The interaction between country of origin and genetically modified orange juice in urban China

Abstract

Although consumer preference for genetically modified (GM) food and country of origin (COO) labeling has been studied extensively, little research has examined the interaction effect between these two attributes. Previous research has demonstrated the importance of the interaction effect between food quality attributes. Moreover, production and international trade of GM crops are increasing simultaneously. As both mandatory GM and COO labeling can be used as non-tariff barriers, there is a need to better understand the interaction effect of GM and COO attributes on consumer preference. This study uses mall intercept surveys to investigate Chinese consumer preference for COO and GM foods, as well as the impact of COO on consumer preference for GM foods. A mixed logit model is estimated to incorporate the preference heterogeneity and correlation in the alternatives of a choice experiment (mixed logit + error component model). Results show consumers have a negative willingness to pay for GM orange juice from all countries, but the discounts associated with GM orange juice vary greatly; the discount for US GM juice is the lowest followed by that from Australia, China, Brazil, and Israel. Furthermore, consumer preference is more heterogeneous for GM juice than for conventional juice, implying more uncertainty regarding GM food quality from different countries.