Influence of Food Signals on Consumer Choice
This research attempts to examine the application of signaling theory to determine the influence of food attributes, specifically, search, experience and credence attributes on consumer choices. It also explores the extent to which consumers are willing to pay a premium for the given attributes. Lastly, consumer’s responses to a picture along with word description versus word description alone. Discrete Choice Experiment was used to assist in analyzing the influence of each attribute choice by analyzing search, experience and credence attributes and the level of price sensitivity. Findings indicate clear preferences to attributes; especially credence based attributes have the highest influence on consumer choice. From a policy maker and marketing standpoint, this finding is indicative of the fact that consumers do use information provided on food packages.