IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03079779.html
   My bibliography  Save this paper

The official quality signs influence on prices and volumes: the case of organic fresh eggs
[L’influence du label Bio sur les prix et les ventes : Le cas des oeufs]

Author

Listed:
  • Jessica Bosseaux

    (UM - Université de Montpellier)

  • Philippe Aurier

    (UM - Université de Montpellier, MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier)

  • Alain François-Heude

    (IUT Montpellier – Sète - Institut Universitaire de Technologie - Montpellier - UM - Université de Montpellier, MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier)

Abstract

The use of organic official quality sign is growing for animal products production in France. Past researches have assessed the market performance of organic using attitudinal data. This paper investigates the impact of organic label on market performance using real market data. We use the hedonic price formation to understand the value of organic and the influence of store types in price formation. To complete the understanding of the organic official quality sign in the market, we calculate the price elasticity of organic among the other egg marks. Our results reveal a positive trend for higher quality products, and that core organic consumers are not price-sensitive, which increase market performance. This effect is mitigated by the store type which commercializes the organic product, highlighting the importance of the interaction between the two quality signals.

Suggested Citation

  • Jessica Bosseaux & Philippe Aurier & Alain François-Heude, 2019. "The official quality signs influence on prices and volumes: the case of organic fresh eggs [L’influence du label Bio sur les prix et les ventes : Le cas des oeufs]," Post-Print hal-03079779, HAL.
    • Handle: RePEc:hal:journl:hal-03079779
    Note: View the original document on HAL open archive server: https://hal.science/hal-03079779
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03079779/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fabrice Larceneux & Florence Benoît-Moreau & Valérie Renaudin, 2012. "Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects," Post-Print hal-00656485, HAL.
    2. Kiesel Kristin & Villas-Boas Sofia B, 2007. "Got Organic Milk? Consumer Valuations of Milk Labels after the Implementation of the USDA Organic Seal," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(1), pages 1-40, April.
    3. Faical Akaichi & Rodolfo M. Nayga, Jr & José M. Gil, 2012. "Assessing Consumers’ Willingness to Pay for Different Units of Organic Milk: Evidence from Multiunit Auctions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 60(4), pages 469-494, December.
    4. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    5. repec:dau:papers:123456789/7842 is not listed on IDEAS
    6. Ngobo, Paul Valentin, 2011. "What Drives Household Choice of Organic Products in Grocery Stores?," Journal of Retailing, Elsevier, vol. 87(1), pages 90-100.
    7. Ivan Dufeu & Jean-Marc Ferrandi & Patrick Gabriel & Marine Le Gall-Ely, 2014. "Multi-labellisation socio-environnementale et consentement à payer du consommateur," Post-Print hal-02055512, HAL.
    8. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    9. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    10. Kehlbacher, A. & Bennett, R. & Balcombe, K., 2012. "Measuring the consumer benefits of improving farm animal welfare to inform welfare labelling," Food Policy, Elsevier, vol. 37(6), pages 627-633.
    11. Auger, Pat & Devinney, Timothy M. & Louviere, Jordan J. & Burke, Paul F., 2008. "Do social product features have value to consumers?," International Journal of Research in Marketing, Elsevier, vol. 25(3), pages 183-191.
    12. Hooley, Graham J. & Greenley, Gordon E. & Cadogan, John W. & Fahy, John, 2005. "The performance impact of marketing resources," Journal of Business Research, Elsevier, vol. 58(1), pages 18-27, January.
    13. Florence Benoît-Moreau & Fabrice Larceneux & Valérie Renaudin, 2012. "Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects," Post-Print halshs-00673075, HAL.
    14. Chang, Jae Bong & Lusk, Jayson L. & Norwood, F. Bailey, 2010. "The Price of Happy Hens: A Hedonic Analysis of Retail Egg Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(3), pages 1-18, December.
    15. Kiesel Kristin & Villas-Boas Sofia B, 2007. "Got Organic Milk? Consumer Valuations of Milk Labels after the Implementation of the USDA Organic Seal," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(1), pages 1-40, April.
    16. Fabrice Larceneux & Florence Benoit-Moreau & Valérie Renaudin, 2012. "Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects," Journal of Consumer Policy, Springer, vol. 35(1), pages 85-104, March.
    17. Karipidis, Philippos I. & Tsakiridou, Efthimia & Tabakis, Nikolaos M. & Mattas, Konstadinos, 2005. "Hedonic Analysis of Retail Egg Prices," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(3), pages 1-6, November.
    18. Brian Roe & Ian Sheldon, 2007. "Credence Good Labeling: The Efficiency and Distributional Implications of Several Policy Approaches," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 1020-1033.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jessica Bosseaux & Philippe Aurier & Alain François-Heude, 2019. "The Effects of Organic Label on Marketing Performance (Prices, Sales, and Margins) [Les Effets du Label Bio sur la Performance Marketing (Prix, ventes et marges)]," Post-Print hal-03079843, HAL.
    2. Syed Badruddoza & Andrea C. Carlson & Jill J. McCluskey, 2022. "Long‐term dynamics of US organic milk, eggs, and yogurt premiums," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 45-72, January.
    3. Matthias Staudigel & Aleksej Trubnikov, 2022. "High price premiums as barriers to organic meat demand? A hedonic analysis considering species, cut and retail outlet," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 309-334, April.
    4. Eva Tebbe & Korbinian von Blanckenburg, 2018. "Does willingness to pay increase with the number and strictness of sustainability labels?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 41-53, January.
    5. Cosmina Bradu & Jacob Orquin & John Thøgersen, 2014. "The Mediated Influence of a Traceability Label on Consumer’s Willingness to Buy the Labelled Product," Journal of Business Ethics, Springer, vol. 124(2), pages 283-295, October.
    6. Carlson, Andrea & Jaenicke, Edward, 2016. "Changes in Retail Organic Price Premiums from 2004 to 2010," Economic Research Report 242448, United States Department of Agriculture, Economic Research Service.
    7. Machiel J. Reinders & Jos Bartels, 2017. "The roles of identity and brand equity in organic consumption behavior: Private label brands versus national brands," Journal of Brand Management, Palgrave Macmillan, vol. 24(1), pages 68-85, January.
    8. Hwang, Jiyoung & Chung, Jae-Eun, 2019. "What drives consumers to certain retailers for organic food purchase: The role of fit for consumers’ retail store preference," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 293-306.
    9. Moon, Donghyun & Kim, Sanghyo, 2021. "Implicit Values of Functional Attributes of Fluid Milk Products: Hedonic Analysis of Korean Fluid Milk Market," 2021 Annual Meeting, August 1-3, Austin, Texas 313948, Agricultural and Applied Economics Association.
    10. Kathleen Jacobs & Jacob Hörisch, 2022. "The importance of product lifetime labelling for purchase decisions: Strategic implications for corporate sustainability based on a conjoint analysis in Germany," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1275-1291, May.
    11. van Doorn, Jenny & Verhoef, Peter C., 2011. "Willingness to pay for organic products: Differences between virtue and vice foods," International Journal of Research in Marketing, Elsevier, vol. 28(3), pages 167-180.
    12. Richard Friberg & Mark Sanctuary, 2018. "Market stealing and market expansion: an examination of product introductions in the organic coffee market," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(2), pages 287-303, April.
    13. Clinton Amos & Anthony Allred & Lixuan Zhang, 2017. "Do Biodegradable Labels Lead to an Eco-safety Halo Effect?," Journal of Consumer Policy, Springer, vol. 40(3), pages 279-298, September.
    14. Coderre, François & Sirieix, Lucie & Valette-Florence, Pierre, 2022. "The facets of consumer-based food label equity: Measurement, structure and managerial relevance," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    15. Gumirakiza, Jean Dominique & VanZee, Sarah, 2018. "The Most Important Food Labels among Online Shoppers when Shopping for Fresh Produce," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266683, Southern Agricultural Economics Association.
    16. Gildas Appéré & Muriel Travers, 2021. "The sum of all the fears: the role of attitude towards health and environmental risks in the WTP a premium for organic foods [La somme de toutes les peurs : le rôle de l'attitude face aux risques s," Working Papers hal-03250688, HAL.
    17. Tomislav Vukina & Danijel Nestic, 2020. "Paying for animal welfare? A hedonic analysis of egg prices," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 613-630, October.
    18. Edward C. Jaenicke & Andrea C. Carlson, 2015. "Estimating and Investigating Organic Premiums for Retail‐Level Food Products," Agribusiness, John Wiley & Sons, Ltd., vol. 31(4), pages 453-471, October.
    19. Wei, Wei & Kim, Gaeul & Miao, Li & Behnke, Carl & Almanza, Barbara, 2018. "Consumer inferences of corporate social responsibility (CSR) claims on packaged foods," Journal of Business Research, Elsevier, vol. 83(C), pages 186-201.
    20. Debra Riley & Peter Martins da Silva & Sabrina Behr, 2015. "The Impact of Packaging Design on Health Product Perceptions," International Conference on Marketing and Business Development Journal, The Bucharest University of Economic Studies, vol. 1(1), pages 81-89, July.

    More about this item

    Keywords

    organic label; performance; price; market; store; marché; type de distributeurs; label Bio; prix;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03079779. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.