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Private labels and public quality standards: How can consumer trust be restored after the mad cow crisis?

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  • Éric Giraud-Héraud

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  • Lamia Rouached

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  • Louis-Georges Soler

    ()

Abstract

In those sectors faced with questions of food safety (meat, fruit, vegetables), new private labels have been set up in Europe in order to restore consumer trust. In this paper, we perform a theoretical analysis of these private labels. We propose an original model of vertical relationships between producers and retailers which takes into account two supply sources through (i) a competitive spot market on which the retailers buy a minimum quality standard product and (ii) supply contracts aimed at marketing higher quality private labels. We study how producers and retailers could cooperate in setting up these new labels. From a public point of view, we show the complementarity of a moderate increase in public quality standards and the creation of these new private labels. Copyright Springer Science + Business Media, LLC 2006

Suggested Citation

  • Éric Giraud-Héraud & Lamia Rouached & Louis-Georges Soler, 2006. "Private labels and public quality standards: How can consumer trust be restored after the mad cow crisis?," Quantitative Marketing and Economics (QME), Springer, vol. 4(1), pages 31-55, March.
    • Handle: RePEc:kap:qmktec:v:4:y:2006:i:1:p:31-55
    DOI: 10.1007/s11129-006-2777-5
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    References listed on IDEAS

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    Cited by:

    1. Aubert, Magali & Enjolras, Geoffroy, 2015. "Do short food supply chains go hand in hand with environment-friendly practices?," 2015 Conference, August 9-14, 2015, Milan, Italy 211623, International Association of Agricultural Economists.
    2. Vanessa von Schlippenbach & Isabel Teichmann, 2012. "The Strategic Use of Private Quality Standards in Food Supply Chains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1189-1201.
    3. Caprice, Stéphane & Von Schlippenbach, Vanessa & Wey, Christian, 2014. "Supplier Fixed costs and Retail Market Monopolization," TSE Working Papers 14-524, Toulouse School of Economics (TSE).
    4. Kariuki, Isaac Maina & Loy, Jens-Peter & Herzfeld, Thomas, 2012. "Farmgate Private Standards and Price Premium: Evidence From the GlobalGAP Scheme in Kenya's French Beans Marketing," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 42-53.
    5. Eric Giraud-Héraud & Cristina Grazia & Abdelhakim Hammoudi, 2012. "Explaining the Emergence of Private Standards in Food Supply Chains," Working Papers hal-00749345, HAL.

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