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

Francesco Bimbo*, Alessandro Bonanno, Rosaria Viscecchia

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

10 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)761-780
JournalEuropean Review of Agricultural Economics
Volume43
Issue number5
DOIs
Publication statusPublished - 2016

Keywords

  • Functional food
  • Health claims
  • Hedonic price model

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