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Does Shelf-Labeling of Organic Foods Increase Sales?: Results from a Natural Experiment
Dalarna University, School of Technology and Business Studies, Economics. HUI Research, Regeringsgatan 60, SE -103 29 Stockholm, Sweden.
Dalarna University, School of Technology and Business Studies, Economics. HUI Research, Regeringsgatan 60, SE -103 29 Stockholm, Sweden.
2014 (English)In: Journal of Retailing and Consumer Services, ISSN 0969-6989, E-ISSN 1873-1384, Vol. 21, no 5, p. 804-811Article in journal (Refereed) Published
Abstract [en]

Can a simple point-of-purchase (POP) shelf-label increase sales of organic foods? We use a random-effects׳, random-coefficients׳ model, including a time adjustment variable, to test data from a natural experiment in a hypermarket in Gävle, Sweden. Our model incorporates both product specific heterogeneity in the effects of labeling and consumer adjustment to the labels over time. We find that the introduction of POP displays leads to an increase in sales of organic coffee and olive oil, but a reduction in sales of organic flour. All targeted products became less price-sensitive. The results reveal that product specific differences have to be accounted for, and in some cases consumers adjusted to labeling over time.

Place, publisher, year, edition, pages
London: Elsevier, 2014. Vol. 21, no 5, p. 804-811
Keywords [en]
Product labeling; Random coefficient models; Ecological products; Experimental economics
National Category
Economics
Research subject
Complex Systems – Microdata Analysis, General Microdata Analysis - retail
Identifiers
URN: urn:nbn:se:du-14684DOI: 10.1016/j.jretconser.2014.06.009Scopus ID: 2-s2.0-84905994856OAI: oai:DiVA.org:du-14684DiVA, id: diva2:735169
Available from: 2014-07-23 Created: 2014-07-23 Last updated: 2021-11-12Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
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  • chicago-note-bibliography
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  • de-DE
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  • nn-NB
  • sv-SE
  • Other locale
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Output format
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