Identifying Food Labeling Effects on Consumer Behavior

Sebastián Araya (), Andrés Elberg (), Carlos Noton and Daniel Schwartz ()
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Sebastián Araya: Department of Industrial Engineering, University of Chile, Santiago 8370456, Chile
Andrés Elberg: School of Management, Pontifical Catholic University of Chile, Santiago 7820244, Chile
Daniel Schwartz: Department of Industrial Engineering, University of Chile, Santiago 8370456, Chile

Marketing Science, 2022, vol. 41, issue 5, 982-1003

Abstract: We examine a large-scale mandatory food labeling regulation to identify its effects on consumer behavior. We take advantage of exogenous variation in product-labeling status from the gradual and asynchronous introduction of labeled products on store shelves many weeks before the legal deadline. We combine individual-level scan data from a large retailer with on-the-shelf information on the actual warning label status for breakfast cereals, chocolates, and cookies. Warning labels decrease demand and purchase probabilities in the cereal category, and this effect is larger on medium-low socioeconomic groups. We find inconclusive results of the warning label on chocolates and cookies. Overall, results suggest that the warning label effect is consistent with information disclosure influencing consumers’ choices when the advertised information is unexpected.

Keywords: food labeling; consumer behavior; nutritional information; point-of-sale advertising (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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http://dx.doi.org/10.1287/mksc.2022.1356 (application/pdf)

Related works:
Working Paper: Identifying Food Labeling Effects on Consumer Behavior (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:41:y:2022:i:5:p:982-1003

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