Introduction
Since consumers are understood to have the final say on which food
products succeed in the market, this section of the research looked at
their willingness to purchase chickens fed HAP corn. HAP corn was
presented in two versions, one GM and the other non-GM. These two
were additionally compared to consumer pruchase likelihood for chickens
fed other feeds, including the popular BT corn. Information was
also collected on consumer knowledge and concern regarding phosphorus
pollution and GM foods.
Methods
A mailing list was purchased from USAData containing 1500
people in the states of Delaware, Pennsylvania, New Jersey and Maryland. The final survey design allowed for
investigating consumer willingness to purchase chickens fed GM HAP or non-GM
HAP corn, as well as fed conventional (non-GM) corn, Bt corn, and Roundup Ready
corn. Since we expected knowledge of
these feeds and phosphorous pollution to be limited, we included a description
sheet for each in the mailing. Conjoint
analysis was used in the construction of the survey questions.
Next, the mailing
list was divided into three strata of 500 each, with the first representing
locations where phosphorus pollution should be the highest and the other two
progressively further away. Each of
these parts was further constructed to be half male and half female as both of
these factors were hypothesized to be important in willingness to
purchase. After accounting for
undeliverable surveys, the total response was 585 of 1456, or 40%. This was believed to be a large response
rate, especially given the potential complexity of the topic for many
consumers.
Analysis of survey data was conducted using a Tobit
regression model, including quadratic and two-way interaction terms, and
corrected for heteroskedasticity. The
base model included feed types and prices.
Given the large number of possible demographic and other characteristics
of the respondents, a modeling process was constructed that looked in turn at interactions
with gender, age, income, education level, location (strata 1, 2 or 3), race
and having children under 18 present in the household. Categories found to be significant were added
to the base model. The results of all
these tests were used to construct a final model.
Findings
Results showed that consumers have serious concerns about
phosphorus pollution and may be willing to help the issue by purchasing
chickens fed HAP corn. Certain segments
of consumers did have greater interest.
The most interesting demographic finding was an interaction of age with
feed type. Interest in chicken fed
conventional feed decreased steadily with age from being the most popular at
age 20 to least desired at age 80.
Interest in HAP corn products increased steadily with age so that by age
45, non-GM HAP corn had the greatest likelihood of purchase.
In all situations, likelihood to purchase chickens fed GM
HAP was essentially parallel to non-GM HAP corn, but lower. Thus, given a choice between the two, consumers
will clearly select chickens fed non-GM HAP.
This is consistent with previous studies showing consumer reluctance to
purchase GM versions of food products, while extending the finding into an area
where the product has an environmental benefit.
This lower acceptance of GM foods may be due to the perception of a
large percentage of the respondents that GM foods can lead to long term health
problems. For such individuals, these
concerns can outweigh potential environmental benefits.
A larger issue with regard to the GM version however may be
the lack of knowledge regarding the technology and the extent of its use in the
food system. Almost 66% of the consumers
reported little or no knowledge of GM foods.
Ignorance could therefore be another main cause of consumer distrust of
GM foods and reduced purchase likelihood.
An increase in consumer knowledge of GM foods or a move towards labeling
of such products may significantly alter results. The study shows that a large number of
consumers read product labels. GM
labeling may affect consumer purchasing decisions and is an avenue for
additional investigation.
Price, as expected, was another key factor in purchasing
decisions. Price was found to interact
with gender, race and education level with the findings that, in general,
females, African-Americans, and those with some college education are more
sensitive to price changes. Also, as
would be suggested by consumer theory, income had a positive effect on the
likelihood of purchasing chicken.
Interestingly, however, there were no interactions between type of feed
and price. This suggested consumer
purchasing decisions adjusted with price changes in a similar fashion for each feed
type.
While acknowledging some of the concerns above, it
seemed reasonable to conclude that both non-GM HAP and GM HAP would be accepted
by consumers although there may be a need to educate younger consumers. The former would clearly have an advantage in
the marketplace, at least in the absence of a stronger marketing and
educational campaign for the GM version.
Implications
Consumers should benefit from this research. Results give an indication of what some of
their concerns are, what sorts of information they would like, and an idea of
how they may want to help environmental issues through their food purchases. Products matching consumer demand increase their
utility. Individuals who enjoy fishing and
the waterways will also benefit, with increased tourism aiding local economies
as well.