Evaluating front-of-pack voluntary well-being messaging for milk powders targeting Chinese older adults: A hedonic price model.

This study examines the price structure of milk powders targeting Chinese older adults, with special emphasis on the assessment of front-of-pack (FOP) voluntary well-being messaging (VWM), using a hedonic price model. Data of 456 sets of product prices and attributes were collected from official stores at online shops, TMALL.com and JD.com, in China. Prices were recorded 10 d before, during, and 10 d after a major online promotion event (November 11, 2021). A hedonic price model was employed to decompose explicit market prices into individual product attributes implicit prices, including essential attributes, such as milk source, brand origin, package material, and nutritional composition, and nonessential attributes conveyed by FOP VWM, regarding nutrition, ingredients, health, sensory qualities, and certification. Results showed that above and beyond essential attributes, nonessential attributes conveyed by FOP VWM were significantly associated with price. Specifically, significant price premiums were associated with dietary fiber claims (+12.7%), no added sugar (+19.0%) and potential health benefits (+19.3%), as nutrition-, ingredient-, and health-related FOP VWM respectively. However, nutrition claims regarding calcium and fat were negatively associated with price (-21.2% and -8.0%, respectively, when they were presented). Additionally, nutrition claims for protein and vitamin D, introducing farm environment, referring to imported ingredients, declaring specific ingredients added, describing sensory characterizes and providing certificates on FOP were not significantly associated with price in this market. These findings provide manufacturers with information to better differentiate their products by producing and advertising attributes most valued by consumers.