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Red, yellow, or green? Do consumers’ choices of food products depend on the label design?

Author

Listed:
  • Fredrik Carlsson
  • Mitesh Kataria
  • Elina Lampi
  • Erik Nyberg
  • Thomas Sterner

Abstract

Using a stated preference survey, we investigate to what extent consumers are willing to make costlier food consumption choices to decrease damages to health, the environment, and animal well-being. In particular, we investigate how the graphic design of the labels affects choice behaviour by comparing traffic–light and greyscale labels and plain-text description with each other. We found that the red colour in traffic lights seems to strengthen respondents’ preferences for avoiding the worst level of a collective attribute such as climate impact or antibiotics use, while the green colour strengthened preferences for the more private attribute, namely healthiness. On average, the price premiums for a green label compared with a red label is 52 per cent for healthiness, 64 per cent for both animal welfare and antibiotics, and 20 per cent for climate impact.

Suggested Citation

  • Fredrik Carlsson & Mitesh Kataria & Elina Lampi & Erik Nyberg & Thomas Sterner, 2022. "Red, yellow, or green? Do consumers’ choices of food products depend on the label design?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(5), pages 1005-1026.
    • Handle: RePEc:oup:erevae:v:49:y:2022:i:5:p:1005-1026.
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    File URL: http://hdl.handle.net/10.1093/erae/jbab036
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    Cited by:

    1. Andersson, Henrik & Ouvrard, Benjamin, 2024. "Not on my plate! Using mental accounting to promote meat substitutes," TSE Working Papers 24-1547, Toulouse School of Economics (TSE).

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