Country of Origin Labeling Impact on Consumer Purchasing Decisions

Perception plays an important role in the human assessment process. This construction of an image is based on many factors, including race, religion, national origin, income, gender, marital status - in short, the summation of our life experiences. An important consideration for the methodology consumers utilize for purchase decisions has been also referred to as the Country of Origin (COO) effect. This individual bias based on perceptions and attitudes has a significant impact on how consumers make their purchasing decisions. The 2008 Farm Bill legislation contained a requirement for country of origin labeling (COOL) for beef, lamb, pork, and other products. This paper examined some of the 2008 Farm Bill\u27s impact on consumer\u27s purchasing decisions regarding beef and related meat protein products. Of a potential population of over 700 respondents, 161 responses were received. Correspondence analysis and preferences indicated by the respondents were used to analyze the results. Respondents were mostly well educated, white, in higher income brackets, and split about 60%-40% between male and female. Food safety is considered important and respondents generally believe that the US food supply is safe. Over 40% of respondents had no knowledge of COOL and its background, but about 70% of respondents believed that COOL should be mandatory for all meat products studied. The majority of respondents (111 of 161) indicated that they would be willing to pay $0.25 to $1.00 per pound more for COOL. However when asked about the likeliness to pay, 25%-30% indicated that they were Not at all Likely or Somewhat Likely to pay. The correspondence analysis results indicated that beef was a product eaten more often, but considered expensive. Chicken was eaten more often and considered inexpensive and healthful. Turkey was a product considered healthful and inexpensive. Lamb was considered expensive, while pork was inconclusive in the two dimensions used. The results of this study provide information for producers, purveyors, retailers, and the government on the importance of COOL as perceived by consumers, and their willingness to pay for this labeling