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Strategic Implications Of Consumer Food Safety Preferences

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  • Baker, Gregory A.

Abstract

This study examines the tradeoffs consumers are willing to make relative to food safety attributes and other product attributes, such as quality and price, and develops implications for both the government and private sector firms. Conjoint analysis was used to elicit consumers' preferences for fresh Red Delicious apples. The attributes studied include price, product quality as depicted by the level of defects, a variable representing the level of pesticide usage and the associated cancer risk, and a variable representing different levels of government inspection. The results indicated that most consumers have a strong preference for increased food safety. Government policy options that are explored include stricter production standards, improved regulatory monitoring, and government-defined labels. Private industry options that are examined include grower labels, retailer labels, and third party labels.

Suggested Citation

  • Baker, Gregory A., 1998. "Strategic Implications Of Consumer Food Safety Preferences," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 1(4), pages 1-13.
    • Handle: RePEc:ags:ifaamr:34551
    DOI: 10.22004/ag.econ.34551
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    File URL: https://ageconsearch.umn.edu/record/34551/files/01040451.pdf
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    References listed on IDEAS

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    1. Halbrendt, Catherine K. & Wirth, Ferdinand F. & Vaughn, Gerald F., 1991. "Conjoint Analysis Of The Mid-Atlantic Food-Fish Market For Farm-Raised Hybrid Striped Bass," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-9, July.
    2. Gregory A. Baker & Peter J. Crosbie, 1994. "Consumer preferences for food safety attributes: A market segment approach," Agribusiness, John Wiley & Sons, Ltd., vol. 10(4), pages 319-324.
    3. Young Sook Eom, 1994. "Pesticide Residue Risk and Food Safety Valuation: A Random Utility Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 760-771.
    4. Ravenswaay, Eileen O. van & Hoehn, John P., 1991. "Contingent Valuation and Food Safety: The Case of Pesticide Residues in Food," Staff Paper Series 201042, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Halbrendt, C.K. & Wirth, F.F. & Vaughn, G.F., 1991. "Conjoint Analysis of the Mid-Atlantic Food-Fish Market for Farm-Raised Hybrid Striped Bass," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(1), pages 155-163, July.
    6. Stephen L. Ott, 1990. "Supermarket shoppers' pesticide concerns and willingness to purchase certified pesticide residue-free fresh produce," Agribusiness, John Wiley & Sons, Ltd., vol. 6(6), pages 593-602.
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    Cited by:

    1. Saghaian, Sayed H. & Reed, Michael R., 2007. "Consumer Reaction to Beef Safety Scares," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(1), pages 1-19.
    2. Brian Innes & John Cranfield, 2009. "Consumer preference for production-derived quality: analyzing perceptions of premium chicken production methods," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 395-411.
    3. Benjamin L. Campbell & Saneliso Mhlanga & Isabelle Lesschaeve, 2016. "Market Dynamics Associated with Canadian Ethnic Vegetable Production," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 64-78, January.
    4. Campbell, Benjamin L. & Mhlanga, Saneliso & Lesschaeve, Isabelle, 2013. "Consumer Preferences for Peach Attributes: Market Segmentation Analysis and Implications for New Marketing Strategies," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(3), pages 1-24, December.
    5. Baker, Gregory A. & Burnham, Thomas A., 2001. "The Market For Genetically Modified Foods: Consumer Characteristics And Policy Implications," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(4), pages 1-10.
    6. Codron, Jean-Marie & Sterns, James A. & Reardon, Thomas, 2003. "Strategic Choices In Produce Marketing: Issues Of Compatible Use And Exclusion Costs," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(3), pages 1-12, November.
    7. Berning, Joshua & Campbell, Benjamin L., 2021. "Market simulations of consumer preferences for the introduction of GM tomatoes," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(1).
    8. Berning, Joshua & Campbell, Ben, 2017. "Consumer Preference and Market Simulations of Food and Non-Food GMO Introductions," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252733, Southern Agricultural Economics Association.
    9. Shepherd, Jonathan D. & Saghaian, Sayed H., 2015. "Risk Perception and Trust Interaction in Response to Food Safety Events across Products and the Implications for Agribusiness Firms," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-21, November.
    10. van de Velde, Liesbeth & D'Hooghe, Katrien & Kuhne, Bianka & Verbeke, Wim, 2005. "Consumer Attitude and Behaviour Towards "Flandria" Quality Labelled Tomatoes," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24748, European Association of Agricultural Economists.

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