Importance of EU Label Requirements: An Application of Ordered Probit Models to Belgium Beef Labels
The objective of this paper is to determine which information cues related to quality and origin really attract consumer interest, specified as the level of attention paid to and perceived importance attached to label cues. The focus is (1) on indications of quality through quality marks, (2) on indications referring to the mandatory European beef labelling regulation, and (3) on indications reflecting origin. Data are collected from a sample of 278 beef consumers in Belgium. Ordered probit models are specified and estimated to assess the impact of household characteristics and a beef labeling information campaign. Findings reveal that consumer interest is generally low for traceability, moderate for origin and high for direct indications of quality. Interest in label cues is specifically low among younger males. Further, the publicity campaign had a measurable positive impact on consumer's attention to direct indications of quality and origin. Strategies including traceability for backing up on-label indications of quality are recommended.
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