CONSUMER PREFERENCES FOR FOOD SAFETY ATTRIBUTES IN FRESH APPLES: MARKET SEGMENTS, CONSUMER CHARACTERISTICS, AND MARKETING OPPORTUNITIES

Past research has yielded conflicting results on consumer valuation of food safety characteristics. In this study, conjoint analysis is used to evaluate consumer responses to hypothetical apple products in a nationwide survey. Product characteristics include price, quality, pesticide use levels and the corresponding cancer risk, and type of government inspection. Consumers expressed a broad preference for reduced pesticide usage. Four market segments were identified corresponding to consumers: (a) who had a strong preference for food safety, (b) who exhibited a more balanced desire for all product characteristics, (c) who were extremely price sensitive, and (d) who had a strong preference for product quality. Results suggest that consumers in these segments differ based on demographic and psychographic characteristics. This information should prove useful to produce marketers in marketing produce that better meets consumers'Â’ needs.Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

FOOD SAFETY AND FEAR: FACTORS AFFECTING CONSUMER RESPONSE TO FOOD SAFETY RISK

The objective of this research was to explore the factors that affect consumers' responses to low probability food safety risks. A survey of two thousand consumers was conducted in mid-2003, yielding a response rate of 32.0%. The analysis indicated a family-oriented response to food safety risks. Primary meal planners, women, and members of households with young children were the most likely to have an extreme risk avoidance response.Food Consumption/Nutrition/Food Safety,

STRATEGIC IMPLICATIONS OF CONSUMER FOOD SAFETY PREFERENCES

This study examines the tradeoffs consumers are willing to make relative to food safety attributes and other product attributes, such as quality and price, and develops implications for both the government and private sector firms. Conjoint analysis was used to elicit consumersÂ’ preferences for fresh Red Delicious apples. The attributes studied include price, product quality as depicted by the level of defects, a variable representing the level of pesticide usage and the associated cancer risk, and a variable representing different levels of government inspection. The results indicated that most consumers have a strong preference for increased food safety. Government policy options that are explored include stricter production standards, improved regulatory monitoring, and government-defined labels. Private industry options that are examined include grower labels, retailer labels, and third party labels.Food Consumption/Nutrition/Food Safety,

California Strawberry Production and Methyl Bromide

California strawberry growers were faced with the possibility of losing one of their most important chemicals, methyl bromide. Methyl bromide was believed to be involved in the depletion of the ozone layer and 162 countries had signed the Montreal Protocol, which would lead to an eventual ban of the chemical. The US EPA had scheduled the complete phaseout of methyl bromide by 2001. The case is ideal for teaching the application of stakeholder analysis to both undergraduate and graduate classes.Stakeholder analysis, Strawberries, Methyl bromide, Crop Production/Industries,

Of Junk Food and Junk Science

The popular press has triumphantly announced that the cause of the obesity epidemic is “junk food.†After a moment’s reflection, however, it seems likely that the true causal structure of the obesity epidemic can be neither single-equation nor univariate. Therefore, while the hypothesis that “junk food†is the cause of obesity has little a priori plausibility, these articles in the popular press present a testable hypothesis that, in spite of some measurement impossibilities, is tested here. While one can always argue about p values etc., it is safe to say that the results show no evidence to indicate support for a causal link. The second section of the paper explains this result and suggests a rudimentary structural model of obesity that begins to address the issues of specification error, simultaneity, etc., that plague much of the obesity research. This model shows that because of the dynamic nature of weight status, there is no necessary reason to expect to find a statistical relation between a person’s observed weight and the amount he or she is currently eating or exercising. Therefore, studies which regress weight, obesity, or the probability of obesity on eating and exercise patterns have serious specification error. Further development of structural econometric models of obesity may lead to consistent estimates of the partial effects of exogenous variables on obesity levels. We conclude with a discussion of the implications for policy development and industry.obesity, junk food, Granger-causality, Research Methods/ Statistical Methods, Teaching/Communication/Extension/Profession, Q10, Q16,

CONSUMER RESPONSE TO GMO FOODS: BRANDING VERSUS GOVERNMENT CERTIFICATION

The debate over the safety of genetically modified organisms (GMO's) has varied greatly in intensity. In Europe, the debate has been vigorous and European consumers have, in general, been extremely skeptical of the technology and unwilling to assume the risks associated with GMOs. Many retailers in Europe have promised that they will not sell food products that contain GMOs. In the U.S., consumer reaction to GMOs has been more muted. While some surveys have shown that a majority of Americans support the use of biotechnology, others have found that many Americans have reservations about the technology. Most of the research published to date has focused on consumer opinions regarding GMOs. Relatively little research has focused on understanding the basis of consumer opinion or developing or evaluating strategies targeted at gaining consumer acceptance of GMO products. The purpose of this research is to evaluate the effect of two potential strategies to gain consumer acceptance of GMO foods. Specifically, we examine the effectiveness of using a familiar brand or federal government certification on consumer acceptance of GMOs. This research is timely because the rapid pace of GMO development and adoption will soon make it difficult, if not impossible, to maintain separate products based on the presence or absence of GMO content. The conceptual basis for the model used in this paper is Lancaster's theory of consumer demand. The paper discusses the results of the analysis that was undertaken.Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies,

CONSUMER RESPONSE TO GENETICALLY MODIFIED FOODS: MARKET SEGMENT ANALYSIS AND IMPLICATIONS FOR PRODUCERS AND POLICY MAKERS

Conjoint analysis is used to elicit consumer preferences for attributes of genetically modified foods. Market segments are identified based on a cluster analysis of respondents' preferences for brand, price, and GMO content. A logit analysis is used to analyze consumer characteristics associated with the acceptance of GMO foods. Those consumers who were most risk averse, most likely to believe that GMOs improved the quality or safety of food, and most knowledgeable about biotechnology were the most likely to be accepting of GMO foods. These findings are used to develop implications for producers and regulators of GMO foods.Agricultural and Food Policy, Consumer/Household Economics,

Banning Foie Gras in California

Sonoma Foie Gras is one of three producers of foie gras in the U.S. and the sole producer in California. The company employs the practice of force-feeding ducks and geese to produce this culinary delicacy. The case describes the foie gras industry and pending legislation in California, which would ban the practice of force-feeding ducks and geese as well as the sale of the products of force-feeding birds. Readers are asked to conduct a stakeholder analysis to identify the primary stakeholders and their interests, and to identify alternatives and a course of action for Sonoma Foie Gras.stakeholder management, stakeholder analysis, foie gras, Agribusiness,

STRAWMEN IN TRADE PROTECTIONISM: THE CASE OF CITRUS IMPORT QUOTAS

The hypothesis that shipments of oranges into Japan have displaced, and will continue to displace, domestic Mandarin orange shipments in Japan was tested using annual and monthly data and by estimating an econometric model. It was found that the marketing seasons of Mandarin and imported oranges are substantially different. This result, along with econometric estimates, indicated that Mandarin and imported oranges do not directly compete with each other, and supported rejection of the hypothesis that imported oranges have displaced Mandarin orange shipments. It was projected that, under full trade liberalization, orange imports would increase by 115 percent. However, most of this increase would occur during the April to September period when few Mandarin oranges are shipped.Crop Production/Industries, International Relations/Trade,

Who Should Certify the Safety of Genetically Modified Foods?

Two methods of addressing consumer concerns regarding the use of genetically modified foods are evaluated using conjoint analysis – the use of a familiar brand and government certification. In one survey, consumers were asked to rate hypothetical products based on brand, price, and production technology attributes. In a second survey, consumers rated hypothetical products that included government certification, price, and production technology attributes. Both the individual and aggregate results indicate that government certification would be more effective at assuaging consumers concerns than would the use of a familiar brand, although a familiar brand was sufficient to address consumer concerns for a significant number of respondents. The analysis also indicated that different factors are associated with strong consumer preferences for a familiar brand and government certification.Branding, Certification, Consumer demand, Genetically modified food, GMO, Food Consumption/Nutrition/Food Safety,