Price versus Non-price Incentives for Participation in Quality Labeling: The Case of the German Fruit Juice Industry

Quality assurance and labeling play an important and increasing role in firms’ marketing strategies. In almost all cases, a price incentive has been stressed as the major incentive for firms to participate in such schemes. We argue here that important non-price incentives for participation in quality labeling may exist, too. In German retailing, it can be observed that discount retailers are listing more and more foods with quality labels. Processors may then participate in voluntary quality labeling in order to enter the large and growing market of discount retailers. The price-premium versus the market-entry hypothesis are analyzed theoretically. We investigate then in an empirical hedonic pricing model for the German fruit juice market and for participation in the quality label of the Deutsche Landwirtschafts-Gesellschaft (DLG) which of the two hypotheses is consistent with the data. There is strong support for the market-entry hypothesis.


Editor(s):
Schiefer, Gehard
Issue Date:
2013-07
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN 1869-6945 (Other)
PURL Identifier:
http://purl.umn.edu/164779
Published in:
International Journal on Food System Dynamics, Volume 04, Number 1
Page range:
51-63
Total Pages:
13
JEL Codes:
L660; M380; Q130




 Record created 2017-04-01, last modified 2017-08-27

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