TY - UNPB

T1 - The importance of taste for food demand and the expected taste effect of healthy labels - An experiment on potato chips and bread

AU - Thunström, Linda

AU - Nordström, Leif Jonas

N1 - Published as: Thunström, L. and Nordström, J. (2015), Determinants of Food Demand and the Experienced Taste Effect of Healthy Labels - An experiment on potato chips and bread, Journal of Behavioral and Experimental Economics, 56, 13-20.

PY - 2014

Y1 - 2014

N2 - This paper quantitatively analyzes the importance of taste versus 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 for potato chips from higher taste scores: when consumers’ experienced taste from potato chips improves by one unit, the average willingness-to-pay (WTP) for a 150 gram bag of chips increases by 25 euro cents. 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 is unaffected by nutrition – the effect of the healthy label on WTP is not statistically significant. Finally, we find that consumers’ experienced taste of a food is unaffected by the food carrying a healthy label.

AB - This paper quantitatively analyzes the importance of taste versus 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 for potato chips from higher taste scores: when consumers’ experienced taste from potato chips improves by one unit, the average willingness-to-pay (WTP) for a 150 gram bag of chips increases by 25 euro cents. 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 is unaffected by nutrition – the effect of the healthy label on WTP is not statistically significant. Finally, we find that consumers’ experienced taste of a food is unaffected by the food carrying a healthy label.

KW - Consumers and food

KW - Healthy label

KW - non-intrinsic value

KW - Taste

KW - Revealed preferences

KW - Willingness-to-pay for food

KW - Faculty of Social Sciences

UR - https://www.sciencedirect.com/science/article/pii/S2214804315000221

M3 - Working paper

T3 - Working Paper Department of Economics, Lund University

BT - The importance of taste for food demand and the expected taste effect of healthy labels - An experiment on potato chips and bread

PB - Department of Economics, Lund University

CY - Lund

ER -