Interaction Effects among Labeled Attributes for Eggs in the United States

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Abstract

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.

Original languageEnglish (US)
Pages (from-to)236-250
Number of pages15
JournalJournal of International Food and Agribusiness Marketing
Volume30
Issue number3
DOIs
StatePublished - Jul 3 2018

Keywords

  • Consumer segmentation
  • eggs
  • interaction effects
  • latent class model
  • willingness-to-pay

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