Progress 10/01/02 to 09/30/07
Outputs
OUTPUTS: The entire project has been accomplished using computer data files of data collected by the USDA. Thus, the outputs of the project have been new knowledge and the development of new hypothesis. The primary area studied has been consumer choice of what are commonly thought of as either healthy or unhealthy foods. In particular, we have studied choice of restaurant type when dining out, that is, whether table service or fast food. Interest has focused on the role of nutrition knowledge and nurtition concern. A second aspect of the question was to examine the actual nutritional outcomes obtained by consumers when dining at these different types of restaurants. This was accomplished using USDA food survey data. We found important new knowledge regarding both of these questions. Knowledge has also been generated regarding whether consumers are consistent in their overall food purchase patterns as regards the perceived healthy or unhealthy aspects of foods. The method used was to
examine purchase patterns of foods by consumers segmented according to their purchases of one particular food. The foods chosen were orange juice and soft drinks, the latter segmented by type. We also studied the role of demographics and prices in consumer choice of breakfast cereal type and type of milk. All results have been disseminated by papers at professional meetings and journal articles, some of which are still being written. In the process of conducting these studies new hypotheses have also been generated. One is that the effect of income in consumer choice of healthy foods involves not only the budget constraint but also the fact that higher income individuals obtain more utility from increased health than do lower income individuals. This is important because the conventional view is that low income households have unhealthy diets because they can't afford nutritious foods. A second hypothesis is that differences in consumer knowledge are larger than may have been
previosly thought and these differences can have large effects on the affordability of diets. These questions will be addressed in new studies.
TARGET AUDIENCES: Food economists, dietitions and restaurant and food industry managers
Impacts
It was found that nutrition orientated consumers are less likely to choose fast food when dining out. This is in line with the conventional view, and is in accord with the negative publicity accorded to fast food fare. But it was also found that when dining out, the nutritonal content of meals chosen by consumers at table service restaurants was no better than those obtained from fast food restaurants, and sometimes worse. This was especially true of children. These results are important. It is likely that consumers believe that avoiding fast food is the key to avoiding nutritional pitfalls when dining out. In addition, most policy propositions, such as menu labeling, are directed to fast food. These results suggest that concern about food away from home should not be directed solely to fast food. The study also found that when supermarket shopping, consumers tend to be consistent: buyers of more nutritious foods in one category tend to make more nutritious choices in
all categories. Most households do not appear to focus on nutrition when food shopping. In particular, households with children and households with lower incomes tend to make poorer choices. The latter is true even when more nutritious versions of major food types, such as skim milk compared to whole milk, are cheaper. This is important, since it suggests that the income constraint is at least not the only reason that lower income households have less healthy diets.
Publications
- Binkley, James, and Alla Golub, Comparison of Grocery Purchase Patterns of Diet Soda Buyers to Regular Soda Buyers, Appetite, 49, 2007.
- Binkley, James, Calorie and Gram Comparison Between Meals at Fast Food and Table Service Restaurants, Review of Agricultural Economics, forthcoming 2008.
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Progress 10/01/05 to 09/30/06
Outputs
Work has continued along two fronts, one dealing with food away from home and one with retail food purchasing at supermarkets. Regarding the first, previous work in the project has has found that the nutritional quality of food consumers choose in sit down restaurants is on average worse than food obtained at non fast food restaurants. The reason is that the nutritional content of food from both types is worse than home prepared food, and people eat more and hence gain more calories when dining at table service than at fast food restaurants. This is true despite the problem of so-called super sizing. It was found that while the average size of items purchased at fast food restaurants is larger, fewer items are purchased. It is reasonable to believe that this is due to the fact that consumers must pay for each item separately, and because they have reasonably accurate knowledge of the sizes being purchased. In table service restaurants, this is much less likely:
consumers often do not know how much food they are buying until the meal is served. Sizes have been increasing, and published research has shown that consumers tend to eat more when served more. Work using retail purchasing data has been confined to one question. In the past twenty years consumption of soft drinks has increased dramatically. Most of this is caloric soft drinks, but diet soft drinks have also increased, and on a percentage basis they have risen more. A question that has been investigated on an experimental basis is whether consumption of diet soft drinks leads to a net calorie reduction in the diet. If consumers knowingly or unknowingly compensate by increasing caloric intake via other foods, diet drinks may not help control calories, and could even make things worse. Experimental research has led to mixed results, perhaps a reflection of its inherently artificial nature. In this project we use an extensive set of household grocery purchase data to investigate this
question. Purchase patterns of consumers who buy high levels of diet soft drinks are compared to other consumers. Our results suggest that consumers of high levels of diet soda tend to spend their grocery budget on more nutritious foods than do other kinds of consumers, especially than those who buy only caloric soft drinks. As a result, the total calories obtained from foods purchased at supermarkets are lower for diet soda drinkers.
Impacts
There is no doubt that consumers food choices play a significant role in health and well being, a fact underscored by the growing problem of obesity. Much blame has been leveled at the restaurant industry, about which there is much negative publicity. Much of this is leveled at fast food and its tendency to super size. Our research has shown that consumers tend to eat more when dining at table service restaurants than at fast food restaurants. This is true of children as well as adults. The reason is that while sizes are indeed larger at fast food restaurants, fewer individual items are purchased. One reason is that consumers know the sizes when they purchase them. This is less true at other restaurants, where consumers have less knowledge of the total size of the meal. This suggests efforts to increase nutrition information about restaurant should certainly not be confined to fast food chains.
Publications
- Binkley, James K. The Effect of Demographic, Economic, and Nutrition Factors on the Frequency of Food Away from Home. The Journal of Consumer Affairs 40(2): Winter 2006,372-391.
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Progress 10/01/04 to 09/30/05
Outputs
Work has continued along two fronts, one dealing with food away from home and one with retail food purchasing at supermarkets. Regarding the first, previous work in the project has investigated the fact that the nutritional quality of food consumers choose in restaurants is on average worse,especially with regard to calories,than what they prepare at home. This is well known, but it is also widely believed that this mainly applies to fast food. The previous works has shown this latter to be erroneous, that food obtained at non fast food restaurants is on average no better and in many cases more nutritionally damaging than is fast food. A problem with the conventional wisdom is that it may have generated the view that as long as fast food is avoided, one need have little concern with nutrition when dining out. The second part of the study has completed an investigation of the role of nutrition concerns and knowledge on the decision to consume fast food and non-fast
food outside the home. It was found that people with greater nutrition concerns and higher knowledge are less likely to consume fast food, but these factors have virtually no effect on use of table service restaurants. We conclude that there is at least indirect evidence that nutritional information concerning food away from home is deceptive , and, given the fact that nutritional effects,especially calories obtained,from other types of restaurants may actually be worse, may be worsening the obesity problem. A second part of the study involves retail food purchasing behavior. Here we concentrate on three of the most important supermarket food categories: breakfast cereal, milk, and bread. We are examining the healthiness of household choice in these categories. The hypothesis is that nutritional differences within these categories are relatively easy to discern. For example, with milk it is simply a matter of fat content. This will enable us to obtain a clearer picture of the role of
other factors determining the type of these foods selected by households. We are especially interested in income and the effect of children. Preliminary results show that lower income households and households with children choose lower nutrition cereals milk, and bread. The income result is of particular interest, for healthier versions of these foods are if anything cheaper than less healthy forms. Our preliminary conclusion is that in some cases the relatively low nutrition diets of low income households may not simply be due to budget constraints or absence of nutrition knowledge. It may also be due to emphasis on food taste over nutrition, since health is a highly income elastic good.
Impacts
There is no doubt that consumers food choices play a significant role in health and well being, a fact underscored by the growing problem of obesity. Much blame has been leveled at the restaurant industry, about which there is much negative publicity. However, nearly all of this is leveled at fast food, to the point of resulting in lawsuits against fast food firms. While there is considerable evidence that fast food diets are less nutritious than food eaten at home, the assumption on the part of many consumers is that food from standard restaurants is much better, especially with respect to calories. This study found this not generally true, even for children, primarily because people eat less at fast food outlets. We believe this reflects that diners must pay for all items individually. This finding is important because a second finding is that consumers more concerned with nutrition are more likely to avoid fast food and choose full service fare. To the extent this
is a response to conventional wisdom, it is an information failure and a matter to be considered in setting food policy.
Publications
- Alla Golub and James K Binkley, Consumer Choice of Breakfast Cereal, Paper presented at the meetings of the American Agricultural Economics Association, Providence, Rhode Island, July, 2005.
- Binkley, James K. The Effect of Nutrition Concerns on the Dining Out Decision, Paper presented at the meetings of the American Agricultural Economics Association, Providence, Rhode Island, July, 2005.
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Progress 10/01/03 to 09/29/04
Outputs
Recent work has followed two themes. The first deals with how food away from home affects daily nutrition. Findings have been that nutrition on a day with a meal eaten at a commercial establishment is worse than on a day with no such such meal; in particular, intake of fat and calories is higher. This varies by consumer characteristic, and we find evidence that those with more nutrition knowledge and those more concerned with nutrition are less affected by dining out. We also find that, if anything, a fast food meal is less damaging than is a meal at a table service restaurant, including for children. Nevertheless, most of the negative publicity regarding the role of dining out in the growth of obesity has been aimed at fast food. Currently, we are examining whether this may have affected consumer choice between fast food and table service restaurants. The second theme deals with consumer food purchase patterns at retail supermarkets. Our main goal is to examine
household scanner data and measure associations between product purchases, emphasizing foods with salient nutritional features, i.e. especially high or low nutrition. We wish to find out whether there are household types who routinely make their purchases with nutrition in mind and whether there are significant numbers who routinely ignore it. This effort is underway, with the primary tool being cluster analysis. We have also completed a study of calcium-enhanced orange juice, and found that consumers with more education are more likely to buy this product, as are buyers of other foods perceived as healthy, e.g., fruits and vegetables. They are less likely to buy items like potato chips. Currently, we are conducting a more extensive analysis of breakfast cereals, for which we have collected extensive nutritional information for a large number of cereal brands.
Impacts
There is no doubt that consumers food choices play a significant role in health and well being, a fact underscored by the growing problem of obesity. Much blame has been leveled at the restaurant industry, especially at fast food, about which there is much negative publicity. This research supports previous studies in showing that dining out lowers nutrition and increases caloric intake, but it also suggests that this may be worse at table service restaurants. This study is examining whether publicity directed mostly against fast food is likely to have affected the choice of restaurant type. Preliminary results suggest it has, and (more generally) that consumers concerned about nutrition may be less likely to dine out in the first place. This concern appears to be more important than the extent of nutrition knowledge . This suggests consumers poor dining habits when eating out may be more due to a failure of will than to a lack of nutrition information. Perhaps more
policy attention should be directed to instilling the critical importance of good nutrition and not just providing explicit information of exactly how to achieve it.
Publications
- Alla Golub, James J Binkley, and Mark Denbaly, "Purchasing Patterns for Nutritional-Enhanced Foods: "The case of Calcium-Enriched Orange Juice." Paper presented at the meetings of the American Agricultural Economics Association, Denver, Colorado, August, 2004.
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Progress 10/01/02 to 09/30/03
Outputs
Studies on consumer price knowledge--or lack thereof--were completed. One involved the tendency to buy large sizes of packaged food products when the unit price is higher than with smaller sizes. Consumers use large size as an indicator of low price, rather than checking prices themselves. The second study involved using brand names as an indicator of food product quality to avoid a careful comparison of different brands of the same food product. We found that consumers seem to be willing to pay a large premium for an advertised good. Current work is concentrating on nutritional aspects of information. Our main interest is to examine shopping patterns in scanner data to see if there is evidence that they are heavily affected by what is believed to be widely available nutritional knowledge. Another study is examining nutrient intake data to try to shed light on whether nutrition knowledge and nutrition concerns affect consumers' decision to eat restaurant foods or
affect the types of food they choose when dining away from home.
Impacts
Food shopping is viewed as a chore by many consumers, and as a consequence they use short-cuts like "always buy the big size" to help them in making quick buying decisions. Sources like Consumer Reports often point out that this may not be wise. This research supports this, and shows that very large savings are possible with only modestly more attention when buying food. This should be especially important for low income households, who have been shown to be if anything more prone to employ shopping shortcuts. This has implications for programs such as the Food Stamp program, which perhaps could be improved with incentives to purchase better buys. The role of nutrition knowledge in food away from home is currently a major policy issue. However, there is little if any information available as to whether nutrition knowledge or its lack affects choice when dining in restaurants or fast food outlets. If the current study can shed light on this question, it can help shape
appropriate regulatory policy concerning the provision of nutrition information for food away from home.
Publications
- Binkley, James, and John Bejnorowizch, "Consumer Price Awareness in Food Shopping: The Case of Quantity Surcharges." Journal of Retailing, 79(1), Winter 2003, 27-35.
- Eales, James, and James Binkley, "Vertical Differentiation in Theory and Practice: An Empirical Note." Journal of Agricultural and Food Industrial Organization,1(2003)1, Article 16.
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Progress 10/01/01 to 09/30/02
Outputs
Work has continued on a study of childhood obesity and food source. Parents' weight and diet behavior have been found important, as has whether the female head is the primary food preparer. Food away from home has, if anything, a positive effect. A study of differences in obesity among siblings as it relates to differences in diet and activity is in its initial stages. Further work on a study of relations between sales of cereal by brands and health awareness is ongoing in preparation of a resubmitted proposal that was nearly accepted recently. A data set consisting of all grocery purchases (item-by-item) for 1999 by a panel of 7200 households across the US has been obtained. It is being used to analyze consumer factors related to purchasing functional foods and will be used to examine the 'deal prone' household as it relates to the cost of information.
Impacts
In purchasing food, the consumer faces thousands of choices. Obtaining information on these choices is a costly process. These can cause the consumer to pay more than necessary, and can impede the consumer's attempt to select nutritious foods. We are examining factors that affect these costs, both as they relate to consumer types and to the provision of information by food companies and the government. Such knowledge can lead to measures that reduce the cost of information to the consumer.
Publications
- Binkley, J., P. Canning, R. Dooley, and J.S. Eales. 2001. "Competitive Behavior in Orange Juice Markets." Fruit and Tree Nuts Situation and Outlook. (Sept 2001):48-56.
- Binkley, J., P. Canning, R. Dooley, and J.S. Eales. 2002. "Consolidated Markets, Brand Competition, and Orange Juice Prices." Agriculture Information Bulletin No. 747-06. USDA ERS, June, 2002. 12 pp.
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Progress 10/01/00 to 09/30/01
Outputs
We have extended an on going study of childhood obesity and food source to include measures of parents' weight and diet behavior. This suggest significant relations, varying with children's ages. Food away from home has, if anything, a positive effect. Data collection for a study of relations between sales of cereal by brands and health awareness and cancer incidence has been completed. The next step is a historical analysis. A pilot study examining the effect of food stamp benefits on market-level sales of grocery product categories and of brands vs. private labels has been conducted. Initial results suggest that food stamps tend to favor healthier food product categories, and they do not appear to shift purchases to higher cost brands.
Impacts
There is considerable controversy regarding the relation between the nature of the diet and long-term disease. Both food product sales and disease incidence vary considerably across U.S. regions. This study is examining whether they are related. Results suggest there may be important linkages. For example, markets with relatively high cereal consumption appear to have relatively low incidence of dietary cancer.
Publications
- Jekanowski, Mark and James Binkley. 2000. "Food Purchase Diversity Across US Markets." Agribusiness, 16:4, 417-433.
- Binkley, J., J. Eales, M. Jekanowski, and R. Dooley. 2000. "Competitive Behavior of National Brands: The Case of Orange Juice." Agribusiness, 17:(1), 139-160.
- Jekanowski, Mark, James Binkley, and James Eales. 2000. "Demand for Fast Food Across Metropolitan Areas." Forthcoming in Journal of Agricultural and Resource Economics.
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Progress 10/01/99 to 09/30/00
Outputs
A previous study examining the relation of obesity to food source in adults is being extended to children. We find that consumption of food away from home, especially fast food, is associated with overweight, although TV viewing and inactivity is more important.A large data set involving regional data on sales of specific cereals and regional mortality has been constructed. An initial study has shown that regions with low incidence of dietary cancer are regions with consumption of cereals with more fiber. We plan to extend the study to determine what demographic factors are associated with market shifts over time to higher fiber cereals. We have also conducted a study examining market acceptance of calcium-enhanced orange juice. We found that markets with young women and with children are where this health enhanced item is popular.
Impacts
There is considerable controversy regarding the relation between the nature of the diet and long term disease. Every study seems to contradict previous studies. We are examining relations between regional sales of specific foods and regional mortality data. Initial results for major cancers appear to broadly support current dietary recommendations. Also, a study relating individual obesity to source of food has suggested a positive effect of food eaten in restaurants, especially fast food, lending tentative support to a belief that this change in the U.S. diet has contributed to rising U.S. obesity.
Publications
- Binkley, J.K., J.S. Eales, and M Jekanowski, "The Relation Between Dietary Change and Rising U.S. Obesity." International Journal of Obesity 24 (2000):1032-1039.
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Progress 10/01/98 to 09/30/99
Outputs
A study examing the relation of obesity to food source has been completed. It was found that consumption of food away from home, especially fast food, is associated with overweight. this result, based on survey data, is different from our previous study, which used state averages. A very large data set has been constructed and is being used to examine the association betweem regional disease incidence and regional sales of specific types of food. Preliminary results, concentrating on major cancers, show promise. However special methods are needed to find patterns among the myriads of relations we are currently concentrating on particular types of breakfast cereals. A spearate study to examine consumer demand for health enhanced varieties of foods is underway. We are using calcium fortified refrigerated and frozen orange juice, for which we have collected a detailed data on prices and quantities for 54 U.S. marketing regions. This study is part of a larger study
examining competitive behavior of sellers.
Impacts
There is considerable controversy regarding the relation between the nature of the diet and long term disease. Every study seems to contradict previous studies. We are examining relations between regional sales of specific foods and regional mortality data. Initial results for major cancers appear to broadly support current dietary recommendations, but they also suggest other possibilities.
Publications
- No publications reported this period
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