Do health claims add value? The role of functionality, effectiveness and brand

Francesco Bimbo, Alessandro Bonanno and Rosaria Viscecchia

European Review of Agricultural Economics, 2016, vol. 43, issue 5, 761-780

Abstract: European functional food manufacturers experience high costs of production, marketing and compliance with Regulation EC No. 1924/2006, requiring high premiums to recover these costs. We review the literature on consumers' acceptance of health-enhancing food products and identify three factors potentially affecting health claims' premiums: health claims' type, efficacy and brands. We estimate the contribution of these factors on health claims' implicit prices using a database of Italian yogurt sales and a hedonic price model. We find premiums differing by claim type; that ‘risk diseases reduction’ claims outperforming ‘general function’ claims and that the support of familiar brands affects health claims' premiums.

Keywords: functional food; health claims; hedonic price model (search for similar items in EconPapers)
JEL-codes: Q11 Q18 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://hdl.handle.net/10.1093/erae/jbw002 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:erevae:v:43:y:2016:i:5:p:761-780.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

More articles in European Review of Agricultural Economics from Oxford University Press and the European Agricultural and Applied Economics Publications Foundation Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().