The Effectiveness of "Sugar Free," "Fat Free," and "Trans-Fat Free" Labels on Food and College Students' Willigness to Purchase Them

137427-Thumbnail Image.png
Description
The U.S. Food and Drug Administration (FDA) regularly conducts a survey to assess Americans' attitudes toward and knowledge of health and nutrition and has specific guidelines regulating food labels. The increasing importance of food label information to consumers makes it

The U.S. Food and Drug Administration (FDA) regularly conducts a survey to assess Americans' attitudes toward and knowledge of health and nutrition and has specific guidelines regulating food labels. The increasing importance of food label information to consumers makes it crucial for businesses to understand what their target markets value and what they should put on their labels. Several studies investigated the effectiveness of food labels, specifically sugar free, fat free, and trans-fat free, with mixed results. Relatively few focused on the Generation Y demographic. The purpose of this research is to determine which labels are most effective for businesses to market food products as fat free, trans-fat free, and sugar free to the Generation Y demographic in the effort to increase sales. This study used survey data, conjoint analysis, and simple descriptive statistics, and cross tabulations to find the best marketing strategy when Generation Y is the target market. The results show that trans-fat free labels are effective, fat free labels are most likely effective, and sugar free labels are detrimental to increasing sales.
Date Created
2012-12
Agent

Innovative insurance products in food safety: pricing revenue insurance in the fresh spinach industry

151958-Thumbnail Image.png
Description
The lack of food safety in a grower's produce presents the grower with two risks; (1) that an item will need to be recalled from the market, incurring substantial costs and damaging brand equity and (2) that the entire market

The lack of food safety in a grower's produce presents the grower with two risks; (1) that an item will need to be recalled from the market, incurring substantial costs and damaging brand equity and (2) that the entire market for the commodity becomes impaired as consumers associate all produce as being risky to eat. Nowhere is this more prevalent than in the leafy green industry, where recalls are relatively frequent and there has been one massive E. coli outbreak that rocked the industry in 2006. The purpose of this thesis is to examine insurance policies that protect growers from these risks. In doing this, a discussion of current recall insurance policies is presented. Further, actuarially fair premiums for catastrophic revenue insurance policies are priced through a contingent claims framework. The results suggest that spinach industry revenue can be insured for $0.02 per carton. Given the current costs of leafy green industry food safety initiatives, growers may be willing to pay for such an insurance policy.
Date Created
2013
Agent

Economic analysis of implementing electronic traceability system for fresh produce importers

150406-Thumbnail Image.png
Description
The global demand and trade for fruits and vegetables is increasing at national and international levels. The fresh fruits and vegetables supply chain are highly vulnerable to contamination and can be easily spoiled due to their perishable nature. Due to

The global demand and trade for fruits and vegetables is increasing at national and international levels. The fresh fruits and vegetables supply chain are highly vulnerable to contamination and can be easily spoiled due to their perishable nature. Due to increases in fresh fruit and vegetable trade shipment volume between countries, the fresh food supply chain area is the highly susceptible and frequently prone to food contamination. The inability of firms in the fresh food business to have a good supply chain visibility and tracking system is one of the prominent reasons for food safety failure. Therefore, in order to avoid food safety risk and to supply safe food to consumers, the firms need to have an efficient traceability system in their supply chain. Most of the research in the food supply chain area suggests the implementation of a highly efficient tracking system called RFID (Radio frequency identification) technology to firms in the food industry. The medium scale firms in the fresh food supply chain business are skeptical about implementing the RFID technology equipped traceability system due to its high cost of investment and low margins on fresh food sales. This research developed two methods to measure the probability of food safety risk in food supply chain. These methods use the information gain from RFID traceability systems as a tool to measure the amount of risk in the fresh food supply chain. The stochastic optimization model is applied in this study to determine the risk premium by investing in RFID technology over the electronic barcode traceability system. The results show that there is a reduction in buyer (Type II error) and seller risk (Type I error) for RFID technology employed traceability system compared to electronic barcode system. It is found from stochastic optimization results that there is a positive risk premium by investing in RFID traceability system over the current systems and suggests the implementation of RFID traceability system for complex medium scale fresh produce imports to reduce the food safety risks. This research encourages the food industries and government agencies to evaluate alternatives to update supply chain system with RFID technology.
Date Created
2011
Agent