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ON CONSUMERS' VALUATION OF NUTRITION INFORMATION
Author(s) -
Drichoutis Andreas C.,
Lazaridis Panagiotis,
Nayga Jr Rodolfo M.
Publication year - 2009
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.2009.00303.x
Subject(s) - valuation (finance) , willingness to pay , nutritional information , product (mathematics) , business , food products , value (mathematics) , contingent valuation , nutrition information , european union , labelling , economics , marketing , public economics , microeconomics , finance , food science , international trade , chemistry , geometry , mathematics , criminology , machine learning , sociology , computer science
The European Union (EU) is contemplating regulations requiring mandatory provision of nutritional information on food products. This study analyses consumers' valuation of nutritional information using data collected from a field survey. The results generally suggest that consumers value and are willing to pay about 5.9 percent of the original price for nutritional information on the food product we studied. Individuals who are non‐price‐sensitive, nutritionally knowledgeable and with longer time horizon are willing to pay more for nutritional information than others. Considering consumers' willingness to pay for nutritional information on food products and an EU impact assessment study, the costs of provision of this information are not prohibitive to firms. We estimate that the least conservative cost of labelling to the firm for a specific food product can be as much as €29,431, whereas the average economic value of nutrition information is estimated at €17,064. The firm can therefore recoup the associated costs in less than two months.