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How Fragile is the Credibility of a Quality Label? A Quasi-Natural Experiment Using the Example of Stiftung Warentest

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  • Hildenbrand, Andreas
  • Kühl, Rainer
  • Piper, Anne

Abstract

In 2013, Stiftung Warentest tested hazelnut chocolate for their leading magazine, called Test. Stiftung Warentest is one of the most important consumer organizations in Germany. Ritter Sport is a high-quality producer of chocolate in Germany. Their hazelnut chocolate did not pass the test. It was given the grade of unsatisfactory. Stiftung Warentest accused Ritter Sport of labeling an artificial flavoring as a natural flavoring. Ritter Sport rejected the accusation. They went to court and won the trial. Using the Ritter Sport versus Stiftung Warentest case, we analyze whether negative headlines really undermine the credibility of a quality label by examining Stiftung Warentest and their Test label. In addition, we examine what can be done to restore or, more generally, increase the credibility of a quality label. Based on a quasi-natural experiment, we find that the negative headlines on Stiftung Warentest have undermined the credibility of the Test label. We also find that the credibility of the Test label can be restored by providing reference values to the tests, strengthening the independence of Stiftung Warentest, and using laboratory methods in the tests.

Suggested Citation

  • Hildenbrand, Andreas & Kühl, Rainer & Piper, Anne, 2015. "How Fragile is the Credibility of a Quality Label? A Quasi-Natural Experiment Using the Example of Stiftung Warentest," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209189, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi15:209189
    DOI: 10.22004/ag.econ.209189
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    References listed on IDEAS

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    1. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
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    5. Andreas Hildenbrand & Rainer Kühl, 2014. "Ritter Sport und Stiftung Warentest: Informationsdefizite überwinden," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 94(3), pages 217-220, March.
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    Keywords

    Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; Marketing;
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