This paper examines how positive or negative perceptions about innovation affect firms' strategic behavior when certifying their products. In particular, we consider two types of firm (innovative and noninnovative) which choose between three signals: (a) certified claim, (b) uncertified claim, and (c) no claim. The consumer, either exhibiting positive or negative perceptions, is uninformed about the firm's type and only observes the firm's claim. We find that a separating equilibrium arises in which information about the innovation is revealed to consumers. We also identify a pooling equilibrium in which both types of firm choose the same claim, concealing information from consumers. We show that regulation requiring mandatory certification can hinder information transmission. Our results also indicate that changes in product perceptions do not necessarily facilitate information transmission. 1 | INTRODUCTION Consumers' perceptions toward innovations are heterogeneous and usually differ to the average scientific opinion; see Messer, Costanigro, and Kaiser (2017). 1 Positive or negative perceptions 1 Funk et al. (2015) examine the discrepancies about scientific innovations between the U.S. citizens and experts of the American Association for the Advancement of Science (AAAS). For instance, 87% of experts from AAAS indicate that climate change is mostly a consequence of human activity, however, only half of the U.S. adults agree, and only 37% sustain it is a grave problem. With regard to genetically modified organisms (GMOs), 88% of the experts maintain that are safe, while only 37% of Americans believe that GMOs are safe. 6 Environmental certification costs (monetary fees and time) vary across programs, certifying agencies, and countries. For example, the minimum annual certification fee for the label supported by the non-GMO Project is approximately US$1,300, which can be considerably scaled-up as the number of verified products increase and additional services like inspectors are required. On average, the process can take from 3 to 6 months.

A home-use test (HUT) is one method that provides a measure of ecological validity as the product is consumed in home under common daily use circumstances. One product that benefits from being evaluated in-home are ready-to-eat (RTE) meals. This study determined consumer acceptance of microwave-thermally-pasteurized jambalaya, a multi-meat and vegetable dish from American Cajun cuisine, and a control (cooked frozen jambalaya) through an on-line home-use test (HUT) over a 12-week storage period. Paralleling the HUT, an online auction determined consumers’ willingness to pay. The study also explored how the social environment may impact the liking of the meals when a partner of the participants joined the sensory evaluation of the meals. Consumers (n = 50) evaluated microwave-processed jambalaya stored at 2 °C and a control (cooked frozen jambalaya stored at −31 °C) after 2, 8 and 12 weeks of storage. Consumer liking of different sensory attributes was measured. Participants could choose to share the meals with a partner as a way to enhance ecological validity. The responses from 21 partners to the sensory-related questions were collected. After the sensory evaluation, the participants bid on the meal they had just sampled. Results showed that processing method (microwave vs. control) did not significantly influence the measured sensory attributes. Only flavor liking decreased over storage time (p < 0.05). The inclusion of partners significantly increased (p = 0.04) the liking of the appearance of the meals. The mean values of the bids for the meals ranged from $3.33–3.74, matching prices of commercially available jambalaya meals. This study found suggests that the shelf- life of microwave-processed meals could be extended up to 12 weeks without changing its overall liking. The study also shows the importance of exploring HUT methodology for the evaluation of consumers’ acceptance of microwave-processed jambalaya and how including a partner could contribute to enhance ecological validity.

A sensory evaluation using a home-use-test (HUT) setting and experimental online auctions at three storage times, were used to elicit willingness to pay (WTP) for two samples of ready meals with extended shelf life, one using microwave assisted pasteurization system (MAPS) and the other using freezing. The effect of the information on the name of a new technology and the environmental impacts associated with each technology was also measured. We found that sensory characteristics of the ready meal are the key drivers for subjects' WTP. Considering the specific context of this study, we did not find evidence that the name of the technology and the information on the environmental impacts associated with each technology impacted participants' WTP. Practical ApplicationsOur study contributes by presenting a protocol for conducting a combined HUT and online auction across three storage times for a complex food matrix (i.e., the jambalaya ready meal) in which the eating environment is important. Also influential is that participants actually ate the meal, therefore the sensory evaluation results that were gathered were more impactful for bids than the extrinsic attributes included. Given the logistic challenges of conducting a HUT along with experimental auctions across time, this study had a limited number of participants. Therefore, we cannot provide a conclusive evidence that disclosing the name of the technology used and its effects on the environment would encourage purchase of ready meals. | INTRODUCTIONThe area of food choice behavior includes psychological, social, economic, as well as sensory studies. The perception of sensory quality attributes is impactful to the WTP but do not fully explain food choice behavior (Jaeger, 2006). In fact, literature on food choice shows that extrinsic factors such as individuals' perceptions and preferences for aspects different from the actual sensory profile of the food have an impact on choice