand, and behavioral intentions. The results extend previous research on the role of creativity in advertising to a business-to-business context. The results also challenge conventional wisdom and dominant practices in advertising to businesses.     

Price control and advertising in franchising chains

This study investigates how franchising chains use advertising to enhance coordination and improve their control over prices set at franchised outlets. We argue that chains use price advertising to inform customers about their desired prices, thereby influencing franchisees to adopt the advertised prices although they are not contractually required to do so. We test our hypotheses using rich outlet‐level price data collected before and after a U.S. nationwide advertising campaign by McDonald's. Our findings indicate that advertising is an effective mechanism that franchising chains use to improve their control over franchisees, enhance uniformity, and reduce franchisee free‐riding. Copyright © 2013 John Wiley & Sons, Ltd.     

The impact of food advertisements on changing eating behaviors: An experimental study

This research examines how three types of food advertising (healthy food, unhealthy food, and anti-obesity) impact consumers’ purchases of lunch items. The analysis is based on an economic experiment conducted with 186 adult non-undergraduate student subjects, each of which were randomly placed into either the control group or one of four treatments: (1) healthy food advertising, (2) anti-obesity advertising, (3) unhealthy food advertising, and (4) mixed (all three food) advertising. The results indicate that healthy, anti-obesity, and mixed food advertising reduced intakes of total calories, fat, sodium, and carbohydrates. Similarly, anti-obesity, healthy, and mixed food advertising results in increasing the probability of selecting more healthy items and fewer unhealthy items from a menu. Healthy food advertising has a stronger impact than anti-obesity or mixed food advertising.     

Revisiting the theory of business-to-business advertising

Creating effective business-to-business (B2B) communications is an increasingly complex challenge for marketing managers. It requires a theoretical understanding of a number of puzzling, interacting components of an advertising stimulus. However, few academicians have pursued the goal of integrating and modeling how the B2B advertising process should be conceptualized. Gilliland and Johnston (1997) provided the first comprehensive model of the process, but B2B advertising has changed dramatically since this paper and demands an update to capture the new dimensions of the phenomenon. Using a systematic literature review to summarize recent trends, this paper incorporates the key changes in B2B advertising over the last 20 years. In particular, the authors explore a revised model of B2B effects, including (1) social media, (2) creativity and emotional appeals, (3) national culture, (4) brand equity and credibility, (5) ad experience social context, and (6) competing messages.     

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.     

The degree of competition in the advertising industry

After a merger wave began among advertising agencies in the late 1960's, the Federal Trade Commission investigated the anticompetitive effects of the mergers and concluded that the industry would remain competitive. In this paper, we employ a method suggested by Bresnahan to investigate the issue of competition in the advertising industry. The method uses industry-level data over the period 1972–87 to consider the determinants of supply and demand for advertising messages and to calculate the degree of market power on the supply side of the market. Statistical results support the hypothesis that the industry was competitive over this period.We thank Robert Coen of McCann-Erickson, Inc., for providing data on advertising costs and expenditures and W. Bradford Todd of the Richards Group for information about the industry. Lacy Glenn Thomas directed us to McCann-Erickson. We also thank James C. Murdoch, two anonymous referees, and the Editor, William G. Shepherd. Pornpong Sumanun provided research assistance. The usual disclaimer applies.     

Assessing holistic economic value for multifunctional agriculture in the US

This study used contingent valuation method to shed light on public preferences on the multifunctional roles of the US agriculture and to present a holistic estimate of the economic value of the nonmarket goods and services of US agriculture. Contingent valuation survey instrument was administered to a sample composed from the Ipsos web-based panel. Fishbein’s model of reasoned behavior and mediation hypothesis were combined to model the relationship between WTP (behavioral intentions) and sets of explanatory variables including attitudes, perceived attributes (about family farms, farmland preservation programs, government involvement in agricultural markets, and ecological state of our world), and socio-demographic profiles. Results show that, while exerting a highly significant impact on WTP, attitudes mediate the effects of the attribute variables on WTP: i.e., the attributes influence WTP directly as well as indirectly through attitudes. The estimated mean WTP was $515 per taxpayer annually. Aggregating individual WTPs across the US taxpayers above 20 years old produces $105 billion, representing a crude estimate of the economic value that the US consumers place on the multifunctional roles of US agriculture.     

How can the EU climate targets be met? A combined analysis of technological and demand-side changes in food and agriculture

To meet the 2 °C climate target, deep cuts in greenhouse gas (GHG) emissions will be required for carbon dioxide from fossil fuels but, most likely, also for methane and nitrous oxide from agriculture and other sources. However, relatively little is known about the GHG mitigation potential in agriculture, in particular with respect to the combined effects of technological advancements and dietary changes. Here, we estimate the extent to which changes in technology and demand can reduce Swedish food-related GHG emissions necessary for meeting EU climate targets. This analysis is based on a detailed representation of the food and agriculture system, using 30 different food items.We find that food-related methane and nitrous oxide emissions can be reduced enough to meet the EU 2050 climate targets. Technologically, agriculture can improve in productivity and through implementation of specific mitigation measures. Under optimistic assumptions, these developments could cut current food-related methane and nitrous oxide emissions by nearly 50%. However, also dietary changes will almost certainly be necessary. Large reductions, by 50% or more, in ruminant meat (beef and mutton) consumption are, most likely, unavoidable if the EU targets are to be met. In contrast, continued high per-capita consumption of pork and poultry meat or dairy products might be accommodated within the climate targets. High dairy consumption, however, is only compatible with the targets if there are substantial advances in technology. Reducing food waste plays a minor role for meeting the climate targets, lowering emissions only by an additional 1–3%.     

When e-mail becomes junk mail: The welfare implications of the advancement of communications technology

This paper examines the negative externality imposed by a direct marketing firm on the consumers who must spend time reading and processing the advertising they receive from that firm. A model is developed to show that with low communication costs, a firm would send out more unsolicited advertising messages than would be desired by consumers and a social welfaremaximizing planner. The optimal Pigovian tax to eliminate the problem of excessive message sending is then derived. The extent of the problem in a number of media, including direct mail, telemarketing, and the Internet, is briefly examined.