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Market Differentiation Potential of Country-of-origin, Quality and Traceability Labeling

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  • Verbeke, Wim
  • Roosen, Jutta

Abstract

Product labeling has gained considerable attention recently, as a means to both provide product-specific information and reduce quality uncertainty faced by consumers, as well as from a regulatory point of view. This article focuses on whether and to what extent origin, quality and traceability labeling is an appropriate way to differentiate food products. The focus is on fresh meat and fresh fish, two mainly generic food product categories with a high degree of credence character. Insights into the potential for market differentiation through origin, quality and traceability labeling are provided and discussed using primary data collected during the period 2000-2005 by means of four consumer surveys. In general, direct indications of quality, including mandatory information cues such as best-before dates and species names, but also including quality marks, are found to be more appealing to consumers in general than origin labeling, and the latter more than traceability. The different studies yield the conclusion that the market differentiation potential of origin and quality labeling pertains mainly to a product’s healthiness appeal, and this potential seems stronger for meat than for fish. The differentiation potential of traceability per se is rather limited. Instead, traceability is needed as the regulatory and logistic backbone for providing guarantees related to origin and quality.

Suggested Citation

  • Verbeke, Wim & Roosen, Jutta, 2009. "Market Differentiation Potential of Country-of-origin, Quality and Traceability Labeling," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(1).
  • Handle: RePEc:ags:ecjilt:48790
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    References listed on IDEAS

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    Cited by:

    1. Santeramo, Fabio Gaetano & Carlucci, Domenico & De Devitiis, Biagia & Seccia, Antonio & Stasi, Antonio & Viscecchia, Rosaria & Nardone, Gianluca, 2017. "Emerging trends in European food, diets and food industry," MPRA Paper 82105, University Library of Munich, Germany.
    2. Lilavanichakul, Apichaya & Boecker, Andreas, 2013. "Consumer Acceptance of a New Traceability Technology: A Discrete Choice Application to Ontario Ginseng," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 16(4).
    3. Lagerkvist, Carl Johan & Hess, Sebastian, 2014. "Consumer acceptance of an EU/non-EU label of origin of beef: an analysis of attribute attendance in a discrete choice experiment," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182744, European Association of Agricultural Economists.
    4. Demont, Matty & Rutsaert, Pieter & Ndour, Maimouna & Verbeke, Wim, 2013. "Reversing Urban Bias in African Rice Markets: Evidence from Senegal," World Development, Elsevier, vol. 45(C), pages 63-74.
    5. Egyir, Irene Susana & Adu-Nyako, Kofi & Okafor, Ralph, 2012. "The “Made in USA poultry label” and consumer choice in Ghana," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119745, Southern Agricultural Economics Association.
    6. Salamon, Petra & Weible, Daniela & Weber, Sascha & Christoph-Schulz, Inken, 2016. "Pros and Cons of Introducing a Mandatory Country of Origin Labelling for Dairy Products in Germany," 2016 International European Forum, February 15-19, 2016, Innsbruck-Igls, Austria 244520, International European Forum on System Dynamics and Innovation in Food Networks.
    7. Keith Walley & Paul Custance & Tan Feng & Xu Yang & Li Cheng & Sandra Turner, 2014. "The Influence of Country of Origin on Chinese Food Consumers," Transnational Marketing Journal, Transnational Press London, UK, vol. 2(2), pages 78-98, October.
    8. Balcombe, Kelvin & Bradley, Dylan & Fraser, Iain & Hussein, Mohamud, 2016. "Consumer preferences regarding country of origin for multiple meat products," Food Policy, Elsevier, vol. 64(C), pages 49-62.
    9. Verbeke, Wim & Pieniak, Zuzanna & Guerrero, Luis & Hersleth, Margrethe, 2012. "Consumers’ Awareness and Attitudinal Determinants of European Union Quality Label Use on Traditional Foods," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 2, August.
    10. Verena Otter & Bianca Prechtel & Ludwig Theuvsen, 2014. "The Country-of-Origin Effect for Chocolate made from Ecuadorian Cocoa: An Empirical Analysis of Consumer Perceptions," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 16(3), pages 43-60.
    11. Otter, Verena & Prechtel, Bianca & Theuvsen, Ludwig, 2014. "Der Country-Of-Origin-Effekt In Der Wahrnehmung Deutscher Verbraucher Von Schokolade Aus Ecuadorianischem Kakao: Herkunftsangaben Als Differenzierungspotential Für Lebensmittel Aus Außereuropäischen L," Discussion Papers 168526, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    12. Herrmann, Roland & Marauhn, Thilo & Teuber, Ramona, 2008. "Der Schutz geographischer Herkunftsangaben: Herausforderungen für agrarökonomische, rechtswissenschaftliche und interdisziplinäre Forschung," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 57(7).
    13. repec:eee:wdevel:v:98:y:2017:i:c:p:93-104 is not listed on IDEAS
    14. Bošková, Iveta & Ratinger, Tomáš & Kličková, Kristýna, 2016. "The food industry structure under the effect of increasing number of regional products and small processing entities in the Czech Republic," 149th Seminar, October 27-28, 2016, Rennes, France 244898, European Association of Agricultural Economists.
    15. Bremmers, Harry J., 2012. "An Integrated Analysis of Food Information to Consumers: Problems, Pitfalls, Policies and Progress," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144985, International European Forum on Innovation and System Dynamics in Food Networks.
    16. Bremmers, Harry J. & van der Meulen, Bernd M.J. & Sredojevi, Zorica & Wijnands, Jo H.M., 2012. "Legal-Economic Barriers to Price Transfers in Food Supply Chains," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 6.
    17. Chen, Xianwen & Alfnes , Frode & Rickertsen , Kyrre, 2015. "Labeling Farmed Seafood," Working Paper Series 10-2015, Norwegian University of Life Sciences, School of Economics and Business.
    18. Leidy K. García-Díaz & Wílmer S. Sepúlveda, 2013. "Variables sociodemográficas asociadas con la valoración de las indicaciones geográficas como herramienta de diferenciación de la producción agroalimentaria," REVISTA LEBRET, UNIVERSIDAD SANTO TOMAS - BUCARAMANGA, December.
    19. Lorenz, Bettina A. & Hartmann, Monika & Simons, Johannes, 2014. "Impacts from Region-of-Origin Labeling on Consumer Product Perception and Purchasing Intention – Causal Relationships in a TPB based Model," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182975, European Association of Agricultural Economists.
    20. Ruth, Taylor K. & Rumble, Joy N. & Settle, Quisto, 2016. "Narrowing the Gap: Preference and Awareness of Florida Strawberries," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), July.
    21. Alexander E. Saak, 2011. "A Model of Labeling with Horizontal Differentiation and Cost Variability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 1131-1150.
    22. Bremmers, Harry J. & van der Meulen, Bernd, 2013. "Opportunities, problems and pitfalls of nutrition and health claims," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 7(2-3).
    23. Viegas, Ines & Santos, Jose Manuel Lima & Fontes, Magda Aguiar, 2011. "Joint Production of Safer, Cleaner and Animal Friendlier Beef: Do Consumers Join it Too? - Insights from Focus Groups," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115551, European Association of Agricultural Economists.

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