In response to dramatically increasing adoption in consumer markets, the National Organic Program (NOP) initiated novel labeling standards for food products in the US in 2002. This program is a particularly relevant standardization effort for multi-ingredient processed foods. Rather than a simple binary message (organic or not), gradations of organic content are now codified. No existing published study evaluates consumer willingness to pay or motivation to purchase in response to such a rich organic label. This article presents evidence of the impact of the NOP through analysis of data collected in seven central Ohio, USA grocery stores. Results suggest that consumers are willing to pay premium prices for organic foods, even those with less than 100% organic ingredients. The magnitudes of WTP premia varied significantly among consumer groups, suggesting that targeted marketing may be effective for organic merchandisers.
The future competitiveness of the U.S. food industry depends on its ability to deliver highquality products at competitive prices to domestic and intemational markets. Recent developments in the establishrnent and operation of quality management metasystems are having important effects on this competitiveness. Their use has the potential to enhance product quality, simplify contractual relationships, demonstrate compliance with regulations, and improve responsiveness to customers. Their use is also requiring novel intemal organization and market linkages between firms.M 'any recent developments in the adoption of food quality management sys-.tems representa switch toward the application of metasystems and metastandards. 1 This follows similar trends in other nonfood industries, with efforts focused on reducing product waste, complying with contractual requirements, responding to consumer demands, managing risk, and demonstrating that technical product and process standards are being met. A common though not exclusive incentive for adoption of these systems in the food industry is the management of food safety attributes. Here we discuss how adoption of new quality management metasystems is affecting the operation of the food system and how these effects might be quantified. To do so, we focus on the characteristics and effects of three types of quality metasystems: those mandated by governments through regulatory
Recent trends in the marketing of functional foods suggest that multiple-benefit products are becoming more common. Yet it is unclear which consumers are most interested in, or best served by, such novel or new generation functional foods. With emerging scientific evidence of efficacy and more diverse products offered for sale, a broader range of consumers are likely to become interested in dietary interventions to enhance health. Consumers will likely respond based on a range of motivation, health conditions, and knowledge levels suggesting "one size will not fit all." Given such an evolving marketing environment, this paper presents 1 research technique exploring differences in consumer preferences and valuations for a novel functional food product-a tomato juice containing soy. A discrete choice experiment is applied to examine consumer valuation of this novel functional food. Data were collected from 1704 households in Ohio through a mail survey. The choice experiment manipulates whether or not the product is organic, whether it contains natural or fortified nutrients, and product price. Estimates of consumer willingness to pay a premium price are based on conditional logit and mixed logit models, which permit an examination of consumer preference and valuation heterogeneity for key product attributes. Results indicate that health benefits and ingredient naturalness are positively valued, but such preferences and valuations depend on an individual's education, income, and food purchase behavior. Naturally occurring nutrients are preferred over fortification. Considerable heterogeneity is found in the data suggesting that a range of market segments may exist.
Regardless of household socioeconomic status, children attending public schools have higher BMI than those attending private schools. Eligibility for free or reduced-cost lunch or breakfast programs at public schools is positively correlated with children's BMI. Children attending public schools are more likely to be overweight. In lower socioeconomic status households, school type does not have a significant effect on the probability of being overweight. Policy recommendations for factors to address childhood obesity are discussed.
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