Food Labels - The Good , The Bad And The Ugly

Special labels for foods that have genetic modification and are not organically processed have been the target of initiatives and legislative efforts recently. While a recent survey found that only 7 percent of people felt labeling GMOs was very important to them, that number climbed to 59 percent when they were reminded about genetically modified foods.

Special labels for foods that have genetic modification and are not organically processed have been the target of initiatives and legislative efforts recently. While a recent survey found that only 7 percent of people felt labeling GMOs was very important to them, that number climbed to 59 percent when they were reminded about genetically modified foods.

A new study adds to the nature of label marketing and also sheds left on the gluten-free trend. People are willing to pay more if a product is advertised as "free of" something negative than if it touts that it "contains" something positive. And when the something they are supposed to be worried about is explained - negatively-framed secondary information - they are even more inclined to buy it. A food labeled "free" of a food dye will compel some consumers to buy that product. But even more people will buy that product if that same label also includes information about the risks of ingesting such dyes, according to their analysis of 351 (non-college student) shoppers.

"What did surprise us was the effect of supplementary information," said Cornell humanities professor Harry M. Kaiser. "Even seemingly negative information was valued over just the label itself."

When provided more information about ingredients, consumers are more confident about their decisions and value the product more, Kaiser said.

Published earlier this month as "Consumer Response to 'Contains' and 'Free of' Labeling" in the journal, Applied Economic Perspectives and Policy, the Cornell study might interest CEOs of food-processing companies, government policy makers and American consumers alike.

Jura Liaukonyte, Nadia A. Streletskaya, Harry M. Kaiser, and Bradley J. Rickard, 'Consumer Response to “Contains” and “Free of” Labeling: Evidence from Lab Experiments', Appl. Econ. Perspect. Pol. (2013) 35 (3): 476-507. doi: 10.1093/aepp/ppt015 Source: Cornell University
Old NID
124781
Categories

Latest reads

Article teaser image
Donald Trump does not have the power to rescind either constitutional amendments or federal laws by mere executive order, no matter how strongly he might wish otherwise. No president of the United…
Article teaser image
The Biden administration recently issued a new report showing causal links between alcohol and cancer, and it's about time. The link has been long-known, but alcohol carcinogenic properties have been…
Article teaser image
In British Iron Age society, land was inherited through the female line and husbands moved to live with the wife’s community. Strong women like Margaret Thatcher resulted.That was inferred due to DNA…