IDEAS home Printed from https://ideas.repec.org/p/ags/saeana/46725.html
   My bibliography  Save this paper

Modelling Reference-Dependent and Labelling Effects in Consumers’ Functional Food Choices

Author

Listed:
  • Zou, Ning Ning (Helen)

Abstract

This paper examines the reference-dependent and labelling effects when consumers make choices about functional foods, and explores how changes in reference points could alter individuals’ preferences. Functional food (Omega 3 milk) and regular food (regular milk) are used as examples to explore the potential reference-dependent effects and labelling effects. A consumer utility model with reference point effects is developed. The paper also explores how to model the effects of different labelling (health claim) policies, which could influence consumer preferences by changing consumers’ reference points.

Suggested Citation

  • Zou, Ning Ning (Helen), 2009. "Modelling Reference-Dependent and Labelling Effects in Consumers’ Functional Food Choices," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46725, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeana:46725
    DOI: 10.22004/ag.econ.46725
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/46725/files/SAEA%20Selected%20Paper.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.46725?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    2. Murray Fulton & Konstantinos Giannakas, 2004. "Inserting GM Products into the Food Chain: The Market and Welfare Effects of Different Labeling and Regulatory Regimes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 42-60.
    3. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    4. David R. Bell & James M. Lattin, 2000. "Looking for Loss Aversion in Scanner Panel Data: The Confounding Effect of Price Response Heterogeneity," Marketing Science, INFORMS, vol. 19(2), pages 185-200, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Toshiaki Iizuka & Hitoshi Shigeoka, 2020. "Asymmetric Demand Response when Prices Increase and Decrease: The Case of Child Healthcare," NBER Working Papers 28057, National Bureau of Economic Research, Inc.
    2. Necati Tereyağoğlu & Peter S. Fader & Senthil Veeraraghavan, 2018. "Multiattribute Loss Aversion and Reference Dependence: Evidence from the Performing Arts Industry," Management Science, INFORMS, vol. 64(1), pages 421-436, January.
    3. Nicolau, Juan Luis, 2011. "Testing prospect theory in airline demand," Journal of Air Transport Management, Elsevier, vol. 17(4), pages 241-243.
    4. Pranav Jindal, 2015. "Risk Preferences and Demand Drivers of Extended Warranties," Marketing Science, INFORMS, vol. 34(1), pages 39-58, January.
    5. Merja Halme & Outi Somervuori, 2013. "Choice behavior of information services when prices are increased and decreased from reference level," Annals of Operations Research, Springer, vol. 211(1), pages 549-564, December.
    6. Yaman, F. & Cubi-Molla, P. & Ungureanu, S., 2019. "Which Decision Theory Describes Life Satisfaction Best? Evidence from Annual Panel Data," Working Papers 19/12, Department of Economics, City University London.
    7. Baucells, Manel & Weber, Martin & Welfens, Frank, 2007. "Reference Point Formation Over Time: A Weighting Function Approach," Sonderforschungsbereich 504 Publications 07-43, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    8. Nicolau, Juan L., 2011. "Differentiated price loss aversion in destination choice: The effect of tourists’ cultural interest," Tourism Management, Elsevier, vol. 32(5), pages 1186-1195.
    9. Vincenzina Caputo & Jayson L Lusk & Rodolfo M Nayga, 2020. "Am I Getting a Good Deal? Reference‐DependentDecision Making When the Reference Price Is Uncertain," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 132-153, January.
    10. Neumann, Nico & Böckenholt, Ulf, 2014. "A Meta-analysis of Loss Aversion in Product Choice," Journal of Retailing, Elsevier, vol. 90(2), pages 182-197.
    11. repec:cup:judgdm:v:1:y:2006:i::p:23-32 is not listed on IDEAS
    12. Huang, Jiaqi & Antonides, Gerrit & Nie, Fengying, 2022. "Asymmetric price effects on food demand of rural households: Panel evidence from China," Journal of Economic Psychology, Elsevier, vol. 89(C).
    13. Goić, Marcel & Levenier, Camilo & Montoya, Ricardo, 2021. "Drivers of customer satisfaction in the grocery retail industry: A longitudinal analysis across store formats," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    14. David Gal, 2006. "A psychological law of inertia and the illusion of loss aversion," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 1, pages 23-32, July.
    15. Manel Baucells & Martin Weber & Frank Welfens, 2011. "Reference-Point Formation and Updating," Management Science, INFORMS, vol. 57(3), pages 506-519, March.
    16. Jose Apesteguia & Miguel Ballester, 2009. "A theory of reference-dependent behavior," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(3), pages 427-455, September.
    17. Shunda, Nicholas, 2009. "Auctions with a buy price: The case of reference-dependent preferences," Games and Economic Behavior, Elsevier, vol. 67(2), pages 645-664, November.
    18. Christian Grund & Dirk Sliwka, 2007. "Reference-Dependent Preferences and the Impact of Wage Increases on Job Satisfaction: Theory and Evidence," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(2), pages 313-335, June.
    19. Botond Kőszegi & Matthew Rabin, 2006. "A Model of Reference-Dependent Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1133-1165.
    20. Marianne Bertrand & Dean S. Karlan & Sendhil Mullainathan & Eldar Shafir & Jonathan Zinman, 2005. "What's Psychology Worth? A Field Experiment in the Consumer Credit Market," Working Papers 918, Economic Growth Center, Yale University.
    21. Grund, Christian & Sliwka, Dirk, 2001. "The Impact of Wage Increases on Job Satisfaction - Empirical Evidence and Theoretical Implications," IZA Discussion Papers 387, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saeana:46725. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.