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Are multiple labels on food products beneficial or simply ignored?
Author(s) -
Drugova Tatiana,
Curtis Kynda R.,
Akhundjanov Sherzod B.
Publication year - 2020
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/cjag.12259
Subject(s) - certification , organic product , product (mathematics) , gluten free , organic certification , business , marketing , willingness to pay , organic farming , food labeling , food products , product certification , mixed logit , agricultural science , agriculture , food science , economics , logistic regression , gluten , mathematics , microeconomics , chemistry , geography , statistics , geometry , management , archaeology , environmental science
This study examines consumer preferences and willingness to pay (WTP) for organic wheat products exhibiting single labels, as well as multiple labels, including organic. The additional labels considered are related to the organic label (non‐genetically modified organism [non‐GMO]) or perceived as health‐promoting (gluten‐free, low‐carb, sugar‐free). Study data were collected using a consumer survey conducted online in 2017 across 16 U.S. western states and analyzed using random parameter logit models. Findings show that organic‐labeled wheat products with additional claims were valued equally or less than the organic only version. Overall, consumer higher objective and subjective knowledge of organic standards, as well as preferences for gluten‐free products, increased their WTP for organic wheat products. Consumers unfamiliar with organic standards valued the non‐GMO label over the organic label. Additionally, consumer WTP for health‐related claims on hedonistic products was low or even negative. Hence, multiple labels on organic products generally provide no additional consumer benefit and are likely ignored. Study findings suggest that using the claim that most distinguishes the product, or is most salient, may improve product pricing. Also, non‐GMO certification rather than organic certification should be considered for some markets. Finally, consumers with preferences for gluten‐free products represent a potential market for organic wheat products.