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What to Choose? The Value of Label Claims to Fresh Produce Consumers

Author

Listed:
  • Bond, Craig A.
  • Thilmany, Dawn D.
  • Bond, Jennifer Keeling
Abstract
We examine consumer response to label information using a hypothetical choice experiment on red leaf lettuce attribute bundles. Using survey responses, several mixed logit models with random parameters and varying correlation assumptions are estimated that provide estimated of marginal utilities ( and marginal values) of various attributes related to general health claims, specific nutrition and health claims, certification logos, and certified organic claims (relative to the conventional reference group) for this fresh produce product. We find that consumers distinguish between labeling claims, and that attribute bundling effects are present, suggesting the results from main effects (linear) models may be misleading. Furthermore, the results imply that consumers may value both privately and publicly appropriable benefits of alternative technologies, such as organic production.

Suggested Citation

  • Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2008. "What to Choose? The Value of Label Claims to Fresh Produce Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-26.
    • Handle: RePEc:ags:jlaare:46559
    DOI: 10.22004/ag.econ.46559
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    7. Durham Catherine A. & Roheim Cathy A. & Pardoe Iain, 2012. "Picking Apples: Can Multi-Attribute Ecolabels Compete?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-28, October.
    8. Jesús Barreiro‐Hurle & Azucena Gracia & Tiziana De‐Magistris, 2010. "The Effects of Multiple Health and Nutrition Labels on Consumer Food Choices," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 426-443, June.
    9. Shi, Wei & Halstead, John & Huang, Ju-Chin, 2016. "Consumers’ Willingness to Pay for Locally Grown Produce: Comparison of New Hampshire and Massachusetts Results," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236109, Agricultural and Applied Economics Association.
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