TY - JOUR
T1 - Interaction Effects among Labeled Attributes for Eggs in the United States
AU - Heng, Yan
AU - Peterson, Hikaru Hanawa
N1 - Publisher Copyright:
© 2018 Taylor & Francis Group, LLC.
PY - 2018/7/3
Y1 - 2018/7/3
N2 - New labels for food products continue to be introduced in the United States. This paper estimates interaction effects among labeled attributes for eggs to investigate cases where affixing labels of “premium” attributes would indeed gain additional premiums in the U.S. market. A latent class analysis identified four consumer segments (Attribute Seekers, Price Checkers, Local Supporters, and Combination Responders). Several interaction effects were sufficiently large in magnitude to neutralize the main effects, but differently for each segment. While the combination of certified-organic with cage-free or local label yielded negative premiums in certain segments, the premium Attribute Seekers were willing to pay were considerable. Across all segments, preferences for locally produced products were robust singly or in combinations. Consideration of interaction effects and consumer segments are recommended for effective labeling strategies.
AB - New labels for food products continue to be introduced in the United States. This paper estimates interaction effects among labeled attributes for eggs to investigate cases where affixing labels of “premium” attributes would indeed gain additional premiums in the U.S. market. A latent class analysis identified four consumer segments (Attribute Seekers, Price Checkers, Local Supporters, and Combination Responders). Several interaction effects were sufficiently large in magnitude to neutralize the main effects, but differently for each segment. While the combination of certified-organic with cage-free or local label yielded negative premiums in certain segments, the premium Attribute Seekers were willing to pay were considerable. Across all segments, preferences for locally produced products were robust singly or in combinations. Consideration of interaction effects and consumer segments are recommended for effective labeling strategies.
KW - Consumer segmentation
KW - eggs
KW - interaction effects
KW - latent class model
KW - willingness-to-pay
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U2 - 10.1080/08974438.2017.1413610
DO - 10.1080/08974438.2017.1413610
M3 - Article
AN - SCOPUS:85039160266
SN - 0897-4438
VL - 30
SP - 236
EP - 250
JO - Journal of International Food and Agribusiness Marketing
JF - Journal of International Food and Agribusiness Marketing
IS - 3
ER -