Interactions between Country-of-Origin, Brands and Food-Safety-Certificates in the Promotion of Beef in Germany – What is the Right Labelling Strategy? – A Consumer Preference Analysis on the Basis of a Conditional Logit Model –

Profeta, Adriano (2008): Interactions between Country-of-Origin, Brands and Food-Safety-Certificates in the Promotion of Beef in Germany – What is the Right Labelling Strategy? – A Consumer Preference Analysis on the Basis of a Conditional Logit Model –.

Abstract

This paper focuses on the deeper analysis of the interaction between Country-of-Origin, QUALITY & SAFETY labels, retailer brands and individual specific data with the target of identifying the best labelling strategies for the GERMAN BEEF market. For this purpose Discrete-Choice-method was applied. The empirical findings have interesting implications with respect to information economics in general, and the signalling effects of GIs, brands and QUALITY & SAFETY -labels in particular. Economic theory suggests that certificates reduce information asymmetries as far as consumers attribute product quality to producers' participation in quality assurance schemes. However, CO-labelled products may already be associated with a superior quality, rendering additional certification less effective. The results show a tendency in that direction. Mostly negative or no interaction effects for the analysed QUALITY & SAFETY-Country-of-Origin combinations were found. Nevertheless, there is the possibility that control labels can support the sales of certain origin as shown for the combination of BAVARIAN BEEF and CONTROLLED QUALITY-BAVARIA.

• Item Type: MPRA Paper
• Language: English
• Keywords: Country-of-Origin; Discrete Choice; Labelling
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D18 - Consumer Protection; D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis; D - Microeconomics > D9 - Intertemporal Choice > D91 - Intertemporal Household Choice ; Life Cycle Models and Saving; P - Economic Systems > P4 - Other Economic Systems > P46 - Consumer Economics ; Health ; Education and Training ; Welfare, Income, Wealth, and Poverty

References

Alfnes, F. (2004). Stated Preferences for imported and hormone-treated beef: application of a mixed logit model. In: European Review of Agricultural Economics, 31 (1): 19-37.

Alpert, M.I. (1971). Identification of Determinant Attributes. A Comparison of Methods. Journal of Marketing Research, 8: 184-191.

Alvensleben, R. (2000). Verbraucherpräferenzen für Produkte aus Schleswig-Holstein. Schriftenreihe der Agrar- und Ernährungswissenschaftlichen Fakultät der Universität Kiel, Heft 90, 215-223.

Anderson, W.T., & Cunningham, W.H. (1972). Gauging Foreign Product Promotion. Journal of Advertising Research, 12, 29-34.

Arfini, F. (2003). OLP characteristics, evolution, problems and opportunities. WP 5 Final Report of the EU-Project Development of Origin Labelled Products: Humanity, Innovation and Sustainability. http://www.origin-food.org/pdf/wp5/wp5final.zip.

Balling, R. (1990). Marketing-Konzeption für einen Markenartikel Rindfleisch. Sonderheft der Agrarwirtschaft Nr. 125.

Balling, R. (1995). Der Herkunftsaspekt als Erfolgsfaktor für das Lebensmittelmarketing. Berichte über Landwirtschaft, 73, 83-106.

Balling, R. (1994). Das Image Deutschlands und deutscher Lebensmittel im Ausland – ein Vergleich mit Bayern, Implikationen für das Gemeinschaftsmarketing für Nahrungsmittel. GFK-Jahrbuch der Absatz und Verbrauchsforschung, Heft 1, 40 Jg., 48-82.

Balling, R. (2000). Ergebnisse von Verbraucherbefragungen zur Bedeutung der regionalen Herkunft bei Nahrungsmitteln. In Dachverband Agrarforschung (Eds.), Regionale Vermarktungssysteme in der Land-, Ernährungs- und Forstwirtschaft – Chancen, Probleme und Bewertung (19-37). Frankfurt am Main: DLG-Verlag.

Becker, T. (2000). Country of Origin as a Cue for Quality and Safety of Fresh Meat. In: Sylvander, B., Barjolle, D., Arfini, F. (ed.): The socio-economics of origin labelled products in agrifood supply chain: spatial, institutional and co-ordination aspects. Economie et sociologie rurales, Actes et Communications No. 17-1, INRA-UREQUA, Le Mans, pp. 187-208.

CMA & ZMP (2002). Umfrage Nahrungsmittel aus der Region – Regionale Spezialitäten. Bonn.

Bennett, J. & Adamowicz, V. (2001). Some Fundamentals of Environmental Choice Modelling. In Bennett, J. and Blamey, R., The Choice Modelling Approach to Environmental Valuation. Cheltenham: Edward Elgar, 37-69.

Cleveland, W.S. (1979). Robust Locally Weighted Regression and Smoothing Scatterplots. Journal of the American Statistical Association, Vol. 74, pp. 829-836.

Costanzo, C.M., Halperin, W.C., Gale, N.D. & Richardson G.D. (1982). An Alternative Method for Assessing Goodness-of-fit for Logit Models. Evironment and Planning, A14, 963-971.

Dornoff, R.J., Tankerley, C.B., White, G.P. (1974). Consumer’s perception of Imports. Akron Business and Economic review, Summer, 26-29. Dougherty, C. (1992). Introduction to Econometrics. Oxford University Press, New York/Oxford.

DPMA (2007). Bayerisches Rindfleisch, Rindfleisch aus Bayern. Fassung der Spezifikation, auf die sich der stattgebende Beschluss bezieht. Deutsches Markenblattt, Heft 33 vom 17.08.2007, Teil 7c: 15072- 15073.

Regulation (EC) No. 510/06 from 20th March 2006 for the Protection of Geographical Indiactions and Desginations of Origin for Agricultural Products and Food.

Elliot, G., & Cameron, R. (1994). Consumer Perception of Product Quality and the Country-of-Origin Effect. Journal of International Marketing, 2, 49-62.

Enneking, U. (2003). Die Analyse von Lebensmittelpräferenzen mit Hilfe von Discrete-Choice-Modellen am Beispiel ökologisch produzierter Wurstwaren. Agrarwirtschaft, Heft 5, 254-267.

Enneking, U. (2004). Willingness-to-pay for safety improvements in the German meat sector: the case of the Q&S label. European Review of Agricultural Economics, Vol. 31, No. 2, pp. 205-223.

Fedorov, V.V. (1972). Theory of Optimal Experiments. Translated and edited by Studden W.J., Klimko E.M., Academic Press, New York.

Felsenstein, J. (1981). Evolutionary trees from DNA sequences: a maximum likelihood approach. Journal of Molecular Evolution, 17, 68-376.

Hahn, C. (1997). Conjoint- und Discrete-Choice-Analyse als Verfahren zur Abbildung von Präferenzstrukturen und Produktwahlentscheidungen – Ein theoretischer und computergestützter empirischer Vergleich. LIT-Verlag, Münster.

Han, C.M. (1988). The Role of Consumer Patriotism in the Choice of Domestic versus Foreign Products. Journal of Advertising Research, 2, 25-32.

Huelsenbeck, J. P., & Crandall, K. A. (1997). Phylogeny estimation and hypothesis testing using maximum likelihood. Annual Review of Ecology and Systematics, 437-466.

Ittersum, K. (2001). The Role of Origin in Consumer Decision-Making and Choice. PhD-thesis, Wageningen University.

Johannson, J.K, Ronkainen, I.A., Czinkota, M.R. (1994). Negative Country-Of-Origin Effects: The Case of the New Russia. Journal of International Business Studies, First Quarter, 157-176.

Kohler, U., & Kreuter, F. (2001). Datenanalyse mit Stata – Allgemeine Konzepte der Datenanalyse und ihre praktische Anwendung. Oldenbourg Verlag, München.

Kreitmeier, A. (2000). Die Integration der Erzeugerstufe in Qualitätsmanagementsysteme der Nahrungsmittelwirtschaft am Beispiel Fleisch. Diplomarbeit Technische Universität München, Weihenstephan.

Kühn, R. (1993). Das „Made-in“-Image Deutschlands im internationalen Vergleich. Marketing, Zeitschrift für Forschung und Praxis (ZFP), 2, 119-127.

Landon, Stuart und Smith, Constance E. (1998): Quality Expectations, Reputation, and Price. In: Southern Economic Journal, Vol. 64, 628-647.

Long, J.S. (1997). Regression Models for Categorical and Limited Dependent Variables. Thousand Oaks: Sage Publications.

Louviere, J.J., Hensher, D., Swait, J. (2000). Stated Choice Methods: Analysis and Application. Cambridge University Press, Cambridge.

Loureiro, M.L., & McCluskey, J. (2000). Assessing Consumer Response to Protected Geographical Identification Labeling. Agribusiness, 3, 309-20.

McFadden, D.L. (1974). Conditional Logit analysis of qualitative choice behaviour. In: Zambreka, R. (ed.): Frontiers in Economics. Academic Press, New York, pp. 105-142.

Obermiller, C., & Spangenberg, E. (1989). Exploring the Effects of Country of Origin Labels: An Information Processing Framework.Advances in Consumer Research, Vol. 16, 454-459.

Olson, J., & Jacoby, J. (1972). Cue Utilization in the Quality Perception Process. In: Vekatesan M. (ed.): Proceedings of the Third Annual Conference of the Association for Consumer Research. Association for Consumer Research, 169-179.

Peri C., & Gaeta D., (2000). La nécessaire réforme de la réglementation européenne des dénominations de qualité et d'origine. Économie rurale, n° 258, juillet-août, 42-53.

Profeta, A. (2006). Der Einfluss geschützter Herkunftsangaben auf das Konsumentenverhalten bei Lebensmitteln - Eine Discrete-Choice-Analyse am Beispiel Bier und Rindfleisch. Studien zum Konsumentenverhalten, Bd. 7 Hamburg 2006

Profeta, A., Enneking, U., Balling, R. (2006). Geschützte Herkunftsangaben – Status Quo und Entwicklung der Nutzung der Verordnung (EWG) 510/2006. Agrarwirtschaft, Heft 8.

Profeta, A., & Balling, R. (2007). Evaluierung der Übergangsregelung des Herkunftsschutzes bei Agrarprodukten und Lebensmitteln in Europa und Verbesserungsvorschläge für die anstehende Neumodifikation. Agrarwirtschaft, Heft 4, S. 213-223.

Sattler, J. (1991). Herkunfts- und Gütezeichen im Kaufentscheidungsprozeß: Die Conjoint-Analyse als Instrument der Bedeutungsmessung. M&P, Stuttgart.

Schooler, R.D. (1971). Bias Phenomena Attendant to the Marketing of Foreign Goods in the US. Journal of International Business Studies, Vol. 2, 71-80.

Shimp, T., & Sharma, S. (1987). Consumer Ethnocentrism: Construction and Validation of the CETSCALE. Journal of Marketing Research, Vol. 28, August, pp. 320-330.

Urban, D. (1993). Logit-Analyse. Statistische Verfahren zur Analyse von Modellen mit qualitativen Response-Variablen. Gustav Fischer Verlag, Stuttgart.

Wheatley, J.J., Chiu, J.S., Goldman, A. (1981). Physical Quality, Price and Perceptions of Product Quality: Implications for Retailers. Journal of Retailing, 2, 100-116.