Consumer preference, Interaction design, Choice Experiment, Random Parameter Logit
Is the Natural Label Misleading? Examining Consumer Preferences for Natural Beef, 2017, Konstantinos G. Syrengelas
2017. 11. 2. (Thu) 11:30 ~ 13:00
Seminar room 406, Graduate School of International Agricultural Technology
5. Main contents
○ This research determines if consumer WTP for the natural label is impacted by consumer knowledge regarding the USDA definition of natural.
○ If results show that consumers are not willing to pay more for natural labeled beef when they are informed about the definition of natural, this may suggest that the natural claim is misleading consumers.
○ Therefore, it is of interest to determine the extent to which natural labeling influences consumer WTP for beef while this debate is underway.
○ Random Parameter Logit,Interaction design, WTP
○ Results of this research suggest that consumers’ WTP for natural labeled beef varies depending on whether consumers are familiar or unfamiliar with the USDA definition of natural.
○ The findings indicate that consumers familiar and informed regarding the USDA definition of natural do not place a premium on natural beef unless the natural label appears together with other positively-perceived labels (e.g., no growth hormones).
○ Our findings generally support the hypothesis that consumers are potentially misinformed about the meaning of “natural”. Hence, policies or measures that can provide consumers with a readily accessible and easy way (e.g., QR code, website, phone number) to receive further information about the definition of “natural” should be considered.