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Determinants of food demand and the experienced taste effect of healthy labels – An experiment on potato chips and bread

Thunström, Linda and Nordström, Jonas LU (2015) In Journal of Behavioral and Experimental Economics 56. p.13-20
Abstract
This paper examines the importance of taste and health in food demand, as well as the effect on consumers’ experienced taste of the non-intrinsic value of healthy labels. Our analysis is based on taste experiments and Vickrey second price auctions on potato chips and bread. Our findings imply a large positive effect on demand, as measured by willingness to pay, for potato chips from higher taste scores. The estimated effect from taste on bread demand is smaller, but may be sizeable for subgroups of consumers. Our evidence suggests that demand for chips and bread may be positively affected by the healthy label, but the effect is not statistically significant when one control for taste. Finally, we find that consumers’ experienced taste of a... (More)
This paper examines the importance of taste and health in food demand, as well as the effect on consumers’ experienced taste of the non-intrinsic value of healthy labels. Our analysis is based on taste experiments and Vickrey second price auctions on potato chips and bread. Our findings imply a large positive effect on demand, as measured by willingness to pay, for potato chips from higher taste scores. The estimated effect from taste on bread demand is smaller, but may be sizeable for subgroups of consumers. Our evidence suggests that demand for chips and bread may be positively affected by the healthy label, but the effect is not statistically significant when one control for taste. Finally, we find that consumers’ experienced taste of a food is unaffected by the food carrying a healthy label. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Willingness-to-pay for food, Revealed preferences, Taste, Non-intrinsic value, Healthy label
in
Journal of Behavioral and Experimental Economics
volume
56
pages
13 - 20
publisher
Elsevier
external identifiers
  • wos:000358097800002
  • scopus:84924598773
ISSN
2214-8043
DOI
10.1016/j.socec.2015.02.004
language
English
LU publication?
yes
id
95ccf540-d344-467f-bd19-54abbb7f4123 (old id 5423570)
date added to LUP
2015-05-25 11:09:55
date last changed
2017-08-27 04:29:44
@article{95ccf540-d344-467f-bd19-54abbb7f4123,
  abstract     = {This paper examines the importance of taste and health in food demand, as well as the effect on consumers’ experienced taste of the non-intrinsic value of healthy labels. Our analysis is based on taste experiments and Vickrey second price auctions on potato chips and bread. Our findings imply a large positive effect on demand, as measured by willingness to pay, for potato chips from higher taste scores. The estimated effect from taste on bread demand is smaller, but may be sizeable for subgroups of consumers. Our evidence suggests that demand for chips and bread may be positively affected by the healthy label, but the effect is not statistically significant when one control for taste. Finally, we find that consumers’ experienced taste of a food is unaffected by the food carrying a healthy label.},
  author       = {Thunström, Linda and Nordström, Jonas},
  issn         = {2214-8043},
  keyword      = {Willingness-to-pay for food,Revealed preferences,Taste,Non-intrinsic value,Healthy label},
  language     = {eng},
  pages        = {13--20},
  publisher    = {Elsevier},
  series       = {Journal of Behavioral and Experimental Economics},
  title        = {Determinants of food demand and the experienced taste effect of healthy labels – An experiment on potato chips and bread},
  url          = {http://dx.doi.org/10.1016/j.socec.2015.02.004},
  volume       = {56},
  year         = {2015},
}