Does prior knowledge of food fraud affect consumer behavior? Evidence from an incentivized economic experiment

Syed Imran Ali Meerza, Christopher R. Gustafson

Research output: Contribution to journalArticle

Abstract

This study uses a laboratory experiment to examine whether prior knowledge of food fraud persistently affects consumer behavior. We invited regular consumers of olive oil to participate in an olive oil valuation experiment. We used a within-subject design to compare consumers’ willingness to pay (WTP) for Italian extra virgin olive oil (EVOO) before and after receiving information about labeling scandals in the Italian olive oil industry. After the first round of bidding, but before introducing information about labeling scandals or otherwise mentioning food fraud, we surveyed participants about whether they had heard of food fraud. Results indicate that prior knowledge of food fraud plays an important role in explaining consumers’ valuation behavior, both in the pre-information baseline bidding and in how they update their valuation in response to information about a food fraud scandal. Consumers who reported prior knowledge of food fraud partially accounted for the possibility of food fraud in their initial pre-information valuation, submitting significantly lower bids than participants who did not report prior knowledge. They also reacted less to olive oil fraud information than consumers who reported no prior knowledge of food fraud. Findings of this study highlight the potential long-term consequences of increasing consumer awareness of food fraud incidents on consumer WTP for products in industries that have experienced food fraud scandals.

Original languageEnglish (US)
Article numbere0225113
JournalPloS one
Volume14
Issue number12
DOIs
StatePublished - Jan 1 2019

Fingerprint

fraud
Fraud
Consumer behavior
consumer behavior
Economics
Food
economics
willingness to pay
Experiments
olive oil
Labeling
Industry
Consumer Behavior
consumer information
industry
extra-virgin olive oil
Olive Oil

ASJC Scopus subject areas

  • Biochemistry, Genetics and Molecular Biology(all)
  • Agricultural and Biological Sciences(all)
  • General

Cite this

Does prior knowledge of food fraud affect consumer behavior? Evidence from an incentivized economic experiment. / Meerza, Syed Imran Ali; Gustafson, Christopher R.

In: PloS one, Vol. 14, No. 12, e0225113, 01.01.2019.

Research output: Contribution to journalArticle

@article{ba75386b06c54eba9e083133b1d1af6c,
title = "Does prior knowledge of food fraud affect consumer behavior? Evidence from an incentivized economic experiment",
abstract = "This study uses a laboratory experiment to examine whether prior knowledge of food fraud persistently affects consumer behavior. We invited regular consumers of olive oil to participate in an olive oil valuation experiment. We used a within-subject design to compare consumers’ willingness to pay (WTP) for Italian extra virgin olive oil (EVOO) before and after receiving information about labeling scandals in the Italian olive oil industry. After the first round of bidding, but before introducing information about labeling scandals or otherwise mentioning food fraud, we surveyed participants about whether they had heard of food fraud. Results indicate that prior knowledge of food fraud plays an important role in explaining consumers’ valuation behavior, both in the pre-information baseline bidding and in how they update their valuation in response to information about a food fraud scandal. Consumers who reported prior knowledge of food fraud partially accounted for the possibility of food fraud in their initial pre-information valuation, submitting significantly lower bids than participants who did not report prior knowledge. They also reacted less to olive oil fraud information than consumers who reported no prior knowledge of food fraud. Findings of this study highlight the potential long-term consequences of increasing consumer awareness of food fraud incidents on consumer WTP for products in industries that have experienced food fraud scandals.",
author = "Meerza, {Syed Imran Ali} and Gustafson, {Christopher R.}",
year = "2019",
month = "1",
day = "1",
doi = "10.1371/journal.pone.0225113",
language = "English (US)",
volume = "14",
journal = "PLoS One",
issn = "1932-6203",
publisher = "Public Library of Science",
number = "12",

}

TY - JOUR

T1 - Does prior knowledge of food fraud affect consumer behavior? Evidence from an incentivized economic experiment

AU - Meerza, Syed Imran Ali

AU - Gustafson, Christopher R.

PY - 2019/1/1

Y1 - 2019/1/1

N2 - This study uses a laboratory experiment to examine whether prior knowledge of food fraud persistently affects consumer behavior. We invited regular consumers of olive oil to participate in an olive oil valuation experiment. We used a within-subject design to compare consumers’ willingness to pay (WTP) for Italian extra virgin olive oil (EVOO) before and after receiving information about labeling scandals in the Italian olive oil industry. After the first round of bidding, but before introducing information about labeling scandals or otherwise mentioning food fraud, we surveyed participants about whether they had heard of food fraud. Results indicate that prior knowledge of food fraud plays an important role in explaining consumers’ valuation behavior, both in the pre-information baseline bidding and in how they update their valuation in response to information about a food fraud scandal. Consumers who reported prior knowledge of food fraud partially accounted for the possibility of food fraud in their initial pre-information valuation, submitting significantly lower bids than participants who did not report prior knowledge. They also reacted less to olive oil fraud information than consumers who reported no prior knowledge of food fraud. Findings of this study highlight the potential long-term consequences of increasing consumer awareness of food fraud incidents on consumer WTP for products in industries that have experienced food fraud scandals.

AB - This study uses a laboratory experiment to examine whether prior knowledge of food fraud persistently affects consumer behavior. We invited regular consumers of olive oil to participate in an olive oil valuation experiment. We used a within-subject design to compare consumers’ willingness to pay (WTP) for Italian extra virgin olive oil (EVOO) before and after receiving information about labeling scandals in the Italian olive oil industry. After the first round of bidding, but before introducing information about labeling scandals or otherwise mentioning food fraud, we surveyed participants about whether they had heard of food fraud. Results indicate that prior knowledge of food fraud plays an important role in explaining consumers’ valuation behavior, both in the pre-information baseline bidding and in how they update their valuation in response to information about a food fraud scandal. Consumers who reported prior knowledge of food fraud partially accounted for the possibility of food fraud in their initial pre-information valuation, submitting significantly lower bids than participants who did not report prior knowledge. They also reacted less to olive oil fraud information than consumers who reported no prior knowledge of food fraud. Findings of this study highlight the potential long-term consequences of increasing consumer awareness of food fraud incidents on consumer WTP for products in industries that have experienced food fraud scandals.

UR - http://www.scopus.com/inward/record.url?scp=85076108190&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85076108190&partnerID=8YFLogxK

U2 - 10.1371/journal.pone.0225113

DO - 10.1371/journal.pone.0225113

M3 - Article

C2 - 31794556

AN - SCOPUS:85076108190

VL - 14

JO - PLoS One

JF - PLoS One

SN - 1932-6203

IS - 12

M1 - e0225113

ER -