Consumers' response on the labels of fresh fruits and related implications on pesticide use

The use of labels on fresh fruits have significantly influenced and transformed the fresh produce market over the last decade. While it is well-known from the literature that food labels notably shape consumers' choices and consequently their willingness to pay (WTP) incremental premiums for products with specific attributes, very few studies have paid particular attention to the fresh fruit labels that indicate good production practices and methods. The aim of this article is to evaluate consumers' attitudes toward labels in fresh apples, to examine their WTP for apples with various labels indicating specific production methods, and to reveal the labels’ importance in implementing environmentally friendly and healthy production practices. Specifically, factors affecting consumers' choices for specific apple quality attributes are examined in combination with attitudes and beliefs toward 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 WTP for apples with a specific label was estimated and the implications of the results for the producers, the market, and policy-making are discussed.