Abstract

The behavior among peers may be interpreted as useful information in individuals' decision processes, although such observational learning is typically not accommodated in consume choice models. This study incorporates information about other consumers' behavior in a choice experiment to evaluate if it affects choice probabilities. Market share is used as a proxy to signal that a product is chosen by many of the individual's peers. Although the effect is associated with diversity, there is a segment of individuals that perceive high market shares to carry relevant information for their food purchasing decision. Respondents who expect to hold similar or more positive preferences towards an unfamiliar food attribute relative to their peers are positively affected by a high market share. Taking information signals from peers' behavior into account may improve understanding of consumer behavior and improve our ability to predict the reception of new food aspects. [EconLit Citations: Q18; D12; D83].

Published in

Agribusiness
2020, Volume: 36, number: 3, pages: 482-498
Publisher: WILEY

SLU Authors

• Edenbrandt, Anna Kristina

  • Department of Economics, Swedish University of Agricultural Sciences
    

Sustainable Development Goals

End hunger, achieve food security and improved nutrition and promote sustainable agriculture


UKÄ Subject classification

Food Science
Learning


Publication identifier

DOI: https://doi.org/10.1002/agr.21638

Permanent link to this page (URI)

https://res.slu.se/id/publ/106960