Does Supplementary Information Add Value to Functional Food? Evidence from a Choice Experiment in China

Abstract

Establishing an effective choice architecture system enables people to improve their ability to make better food choices and encourage transformation of the food system into one that is more efficient, healthy, and sustainable. However, affecting consumer preferences by improving information supply is still a crucial issue that has not been comprehensively explored in China and many developing countries. This study aimed to identify the most effective information treatment method for increasing the likelihood of purchase and willingness to pay (WTP) for nutritionally enhanced eggs. A survey with five information treatments and a choice experiment was completed by a random sample of 2379 Chinese consumers, and the mixed logit model was subsequently applied to interpret the results. It was found that when nutritional information (NI), health benefit information (HBI), and/or market status quo information (MSQ) was presented to consumers, their utility increased. Different schemes had different effects on participants’ WTP. The HBI from scientific research institution, provided in the form of leaflets, has the most significant effect on improving WTP, increasing the WTP of consumers by 31.65%. WTP for functional eggs increased similarly in response to NI and MSQ information. However, adding NI to HBI did not significantly increase the value of functional eggs, especially when the information was presented to the interviewees in the form of short videos. This research broadens the present knowledge and application of an information communication strategy by suggesting that the combination of information content, carriers, source influence consumer preference and WTP for nutritionally enhanced eggs. The results have implications for the communication practices of food enterprises to optimize their marketing strategies and improve product innovation to add more value to the functional food.