Consumers' Response on the Labels of Fresh Fruits

While consumers have used to buy fresh fruits as generic products (apples, pears, etc.), nowadays, these products are differentiated by origin, appearance, cultivation method and this is reflected to the consumer through food labels. Food labels influence consumers’ choices and often reveal their willingness to pay small or large price premiums for products with specific attributes. The aim of the present paper is to evaluate consumers’ attitudes towards labels in fresh apples, and to examine their willingness to pay more to buy apples with different labels indicating the specific production methods applied. Specifically, factors affecting consumers’ choices for specific apple quality attributes are examined in combination with attitudes and beliefs towards the significance of the label, the certification process and the use of pesticides. In order to elicit price premiums for specific labels, the Becker-DeGroot-Marschak (BDM) mechanism was applied, which puts people in an active market environment dealing with real money and products. Based on the revealed price premiums the demand for apples with a specific label was estimated.