Consumer valuation of information about food safety achieved using biotechnology: Evidence from new potato products

This study focuses on the role of food labels and information for affecting consumers’ valuation of food safety achieved through application of biotechnological (biotech) methods. In 2002, potato products cooked to a high temperature were first reported to contain the human carcinogen acrylamide. Research discoveries using genetic engineering can substantially reduce carcinogenic-forming potential, and thereby increase food safety of potato products. Adult consumers from three distant regions of the U.S. were the subjects in lab auctions of potato products. They engaged in distinct rounds of bidding, first without packaged information and again after receiving information about the food safety risks and benefits of new biotech potato products. The study finds that willingness-to-pay (WTP) for these new potato products are not significantly different from conventional potato products under no information. However, exposure to a scientific perspective and scientific plus industry perspectives increases participants’ willingness-to-pay for the new potato products and reduces willingness-to-pay for conventional products. Exposure to the negative perspective on the new technology significantly reduces willingness-to-pay. Consumer valuation of the new potato products is affected by food labels, information, and consumer attributes. A consumer information program could be needed to gain consumer acceptance of these potato products or other foods that have been genetically modified to increase certain food safety dimensions.     

Consumer responses to front-of-package labeling in the presence of information spillovers

Voluntary nutrition labeling, a means of nutrition quality disclosure, was introduced in the U.S. over the last decade by leading food manufacturers, primarily in the form of front-of-package (FOP) labeling. This article examines how consumer responses to FOP labeling via product participation and information spillovers shift consumer demand across competing products. Applying a random coefficient logit demand model to sales data from the U.S. ready-to-eat cereal market (RTEC) empirically confirms a positive participation effect of FOP and a strong negative spillover effect on non-participating products. Further results indicate that the participation and spillover effects are stronger for healthy RTECs than they are for unhealthy ones. Moreover, ignoring such effects leads to underestimation of consumer valuation of FOP labeling for participating products, higher own-price elasticities of demand and lower price-cost margins. The findings also suggest that an incentive in a firm’s voluntary participation in self-regulated labeling programs is to avoid negative treatment externalities and that less health-conscious consumers are not influenced by spillover effects. Overall, this article highlights the importance of including spillover effects in the evaluation of FOP programs and that FOP can play a positive role in improving the healthfulness of consumer choices.     

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 ‘‘high in” front-of-package nutrition labeling on food choices: Evidence from a grocery shopping experiment

This study investigates the ex-ante effects of the front-of-package (FoP) nutrition labeling for food products high in saturated fat, sugar, and/or sodium, which is a new regulation recently announced by Health Canada to combat obesity. The Canadian food industry has until January 1, 2026, to comply with the new regulations. To examine the ex-ante effects of this policy, an incentivized experiment is conducted in a lab that replicates a grocery store. The results at the product level indicate a significant decrease in the probability of choosing a product with a “high in” label compared to those without “high in” labels. Basket-level results demonstrate that FoP labeling is significantly associated with a lower quantity share and dollar value share of products high in one of the mentioned nutrients selected in a grocery basket, as well as fewer grams of sugar and sodium in a grocery basket. Furthermore, the study reveals that individuals with higher educational attainment, a risk-averse nature, and a lower level of self-reported nutrition knowledge tend to react more to the labeling. The insights from eye-tracking data further support these results, revealing that product choices are deterred by a fixation on “high in” labels. This study contributes to an improved understanding of the pathway in which labeling schemes influence food choices.     

Benefit evaluation of the country of origin labeling in Taiwan: Results from an auction experiment

This research is aimed at investigating the consumer’s preference for food produced in Taiwan and the economic benefits for the country of origin labeling (COOL). The study used Vickrey second-price sealed-bid auction to elicit the consumer’s willingness to pay (WTP) for products under COOL. The study compared the bid functions estimated with Tobit model and the premium functions estimated with ordinary least squares (OLS). Due to price affiliation, it is more reliable to use the estimated premium functions. The estimated premiums are 67.5%, 84.7% and 99% for Taiwan products over their alternatives of China olives, China oolong tea, and Vietnam oolong tea, respectively. The study concludes that enacting and rigorously enforcing a COOL law would increase economic benefits to consumers in Taiwan, and at the same time, placing the imported products in the leveled playing field.     

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.     

Food product composition,consumer health,and public policy: Introduction and overview of special section

As efforts to improve diets in high income countries intensify, attention has turned to how policies may influence diet composition. The case studies in this special issue contribute to our understanding of how two main types of policies have influenced food product composition and dietary outcomes: (1) policies affecting food manufacturers’ input costs and (2) information policy affecting competition. Research on the first type of policy is relatively new, but suggests that US commodity policies would not be good policy instruments to influence diets, except through the long run impacts of agricultural research. Research on the impacts of information policy continues to demonstrate that it can spur food industry competition to introduce healthier products, but may not result in healthier diets. International comparisons show where the US experience may have relevance for other high income countries.     

Development and validation of a measure of consumer behaviors toward nutritional labeling in restaurants

This study identifies multiple steps for the development and validation of a measurement of consumer attitudes and behaviors regarding nutritional information in restaurants. These steps include an extensive literature review, in-depth interviews, experts’ reviews, a pilot test, and a customer survey. The final questionnaire that collected data from 617 restaurant customers was verified through statistical analysis of reliability test, construct validity, and confirmatory factor analysis. The measurement offers a method to evaluate customers’ use of nutrition information in restaurants and, thus, a tool to prevent obesity for the public.