Eco-labels are important features of many natural resource and food markets. They certify that a product has some desirable unobserved quality, typically related to a public good such as being sustainably produced. Two issues that have received limited attention are whether pricing varies across different eco-labels that may compete with each other and to what extent different retailers charge different prices. Using a unique data set of salmon prices in eight different United Kingdom retail chains, we investigate these issues by estimating a price-attribute model that includes two eco-labels and one country-of-origin label. Results show substantial variation in the prices of the different eco-labels and that eco-label premiums vary across retail chains. Specifically, salmon certified with the Marine Stewardship Council (MSC) label has a high premium in low-end retail chains but no statistically significant premium in the high-end chains. These findings question the ability of the MSC label to transmit consumer willingness-to-pay for public goods through the supply chain to incentivize sustainable management. In contrast, premiums for organic certification are similar in magnitude across retailer types. In general, failure to account for retailer heterogeneity will over-or under-estimate a label's premium. 2 Pricing of Eco-labels with Retailer HeterogeneityAbstract Eco-labels are important features of many natural resource and food markets. They certify that a product has some desirable unobserved quality, typically related to a public good such as being sustainably produced. Two issues that have received limited attention are whether pricing varies across different eco-labels that may compete with each other and to what extent different retailers charge different prices. Using a unique data set of salmon prices in eight different United Kingdom retail chains, we investigate these issues by estimating a price-attribute model that includes two eco-labels and one country-of-origin label. Results show substantial variation in the prices of the different eco-labels and that eco-label premiums vary across retail chains. Specifically, salmon certified with the Marine Stewardship Council (MSC) label has a high premium in low-end retail chains but no statistically significant premium in the high-end chains. These findings question the ability of the MSC label to transmit consumer willingness-to-pay for public goods through the supply chain to incentivize sustainable management. In contrast, premiums for organic certification are similar in magnitude across retailer types. In general, failure to account for retailer heterogeneity will over-or under-estimate a label's premium.
The retail market for seafood is dynamic with substantial competition both amongst retailers and between private labels and national brands. New product attributes are added in attempts to differentiate products and to attract consumers. Credence attributes, in particular those related to eco-labels and fishing method, have become more common. But little is known about how these and other credence attributes are valued in the retail market. In addition, little is known about price differences between private labels. To estimate the value of these attributes, weekly in-store observations of selected frozen whitefish products were conducted in seven UK retail chains in the city of Glasgow. An estimated hedonic model shows a substantial price premium for fishing method (line-caught), a premium for both home (Scottish) and non-home country of origin (Icelandic) and a premium for the Marine Stewardship Council eco-label. An uncertified eco-label owned by a large seafood manufacturer leads to reduced price. The study also reveals substantial price differences between private labels for whitefish. The results contribute new insights regarding opportunities for differentiation by credence attributes which may lead to more sustainable and effective resource use along the value chain for frozen whitefish.
Purpose -The purpose of this paper is to explore the use of ambivalence in benefit-based segmentation of convenience food in Norway. Design/methodology/approach -Building on the attitude-ambivalence literature and research about food convenience, a hierarchic cluster analysis is performed based on a nation-wide representative survey of 1,154 Norwegian consumers. Findings -The study's effort to use attitudinal ambivalence as a basis for benefit or attitude segmentation proved to be useful in finding segments with different profiles in the area of convenience food. The results reveal three consumer segments based on evaluation of quality, value, ambivalence and perceived morals towards convenience food: the "Convenient", the "Ambivalent", and the "Dissatisfied" consumer. While the Convenient have positive feelings and the Dissatisfied negative feelings toward convenience food, the Ambivalent have mixed feelings and feel guilt when eating ready meals. The ambivalent consumers share beliefs, attitudes, values and behaviour at a position somewhere between the "Convenient" and the "Dissatisfied" on most variables. However, in some areas they are close to the "Dissatisfied", e.g. on variables such as perceived nutritional value, serving/buying ready meals, time used for making dinner or planning their meals. In a few areas they are closer to the "Convenient", e.g. appeal to children, consuming, soups and pasta, and age above 60. Research limitations/implications -Future research on benefit or attitudinal segmentation should consider including a measure of perceived ambivalence associated with the investigated products or services. Practical implications -The practical implications are addressing a potential for the convenience food industry and subsequently suggesting a positioning strategy to adopt ambivalent consumers. Originality/value -The paper presents new insights into consumer benefit segmentation and in empirical research on convenience food with a particular focus on ambivalence and moral attitudes.
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