INTEGRATION OF A PRODUCT CHOICE MODEL AND A LATENT VARIABLE MODEL OF NUTRITION INFORMATION

We develop and estimate an integrated discrete choice model system of product choice and nutrition information for prepared frozen meals in the United States in the period from 1993 to 1998, when government regulation of nutrition labeling changed from voluntary to mandatory. The model links consumer characteristics (e.g., income, knowledge about nutrition, nutrition label use) to product characteristics (e.g., prices, nutritional attributes) and allows us to obtain consumer preference parameters and demand elasticities with regard to product characteristics. We find that prices, advertising, price reductions, and consumer preferences for taste have a significant effect on the demand for prepared frozen meals, whereas knowledge about nutrition and nutrition label use do not. Using the estimated demand parameters we then evaluate the impact of the new mandatory labeling policy. The results show that consumer preferences and purchasing patterns within the prepared frozen meals category did not change significantly after the implementation of mandatory nutrition labeling.Demand and Price Analysis, Food Consumption/Nutrition/Food Safety,

ENDOGENOUS CONSUMER PREFERENCES AND KNOWLEDGE ABOUT NUTRITION

What are the important determinants of consumer demand and how have they been changing over the last decade? Understanding these factors is crucial for evaluating the benefits and costs of government regulations, such as labeling, intended to influence consumer food choice and, ultimately, public health; for assessing the competitiveness of U.S. agricultral producers and food processors as they choose product designs and marketing strategies; and for assessing the impact of changing consumer demand for food on the agricultural and food sectors of the U.S. economy. The objectives of this paper are to make a significant contribution to demand analysis by basing this understanding on the use of uniquely comprehensive data sets and theoretical/modeling techniques that evaluate demand on the brand level; and to build a comprehensive understanding of the relative importance of different determinants of consumer food choices in the decade from 1993-2002. The overall goal is to analyze what is driving consumer choices and the implications of these drivers for food and nutrition policy in the United States. A particular focus is the relative importance of advertising, other company marketing strategies, nutritional quality, privately and publicly provided nutritional information, and consumer dietary concerns and knowledge in determining consumer demand for food products.Agribusiness, Consumer/Household Economics, Demand and Price Analysis,

USING INFORMATIONAL LABELING TO INFLUENCE THE MARKET FOR QUALITY IN FOOD PRODUCTS

In the United States, the federal government is increasingly using requirements for informational labeling on food products to influence 1) consumers' knowledge and purchasing patterns and 2) manufacturers' product offerings and marketing practices. We discuss the economic rationale behind these regulations and issues related to judging their success or failure.Food labeling, food quality, food safety, information, Food Consumption/Nutrition/Food Safety,

Exogenous vs. Endogenous Consumer Preferences and Knowledge about Nutrition

Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

INTEGRATION OF A PRODUCT CHOICE MODEL AND A LATENT VARIABLE MODEL OF NUTRITION INFORMATION

We develop and estimate an integrated discrete choice model system of product choice and nutrition information for prepared frozen meals in the United States in the period from 1993 to 1998, when government regulation of nutrition labeling changed from voluntary to mandatory. The model links consumer characteristics (e.g., income, knowledge about nutrition, nutrition label use) to product characteristics (e.g., prices, nutritional attributes) and allows us to obtain consumer preference parameters and demand elasticities with regard to product characteristics. We find that prices, advertising, price reductions, and consumer preferences for taste have a significant effect on the demand for prepared frozen meals, whereas knowledge about nutrition and nutrition label use do not. Using the estimated demand parameters we then evaluate the impact of the new mandatory labeling policy. The results show that consumer preferences and purchasing patterns within the prepared frozen meals category did not change significantly after the implementation of mandatory nutrition labeling

PRIVATE AND PUBLIC FOOD SAFETY CONTROL MECHANISMS: INTERDEPENDENCE AND EFFECTIVENESS

In this paper, we propose new research methods and approaches in the area of food safety economics that would improve the allocation and effectiveness of private and public resources and efforts in ensuring food safety. The focus is on approaches that would build a comprehensive understanding of the interdependence between private and public food safety control mechanisms, including direct regulation by process and performance safety standards, traceability requirements, product liability, and product liability insurance; contribute to the development and analysis of loss control functions related to food safety hazards and to the assessment of the insurability of agricultural producers and food processors from such risks; as well as evaluate the impact of food safety hazards on producers and processors and determine whether and how businesses respond to food safety outbreaks affecting other businesses in the same industry