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Evaluating the Life Cycle of a Product Warning

Author

Listed:
  • Robert G. Orwin

    (United States General Accounting Office)

  • Raymond E. Schucker

    (United States Food and Drug Administration)

  • Raymond C. Stokes

    (United States Food and Drug Administration)

Abstract

The effect of the saccharin warning label on sales of diet soft drinks was modeled with an autoregressive integrated moving average (A RIMA) process. Retail price trends and attendant publicity were modeled concurrently to separate these effects from those due to the warning. Results indicated that the label produced a small yet statistically significant reduction in sales, with an abrupt onset and, thus far, permanent duration. Reasons for the absence of decay effects, limitations of interpretability, and ideas for improving future evaluations of warning labels are discussed.

Suggested Citation

  • Robert G. Orwin & Raymond E. Schucker & Raymond C. Stokes, 1984. "Evaluating the Life Cycle of a Product Warning," Evaluation Review, , vol. 8(6), pages 801-822, December.
    • Handle: RePEc:sae:evarev:v:8:y:1984:i:6:p:801-822
    DOI: 10.1177/0193841X8400800603
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    Cited by:

    1. Ravenswaay, Eileen O. van, 1987. "How Much Food Safety Do Consumers Want? An Analysis of Current Studies and Strategies for Future Research," Staff Paper Series 200936, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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