Do Voluntary Biotechnology Labels Matter to the Consumer? Evidence from the Fluid Milk Market

Kiesel, Kristin; Buschena, David E.; Smith, Vincent H.

doi:10.1111/j.1467-8276.2005.00729.x

Cited by 28 publications

(19 citation statements)

References 22 publications

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“…They found significant consumer valuation of organic milk, and to a lesser extent, rBGH-free milk. Following a different approach that focuses on product attribute uncertainty faced by the consumer and his/her search costs addressed in a random utility framework, Kiesel, Buschena, and Smith (2005) reported similar findings. In addition, by identifying rBGH-free labeled and unlabeled products, their results suggest that the provision of relevant information on a label might be required if market segmentation is to take place.…”

Section: Introductionsupporting

confidence: 65%

“…The significant but unexpected sign of this effect might indicate that consumers do not focus on these attributes as much in the investigated time period as studies of earlier time periods concluded (e.g. Kiesel, Buschena, and Smith 2005;Dhar and Foltz 2005). This might be evidence of a limited attention span by consumers as the discussion about rBGH is not as present and recent anymore as in earlier time periods.…”

mentioning

confidence: 64%

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Got Organic Milk? Consumer Valuations of Milk Labels after the Implementation of the USDA Organic Seal

Kiesel¹,

Villas-Boas²

2007

Journal of Agricultural &Amp; Food Industrial Organization

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This paper investigates consumer reactions to changes in information provision regarding organic production. Quantitative analyses focus on the actual implementation of mandatory labeling guidelines under the National Organic Program. The unique nature of the fluid milk market in combination with these regulatory changes allows us to place a value on information sets under different labeling regimes. Hedonic price functions provide an initial reference point for analyses of individual responses. A random utility discrete choice model serves as the primary econometric specification and allows consideration of consumer preference heterogeneity along observable household demographics. Our results indicate that the USDA organic seal increases the probability of purchasing organic milk. An initial hedonic price function approach, as well as simulations within the discrete choice framework, suggests that consumers value the change in labeling regulations with regard to organic production. Our results further suggest that consumers substitute away from milk carrying the rBGH-free label. This may indicate that consumers pay less attention to these labels in the time period investigated compared to results found in studies that use earlier time periods. ____________________________ † We thank participants at the INRA conference in Toulouse, France, and Celine Bonnet for their suggestions. We also wish to thank Azzeddine Azzam and two anonymous reviewers for their helpful comments. Data access and funds for this research were provided via a cooperative agreement between UC Berkeley and the USDA-ERS. We wish to especially thank Elise Golan for her support. The views presented in this paper are those of the authors' and not necessarily those of the USDA, ERS. Our results indicate that the USDA organic seal increases the probability of purchasing organic milk. An initial hedonic price function approach, as well as simulations within the discrete choice framework, suggests that consumers value the change in labeling regulations with regard to organic production. Our results further suggest that consumers substitute away from milk carrying the rBGH-free label. This may indicate that consumers pay less attention to these labels in the time period investigated compared to results found in studies that use earlier time periods.2

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Section: Introductionsupporting

confidence: 65%

mentioning

confidence: 64%

Got Organic Milk? Consumer Valuations of Milk Labels after the Implementation of the USDA Organic Seal

Kiesel¹,

Villas-Boas²

2007

Journal of Agricultural &Amp; Food Industrial Organization

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“…Some studies showed no change in consumers' attitude by increased product information [136], [142], [143]. On the other hand, other studies quoted a positive effect of giving additional information that involve clear consumer benefits [46], [144].…”

Section: Resultsmentioning

confidence: 99%

Determinants of Public Attitudes to Genetically Modified Salmon

et al. 2014

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The objective of this paper is to assess the attitude of Malaysian stakeholders to genetically modified (GM) salmon and to identify the factors that influence their acceptance of GM salmon using a structural equation model. A survey was carried out on 434 representatives from various stakeholder groups in the Klang Valley region of Malaysia. Public attitude towards GM salmon was measured using self-developed questionnaires with seven-point Likert scales. The findings of this study have confirmed that public attitudes towards GM salmon is a complex issue and should be seen as a multi-faceted process. The most important direct predictors for the encouragement of GM salmon are the specific application-linked perceptions about religious acceptability of GM salmon followed by perceived risks and benefits, familiarity, and general promise of modern biotechnology. Encouragement of GM salmon also involves the interplay among other factors such as general concerns of biotechnology, threatening the natural order of things, the need for labeling, the need for patenting, confidence in regulation, and societal values. The research findings can serve as a database that will be useful for understanding the social construct of public attitude towards GM foods in a developing country.

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“…Such labeling may lead consumers to indicate that they would pay more for a particular attribute. Kiesel et al (2005) found voluntary labeling of milk attributes (rBGH free) increased the quantity demanded for the attribute free product. Dhar and Foltz (2005) found that on average, consumers are willing to pay more for such labeling.…”

Section: Background and Literature Reviewmentioning

confidence: 98%

Affect or information? Labeling policy and consumer valuation of rBST free and organic characteristics of milk

Kolodinsky

2008

Food Policy

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Do Voluntary Biotechnology Labels Matter to the Consumer? Evidence from the Fluid Milk Market

Cited by 28 publications

References 22 publications

Got Organic Milk? Consumer Valuations of Milk Labels after the Implementation of the USDA Organic Seal

Got Organic Milk? Consumer Valuations of Milk Labels after the Implementation of the USDA Organic Seal

Determinants of Public Attitudes to Genetically Modified Salmon

Affect or information? Labeling policy and consumer valuation of rBST free and organic characteristics of milk

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