Labelling Characteristics and Demand for Retail Grocery Products in Australia

12 Pages Posted: 18 Jun 2008

See all articles by Paul H. Jensen

Paul H. Jensen

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Elizabeth Webster

Swinburne University of Technology; University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Abstract

This paper examines whether labelling characteristics affect short-run demand for manufactured foods in Australia. We estimate the effect of common labelling characteristics on demand using data from 92 brands in 12 product categories from major supermarket stores across Australia over the period 2002 to 2005. We find that certain characteristics - such as whether the product is made from recycled materials, certified as being Australian-made, is a private label product, is health-conscious or supports a charity - have a positive effect on demand. However, being an environmentally-friendly good had a negative impact on demand as did products which offer the chance to win a prize and uncertified Australian-made goods.

Suggested Citation

Jensen, Paul H. and Webster, Elizabeth M., Labelling Characteristics and Demand for Retail Grocery Products in Australia. Australian Economic Papers, Vol. 47, Issue 2, pp. 129-140, June 2008, Available at SSRN: https://ssrn.com/abstract=1147231 or http://dx.doi.org/10.1111/j.1467-8454.2008.00336.x

Paul H. Jensen (Contact Author)

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Elizabeth M. Webster

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

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